Understanding Ogun’s Impressive Economic Growth Under Ibikunle Amosun
By Olufemi Lawson
As a close watcher of event in the Southwest State of Ogun over the past few years of assumption of Office of Senator Ibikunle Amosun as the Executive Governor of the State, there is no doubt that the State has continued to show a promise of unprecedented development for state’s inhabitants of today, and also the future generations of its people.
Taking a critical look at the Amosun administration’s commitment to the economic growth of the State, one can confidently say that the people of Ogun were factual in their choice of Senator Ibikunle Amosun as Governor first in 2011 and later in the year 2015.
As we speak, the State as continued to witness a rapid economic transformation and this can be viewed from several points of view, including the Internally Generated Revenue (IGR) drive of Ogun State as rated by the National Bureau of Statistics (NBS), which declared it as the fastest growing in the country.
The NBS report is instructive, especially for us as residents, who clearly knew what the IGR of the State was before Governor Amosun took over the mantle of leadership of the State in the year 2011.
The NBS Report indicated that Ogun State took the first position by doubling its IGR within the period of 2014, and 2016.
However, it is instructive to note that long before the NBS Report, Ogun’s impressive performance under the leadership of Governor Ibikunle Amosun had been propagated around, yet many people had regarded it as official propaganda until it was authenticated by the NBS itself.
Ogun is undoubtedly on a speedy rise under Governor Amosun even at a time that the country’s economy is gasping for breath having just exited an economic recession.
However, for many observers of Amosun’s revolutionary leadership in Ogun State, the state’s remarkable economic growth does not come as a surprise.
Since assuming office, as the Governor of the State, Governor Amosun has dedicated his focus at uplifting the standard of living of his people. This he began doing by bringing on board several capable and committed young and intelligent men and women, who are vast in financial management, economy and human capacity development.
It was from this point that the administration foresaw a stormy future for the Nigerian economy that would be induced by an imminent fall in oil prices.
Consequently, it began to layout measures and strategies for survival. This informed the creative search for improved revenue in a manner that would not wipe away the promises of the administration to the people of Ogun State.
Regardless, Governor Amosun must have taken over leadership with a heavy load on his mind; brooding over the future of the state under him and the brass task of leaving a legacy in a struggling economy.
He must have wondered what to tell his people, after wooing them with several electoral promises in the heady days of election campaigns. Falling back on his background as a Chartered Accountant, Governor Amosun approached the puzzle of providing a purposeful leadership in a difficult economy by first taking absolute control of what was within his reach. He tightened the noose on government finances and instilling stringent financial discipline in the government bureaucracy.
Besides instilling discipline and transparency in government processes, Governor Amosun also demonstrated a degree of dissatisfaction with each success attained that you find only in conscientious leaders who are sworn to make a difference.
So, he has ensured that the administration undergo periodic internal and external assessments in order to seek new ways that would sustain the State’s economy in the face of global economic uncertainty.
In Governor Ibikunle Amosun, one can see a pragmatic approach to issues that is alien to public office holders in these parts of our world. We see a distillation of thoughts in a manner that creates alternative approaches to problem solving.
Demonstrating what has now become a trademark drive for excellence, Governor Amosun has continued to avoid the luxury associated with positions such as his by working round the clock and practically getting involved in issues that can enhance the growth of infrastructure, which is essentially required towards achieving any meaningful economic growth.
To Amosun, there is no other secret behind the ability of his administration to continue with his massive infrastructural development programme in spite of the economic crunch in the country other than the strong Economic foundation built and being sustainable by his administration in Ogun State. This he has continued to achieve through various innovative means of expanding the revenue base of the State.
It is therefore no doubt that Governor Ibikunle Amosun through his commitment towards justifying the mandate entrusted in him by the people of Ogun State has rested all propaganda and infuriating idle talks which many of his detractors have hoped to exploit to paint the image of a non-performing Governor, when they came to the realization, that the business of governance is no longer the business as usual in the Gateway State.
As a people, we are happy and will remain eternally grateful to Amosun for the transformation of Ogun State and its economic liberation.
Omo Ogun, Ise yaa!!!
Olufemi Lawson is a Public Affairs Analyst. He writes from OPIC Estate, Agbara, Ogun State.
