CBN Raises Benchmark Monetary Policy Lending Rates To 18 Percent

March 21, 2023

Central Bank of Nigeria Monetary Policy Committee has raised its benchmark monetary policy lending rate by 50 basis points to 18 per cent, as monetary authorities continued to tighten policy to rein in inflation which has squeezed consumer purchasing power.

The central bank’s latest rate hike came after last week’s inflation data showed price rises quickened in February despite the recent cashless policy meant to reduce the amount of currency in circulation. Inflation also rose in January. Central Bank of Nigeria governor Godwin Emefiele said

“Members, however, remained aware of the ongoing challenges associated with the limits imposed on cash withdrawals in the face of frequent downtime in bank electronic transaction channels. The Committee thus called on Other Depository Corporations, online payment platforms, and other stakeholders to ensure that the prevailing incidence of network failures is overcome in the immediate and short term. This would ensure that the Naira Redesign and Cash Withdrawal Limit Policies lead to an improved in-road of the CBN Cashless program and efficiency of the transmission mechanism of monetary policy.

“Members, thus, resolved by a majority vote to raise the Monetary Policy Rate (MPR) by 50 basis points. In Summary, ten (10) members voted to raise the MPR by 50 basis points, one (1) member voted to raise the MPR by 25 basis points and one (1) member voted to hold the MPR. All members voted to keep all other parameters constant. The MPC, therefore, voted to: Raise the MPR by 50 basis points to 18.0 per cent; Retain the asymmetric corridor of +100/-700 basis points around the MPR; Retain the CRR at 32.5 per cent; and Retain the Liquidity Ratio at 30 per cent.

Details of CBN rate hike

The Monetary Policy Committee (MPC) met on 20th and 21st March, 2023, faced with new and existing headwinds, undermining the full recovery of the global economy. These include the recent bank failures in the United States and Switzerland, amidst widespread monetary policy tightening, which introduced a new dimension to the risks confronting the global financial system, as well as, the persisting high but receding global inflation. The continued hostilities between Russia and Ukraine and its implications to the smooth functioning of the global supply chain also remain a critical strain to the recovery of global output growth.

In the domestic economy, output recovery progressed at a relatively moderate pace, while headline inflation trended upwards, albeit less aggressively, driven mainly by a marginal increase in food inflation.

The Committee assessed key risks to the global economy associated with these developments and their impact on the Nigerian economy, as well as, the outlook for the rest of the year.

Twelve (12) members of the Committee attended this meeting.

Global Economic Developments

The Monetary Policy Committee noted the new and existing headwinds to the broad stability of the global economy. Primary amongst these is the risk of a global financial contagion from the recent bank failures in the United States and Switzerland. In Europe, the war between Russia and Ukraine has continued

unabated, causing critical strains to the commodities and energy markets as supply chain bottlenecks remain, while the lingering risk of the resurgence of several variants of the Corona virus persists after China set aside its Zero-COVID Policy. Furthermore, the deteriorating relations between the US, China, Russia and some major oil producers in the Middle East, continue to contribute to increased volatility in the oil market.

In the Emerging Markets and Developing Economies, the unfolding tight external financing conditions and shock spillovers from the Advanced Economies, could further dampen the recovery of output growth.

In light of these developments, the International Monetary Fund (IMF), in its January 2023 World Economic Outlook, forecast global output growth for 2023 at 2.9 per cent, compared with 3.4 per cent in 2022. Growth is, however, expected to improve to 3.1 per cent in 2024.

While global inflation shows sign of deceleration, monetary policy normalization is progressing unabated, especially amongst key Advanced Economy central banks, targeted at moderating global demand pressure. Price development across several economies is thus expected to remain high throughout 2023, but to decelerate gradually in 2024.

The key factors expected to keep inflation above the long-run target of several central banks include: the persisting disruption to energy markets associated with continued war between Russia and Ukraine; high commodity prices; and general disruptions to the global supply chain associated with uncertainties around the COVID-19 pandemic in China and the ongoing tensions between the US and China over Taiwan’s sovereignty.

Across several Emerging Market and Developing Economies, inflationary pressures have remained high due largely to rising energy prices, high prices of

grains and exchange rate pressures associated with capital flows to high yield US dollar-denominated assets.

In the global financial markets, renewed fears of a global financial contagion are forcing investors to move away from the equities market to safer assets such as gold, while others seek higher returns in treasury securities with improved yields. With several Advanced Economy central banks progressing with monetary policy normalization, global financial conditions will likely remain tight, thus reinforcing the reassignment of financial portfolios to reflect the risk aversion of investors.

Domestic Economic Developments

Data from the National Bureau of Statistics (NBS) showed that Real Gross Domestic Product (GDP) grew by 3.10 per cent in 2022. In the fourth quarter of 2022, it grew by 3.52 per cent (year-on-year), compared with 3.98 per cent in the corresponding period of 2021 and 2.25 per cent in the preceding quarter. The economy maintained a positive growth trajectory for nine consecutive quarters, since exiting recession in 2020. The improved performance was driven largely by sustained growth in the services and agricultural sectors, a rebound in economic activities associated with economic recovery and continued intervention in growth enhancing sectors by the Bank. Staff projections showed that output growth recovery is expected to continue into 2023 and 2024.

