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Editorial

Exploring alternative strategies for economic growth amidst forex shortages

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Last week, President Bola Ahmed Tinubu demonstrated astute leadership by implementing a temporary restriction on foreign travels for ministers and government officials.

This timely move followed revelations of unnecessary expenditure, exemplified by the Office of the Accountant-General of the Federation sponsoring state finance commissioners to a workshop in London.

In a directive addressed to ministers, the Presidency emphasised the necessity of this measure to streamline governance expenses while ensuring uninterrupted governmental operations.

The directive mandates all officials seeking public-funded international trips to obtain Presidential approval at least two weeks in advance, underlining the imperative for such journeys to be truly essential.

President Tinubu’s decision strikes a balance between fiscal responsibility and maintaining government efficiency. By prioritising cost-saving measures without compromising the delivery of public services, his administration sets a commendable standard for prudent governance.

In the realm of government affairs, jet-setting has become a lucrative pastime for officials and civil servants alike, not out of necessity, but for the allure of hefty estacodes. Take, for instance, the recent London workshop organized by the OAGF, where participants raked in $600 per night, with longer stays translating to even more lavish earnings. Yet, as Nigeria grapples with forex shortages, such indulgent excursions represent a squandering of funds desperately needed for revenue-generating endeavors.

President Tinubu’s bold move to rein in ministerial jaunts abroad is a step in the right direction. Rather than lavish London workshops, why not bring the expertise to Nigeria’s shores? Our nation boasts safe and comfortable venues aplenty, making costly foreign escapades unnecessary extravagances.

Indeed, Nigeria’s diplomatic corps stands ready to represent our interests worldwide. By tapping into this existing infrastructure, the government can engage in fruitful negotiations and attend crucial meetings without draining the nation’s coffers. It’s high time we prioritise thriftiness in governance, especially as Nigerians demand a reduction in overhead costs.

In the quest for fiscal prudence, President Tinubu’s recent directives on curtailing excessive foreign travels by government officials are commendable strides towards a more economically sustainable future.

However, true leadership demands leading by example, and there lies an opportunity for the President to elevate his commitment to austerity.

While the reins tighten on ministerial voyages abroad, it’s imperative for President Tinubu to scrutinise his own itinerary. The spectacle of presidential excursions, often accompanied by a retinue of state governors, ministers, and agency heads, exacts a substantial toll on forex reserves, particularly in estacodes. The statistics speak volumes: 16 foreign trips in the first seven months of his tenure, spanning a staggering 91 days.

In the spirit of shared sacrifice and accountability, the President can pivot towards a more judicious approach. Emulating Malawian President Lazarus Chakwera’s bold stance on foreign travel restrictions, President Tinubu could opt to delegate representation at select international events. By leading from the front and forgoing unnecessary trips, he not only underscores his commitment to cost-cutting but also inspires confidence in his administration’s resolve to uphold its promises.

As the nation navigates economic challenges, President Tinubu stands at a pivotal crossroad. Will he seize the opportunity to redefine leadership by embracing frugality at the highest level? The choice is his, and the nation eagerly awaits his decision.

Amidst the fervor of foreign trips touted as investment-seeking endeavors, state governors find themselves under scrutiny for expenditures that yield little return. While ostensibly pursuing Foreign Direct Investments (FDIs) and Foreign Portfolio Investments (FPIs), the reality, as evidenced by data from the Open Nigeria States (OPS) portal, paints a starkly different picture. Over three years, 14 states collectively spent a staggering N21.04 billion on foreign jaunts, yet yielded no tangible investment.

This stark revelation finds resonance in a 2023 World Bank report, which highlights Nigeria’s struggle to attract net FDI inflows, exacerbated by structural challenges and FX availability constraints. The folly of relying solely on foreign trips as a panacea for economic growth is laid bare, as the report underscores the critical role of local environmental factors in attracting investments.

As custodians of their states’ economic destinies, governors must embrace a pragmatic approach to investment attraction. By fostering local conditions conducive to investment, they can chart a course towards sustainable economic growth and prosperity for their constituents. It’s time to recalibrate investment strategies, steering away from the allure of foreign junkets towards pragmatic, homegrown solutions.

