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Nigeria: The Economy and 21 Years of Democracy

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Timi Olubiyi

By Timi Olubiyi, Ph.D

The fact that there has been political stability and democratic governance since 1999 is a laudable development for the country and it makes Nigeria a desired investment destination. A stable democracy for 21 years gives a good perception of the country despite the many challenges.

Although, where there is economic growth, there should be increases in outputs of some variables, such as the national product, human capital, national income, improved level of technology, health, education, urbanization and infrastructures among others.

Consequently, the federal government and regulators need to wake up and continue to improve on these aforementioned variables and also strive to provide an enabling environment for sustainable economic development.

Nigeria, Africa’s most populous country, is still heavily reliant on oil. Crude oil represents more than 80 percent of total export revenue, according to the Organization of the Petroleum Exporting Countries (OPEC).

The price of Brent, the benchmark for Nigeria’s crude oil fell below $25 a barrel for the first time since 1999, reaching a two-decade low in April 2020 mainly due to demand fall on fuel and energy globally.

Although oil prices have doubled to $40 per barrel in the last one month, the Naira can be under continuous pressure with reduced foreign exchange from crude oil earnings.

The decline in foreign earnings with global shock in crude oil demand or price has been detrimental to economic development over the years and for the year 2020 budget considerably. Because it could threaten the implementation of the federal fiscal budget and the financial stability of the State governments with heavy reliance on federal allocations for salary payments, project implementations, and bills payments, all due to reduced export crude oil revenue expectations.

Consequently, it is pertinent to note as a country, we must explore other avenues to make our economy viable rather than depend solely on crude oil for foreign earnings

The option is to focus on the non-oil sectors and give it optimal attention such as the manufacturing, agriculture, information technology, and most importantly the SME sector which can drive job creation, improve industrialization, increase GDP performance, and play a crucial role in the process of economic growth.

It is important to state that broadening revenue base with the non-oil sector looks opaque if there is no guarantee of at least a steady power supply, as this is the sustaining force of any productivity in an economy.

A steady power supply in Nigeria will affect the economic activities in the country and the cost of doing business. The country’s economy can only attain and maximize its potential if there is a consistent power supply. The government needs to do more in ensuring the availability of this very important infrastructure in the country.

The drive for foreign direct investment also needs to be intensified. Agreeably, to attract more investors and deepening the country’s economy, corruption, insecurity, rule of law, inadequate infrastructure, feeble economic policies, and the current macroeconomic uncertainty challenges need to improve to attract foreign investors and in the improvement of our environment.

Formulating appropriate policies to attract FDI is crucial at this time especially Post-COVID because it will greatly improve foreign capital inflows.

Significantly, much attention needs to be given to the issue of persistent insecurity in the country and the anti-corruption drive of the government needs to be stiffened to attract applaudable foreign portfolio investments into the country, which in turn will boost employment.

Furthermore, the policy of ease of doing business in Nigeria can be upgraded to include foreign portfolio investment policy options needs to reflect in the policy. Furthermore, FDI-incentives (tax-related) needs to considerably increase to attract foreign participation in our economic landscape, this is important because it will assist with economic recovery Post COVID.

That said, the way it is right now, the Nigerian crude oil revenue expectation has declined by more than 60 percent due to the current realities especially the dwindling crude oil prices.

The initially assumed benchmark according to the Ministry of Finance was oil price at $57 a barrel, reduced to $30 a barrel, and now further revised to a worst-case scenario of $20 a barrel. In the same vein, the benchmark production was also cut to 1.7 million barrels per day (bpd), from the 2.1 million bpd initially proposed in the year 2020 budget.

These are part of measures to meet the fiscal year budget expectations. However, cut in excessive and heavy recurrent expenditures is suggested for significant and positive impact. The country may need to observe austerity measures in all arms of government.

Significant cuts need to be made to our national overheads and non-essential statutory spending. Our economy will strive more on infrastructure development spending, not on recurrent expenditures.

Consequently, the investment could be concentrated more on health, education, and infrastructure development. To avoid being a debtor nation, debt financing is bad at this time if it is secured only to finance consumption.