The Committee, however, observed with concern, the marginal increase in headline inflation (year-on-year) in February 2023, to 21.91 per cent, from 21.82 per cent in January 2023, a 0.09 percentage point increase. This increase was attributed largely to a minimal rise in the food component to 24.35 per cent in February 2023, from 24.32 per cent in January 2023, while the core component moderated to 18.84 per cent in February 2023, from 19.16 per cent in January 2023. The shocks to the food component were driven by high cost of transportation of food items, lingering security challenges in major food-

producing areas and legacy infrastructural problems, which continue to hamper food supply logistics.

Broad money supply (M3) grew by 13.14 per cent (annualized) in February 2023 (year-to-date), below the 2023 provisional annual benchmark of 17.18 per cent. This was driven largely by the growth in Net Foreign Assets (NFA), which was attributed to the increase in foreign asset holdings of the Central bank and decrease in foreign claims on Other Depository Corporations (ODCs).

Money market rates reflected the tight liquidity conditions in the banking system. Consequently, the monthly weighted average Open Buyback (OBB) and Inter-bank Call rates increased to 12.74 and 12.54 per cents in February 2023, from 10.14 and 10.35 per cent in January 2023, respectively.

The Committee noted the continued stability in the banking system, reflected by the performance of the Financial Soundness Indicators (FSIs). The Capital Adequacy Ratio (CAR) stood at 13.7 per cent, Non-Performing Loans (NPLs) ratio of 4.2 per cent and Liquidity Ratio (LR) of 43.1 per cent, as of February 2023.

The MPC observed the sustained improvement in the equities market in the review period, as the All-Share Index (ASI) and Market Capitalization (MC) both increased to 54,915.39 and N29.92 trillion on March 17, 2023, from 51,251.06 and N27.92 trillion on December 30, 2022, respectively, indicating renewed investor confidence in the Nigerian financial market.

The Committee, however, noted the marginal decline in the level of gross external reserves to US$36.13 billion in February 2023, from US$36.4 billion in January 2023, a decrease of 0.7 per cent, reflecting the downtrend in crude oil prices, as global uncertainties persist.

The Committee reviewed the performance of the Bank’s various interventions aimed at stimulating production and productivity across the real sector. Between January and February 2023, the Bank disbursed N12.65 billion to three (3) agricultural projects under the Anchor Borrowers’ Programme (ABP),

bringing the cumulative disbursement under the Programme to ₦1.09 trillion to over 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities on an approved 6.02 million hectares of farmland across the country.

The Bank also released the sum of ₦23.70 billion under the ₦1.0 trillion Real Sector Facility to eight (8) new real sector projects in agriculture, manufacturing, and services. Cumulative disbursements under the Real Sector Facility currently stands at ₦2.43 trillion, disbursed to 462 projects across the country, comprising 257 manufacturing, 95 agriculture, 97 services and 13 mining sector projects. Under the 100 for 100 Policy on Production and Productivity (PPP). The Bank also released ₦3.01 billion under the Nigerian Electricity Market Stabilisation Facility (NEMSF-2) for capital and operational expenditure of distribution companies (Discos) aimed at improving their liquidity status and aid their recovery of legacy debt. This brings the cumulative disbursement under the facility to ₦254.39 billion.

Outlook

The overall outlook for the full recovery of both the global and domestic economies, remained clouded by new and legacy downside risks.

Available data and forecasts for key macroeconomic variables for the Nigerian economy, suggest that the domestic economy will continue to recover for the rest of 2023 at a moderate pace, in light of evolving and persisting shocks to the economy. The continued upward pressure on inflation, rising cost of debt and debt servicing, as well as deteriorating fiscal balances remain headwinds, which may undermine the smooth path to a faster recovery. Accordingly, the Nigerian economy is forecast to grow in 2023 by 3.03 per cent (CBN), 3.37 per cent (FGN) and 3.20 per cent (IMF).

The Committee’s Considerations

At this meeting, MPC focused its attention not only on the inflationary trends in most major economies, but also on the reported impact of policy rate hikes:

aimed at rein-in inflation on financial system stability in the global financial system.

The MPC hence took time out to discuss the recent bank failures in the US and Switzerland, an event that occurred following the persistent interest rate hikes in the US, and how this has adversely impacted the broad portfolio of banks in the US. It noted that whereas MPR was increased by 500 basis points in Nigeria, from 12.5 per cent in 2022 to 17.5 per cent in January 2023, the Financial Soundness Indicators (FSIs) in Nigeria shows that the Nigerian banking system remain resilient due largely the stringent prudential guidelines put in place by the CBN which has resulted in a strong build-up of not only the Cash Reserve Ratio (CRR) in Nigeria, but also the Liquidity Ratio and capital Adequacy Ratio.

In the light of these strong FSIs, MPC was comforted that its various decisions in increasing MPR have had moderate impact on inflation, given that the rate appears to have plateaued in Nigeria.

The Committee’s major considerations at this meeting, therefore, focused on arriving at key policy mechanisms to shield the economy from emerging shocks from the global economy, as well as sustain its focus on domestic price stability.

Headline inflation, in the view of members, remained high with increased expectations of price development, due to the perennial scarcity of PMS and ongoing discourse around the removal of fuel subsidy. With the prices of other energy products also rising, members stressed the importance of addressing price development.