Hullabaloo of Nigeria’s Democratic Transitions
By Prince Charles Dickson PhD
By 1983, the army had struck and aborted the second republic, but here we are, the 10th Assembly will soon resume, and it’s been 24 years of a hullabaloo democracy; many are not happy, but we are making some form of progress, there’s been no martial music.
Despite the heated controversies in Lagos and other places, the death toll as a result of gun-throttling ballot snatchers reduced, and the magic figures of the Kardashian states also have reduced. However, we still have a marathon on our hands, but sadly we are building on some shenanigan principles that don’t spell well for us.
I recall in our recent democratic journey, a governor that had won a second term, after being sworn in, blamed his predecessor for huge debts and unpaid salaries…and more. Someone had to tap him, reminding him that he was the predecessor.
In this dispensation, another governor simply refused to sit on the seat of his predecessor, and others would embark on a sacking galore, after all, only weeks to the end of the last man on the helm, there were loads of hiring, firing is then in order. I know that it is a lie that the Zamfara state governor declared N9 trillion in assets, but not to worry, many would declare outrageous sums (forgetting that we know their real worth), while others would dance the musical chairs, refusing to declare.
The block and freeze accounts group would be at it, accounts that would be elapsed after the initial gra-gra, where there are democracies, in many parts the governor would make statements banning payments of one levy, tax or union dues, but trust me, these payments would come back.
Most of the new governors have dissolved state councils, boards and parastatals. Some governors will demolish, either immediately or later, the new kids on the block must chop, new Heads of Service, and all those new commissioners etc.
This new administration has taken off with subsidy removal. A most contentious issue, one that every energy moron and fuel expert has an opinion on.
What exactly is deregulation? How exactly does this subsidy work? I have talked to government officials, petroleum marketers, a few ‘big boys’ in NNPC, and a couple of eggheads. The truth is that they do not know, or better still, they know but cannot explain what these terms mean.
All the grammar boils down to an inability of a system to solve a problem because a strong group of persons are benefiting from that problem. It also is an indictment reflective of the faulty planning by those in charge, that’s if they plan at all.
The government tells us that it cannot influence the price of the product since deregulation is the in-thing, but in common sense, no one has been able to tell us how fellow oil-producing nations have successfully dealt with their petroleum needs.
A friend suggested why don’t we go to Angola, Venezuela, or Brazil and just steal their blueprint? It’s working for them, let’s just stop these subsidies and deregulation grammar and deceit of subsidies and duplicate their success, localize it for the collective good of Nigerians, but of course, the term ‘collective good’ is an alien term to us. Insecurity won’t allow our newly old train systems to work, blue and green rails at cutthroat costs have not reduced the cost of transportation or eased people’s burden, our waterways are wasting, you are riding bicycles, car drivers would knock you down.
It is a sad picture of a society that has lost balance; the ruling class needs to be taught a bitter lesson; they need to be made to bleed, Nigeria’s live at less than a dollar a day while a few flaunt a nation’s collective wealth, so if the current administration is scraping subsidies, it should be supported, but it can’t get that wholesale support because of trust deficit.
No number of essays or commentaries can explain the impact of fuel, cooking oil and diesel on the economy; it’s like explaining the impact of constant electricity on national life. These are terms those in power do not seem to grasp; the reasons are way simple, too…one, they have big power-generating plants in their homes and offices. Two, some of them cannot really recall when last they were in a fuel queue and with millions of naira in remuneration and salaries, what do they care?
The NLC died a long time ago courtesy of an Obasanjo-inspired poisoning, aided by the greed of those put at the helm of its activities, its only panacea being strike and strikes.
Over two dozen fuel price increases since 1978, five times it was reduced minimally but hiked back almost immediately. From N8.45 in 1978 to N65 in 2009, representing an increase of almost 60,000%, the trend has simply continued. In 1978 when the first increase was announced, one of the reasons given was that a majority of petroleum users were using it for pleasure, and there was a need to bring discipline into society. Strange thinking, another reason was that N95 million was being spent a year on subsidies.