If we improve on infrastructure the economy of Nigeria will bloom because it will impact the non-oil sector and create job opportunities.

Because of the impact of the COVID-19, the Central Bank of Nigeria (CBN) on behalf of the federal government can include further economic stimuli to non-oil sectors to boost production, reduce job loss, and enhance economic activities in Nigeria especially the agriculture sector and the SME sector.

As it stands, our country has a readily available market because of the huge consumer population but there is a need for government to remove factors that have continued to constrain the SME sector such as erratic power supply, decrepit infrastructure, and excessive tax burden among others.

SMEs and the agriculture sector can create employment opportunities, boost exportation activities, improve the Nigerian economy, and boost foreign exchange earnings if the sector improves.

Besides, government and stakeholder palliatives, policy reforms, sound initiatives, and social intervention programs targeted at reducing the effect of COVID-19 pandemic, and unemployment are important at this time to reduce the negative economic impact of the pandemic.

The economic impact of the deadly virus is very high and perhaps the government might need to consider more pragmatic palliatives such as social and fiscal policy palliatives, concessions on import trades because Nigeria is import-dependent, duties and port charges waiver to reduce the value chain disruptions and improve service deliveries, more low-interest credit facilities and tax breaks- particularly cutting taxes to increase and improve disposable income needs to be considered at this time.

Most SMEs run their businesses on loan facilities and the current situation has impeded their capacity to service these loans effectively, so government intervention is required to forestall massive business shut down.

As a nation high importation, capital flight, and weak capital importation are some of the challenges that the government should face with policy responses to reduce the negative impact on the country’s economy.

It is advised that the pandemic requires priority attention and a collaborative mechanism to flatten the COVID-19 curve of incidence progression and also yield measurable results.

For the sustainability of our democracy, I encourage the government to consider citizen engagement more and also strengthen the harmonization of national citizen database (BVN, driver’s license, national passport, NIN among others).

Citizen data management, in my opinion, is a developmental infrastructure that can provide critical insights into the trend of human actions, practices, behaviours, and social impacts. It can help in a variety of other ways, such as public service improvement, designing of policies, public health development, public safety, national security, national development, and poverty reduction. It can also help in developing empirically-proven techniques for fostering human and capital development.

In conclusion, citizen participatory approach to governance and for public agenda-setting is strongly recommended. Happy democracy Nigeria!

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

Dr Timi Olubiyi is an Entrepreneurship and Small Business Management expert. He is a prolific investment coach, Chartered Member of the Chartered Institute for Securities & Investment (CISI) and a financial literacy specialist. He can be reached on the twitter handle @drtimiolubiyi and via email: [email protected], for any questions, reactions, and comments.

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Reflection on Groups’ Kindness to Alidinma Mixed Secondary and Ute Okpu Grammar Schools

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Alidinma Mixed Secondary

By Jerome-Mario Utomi

This piece was inspired by two separate but related events; the first has to do with the news report that Dr. Philomena Onoyona Foundation, in line with its vision of giving unwavering commitment to education and community development, recently made a strategic visit to Alidinma Mixed Secondary School in Agbor Alidinma in Ika South Local Government Area of Delta State, where it donated learning materials worth thousands of naira to the students.

The second and closely related to the above centres on the revelation that the Ute Okpu Community in Ika North-East Local Government Area of Delta State recently came alive as the 1990 Set of Ute Okpu Grammar School Old Students Association celebrated its annual reunion with a series of social responsibilities aimed at giving back to the society.

These activities, programmes and initiatives include but are not limited to; deworming of children aged 10 years and below, payment of tribute to the unsung heroes of Ute Okpu Grammar School, presentations of lecture series, bestowing of awards, testimonials, plaques and cash gifts on the school’s outstanding/dedicated teachers, staff, and alumni in recognition of their tireless efforts and unwavering commitment, and unrelenting passion for education.

At a glance, the above show of love by the Foundation and the Old Students Association portrays a bunch that recognizes Social Responsibility as an ethical framework in which individuals or corporations must act in the best interests of their environment and society as a whole, fulfilling their civil duty and taking actions that are beneficial to both the present and upcoming generations.