The Committee also considered the continued impact of exchange rate pressure on domestic price levels and called for policies to attract both portfolio and foreign direct investment to Nigeria. It maintained optimism that, the continued progress made with the RT200 FX programme, Naira-4-dollar and other policies targeted at attracting diaspora remittances, would continue to help improve accretion to the external reserves and improve liquidity in the foreign exchange market.

While output growth remains on a positive trajectory, Members called for increased monetary and fiscal coordination to support the recovery in light of risks confronting the domestic economy. To this end, the Committee enjoined the fiscal authority to explore other avenues to improve non-oil revenue to reduce the fiscal deficit and public debt burden.

Following new risks of financial contagion emerging from the scenario of failed banks in some Advanced Economies, members examined the possibility of shocks to the Nigerian banking system from these banks and concluded that the Nigerian banking system remains reasonably insulated from such likely contagion. The CBN has been able to achieve this through stringent micro and macro-prudential guidelines that have ensured that individual banks and the banking industry in Nigeria have adequate buffers to ward-off global contagion. In addition to this, the MPC examined the possible impact of further policy rate hikes on the stability of the banking system and was convinced that further hikes would not adversely impact the stability of the banking system. The Committee, however, called on the Bank’s Management to strengthen its regulatory oversight on the banking system to ensure that the banking industry remain stable and resilient.

The Committee’s Decision

The MPC noted that while the continued rise in headline inflation remained a significant problem confronting the economy, other macroeconomic variables are moving in the right direction, despite observed headwinds.

The Committee’s debate at this meeting, therefore, was whether to continue its rate hike to further dampen the rising inflation trajectory or hold to observe emerging development and allow for the impact of the last five rate hikes to permeate the economy. Loosening, in the view of members, would gravely undermine the gains achieved so far.

The MPC observed the continued upward risk to price development around expectations on the removal of the PMS subsidy; rising prices of other energy

sources; continuing exchange rate pressure; and uncertain climatic conditions. These in the view of members, provides a compelling argument for an upward adjustment of the policy rate, albeit, less aggressively. The Committee, however, noted that the naira redesign and cash withdrawal limit policies have resulted in a sizeable reduction in Currency-Outside-Banks, indicating an expected improvement in the potency of monetary policy tools.

Members, however, remained aware of the ongoing challenges associated with the limits imposed on cash withdrawals in the face of frequent downtime in bank electronic transaction channels. The Committee thus called on Other Depository Corporations, online payment platforms, and other stakeholders to ensure that the prevailing incidence of network failures is overcome in the immediate and short term. This would ensure that the Naira Redesign and Cash Withdrawal Limit Policies lead to an improved in-road of the CBN Cashless program and efficiency of the transmission mechanism of monetary policy.

Members, thus, resolved by a majority vote to raise the Monetary Policy Rate (MPR) by 50 basis points. In Summary, ten (10) members voted to raise the MPR by 50 basis points, one (1) member voted to raise the MPR by 25 basis points and one (1) member voted to hold the MPR. All members voted to keep all other parameters constant.

The MPC, therefore, voted to:

I. Raise the MPR by 50 basis points to 18.0 per cent;

II. Retain the asymmetric corridor of +100/-700 basis points around the MPR;

III. Retain the CRR at 32.5 per cent; and

IV. Retain the Liquidity Ratio at 30 per cent.

Source: Business News Report.

President Buhari Celebrates Tony Elumelu, Africa’s Leading Investor, For Clocking 60

Editorial staff

March 21, 2023

President Muhammadu Buhari has congratulated the Chairman of the United Bank of Africa (UBA) Group, Tony Elumelu, on his 60th birthday, which comes up tomorrow, March 22.

President Buhari, in a statement today, March 21, acknowledged the honour and pride that Elumelu has brought to Nigeria and Africa, with his achievements, lighting the way for many to grow through inspiration, mentorship and training, focusing on raising generation of entrepreneurs.

Buhari said that Elumelu’s benevolence typifies his humble background and upbringing, starting out as a young banker, daring to dream of a modern and technologically friendly financial institution, Standard Trust Bank, and leading one of the biggest mergers with the UBA, which made history and strengthened the economy.

President Buhari noted the combination of youthfulness in style, broadness in networking, with both old and young, and the passion in pursuing and realising dreams that the entrepreneur continually projects, graciously guiding others to nurture their business ideas to reality, especially in meeting societal needs and rendering value.

“As the Chairman of Heirs Holdings, Transcorp and Tony Elumelu Foundation clocks 60, the President joins family members, particularly his wife, Dr Awele Elumelu, in thanksgiving to God for all the resourcefulness and impact, with brighter future ahead. President Buhari prays for long life, good health and wisdom for the Humanitarian.

Tony Elumelu, who was ranked amongst World’s 100 most influential personalities in 2020 by Time, is the Founder and Chairman of Heirs Holding investment company which is committed to improving lives and transforming Africa, through long-term investments in strategic sectors of the African economy, including financial services, hospitality, power, energy, technology and healthcare.

