Feature/OPED
Tinubu Must Solve That Power Problem
By Prince Charles Dickson PhD
Quickly last week, my office premises and environs did not have electricity, and a few steps from my office is the Jos Electricity Distribution Company. The company is one I did rate a four out 0f 10 which by any standards is fair enough. So, they were powering the office with a generator, yes, you heard me, generator.
And I have seen this scenario once or twice, but it just occurred to me that we are not well as a people. However, truth be told, worse things have happened.
A few years ago, the Bureau for Public Enterprise BPE sold NITEL, the nation’s elephant telecom company, to a building in Switzerland; it was a building housing a church, all the dance and drama. We soon let go. Just a reminder, it was called PENTASCOPE. Years later, the father of a white cloth-wearing former Honourable bought the NITEL House…The NITEL story remains a tale by moonlight, plenty of lies, half-truths, misinformation, propaganda, a potpourri of sorts.
How about the Steel Rolling Mill in Jos, Plateau, it was ‘racketered’ in that sweet-sounding word privatization. Some journeymen bought all the assets and renamed it Zuma. Today, the only functional thing is the housing estate. The factory and machines have long been vandalized.
There was that drama of the Daily Times, publishers of that old-time newspaper. Before I go far, a former Managing Director of the once pride of publishing told me, “Charlie, Daily Times is like a big elephant; everybody comes and cuts his/her own and goes away.”
You need to appreciate that statement in context; at a time in point, Daily Times had properties virtually everywhere Nigeria had a presence in the world. All that changed; what is left of the elephant was sold to some clowns, and the rest is history…the elephant eventually slumped.
Let me spare us the story according to Nigerian Airways, the Nigerian Shipping Lines, or our textile industry in Kaduna state!
Anyway, my admonition is on our power sector, the Buhari administration is leaving a sector comatose after promises that the power supply would get better, and indeed on some odd occasions, I and many Nigerians have enjoyed more than 8 hours of electricity. But don’t forget; it was not the norm; it was an exception. The President, his aides, and ministers made pledges but delivered very little in this respect.
I will put it in context, almost 200% increase in tariffs in 8 years, with more than 100 nations still paying cheaper for electricity, and depending on who’s statistics you are looking at, we have spent over N7 trillion on our power sector since 1999, with the bulk of that finding itself in private pockets.
We don’t have enough electricity but under the WAPP initiative to promote and develop power generation and transmission infrastructures as well as to coordinate power exchange among the ECOWAS member states. Nigeria currently supplies electricity to the Republic of Benin, Togo, and Niger.
The economic loss due to grid collapse is almost 3% of the nation’s Gross Domestic Product (GDP).
I recall the drama of Enron, a failed American company that was reckless in its use of derivatives and special purpose entities. Mr Tinubu, the incoming President, started the IPP project in Nigeria with Enron, then in Lagos. It is noteworthy that he was the first to challenge the monopoly of NEPA. He conceptualised the bulk purchase agreement. Obasanjo stopped the implementation. We wait to see what lies in wait and fate…
Put in perspective, with 12 Turbines, the Mambilla Hydroelectric Power Station is a 3,050 MW hydroelectric power project under development in Nigeria. When completed, it will be the largest power-generating installation in the country and one of the largest hydroelectric power stations in Africa. It is still 6 years away from the expected completion date of 2030 and costs $5.8 billion.
For those that did not know, the Mambilla hydroelectric project was originally conceived in 1972; it could advance only after 35 years when China’s Gezhouba Group awarded a contract to develop the project with 2,600MW installed capacity in 2007, all still na voicemail.
At 50 years old, Kainji hydroelectric dam is the oldest functioning power plant in Nigeria. Kainji is one of 3 major dams in Niger state. The others are the Jebba Dam (1985) and the Shiroro Dam (1990). A fourth dam is currently under construction at Zungeru.
The Federal Government, in February 2023, announced the preferred bidder for the concession of the 700 megawatts Zungeru Hydroelectric Power Plant for a fee of $70,000,251 per year for 30 years
We have blamed witches for power outages. We have since forgotten the Minister who resigned and the controversies surrounding all that power scams.
And then the many Chinese loans taken, yet we are on the same track; the Power Holding Company of Nigeria has been sold, and the drama continues. But if you know Nigerians and Nigeria, it is only a repeat episode, nothing new.
Most of the owners bought PHCN properties for peanuts. Owners that have no required expertise, distribution companies aptly called DISCOs that see the venture as new ‘oil wells’ dancing around our collective psyche.
Looking at the best efforts of the government or the DISCOs, I recall those days when we read the novel by Adaora Ulasi, many things we don’t understand. What captivated me then was not just the story but that title.
Yet, from PHCN to NEPA, one-time ECN for those old enough to remember. Now Distribution Companies, the power sector and these Discos repeat episodes of things we never may understand.
Why can’t we get 22 hours of electricity in a nation with so many resources both human and financial? Like how do we expect to get the desired megawatts with generating and transmission points that are run like Lugard lamps?
Only last year, a handful of men put the whole nation in darkness in the name of a power strike. No one cared about the loss of those hours that the nation was left in the dark. We still suffer high voltage—electric gadgets bear the brunt; no one is held liable, and then low current—you can barely see, so there is electricity, but it cannot power a bulb.
The transmission company people are doing loads of hard work, but truly it amounts to nothing when there are many questions and no answers; I agree that we are a difficult people; it is probably only in Nigeria that PHCN owes NNPC for fuel supplied, and NNPC has not paid for electricity supplied and state houses owe utility bills, while citizens that have not paid bills in years have power as long as there is the power to spare.
I do not need to lecture us on the benefits derivable to the Nigerian economy if we sort out our electricity palaver. I must state the solution does not lie in Chinese, World Bank loans or Private Partnerships but in a strong political will by leadership.
If and if only Mr Tinubu can lay the groundwork for solving the power problem, to address the energy palaver, to direct his energy to the octopus-like the Ajaokuta Steel Rolling Mills, just solve the power problem, posterity will judge him fair, but as it is—only time will tell.
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.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN