Feature/OPED
Okowa’s Identification of Agriculture as Unemployment Antidote
By Jerome-Mario Utomi
Without a doubt, there exists a leadership challenge in Nigeria. This fact notwithstanding, there exists also signs that few public leaders in Nigeria through their actions and inactions daily demonstrate that the best defence of democracy is to stress the values that are essential for good governance, especially transparency and accountability, and to support civil society, independent media, and the free flow of information.
Out of many instances, the latest call/argument/declaration by Mr Ifeanyi Okowa, the Governor of Delta, that for the nation to effectively tackle the challenges of youth unemployment and restiveness in the country, there must be a deliberate effort by governments at all levels, individuals and other stakeholders, to give agriculture its rightful place, qualifies him as one of those outstanding leaders.
Speaking at the occasion of the 2021 International Youth Day celebration, organised by the state’s Ministry of Youth Development in Asaba, the state capital, and had as theme Transforming Food Systems: Youth Innovation for Human and Planetary Health, the Governor said that some natural resources as oil and gas are exhaustible, but agriculture was as old as man’s existence and would outlive man, adding that its importance in the provision of employment and food for man could not be overemphasized.
This, he said, was why the state government was investing heavily in agriculture through some of its agricultural empowerment programmes as the Youths Agriculture Entrepreneurship Programme (YAGEP), with starter packs to beneficiaries that encouraged youths to go into farming.
Indeed, there exist reasons that place Okowa’s postulation in consonance with the global position on the role agriculture plays in helping nations achieve sustainable development.
Fundamentally, aside from the reality that agriculture is capped with the capacity to providing a fair and far-reaching solution to the nagging unemployment, malnutrition and infrastructural challenge in the country, going by the report from the National Bureau of Statistics (NBS), published Q2 2020 labour statistics, the data among other things revealed that Nigeria’s second-quarter unemployment rate among young people (15-34 years old) was 34.9 per cent, up from 29.7 per cent, while the rate of underemployment for the same age group rose to 28.2 per cent from 25.7 per cent in Q3, 2018.
These rates were the highest when compared to other age groupings. Nigeria’s youth population eligible to work is about 40 million out of which only 14.7 million are fully employed and another 11.2 million are unemployed.
For a better understanding of where this piece is headed, youth in every society, says a study report, has the potential to stimulate economic growth, social progress and our all national development.
The strategic role of youths in the development of different societies of the world such as Cuba, Libya, China, Russia and Israel are obvious. Youth unemployment is potentially dangerous as it sends signals to all segments of Nigerian society.
Here in Nigeria, the rate of youth unemployment is high, even at the period of economic normalcy i.e. the oil boom of the 1970s (6.2%); 1980s (9.8%) and 1990s (11.5%). Youth unemployment, therefore, is not a recent phenomenon.
But if what happened in the 1980s/90s was a challenge of some sort, what is happening presently, going by the latest report by the NBS, is a challenge. This and many other concerns have expectedly caused divided opinion and proliferation of solutions.
To demonstrate this position, similar to Governor Okowa’s latest statement on agriculture, Nigerians with critical interest have at different times and places expressed concern that it is not right for federal governments of Nigeria to create agencies that dole money to Nigerian youths with the aim of eradicating poverty.
Such huge resources do not have economic value. Instead, such amount should be used to build industries and factories of production, they added that considering the slow-growing economy but scary unemployment levels in the country, the current administration will continue to find itself faced with difficulty accelerating the economic life cycle of the nation until they contemplate industrialization, or productive collaboration with private organizations that have surplus capital to create employment.
Others are of the view that less emphasis on university education should be done. Technical and Commercial Colleges should be established and funded to produce graduates that are technically fit.
The federal government, they argued, should engage in owning business and manufacturing outfits like what was done in the 1970s-1990s in Nigeria.
Companies and factories wholly owned by state governments under a new management system should be built to absorb graduates and skilled workers. It is still possible to operate profitable businesses by state government using the Indian/Lebanese system of business model.
To the rest, corporate organizations and entrepreneurs should engage in the production of domestic and industrial goods and a long term goal of exporting such goods to West/African markets should be brought into focus. Commercial farming into such specialized areas of dairy farming, essential fruits such as apples, etc. will help to reduce unemployment.
Indeed, whilst the first option (industrialization) may offer a considerable solution, the second has more reward and comes with reduced risk.
However, as a country desirous of achieving sustainable development, there are in my view both specific and specialized reasons for the government to throw its weight behind agriculture by creating enabling environment that will encourage Nigerian youths to take to farming.
Security-wise, the large unemployed youth population is a threat to the security of the few that are employed. Any transformation that does not have job creation as its main objective will not take us anywhere and the agricultural sector has that capacity to absorb the teeming unemployed youth in the country.
Separate from job creation, averting malnutrition which constitutes a serious setback to the socio-economic development of any nation is another reason why the federal government must listen to Okowa.
Across the world, agriculture is considered a vehicle for ensuring food security and a sustainable socio-economic sector.
In fact, it was noted recently that in Nigeria, governments over the year have come to realize that sustainable growth is achievable only under an environment in which the generality of the people is exposed to a balanced diet, not just food.
This explains why agriculture production should receive heightened attention. In Nigeria, an estimated 2.5 million children under five suffer from severe acute malnutrition (SAM) annually, exposing nearly 420,000 children within that age bracket to early death from common childhood illnesses such as diarrhoea, pneumonia and malaria.
For us to, therefore, achieve this objective in agriculture that will guarantee food security as well as brings about development that is sustainable, the government must provide the needed support-funding, technical know-how and other specialized training.
But most importantly, the government must start thinking of developing a rail system that offers low fares and connection of major economic towns and landlocked cities to aid distribution of food products and other economic products from advantaged to less advantaged areas.
Evidence abounds that such towns/cities referred to as disadvantaged often always hold the domestic trade and market prices of such commodities.
This objective, if replicated here, will help the poor village farmers in Benue/Kano and other remote areas earn more money, contribute to lower food prices in Lagos and other cities through the impact on the operation of the market, increase the welfare of household both in Kano, Benue, Lagos and others while it improves food security in the country, reduce stress/pressure daily mounted on Nigerian roads by articulated/haulage vehicles and drastically reduce road accidents on our major highways.
Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via [email protected]/08032725374.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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