He is also the Chairman of pan- African financial services group, the United Bank for Africa which operates in 20 countries across Africa, the United Kingdom, France, the UAE, and is the only African bank with a commercial deposit taking presence in the United States. UBA provides corporate, commercial, SME and consumer banking services to more than 35 million customers globally.

He also chairs Nigeria’s largest quoted conglomerate, Transcorp whose subsidiaries include Transcorp Power one of the leading producers of electricity in Nigeria and Transcorp Hotels Plc Nigeria’s foremost hospitality brand.

Elumelu is the Founder and Chairman of Heirs Oil & Gas, an upstream oil and gas company, whose assets include Nigerian oil block OML17, with a current production capacity of 50,000 barrels of oil equivalent per day and 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential. Heirs Oil & Gas is committed to creating resource based added value on the African continent.

He is one of the most prominent champion of entrepreneurship in Africa. In 2010, he created The Tony Elumelu Foundation (TEF), a leading philanthropy empowering a new generation of African entrepreneurs, catalysing economic growth, driving poverty eradication and driving job creation across all 54 African countries.

Since inception, the Foundation’s flagship programme has identified and catalysed nearly 16,000 entrepreneurs and created a digital ecosystem of over one million Africans, as part of a ten year US$100m commitment to fund, mentor and train young Africans. The Foundation is increasingly sharing its unique ability to identify and access young entrepreneurs across Africa, with institutions such as the European Commission, United Nations Development Programme, the International Committee of the Red Cross and other global development agencies, implementing thematic programmes that have focused on women and fragile regions.

Nigeria’s Federal Govt Removes Excise Duty For Telecoms Services

Editorial staff

March 21, 2023

The Federal Government has announced the removal of excise duty for telecom sub-sector of Nigeria’s Digital Economy Industry.

This was in line with the recommendations of the Committee it constituted to review the applicability of the Duty to the telecom sector which is considered already overburdened with taxation and sundry levies.

Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim Pantami, who addressed newmen today, March 21, gave updates on the status of the 5 per cent excise duty, whose applicability to the telecom sector was objected by the Minister in August 2022, following which President Muhammadu Buhari suspended its application to the telecom sector and set up a Presidential Review Committee on Excise Duty in the Digital Economy Sector.

Pantami, who is the Chairman of the Committee, specifically set up for the purpose of reviewing the proposed excise duty in the telecom sector, said that the Committee had carried out its national assignment and accordingly submitted its report to the President, justifying why the sector should be exempted.

The Minister said the Committee’s submissions can be summed up in three arguments put forward to justify why additional burden in form of taxes or any level should not be imposed on the telecom sector to prevent a reversal of the important contribution the sector is making to the growth of the Nigerian economy.

“Our justifications are based on three premises: First, is the fact that operators in the telecoms sub-sector of the digital economy industry currently pay no fewer than 41 different categories of taxes, levies and charges; secondly, that telecoms has continued to be a major contributor to Nigerian economy in terms of Gross Domestic Product Contribution (GDP).

“The third ground for contesting the Excise Duty in telecom sector is the fact that, despite increase in the cost of all factors of production across sector, and naturally leading to increase in costs of products and services, telecom sector is the only sector where cost of service has been stable and in many cases continued to go down over the past years and therefore, adding more burden will destroy the sector.”

The Minister said that the President, having looked into the arguments put forward by the Committee and relying on the provision of the Section 5 of the Nigerian 1999 Constitution, as amended, has therefore, exempted telecom sector from the list of sectors to pay the excise duty as stated in Finance Act of 2021 and other subsidiary legislations, all of which are not as superior as the Constitution which permits the President to grant such waiver.

“I am happy to report to you that President Muhammadu Buhari, GCFR, has approved the exemption of the digital economy sector from the five percent excise duty to be paid and this is because of the strength of the argument presented to him by the Committee that additional burden on telecom sector will increase the sufferings of Nigerians and that other sectors that are not making as much contribution to the economy should be challenged to do more and pay the 5 per cent excise duty.”

The Minister assured Nigerians, who are telecom consumers, that the presidential exemption given to the telecom sector shall be sustained by the incoming administration as “the decision by the President is not about any political party or any administration but about Nigeria and welfare of Nigerian citizens.”

He said that the Digital Economy Sector has continued to contribute significantly to the growth of the Nigerian economy, having contributed 14.07 per cent to the GDP in the first quarter of 2020; 17.79 per cent in the second quarter of 2021; and 18.44 per cent in the second quarter of 2022.

He said that the sector has also increased its quarterly revenue generation for government from N51 billion to over N480 billion, representing a growth of 594 per cent; while the cost of buying data has also reduced from N1,200 in 2019 to N350 presently, despite the increase in the cost of operations, including the energy challenge that has caused mobile network operators to power base stations with over 32,000 power generating to provide seamless services to their teeming consumers.

February 25 Election: Peter Obi Wants Court To Declare Him President-Elect

Editorial staff

March 21, 2023

The presidential candidate of the Labour Party (LP), Peter Obi has asked the Presidential Election Petition Court in Abuja to declare him the president-elect, in the belief that he scored the majority of the lawful votes during the February 25 election in the country.

He asked that in alternating, the entire election should be nullified and a fresh election conducted.