In the current climate of economic strain, the ostensible necessity of government officials’ foreign excursions raises eyebrows and tempers alike. As ordinary Nigerians tighten their belts amidst financial uncertainty, the conspicuous absence of self-discipline among officials embarking on globetrotting escapades for personal gain becomes a bitter pill to swallow.

Indeed, the reality of everyday Nigerians grappling with economic hardships underscores the imperative for government officials to exhibit restraint and prudence in their international travels. At a time when the majority of citizens are feeling the pinch of austerity measures, the indulgence of unnecessary foreign trips by officials is not justifiable.

As such, we echo the sentiment for a stringent embargo on foreign travels to be upheld beyond the initial three-month period. This extension is not merely a symbolic gesture but a practical necessity to demonstrate the government’s commitment to fiscal responsibility and solidarity with the populace.

In the face of mounting economic challenges, now is the time for government officials to lead by example, showing empathy and restraint in their actions.

Let us use this moment of national struggle as an opportunity to cultivate a culture of accountability and prudence within our governance structures.

Editorial

Nigeria must act now to mitigate flood disasters

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As the rainy season looms ahead, a palpable sense of concern grips the nation.The recent cautionary message from the                      Federal Government to 31 state governors  regarding the looming threat of floods from April to November serves as a wake-up call, demanding swift and concerted action from both state and federal authorities.

Presented by Minister of Water Resources and Sanitation Joseph Utsev, the 2024 Annual Flood Outlook paints a bleak picture, underscoring the urgent need for preemptive measures. It is not merely an emphasising advisory; it is a resounding call to arms.

The spectre of past flood calamities in Kano, Taraba, Lagos, and other states still haunts our collective memory.

The haunting images of devastated homes, displaced families, and shattered livelihoods serve as poignant reminders of the human toll exacted by our complacency.

It is imperative that we glean lessons from these tragedies and take proactive steps to forestall the impending catastrophe.

The warning issued by the Federal Government is crystal clear: floods are imminent, and the time to act is now.

The Nigeria Hydrological Services Agency’s classification of 148 local government areas across 29 states, including Lagos, Kano, and Delta, as high flood-risk zones emphasising the gravity of the situation.

Every moment of inaction heightens the risk to countless lives and properties. State governors, local authorities, and relevant agencies must set aside differences and collaborate effectively to implement robust flood preparedness and mitigation measures.

From infrastructure reinforcement to early warning systems and community awareness campaigns, a comprehensive approach is imperative to safeguard vulnerable communities.

As responsible stewards of our nation’s welfare, we cannot afford to be caught off guard. Let us heed the warning, unite in purpose, and proactively address this looming threat.

The cost of inaction is too grave to contemplate, and the time to act decisively is now. This is not a drill.

The minister’s revelation that 31 states face high flood risks, while all 36 states and the Federal Capital Territory will experience moderate flooding, demands immediate attention and collective action.

“The high flood-risk states are Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe,” the Minister said.

We cannot afford to wait until the waters rise and lives are lost. The time to act is now. It’s imperative that federal and state governments, agencies, and local communities join forces to mitigate the impact of floods.

This requires a coordinated response, including public awareness campaigns, infrastructure upgrades, emergency preparedness plans, and investment in flood mitigation projects.

The future of our nation depends on it. Let us heed the warning and take proactive steps to build a more resilient Nigeria, where lives and properties are protected from the ravages of flooding. The clock is ticking; let us act now to avoid a catastrophe.

While 31 states face high flood risks, the remaining five states must also be proactive in their preparations. It’s not enough to simply warn residents to relocate from flood-prone areas; state governments must provide safe and conducive spaces for relocation, complete with essential services like relief materials, healthcare, and security.

This will help mitigate the trauma faced by displaced families. Citizens, too, have a critical role to play. They must be willing to relocate from their homes and comfort zones to prevent avoidable deaths and losses. The stark reality is that flood disasters are devastating, as seen in 2023 when 45 lives were lost, 171,545 persons displaced, and 22,666 homes partially damaged, with 5,358 others completely destroyed.

The economic toll was equally staggering, with a $4.6 billion bill that significantly dented Nigeria’s GDP. Let us learn from the past and take collective responsibility for flood preparedness. State and federal governments, agencies, and citizens must work together to build a more resilient nation, where lives and properties are protected from the ravages of flooding. The time to act is now.

In 2022, flooding claimed 662 citizens; 2.43 million others were displaced and 3,174 were injured nationwide, per NEMA.

