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What Happened to Transparency?

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By Simon Kolawolelive

At the annual Nigerian jamboree to the Offshore Technology Conference (OTC) in Houston, Texas, Dr IbeKachikwu, the Minister of State for Petroleum Resources, told a “world press conference” on May 5, 2017 that Nigeria’s refineries would soon have new investors.

He said 26 investors had indicated interest in the epileptic refineries. “By September, we will unveil the investors for the refineries,” the minister said smoothly, typically. “When we came onboard, the refineries were not working but as we speak, we have sizeable investment portfolio for them to an extent that we don’t know who to partner with for the investment.”

Let’s say I didn’t go to school at all. Or let’s say it was evening school that I attended. These would still be my takeaways from the minister’s proclamations: one, our refineries are now in a position to attract investment; two, 26 investors have indicated interest in taking over the refineries (on a repair, operate and maintain, ROM, agreement); three, we have not taken a decision yet because there are so many suitors to choose from; and four, we will announce the favoured investors by September. Without attending Harvard Business School, I would still conclude that it appeared the process was going to be competitive and transparent.

On May 11, 2017 (six days later, right?) Mr Wale Tinubu, the CEO of Oando Plc, told the Nigerian Stock Exchange (NSE) that the group had received approval of the government to “repair, operate and maintain” the Port Harcourt Refinery together with “our partner” Agip, a subsidiary of ENI, the Italian company indicted in the Malabu/OPL 245 affair.

Tinubu said: “We plan to increase the refinery capacity from 30 percent to 100 per cent.”

Great news, as far I am concerned. We need the refineries back as soon as possible; we have had enough of the endless TAMs gulping billions of Naira and spewing out virtually no products for decades.

Now this is where I need your help. The last time I checked, with the help of Google, May and September are different months. There are June, July and August in-between. With the help of Google, I also discovered that the gap between when Kachikwu spoke in Houston and when Tinubu spoke in Lagos was a whopping six days — or, to make it simpler, less than one week. There are usually four weeks in a month, and from May 5, when Kachikwu spoke, to September, there are 17 weeks, according to the all-knowing Google. With Tinubu’s disclosure, should we assume that May is the new September? Or that September came early for Oando, Agip and Kachikwu?

But I think Google is overrated. There were so many questions it could not answer. For instance, I asked: “Is Oando among the 26 investors Kachikwu boasted about in Houston?” I could not make head or tail of the results. Google came up with “FOX 26 Houston KRIV”. Nonsense. But I got more gibberish for other questions: did Oando and ENI send in a bid? Was it an unsolicited bid? Was it selective tendering? If it was competitive bidding, how many bids were received for Port Harcourt? How much did Oando/ENI bid? How much did others bid? How much did the bidders promise to invest? How many years will the ROM run? Are there concessions for the new operators?

I can understand why Google got stuck — that almighty search machine likes transparency. If you do not make your information public, it cannot make it public for you. The best, or should I say the worst, Google would do is to suggest answers that it thinks are related to your questions, even when there is no connection whatsoever.

If you Google most of the major concessions and major contracts awarded by this government, you will get irrelevant answers on the process. For the same reason: transparency is very scarce in these major deals. We just wake up one day and hear that one company has been awarded a job. Not a word on the process.

Don’t get me wrong: I’m not saying Oando should not take over the Port Harcourt Refinery. I have devoted a significant part of my column-writing career to promoting the cause of Nigerian companies. I believe that one day, made-in-Nigeria will be enjoyed all over the world. I want Nigerian companies to fly our flag honourably. Even though I have been called names and subjected to sickening innuendos for promoting Dangote, Globacom, Oando and Innosons, among others, I am not about to repent. Americans are proud of their Apple, Microsoft and Chevron, and my dream is that our people and our companies will become global brands too.

That said, though, I am very worried about an emerging pattern in this administration. President Muhammadu Buhari campaigned on the strength of correcting the mistakes and misdeeds of the previous government, but I am seeing too much repetition for it to be coincidental. There is too much secrecy in the way many important things are done, and corruption, need we say, thrives on secrecy.

Take away competition, take away transparency, take away accountability, and you have a perfect recipe for corruption. We cannot be sealing deals under the table without revealing the details to Nigerians and then claim we are building an open society.

We just woke up one day to learn that GE had secured the concession to take over the railways. How did it happen? What are the details of the deal? Is this the best possible deal Nigeria can get? We were just watching TV one evening and learnt that the federal government had finally signed a renegotiated concession agreement with the Global Steel Holding Limited (GSHL) for Ajaokuta Steel. Up till today, we don’t know the details. Ask questions and what you get as answer is: who paid you to ask? As a journalist, I’m used to the blackmail. I would have quit this job the day I joined if I had to pay attention to personal attacks.

By the way, I know a bit about the procurement options. I know of “sole sourcing”, where you go to one provider only because no other provider does it — like buying a Rolls Royce from the maker. “Selective tendering” allows you to approach a few providers who meet certain criteria. There is “repeat procurement”, where you return to earlier provider because of time constraints and because they did a previous job well. All these need strong justifications because you are restricting competition, which is a major element of procurement. And then there is “competitive bidding”, where you throw it open to all. In all, Nigerians deserve to know the process adopted.

Get me right. I am not saying anything illegal is being done in the case of the Port Harcourt Refinery. It just lacks transparency. That’s my point. And what about other moral issues? ENI again? As I write this, many Nigerians are being prosecuted or wanted by the EFCC for their involvement in the OPL 245 deal. They are being accused of taking part in an elaborate bribery scheme. But ENI, which is at the centre of it all and is being prosecuted by an Italian prosecutor for its role in the $1.3 billion affair, is cornering more deals in Nigeria without getting as much as a slap on the wrist. The impression being created is that our anti-graft war is very narrow.

I sympathise with the government over the limitations imposed by procurement rules, particularly the constraint of speed, but the process was designed for a purpose. More so, this government has been in power for nearly two years, which means a lot could still have been accomplished over the years in spite of the constraints. And, remember, there are many options that can shorten the process which the government has been using for a while now. The biggest headache, though, is that there is too much opaqueness for us to conclude that transparency is a guiding principle. The chaos over the concessioning of Port Harcourt Refinery is a very good example. Dissonance.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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The Future of Payments: Key Trends to Watch in 2025

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Luke Kyohere

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

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Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections

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ghana election 2024

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.

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The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms

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tax reform recommendations

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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