The Labour Party candidate filed the petition challenging the victory of Asiwaju Bola Ahmed Tinubu of the All Progressives Congress (APC) in the 25 February election, alleging that the election was characterized by various irregularities, including the non-qualification of Tinubu and his running mate, Kashim Shettima to contest the election.

He also alleged that Tinubu failed to win the majority of the lawful votes cast in the election, and just as he could not secure one-quarter of the lawful votes cast in the Federal Capital Territory (FCT), Abuja.

According to Peter Obi, in the petition, the election was conducted in substantial non-compliance with the provision of the law.

The petition contains a total of five prayers divided into two categories – two main prayers and three alternative prayers.

Peter Obi jointly filed the petition alongside his party, the Labour Party.

The co-petitioners sued the Independent National Electoral Commission (INEC), Tinubu, Kashim Shettima (vice-president-elect) and their party, the APC, as the respondents.

The petitioners filed their case today, March 21, beating the 21-day deadline that began to count from March 1 when INEC declared the winner of the election.

INEC Chairman, Mahmood Yakubu, who announced the final results in the early hours of 1 March in Abuja, said that Atiku Abubakar of the Peoples Democratic Party (PDP) came second in the election. Atiku polled a total of 6,984,520 votes in the election, according to the results declared by INEC.

Peter Obi of the Labour Party came behind Atiku with a total of 6,101,533 votes, while Rabiu Kwankwaso of the NNPP came fourth with 1,496,687 votes.

Obi’s legal team, which filed the petition against the outcome of the election is led by Livy Uzoukwu, a Senior Advocate of Nigeria (SAN).

Uzoukwu led Atiku’s legal team when the former vice president unsuccessfully challenged the victory of President Muhammadu Buhari in 2019.

When Pantami, Danbatta And Communication Guru Gather

Greenbarge Reporters

March 21, 2023

The Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim Pantami, Executive Vice Chairman/Chief Executive Officer, Nigerian Communications Commission (NCC), Professor Umar Danbatta, along with other telecommunication expert: Senior Administrative Manager, Mafab Communications Ltd. Jacqueline Olowolayemo; National Commissioner/Chief Executive Officer, Nigeria Data Protection Bureau, Dr. Vincent Olatunji and Senior Manager, Public Affairs, MTN Nigeria, Anas Galadima, spoke to news men today, March 21, under the canopy of the Presidential Review Committee on Excise Duty in the Digital Economy Sector.

Tinubu To Opposition, Others: Come Let’s Work Together To Heal Wounds Of Elections

Greenbarge Reporters

March 21, 2023

The Nigeria’s President-elect, Asiwaju Bola Ahmed Tinubu has extended a hand of friendship to the opposition political parties and their Presidential candidates that contested with him in the February 25 election to join him in healing the wounds caused through campaigns ahead of the elections.
In a statement today, March 21, personal signed by him, the President-elect said: “my appeal is for us to rise above our differences, which, in reality, are fewer than the valued strings that bind us together as a people irrespective of the circumstances of our births.”
He advised that the winners and losers of the elections must take urgent steps to unite “those who voted for us and those who did not. We must champion the healing process by embracing the opponents and their supporters.”
Asiwaju Tinubu insisted that as the time for politicking is gone, politicians should make this time as the time for nation building, “a task beyond one individual or a section of the society.

“We need every hand from wherever it may come to be on deck.
“I am ready to work with you all as your President. I will be a worthy partner you can trust and rely on as we all bond together, in unity of purpose and renewed hope for, the betterment of our blessed country and beloved people.”
Read the full text of the statement by the President-elect:
With the conclusion of the Governorship and State Houses of Assembly elections, I congratulate all the elected governors and assembly members for earning the mandate of the people. The March 18 governorship election held across 28 states and the state legislative poll across the 36 states of the federation have brought the 2023 election circle to a fitting close.
I must praise President Muhammadu Buhari, the Independent National Electoral Commission, security agencies, Observer Groups, Civil Society Organisations, development partners and the electorate for the success of the elections. The election is pivotal to the growth and sustenance of democracy and democratic governance at the state level.
Consolidating democratic governance at the sub-national level will bring more development and improved quality of life to the masses. The more we entrench and consolidate the gains of our democratic venture across the length and breadth of our country, the more our people benefit in terms of dividends of democracy and good governance.
However, I’m saddened by the reported isolated infractions during the elections and its aftermath in some states. I strongly condemn it. Also, the report of arson after the announcement of governorship results in one state did not represent who we truly are: peace-loving people.
The physical and verbal assaults committed are unacceptable and antithetical to democratic ethos.
Elections should be a celebration of our maturing democracy and freedom of choice and ought not to be moments of grief. I am particularly pained by cases of ethnic slurs, which are capable of creating needless mis-characterisation reported in some locations.
My appeal is for us to rise above our differences, which, in reality, are fewer than the valued strings that bind us together as a people irrespective of the circumstances of our births.
As former governor of Lagos State, I can attest to the strength in our diversity and togetherness. As your President-elect, it is that spirit of inclusiveness we engendered in Lagos that I intend to bring into national governance so that together we can attain our full potentials.
I will give priority to expanding the civic space and safeguarding citizens’ freedom to exercise their rights within the bounds of the law.
Indeed, the elections are over. The people have voted to elect their governors and state legislators that will serve them for the next four years. The time for leadership and governance is now upon us.
In a democracy, majority would have their way but that majority must not suppress the minority from having their say. As democrats, we have to safeguard free expression. Winners must be magnanimous and those who did not win should have a large heart for tolerance and respect for the greater interest of the nation.
As the elected, the only way to justify the trust and confidence of the people and the mandate entrusted in us is to commit ourselves to the service of the people. We must all work diligently and sincerely to make life better for the masses. As elected officers, we have no other assignment than to be burden-bearers for the masses and ensure they have better life that we promised during the campaigns.
We must take urgent steps to unite the people; those who voted for us and those who did not. We must champion the healing process by embracing the opponents and their supporters. As I have stated previously, the time for politicking is gone. This is time for nation building, a task beyond one individual or a section of the society. We need every hand from wherever it may come to be on deck.
I am ready to work with you all as your President. I will be a worthy partner you can trust and rely on as we all bond together, in unity of purpose and renewed hope for, the betterment of our blessed country and beloved people.
Asiwaju Bola Tinubu, President-elect,
Federal Republic of Nigeria March 21, 2023