The financial losses were estimated at $9.12 billion by the Federal Government, and by a United Nations agency at $7 billion. A UN report stated that food insecurity was aggravated in the country as 569,000 hectares of farmland were destroyed by the flood.

According to the then Minister of Water Resources, Suleiman Adamu, 178 LGAs in 32 states were declared “highly probable flood risk states.”

Although climate change remains a global concern, leading to flash floods, droughts, forest fires, and cyclones, the government must not make excuses.

They need to take lessons from previous floodings and replace their nonchalance with strategic actions and campaigns. They must do all they can to avoid the repetition of losses of lives and properties.

The citizens must play their part by clearing drainage in their vicinity, cultivating good waste disposal and environmentally friendly culture. To entrench this, the government must place strict surveillance and enforce stiff penalties against erring residents.

State governments should demolish structures erected on flood paths to enable rainwater to drain appropriately.

NGOs in the environmental niche should activate campaigns distilled in local languages through the media to prepare citizens for the flood.

The federal and state governments should be proactive in the deployment of ecological funds to provide guardrails against natural disasters. This must be used for pre-emptive measures like building bridges, desilting rivers, evacuating canals and drainage, and building dams and levees. The dams would help preserve excess rainfall to irrigate farmland during the dry season.

The government must fully embrace its onerous duty to safeguard lives and properties.

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Editorial

Preparing for a challenging farming season: NiMet’s forecast and the need for proactive action

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As the farming season beckons, Nigerian farmers are bracing themselves for a turbulent ride. The Nigerian Meteorological Agency’s (NiMet) forecast of a delayed and shorter rainy season has sent shockwaves across the agricultural community, threatening to upend the delicate balance of our food security.

With millions of farmers poised to plant their crops, the clock is ticking. Will our policymakers and stakeholders rise to the challenge, or will we reap a harvest of regret? According to NiMet, this year’s rainy season will commence later than usual, with the central states expecting the onset of rains around May 29 and the northern states around June 13.

Moreover, the season is predicted to end earlier than usual, between October 6 and November, in many states. This forecast raises concerns for farmers, as a shorter rainy season can lead to reduced crop yields and increased risk of drought.

To mitigate these challenges, NiMet advises planting early-maturing crop varieties at the beginning of the season. This is a wise recommendation, as it allows farmers to adapt to the predicted weather patterns and minimize potential losses.

With predictions ranging from October 6 to November, regions including Yobe, Jigawa, Sokoto, and Lagos are bracing for a shorter agricultural window. This forecast emphasised the critical importance of proactive planning and early adoption of fast-maturing crop varieties.

The essence of NiMet’s warning is clear: farmers must act swiftly to secure the necessary resources for a successful harvest. From fertilizers to seeds, the time to procure vital inputs is now, to mitigate potential setbacks and ensure a fruitful season. Traditionally, this period marks the commencement of government initiatives to facilitate the purchase and distribution of agricultural inputs. However, the silence on this front is deafening.

Instead of prioritising the long-term sustainability of agriculture, many officials seem fixated on short-term palliative measures, neglecting the imperative of future agricultural prosperity. As the countdown to the abbreviated season begins, the call to action grows louder. Farmers must seize the moment, equipping themselves for the challenges ahead, while policymakers must refocus their attention on fostering a resilient agricultural sector for generations to come.

Only through collective effort and foresight can we navigate the uncertain terrain ahead and ensure a bountiful harvest for all. As the federal government pledges to revamp the textile industry, Nigerian farmers are grappling with a more pressing concern – the exorbitant cost of fertilizers and other essential inputs. A bag of fertilizer now costs a staggering N48,000, forcing farmers to either purchase substandard products or resort to traditional alternatives, resulting in poor yields and revenue losses. The high costs of seeds, herbicides, pesticides, labour, and fuel have pushed small-holder farmers to the brink.

Despite President Bola Ahmed Tinubu’s assurances of support, including a promise to release 225,000 metric tons of fertilizers, seedlings, and other inputs in August 2023, concrete actions are yet to be seen. With food prices soaring nationwide, it is imperative that the government takes immediate steps to address the plight of farmers, who are crucial to the nation’s food security.