Beyond the donations, worthy of mention are their messages of hope and resolve to continually support both the present and future students within the state and beyond.

Take as an illustration, Dr. Onoyona underlined that the latest visit and donation of learning materials to the students of Alidinma Mixed Secondary School is the foundation’s way of raising from our community, academically strong and well-informed youths that will provide the future leadership needs of our nation as well as compete favourably with their counterparts abroad’’.

The Nigerian-born and U.S.-based social worker and advocate while calling on other well-meaning and quietly influential Nigerians to team up in her current quest to uplift less privileged and vulnerable youths out of poverty and illiteracy, added that this benevolent outreach which focuses on empowering students through provisions of essential educational materials such as school bags, relevant books, pens, and pencils, among others will continue and be extended to other schools within Delta state and beyond to equip the students with the tools needed to excel academically and inspire a brighter future.

In a related development, Speaking via a statement signed by one of the leading members, Chukwuka Justus Iwegbu and titled; The Spirit of Giving Back to Our Community and Alma Mater: A Tribute to the Unsung Heroes of Ute Okpu Grammar School 1990 Set Old Students Association, the Ute Okpu Old Students Association explained that the event which took place at Ute Okpu Unity Town Hall was a testament to the enduring spirit of the alumni association and its commitment to recognizing the contributions of its esteemed members.

“One thing that brought us together after so many years of leaving our alma mater is unity and love. We may not bother ourselves with the sung and unsung stories because we have a whole lot of members who believe in an unsung story of positive contribution and impact on the lives of others. Remembering our roots remains our major mandate and a call to duty.

“The Ute Okpu Grammar School Alumni Association, 1990 set, is committed to giving back to our alma mater and the Ute Okpu community. We believe that education is the key to unlocking the potential of individuals and communities, and we are dedicated to supporting initiatives that promote educational excellence and intergenerational change,” the statement concluded.

Without a doubt, it will be convenient for many to argue that there is nothing philanthropic to attract media coverage of such a low-profiled donation of learning material, particularly as the value of the donation in question is not measured in billions of Naira.

For me, there are lessons to learn from these groups and every reason to celebrate their actions.

First and very fundamental is the hidden truth that members of these groups are not in absolute terms wealthy, particularly going by Nigerians’ context and definition of riches but were predominantly fired by the burning desire to uplift the life chances of the poor and vulnerable in their environment through educational support.

Regardless of what others may say, this piece holds the opinion that these morally eminent men and women made donations to schools not only as a positive behavioural culture but largely in recognition of the time-honoured aphorism which considers education as the bedrock of development; that with sound educational institutions, a country is as good as made -as the institutions will turn out all rounded manpower to continue with the development of the society driven by well thought out ideas, policies, programmes, and projects.

Their action equally symbolises a bunch in consonance with the fact that it is our collective responsibility to ensure that our schools work and our children are properly educated at the right time.

With their culture of donating to the students’ welfare and comfort, the group, in my view,  amplified the notion that children enjoy the right to education as recognized by a number of international conventions, including the International Covenant on Economic, Social and Cultural Rights which recognizes a compulsory primary education for all, an obligation to develop secondary education accessible to all, as well as the progressive introduction of free higher education/obligation to develop equitable access to higher education.

We must also not fail to remember that a few years ago, the National Human Rights Commission (NHRC), in line with its mandate to promote and protect human rights, established the right to education as a thematic area of focus to drive its vision of having all children enrolled in school as well as to ensure that the culture of human rights is promoted and maintained in schools.

One common fact we must not shy away from as a people is that the crushing weight arising from education funding in Nigeria and globally has become too heavy for only the government to shoulder and that is another reason why the intervention/donation by these groups is most profound.

As we celebrate these uncommon efforts, the lesson we must all draw from the example of these groups is that it is time for all to collectively find creative and sustainable solutions to educational provision for all in Nigeria, especially for the children of the poor and lowly as these children deserve the right to hold all of us accountable.

If we fail to provide this traditional but universal responsibility to these children, their future will hang in the balance as a result of such failures. And chances are that most of them will run to the streets. And, 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 society.