EDITORIAL: The Ethno-Religious Augean Stables In 2023 Elections

Greenbarge Reporters

March 20, 2023

The 2023 general elections in Nigeria have come and gone: it started on February 25 with the Presidential and National Assembly elections and was concluded on March 18, with the election of State Governors and members of the State Houses of Assembly.

The elections, to say the least, were far different from the previous ones. As a matter of fact, there was never a time in the history of this country as we journey through democratic governance, that elections were so coloured dirty with ethno-religous rivalry, than the 2023 general elections, with particular reference to the Presidential election, held on February 25.

The Presidential election was contested basically along the line of the two major religions – Islam and Christianity – in the country. The ethno-religious factor was unmistakably and unashamedly displayed between Peter Obi, a Christian, behind whom about 95 percent Nigerian Christians queued, and three other major contestants: Asiwaju Bola Ahmed Tinubu of the All Progressives Congress (APC), Atiku Abubakar of the Peoples Democratic Party (PDP) and Rabiu Musa Kwankwaso who are all Muslims.

The intensity of the religious factor was ignited, willy-nilly, by the APC and its Presidential candidate, through the introduction of Muslim-Muslim ticket. That was the fact which Tinubu, a Muslim from the Southwest, in picking Alhaji Shettima, a Muslim from the Northeast as running mate, downplayed.

Majority of the Christians from across the country kicked against the same faith combination, but APC/Tinubu would not listen, for whatever reason, justified or not.

While the APC was on that suicidal move, another major party, PDP, floated a Muslim Fulani from the North, Atiku Abubakar as its Presidential candidate, against the cry of people from the Southern part of the country that Northerner should not go for the Presidency after another Northerner, President Muhammadu Buhari, would have served two terms of eight years.

Amidst such scenario, Peter Obi surfaced from an obscure corner in a weak political platform, the Labour Party. The aggrieved Christians from the Southern part of the country and the minority Northern Christians saw Peter Obi not only as a saviour from what they considered as “marginalization, but an alternative to their quest to have one of them as President.

Peter Obi did not hide the fact that he had emerged as purely a candidate for the Christians, and Igbo speaking population across the country in general and the Southeast in particular.

So much he boxed himself into the ethnic religious corner that he lost the sense of reaching out, even covertly, to Muslims anywhere in the country. He was obviously comfortable visiting churches and appealing to the emotions of Christians, who also felt aggrieved by the same faith system, adopted by the APC/Tinubu. The Obi’s sympathizers ignored the saying that two wrongs cannot make a right.

Christians and Igbo in Southeast as well as those in other parts of the country embarked on mobilizing themselves for Peter Obi, in ways they had never done on any collective national project before. Churches across the country and in villages and settlements turned themselves into potent political structure for Peter Obi, who was dismissed by political pundits as a candidate without political structure.

As it was posited earlier, the APC/Tinubu triggered off the ethno-religious political system, when it was obvious that Nigeria’s democracy has not matured to make people look beyond such issue.

As the saying goes, if you point a finger at a person, the remaining four are pointing back at you, asking “what if it’s you?” In other words, if Christians today, decide to go into same faith Presidential contest, would Muslims welcome it? This is where Christians got the sympathy of rational thinkers. And it is in this context that the rise by Christians to go into protest vote against not just the APC but other parties that showed a semblance of domination or traits of marginalization is located.

To cleanse the country of the putrid ethno-religious Augean stables as the elections came to an end, Peter Obi should understand that he owes Christians in the country a lot of gratitude. That he should thank them for their massive votes that elevated his political status and profile far beyond even his own imagination.

In fact, if it were not the circumstances that forced Christians to vote for him en-mass, he would have ended up, at best, being confined to his tribal enclave in the Southeast. And above all, Peter Obi should start now to build bridge across the ethnic and religious divides, if he still have the ambition to contest election in future and win to be President of this country.

He needs to start creating beneficial and friendly interaction with Muslims in the North, leaders of Yoruba dominated Southwest and other relevant political blocks in the six geopolitical zones of the country.

Mutual respect should be allowed to flourish once more between Igbos wherever they live and doing legitimate businesses and the natives of the places, believing that businesses can thrive only where peace, love and friendliness permeate the environment.