We urge the government to translate its promises into tangible support for farmers, including affordable access to quality inputs, to ensure a bountiful harvest and a food-secure future for Nigeria. We commend the Central Bank of Nigeria’s release of 2.15 million bags of fertilizer to the Federal Ministry of Agriculture and Food Security. However, it is alarming that there has been no update on the distribution of this vital commodity since the handover over a month ago.

Furthermore, we urge state governments to take their responsibilities in ensuring adequate input supply to farmers more seriously. We also call on the federal government to implement policies that facilitate the supply of fertilizers, seeds, and other inputs to the markets, thereby controlling rising prices.

The Presidential Fertilizer Initiative needs to be reviewed to ensure fertilizer blending plants resume production. Our farmers urgently need government support to access necessary inputs for successful cultivation. As the rains continue to falter, Nigerian farmers face an uphill battle. We urge the government to seed hope by providing essential resources – quality seeds, fertilizers, and equipment – to help them weather the storm.

Climate-resilient agriculture initiatives and weather insurance schemes will also help farmers adapt and thrive. But, there’s a greater challenge to tackle – the menace of bandits and militias terrorizing farmers, forcing them off their lands, and threatening our food security.

It’s time for decisive action! The government must act swiftly to protect our farmers, their farms, and our collective future. Let’s join forces to cultivate a brighter tomorrow, where our farmers can plant, grow, and harvest without fear. The time to act is now, for the sake of our nation’s food security and stability. Let’s sow the seeds of resilience and reap a bountiful harvest for generations to come!

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Editorial

Epileptic national grid in Nigeria: The way forward

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It is now commonplace to hear about the collapse of the national grid in Nigeria. In short, the news is now a periodic ritual. And for a country like Nigeria with all its potentials to be galloping with power in the name of national grid collapse is to say the least pathetic. Countries within our neighborhood we often refer to as smaller nations have since left us behind in terms of steady power supply.

Records have it that Nigeria has recorded about 140 national grid collapses since 2013 when the National Electricity Power Authority (NEPA) was unbundled and still counting. In first quarter of 2024 alone, Nigeria has recorded two national grid collapses, one on 4/2/2024 and  the other on 28/3/2024. One may now ask,what is the real problem? The country generates 4,000MW of electricity for a population of approximately 200m people. This is a far cry! What do we think 4,000MW will do for such a gargantuan population? Only God will save us!

According to reports, the Federal Government is targeting about 30,000MW in 2030. But experts say Nigeria needs about 33,000MW of electricity supply with its current population to be comfortable. Until that is achieved, it remains a dream. Now that power has been put into the concurrent list, states should wake up and embark on power generation projects to fill the existing gap created by the big brother, the Federal Government. It is not enough for states and local governments to continue to cry wolf when actually they can do something about the problem.

What are the effects of frequent national grid collapse? When there is a power outage, companies and organisations must provide their outfits with alternative power supply. That is, diesel or petrol.  This will automatically increase the cost of production. Private companies with little or no stamina to absorb the extra cost will close shop and the economy will be impacted negatively on. Workforce will be reduced or entirely laid off. Unemployment will creep in with its attendant factors of restiveness, social vices, and outright insurgency.

The country will start grappling with insecurity and its allies. Money that would have been spent on developmental projects will now be channelled to security, just as we have now. Lack of power equally brings about lack of social amenities, such as lack of potable water, healthcare services and poor infrastructures.In a situation like this, investors will take flight and the economy will collapse. We pray that our situation in the country does not get to this stage, because that will amount to a socio-economic crisis that no nation longs to experience.

What is the way out? The reason is that wishes and prayers are not economic strategies. The remedy of course is within our reach. The operators of the power sector often complain of gas supply challenges. The question is who is holding the gas from being supplied? Are there rough curves that should be smoothened in the contractual agreements? Who is responsible for tidying up such spots? It is a matter of putting the round peg in a round hole and the results will be natural.

There must also be commitment, patriotism on the part of the supervising agencies. Enough political will must be generated to drive these processes. This, of course, boils down to good leadership. And we strongly believe that the Renewed Hope Agenda of the President Ahmed Bola Tinubu-led Federal government is out to provide that. So there is nothing stopping us from achieving any goal we set for ourselves.

Another cause of national grid collapse is poor transmission. Others are poor infrastructures, vandalism, and liquidity crisis. These problems are not insurmountable.  All hands must therefore be on deck to achieve this.

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