As of this year, we are talking in trillions; where is this money coming from, how does this subsidy thing work, how can you deregulate when your refineries are not working? How do you pay subsidy cash and still do crude oil swaps? Who can really explain the fraud called Direct Sales, Direct Purchase DSDP? I have not touched all the loops like bridging costs, demurrage, and forex fluctuations that marketers play with, minus selling at international prices to neighbouring countries. Even the commissioned Dangote refinery has not started working and is not starting anytime soon. You will see that wahala dey!
The top echelon of society cannot explain to Nigerians exactly the reason why we cannot buy fuel at an affordable price for three years in a stretch without scarcity. Not every Nigerian is a novice to the political, economic or social implications of oil pricing. However, the ordinary Nigerian suffers this failure and complacency of leadership.
Subsidies and deregulation mean the price will ultimately fall, and money will be channelled to other areas of the economy; in local parlance…’our leaders like to mumu us’. When the broadcast industry deregulated, we saw the instant benefits, the same applies to telecoms (although we pay some of the highest tariffs in the world); we saw and are still seeing the benefits. But once you hear these terms in the petroleum sector, it’s like it stands for the disappearance of the commodity, and when it reappears, its price increases.
Who are those responsible for the billions and trillions that disappear in subsidies, who are the few that want to punish the majority? All the best explanations of the government, until it is seen to be done, are more of hullabaloo.
Why is it that this policy to a large population of Nigerians is simply a tightening of the screw of poverty, no massive improvement of our colonial rail system, no free education or healthcare, no social security, or unemployment benefits?
Legislators neither here nor there, governors supporting with both sides of their mouth at variance, everyone on top supports, and every person underneath suffers it; in all the noise, the product disappears. Transportation fare increases, food prices skyrocket…a nation that has a disconnect between the ruled and its rulers.
The subsidy has become part of our transitions; if this government gets it right and can pull this off with a humane face, it will get a lot of things right, but the citizens need to play their part, the Yorubas say Ẹni tó tan ara-a rẹ̀ lòrìṣà òkè ńtàn: àpọń tí ò láya nílé, tó ní kí òrìṣà ó bùn un lọ́mọ. This means it is the person who deceives himself that the gods above deceive: a bachelor who has no wife at home but implores the gods to grant him, children. (It is self-deceit to expect the gods to do everything for one when one has not lifted a finger on one’s behalf). I can only say—May Nigeria win!
Mitigating Unemployment and Labour Migration in Nigeria
Nigeria has seen a sharp increase in unemployment over time, with a current estimate of 33%. All age categories in Nigeria are affected by a serious unemployment problem, with young people bearing a disproportionately high share of the burden. When people don’t have work, it makes life difficult for them and their households. Note that this causes labour migration, as people leave the country in quest of better opportunities and income sources abroad. Unemployment is one of the key reasons why its citizens migrate their labour to other countries.
Nigeria’s economy has struggled to produce enough jobs to accommodate this expanding workforce due to the country’s high population growth rate, which causes a large number of job seekers to enter the labour market each year. SMEs could be essential in reversing this trend and creating jobs, but they face challenges such as restricted access to capital, inadequate business support services, and a challenging business climate. Additionally, highly qualified individuals leave Nigeria in quest of better opportunities abroad, depleting the country’s talent pool and widening the skills gap in critical industries.
It is important to emphasize that because of the interdependence of these factors, a multidimensional and all-encompassing approach is required to address labour migration and unemployment. To mitigate unemployment and labour migration in Nigeria, a variety of actions can be taken. A few of these include:
➢ Job Creation and Economic Diversification: Nigeria is extremely vulnerable to variations in the price of oil because of its dependency on fuel. Through the promotion of companies and sectors other than oil, economic diversification can boost job chances and reduce dependency on a single industry. In Nigeria, it is crucial to increase the variety of employment options. The establishment and growth of various businesses and sectors can also encourage the emergence of new occupations and positions. There is a higher chance of employment for people when there are more businesses.
➢ Provision of Adequate Infrastructure: Infrastructure improvements have the potential to boost economic growth and draw in industries that can employ workers. For businesses to invest in and create jobs, they need a strong infrastructure that includes a dependable power supply, efficient transportation systems, and digital connections.