The leadership of the PDP, being the major opposition in the country, needs to come together to resolve issues that led to the disintegration ahead of the just concluded elections. Atiku Abubakar and his team should be experienced enough to know that elections cannot be won by ignoring “the little things.”

And above all, the President-elect, Asiwaju Tinubu needs to make the mending of the broken political fence one of the top priorities of his government, and urgently so.

He can involve the people from contending forces in running the government. He really needs to set strong machinery in motion to cleanse the country of the putrid ethno-religious Augean stables.

Of course, Tinubu may not find it difficult to mend the fence in the polity, knowing that his wife is not only a devout Christian but a strong church leader, even as most of his right hand men and women are Christians.

In all, Muslims and Christians and other actors that shaped the 2023 general elections should understand the reality that every election in Nigeria and elsewhere always bring some unique feature to play, and that the feature in the just concluded elections was within that context.

With the elections over, the citizenry, irrespective of ethnic and religious group, should return to the reality of the hardness of life and living today, and contribute to the unity and progress of the country to make the pursuit of things that would make life better for us all, easier.

NCC Celebrates International Consumers Rights Day, Opens Telecare Centre At Abuja Airport

Editorial staff

March 20, 2023

As part of the series of events to mark the 2023 International Consumers Rights Day, the Nigerian Communications Commission (NCC) has unveiled a Telecom Consumer Assistance, Resolution and Enquires (TELCARE) Centre at the Terminal C of the Nnamdi Azikwe International Airport, Abuja.

The Chairman, Board of Commissioners of NCC, Professor Adeolu Akande, who unveiled the initiative, said the launch of the TELCARE, is the beginning of the helpdesk project expected to adorn some airports and other similar public locations across the country. He said it is one of NCC’s strategies for expanding the channels of engagement with telecom consumers.

Akande said the project is a deliberate effort by the Commission to amplify its commitment to promoting the interest of consumers using various engagement strategies and initiatives to protect, inform, and educate telecom consumers.

While expressing gratitude to the Management of the Federal Airport Authority Nigeria (FAAN) for its support in ensuring the successful establishment of a TELCARE Desk at the airport, Akande reiterated that the platform would serve as an additional channel for consumers to make enquiries on consumer issues, allowing the Commission to provide advocacy on consumer concerns as well as create awareness regarding Commission’s activities.

The Commission, under the leadership of its Executive Vice Chairman, Prof. Umar Danbatta, has continued to re-engineer its strategies and structures to make them more effective to engage critical stakeholders to address unfair practices including but not limited to matters relating to tariffs.

In his goodwill message, the Regional General Manager, FAAN, Kabir Mohammed, said that the Management of FAAN was delighted to partner with the NCC on the initiative, as the passengers and airport users will have the opportunity to resolve issues bothering them while in transit.

Mohammed also noted that the first-hand interface with consumers would not only expedite the feedback mechanism in addressing telecom consumer issues but also curb unfair practices within the system and further bridge any communication gap between the consumers and its regulators.

NCC’s Head, Consumer Affairs Bureau, Ayanbanji Ojo, speaking through the Head, Consumer Protection and Advocacy at NCC, Clem Omife, expressed optimism about the expected success of the initiative.

Ojo noted that many consumers transiting at the airport are already taking advantage of the Desk even before the launch of the TELCARE Desk, to make enquiries or lodge complaints.

“This is a pilot project, and the Commission will ensure that the TELCARE Desk is established in more strategic locations around the nation. We believe that through adequate education, information sharing, and the provision of layers of channels for complaints and redress, we can safeguard the interest of telecom consumers and innovatively promote the prospect of more excellent consumer experience,” Ojo said.

The New President And Nigeria’s Economy

Editorial staff

March 20, 2023

When and if he is eventually sworn in as the next president of Nigeria, Mr. Bola Ahmed Tinubu, the candidate of the ruling All Progressives Congress (APC) who has been declared winner by the Independent National Electoral Commission (INEC), will have his work cut out for him. This much is clear particularly in relation to the revamping of the Nigerian economy. The new President would need to focus on a number of critical issues if the economy would receive a boost during his tenure. It is now common knowledge that under the Muhammadu Buhari administration, the state of the economy became worse than what it was in 2015 when he assumed office.

This cuts across virtually all the economic indicators namely, poverty incidence, exchange rate, level of inflation, growth rate of the Gross Domestic Product (GDP), debt burden, fiscal sustainability and indeed the overall living standards of the average Nigerian. As a matter of fact, the economic scorecard of the Buhari administration was very woeful. The new President must avoid the path taken by the outgoing administration. It must put in place programmes and structures to turn the corner and guarantee a future for the bulging youth population who appear hopeless in the current scheme of things

First, the new President must put together a crack economic team akin to those of the Obasanjo and Goodluck Jonathan administrations where well-tested technocrats such as Ngozi Okonjo-Iweala, Akinwunmi Adesina and others with sound pedigree as well as global credibility were engaged to manage the Nigerian economy. Irrespective of any contrary view, it is on record that the Nigerian economy recorded tremendous growth over those periods. Credible members of professional bodies such as the Nigerian Economic Society among others should be brought on board to help chart the way forward for the Nigerian economy. The economic team will assist to ensure that there is harmonisation of fiscal and monetary policies and that the economy is made productive in the pursuit of sustainable growth. Currently the economy is largely based on consumption and rent-seeking.