Utomi, a media specialist, writes from Lagos, Nigeria. He can be reached via [email protected]/08032725374

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Ways to Stick to Your New Year’s Resolutions Without Breaking the Bank

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Embarking on a new year often involves setting ambitious resolutions – a global tradition of striving for personal growth and positive change. We vow to eat healthier, exercise more, learn a new skill, or take on challenging DIY projects. However, as the initial enthusiasm wanes, some resolution may only fall by the wayside.

To enhance your chances of success, let’s delve into some common resolutions and explore key tips that will empower you. This includes setting clear and achievable goals and utilising tools that will equip you for the journey towards achieving those aspirations.

1. Enhancing physical wellbeing: Losing weight or improving fitness often requires a lot of different things working together. To support your efforts, consider utilising tools such as smartwatches to track progress, resistance bands for strength training, and cardio equipment like an exercise bike or treadmill. For home workouts, invest in dumbbells, kettlebells, and a yoga mat. A food scale can aid in portion control. You can also stay motivated by wearing nice workout clothes that makes exercise more fun. These products are all available on Temu, a direct-from-factory marketplace offering year-round deals to help you achieve your New Year’s resolutions.

2. Cultivating healthy eating habits: This often involves prioritising whole foods, minimising processed foods, and increasing fruit and vegetable consumption. To simplify this journey, consider investing in helpful kitchen tools. A food processor can streamline meal prep, while an air fryer offers a healthier cooking alternative. A slow cooker is perfect for effortless and flavourful meals, and a vegetable spiraliser can make eating vegetables more enjoyable.

3. Prioritising stress reduction and wellness: Prioritising wellness is crucial for overall well-being. To reduce stress and feel better, focus on mindfulness practices like meditation or yoga and spend time in nature. Improve your sleep habits. Helpful tools include essential oil diffusers to create a calming atmosphere, weighted blankets for relaxation and comfort, stress balls to release tension and improve circulation, and noise-cancelling headphones to block out distractions.

4. Trying out a side hustle to diversify income:  Becoming a social media content curator, for example,  is a rewarding pursuit in Nigeria, however, it requires careful planning and execution. Defining your niche and identifying reliable sources of content are crucial first steps. A strong technological foundation is essential for success. This includes a reliable computer or mobile device, a stable internet connection, and specialised software for editing (video, audio, and image). Investing in affordable high-quality recording equipment, such as cameras, is crucial for capturing professional-looking content, while good lighting is essential to enhance its visual appeal.

5. Strengthening personal relationships: This is a valuable resolution that can enhance our well-being and strengthen our relationships. In today’s busy world, it’s easy to let the demands of daily life overshadow meaningful connections. To make this resolution a reality, consider scheduling regular family dinners, planning weekend outings, or dedicating specific times for uninterrupted conversations. Remember that quality time is key; put away distractions and truly engage with your loved ones.

6. Contributing to the community through volunteering: Volunteering your time to a cause you believe in is a rewarding way to make a difference in your community and the world. Find a cause that resonates with you and explore opportunities within your local area. Start small and gradually increase your commitment. Remember that volunteering is a two-way street; it not only benefits the organisation but also provides you with a sense of purpose and fulfilment.

Consistency and adaptability are key to achieving your New Year’s resolutions. Celebrate your successes, be patient with yourself, and don’t hesitate to adjust your approach when needed. Platforms like Temu can be invaluable allies, offering a wide range of affordable products to support your goals. From fitness equipment to kitchen essentials, Temu can effectively equip you without straining your budget.

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Unlocking Full Human Potential: Growth, Diversity, and Purpose

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In Nigeria’s diverse workforce, the conversation around diversity and inclusion (DEI) extends beyond gender to address tribal diversity, socioeconomic representation, and other cultural nuances. Policies that promote inclusivity are crucial for fostering collaboration in Nigeria’s multicultural corporate environment.

“An organisation is only as good as its people. Ensuring those people perform to their best is the role of human capital. Today, the field has a range of tools to ensure real-time engagement and agile interventions for optimal job satisfaction and performance”, – Catia Teixeira, MultiChoice Africa Holdings Group Executive Head of Human Capital.