➢ Support for Small and Medium-sized Enterprises (SMEs): Encouragement of entrepreneurship and assistance for small and medium-sized enterprises (SMEs) can promote innovation, generate job opportunities, and boost economic growth. Agriculture is a sector with a lot of SMEs. It has a great deal of potential to boost food security, minimize rural-urban migration, and create jobs. By giving farmers access to funding, cutting-edge farming techniques, and market connections, production can be increased and jobs created throughout the value chain of agriculture. Programs for training, mentoring, and access to financing and business development services also support these businesses.
➢ Changes in Business Policy: The development of many successful firms, especially SMEs, has been hampered by culpable policies and deregulation laws. Business owners, producers, and other market participants take advantage of policy gaps to perform arbitrary functions. Therefore, reviewing and updating corporate policies, regulatory frameworks, and labour laws can help to foster a climate that encourages investment and job growth. In addition, employment prospects may increase as a result of streamlining administrative procedures, lowering corruption, and guaranteeing fair competition for all enterprises.
Although it is a difficult problem to solve, mitigating unemployment and labour migration is crucial for Nigeria’s economic progress. Another strategy for this development is to strengthen the institutions of the labour market, lower company costs by streamlining regulations and lowering taxes, improve the business environment, and improve education, safety, job accountability, and security. By doing this, employment opportunities will be generated, and the general public’s professional development will be encouraged. Lastly, the government’s main priorities for sustainable solutions should address societal issues, attract investment, enhancing skill development and business climate.
Emmanuel Otori has over 10 years of experience working with 100 start-ups and SMEs across Nigeria. He has worked on the Growth and Employment (GEM) Project of the World Bank, GiZ, and Consulted for businesses at the Abuja Enterprise Agency, Novustack, Splitspot and NITDA. He is the Chief Executive Officer at Abuja Data School.
Improving Business Growth With Data Analytics: Why it’s a Priority
By Kehinde Ogundare
Running a business in Nigeria can be an arduous task. Business owners face fierce competition as they strive to secure market share, acquire new customers, and enhance their productivity and profitability.
The business environment is getting more competitive. According to World Bank data, 97,988 new businesses were registered in Nigeria in 2020 (the last year for which numbers are available). The country’s rapidly accelerating tech sector provides further evidence of that increased competitiveness.
A report from McKinsey found that the number of startups in Nigeria and other African companies grew threefold between 2020 and 2021.
The growth of a business, whether it offers a product or service, is closely linked to its customer base. In order to remain competitive and retain these customers, it is crucial to use data-driven insights to inform business decisions and facilitate a successful customer experience.
Understanding data analytics
In the simplest terms, data analytics is about making sense of all the data that a business gathers and using it to help the business improve its decision-making or to gain insights into a particular subject or problem.
It enables entrepreneurs to make profitable decisions, drive innovation, anticipate market trends, and manage budgets. However, a report by KPMG that analyzed the usage of data and analytics in Nigeria’s business environment reveals that 56% of organizations in Nigeria base their decision-making on intuition rather than data. This shows that businesses are yet to grasp the true potential that data can bring to decision-making.
Another report highlights that, on average, organizations plan to spend at least N50 million annually to develop data and analytics capabilities, indicating the potential for businesses seeking to integrate these practices. However, just 16% of organizations have a defined role for their Chief Data Officer, and many merge data analytics responsibilities with the Chief Financial Officer (CFO), highlighting a talent gap.
Finding the right solution
A strong BI platform can gather data from across different software used by different departments, such as sales, marketing, finance, and inventory, to help the user make sense of the data through simple-to-understand charts, graphs, and other visual tools. This, in turn, facilitates strategic decision-making.
Zoho, for example, provides a robust BI solution that comes with self-service data preparation and augmented analytics. It has strong AI/ML capabilities, enabling users to use natural language commands such as “show me our revenue growth last quarter” to get charts showing just that. Zoho Analytics can also be embedded in any third-party software, so users do not have to log into a new app just to view reports.
In today’s world, where there is high competition for customer attention among businesses along with organizational operations driven by technology, data analytics enables a business to optimize performance and make data-driven decisions. Having real-time insights into how their business is performing and the current market trends can help business owners adapt to the fast-changing landscape and stay relevant.
Kehinde Ogundare is the Country Manager for Zoho Nigeria
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