Second, the incoming administration should frontally address the fiscal sustainability challenge the Nigerian economy is going through. This is at the heart of the current economic problem. The Buhari administration inherited an average annual budget size of about N4.5 trillion in 2015 but has successively increased this to over N20 trillion in 2023. Not much has been seen in the growth of the Nigerian economy to justify this increase. What has become very obvious has been the increase in the level of the country’s public debt burden from about N12.5 trillion in 2015 to over N48 trillion given the latest figures of the country’s Debt Management Office (DMO). This is not accounting for the deficits of the 2022 budget as well as the over N20 trillion Ways and Means advance from the Central Bank of Nigeria (CBN).

The new President must frontally address the public debt issue. It is so devastating that the debt service payment is even in excess of the revenue receipts thus prompting the country to continually borrowing more. This may require the need to seek for a rescheduling of the entire debt portfolio and the need to adopt a more pragmatic debt management strategy where borrowing is strictly tied to projects that can repay the loan on its own. The expenditure side has to be addressed also and this is an area where the new President would have to engage the other arms of government in ensuring that there is a drastic reduction in the cost of governance. This is very critical. Revenue management is also important. Serious leakages such as the seemingly perennial oil theft have to be addressed. It is sad and shameful that Nigeria has not been able to meet up with its OPEC quota and has thus not benefited maximally from the Russia /Ukraine war which has boosted the revenue inflow of many oil exporting countries through the reasonably high price of crude oil on the international oil market. Tax revenue would need to be boosted through the inclusion of the informal sector into the tax net, as much as is possible. Multiple taxes would however need to be avoided, as much as possible.

Third, the issue of fuel subsidy should be confronted headlong. This will have a serious impact in the enhancement of the country’s fiscal sustainability as well as flow in line with the dictates of the Petroleum Industry Act which allows for a deregulation of activities in the oil and gas industry. Despite the public outcry that may follow with this move, government should not relent but instead proceed accordingly although necessary palliatives would need to be provided to cushion the likely inflationary effects of the policy. This issue needs to be addressed.

Next, the need to address the poverty problem in Nigeria is very important. Many Nigerians have lost hope in the ability of the Nigerian economy to guarantee their sustenance and means of survival. That is why many persons particularly the youth are leaving the country in droves. Virtually everyone is getting poorer in Nigeria since the inception of the Buhari administration in 2015. Inflation has increased drastically from single digit in 2015 to about 22 % in 2023. Real wages have fallen. The exchange rate has depreciated from about N197 to a US dollar in 2015 to N750 presently. All these have fuelled inflation. The cost push factors of poor infrastructure, insecurity and low level of public energy supply have hindered production and thus fuelled inflation also. All these have to be addressed in order to make life worth living for the average Nigerian.

Finally, the new government should pursue a balanced development strategy, in making effort to open up the country and enhance decentralisation of economic activities away from the already congested parts of the country. Lagos for example, is getting increasingly populated following regular influx of Nigerians from other regions. The ensuing pressure, against limited infrastructure, is making living difficult; there is the great need to open up other economic centres across the country. One of the ways of doing this is to expand the operations of the Warri and Port Harcourt ports and consequently divert cargo to them to help decongest Lagos and enhance development in the hinterland. That does not deter Lagos from being the country’s economic capital but will stem the tide of the continual influx of people to Lagos in search of economic opportunities. That should be addressed if the new government plans to enhance economic inclusion across the geopolitical zones. The adoption of a balanced development approach would also involve the development of sustainable infrastructure in these regions.

The Presidential election has come and gone and what is required now is governance; indeed good governance. Though the task is herculean, the new President must hit the ground running. By and large, what the people are looking for is good governance. Many will largely forget any grievances they may have concerning the outcome of the elections or any bias they nursed against the APC or the president-elect, if they can experience improved living standards and better national cohesion under the new administration.

Culled From The Guardian.

APC’s Sanwo-Olu Cruises To Victory In Lagos; NNPP’s Abba Grabs Kano

Greenbarge Reporters

March 20, 2023

The Independent National Electoral Commission (INEC), has declared Governor Babajide Sanwo-Olu of the ruling All Progressives Congress (APC) the winner of the governorship election in Lagos State. He is going for a second term of another four years.

He polled a total of 762,134 to defeat first runner-up, Labour Party’s Gbadebo Rhodes-Vivour, who secured 312,329 votes, even as Abdulazeez Adeniran of the Peoples Democratic Party (PDP), got 62,449 votes.

The results were announced by the Returning Officer, Prof Adenike Temifayo-Oladiji, Vice Chancellor, Federal University of Technology Akure (FUTA).

In Kano State, the governorship candidate of the New Nigerian Peoples Party (NNPP), Abbas Kabiru Yusuf was declared the winner. He defeated the candidate of the ruling All Progressives Congress (APC) Nasiru Yusuf Gawuna.

Declaring Yusuf winner, the returning officer of the governorship poll Professor Ahmed Doko Ibrahim said that Yusuf got 1,019,602 votes while Gawuna secured 890,705 votes.

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