In both our professional and personal lives, we all strive for growth and development. These opportunities are deeply rewarding, supporting the kind of self-actualisation that makes life most fulfilling. In the Nigerian workplace, where career growth often intertwines with societal expectations and the drive for self-improvement, human capital plays an even more significant role. Opportunities to grow are not just fulfilling but are deeply rooted in our collective ambition for a better future.

Employee engagement is a reflection of how actualised individuals feel in their roles. Engaged employees are more likely to perform at their peak and contribute positively to the workplace. In Nigeria, where the “hustle culture” is celebrated, organizations must create environments that not only nurture growth but also recognize and reward the efforts of their people.

When employees feel enriched and their work aligns with their aspirations, the results are transformative. Growth and development are not just personal milestones—they are the foundation of a thriving organization and, by extension, a more productive society.

Identifying Growth Opportunities

In every workplace, some employees stand out from the first day, while others take time to grow into their potential. Talent management processes must cater to both. For instance, a twice-yearly organizational talent review can help Nigerian companies identify where employees excel and where they need support.

Interactions within the workplace also play a crucial role. In Nigeria’s highly networked professional landscape, creating opportunities for cross-departmental collaboration can open new doors for employees. Systematic development plans, supported by tailored training, ensure that these opportunities translate into tangible growth.

Take the MultiChoice Academy, for example, which offers over 4,000 online courses spanning finance, HR, marketing, and other fields. This mirrors the Nigerian appetite for continuous learning, especially as industries rapidly embrace digital transformation. While face-to-face training remains valuable, customized e-learning platforms are pivotal in bridging knowledge gaps and preparing employees for the future of work.

For any training program, balance is key. Organizations must align employee development with business goals while ensuring individuals feel empowered to pursue their aspirations. In Nigeria, induction programs that connect new hires with company visions and purpose are critical to building this alignment.

One of the most rewarding aspects of human capital management is witnessing success stories unfold. In a country like Nigeria, where talent is abundant, but opportunities may be unevenly distributed, developing talent internally can make a significant impact. Long-term employees bring invaluable institutional knowledge, and nurturing their growth ensures they continue to drive organizational success.

At MultiChoice, we are deeply committed to equipping our workforce with the skills and confidence needed to excel. Whether it’s training young leaders, empowering women in leadership, or developing heads of departments, every investment in our people enhances their value – as individuals and as indispensable assets to the company.

What Diversity Means

At MultiChoice, gender equity remains a key focus. Women make up 46% of our workforce, and 46% of leadership roles are held by women—a significant achievement in a society where women often juggle professional aspirations with traditional family roles. Our promotions policy is designed to push these numbers to 50%, ensuring equity across all levels of the organization.

When entering new markets, MultiChoice intentionally applies its culture of inclusion, empowering women to excel in leadership positions. This commitment extends to addressing barriers unique to Nigeria, such as access to resources and mentorship for women in underrepresented fields.

Data Drives Change

To drive meaningful change, data is indispensable. Nigerian companies often face challenges like high employee turnover and workplace inefficiencies. By leveraging data, organizations can address these issues strategically.

MultiChoice uses platforms like Office Vibe to generate insights into employee engagement, satisfaction, and work-life balance. Weekly surveys and random polls provide actionable feedback, enabling quick interventions and fostering a culture of continuous improvement.

In Nigeria, where trust in leadership significantly influences workplace morale, data can also help bridge gaps between management and employees. Regular focus groups, coupled with robust analytics, ensure employees feel heard and supported. When organizations align employee needs with business goals, the result is a workforce driven by purpose and achievement.

The Collective Goal

In Nigeria, where community and collective growth are deeply valued, human capital strategies should emphasize the power of shared purpose. By investing in people, organizations contribute to a larger vision of national development.

At MultiChoice, every success story is a testament to this philosophy. From training young leaders to empowering women in leadership, the organization demonstrates that growth is a journey best undertaken together. For Nigeria, this represents a powerful blueprint for building a future where individuals and organizations thrive in harmony.

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