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Babagana Zulum: A Profile of Governance that delivers Peace, Reconstruction, Prosperity and Inclusive Society through New Dynamics of Leadership Strategies in Borno State

Professor Babagana Umara Zulum, Governor Borno State, Nigeria is a firm and disciple person who mirrors the character and principles embraced by Nigerian founding fathers. And as such he has  been creating an inclusive society in Borno state, reconstructing, building peace and partnerships, working together with the people and changing lives

Leadership, learning, courage and good choice of words are the take-aways from Governor Zulum.  An example of the leadership and character strength by such founding fathers as Chief Obafemi Awolowo, Dr Nnamdi Azikiwe, Alhaji Ahmadu Bello, and Alhaji Abubakar Tafawa Balewa. Then plus some traits of President Muhammadu Buhari.

A leader who anchors himself on the philosophy of the Bostonia orator and late US President, John Kennedy’s saying that leadership and learnership are indispensable to one another, Zulum having gathered governance experience from former Governor Kassim Shettima, is among the leaders who are positively redefining governance narratives in Nigeria. This explains why he was able to execute over 326 projects in his first year in office.

And this is something instructive. No wonder he is drawing admiration, within and outside Borno state, for his giant strides in all aspects of governance, with his visionary,  people-focused, articulated development agenda which he christened: 10-Pact Transformation Agenda.

Being an academic leader he fully understands the new purposes that scholars have now begun to classify as PPP: People, Planet, Plurality. This shows us new dynamics in different economic regions of the world, focusing on different priorities. For instance, Europe already defines the inauguration of the green revolution, the P for Planet, as its post pandemic. The USA, involved in the presidential elections, places plurality and its diversity, therefore the P for Plurality is its concern with insertive civil society. Leaders in Africa, frightened by the increase in extreme poverty and social losses, focus on reducing the social impact of misery and unemployment on the continent, putting the issue of people ahead. Therefore, Africa preferred concern to focus upon.

But surprisingly, Zulum-a professor of soil science is concerned with all these three Ps.  As a result, he is working tirelessly to shape the future, bring back confidence and restore hope to his people, and never the one to  gamble away his state’s stability and economic security , and never one to engage in sabre-rattling.  As he is concerned with humanitarian and security issues, so is he concerned with food security, agriculture and climate change, as well as  human resources development.

Even with the Boko Haram insurgents activities that have rendered many hopeless and homeless, Governor Zulum remains focused on delivering education as a dividend of democracy to his people.  He has been going about to resettle people, once forced to flee their homes as a result of BokoHaram activities, in different towns and villages in Borno state, leading other government officials in the distribution of food and non-food items to those in critical humanitarian needs. Risking personal safety, he regularly visits disturbed locations where a large number of people have been displaced to wipe of tears from people faces and infuse them with hope and confidence. While supervising aid distribution to thousands of internally displaced persons (IDPs) and vulnerable members of society, he is equally concerned about their need for shelter.

Governor Zulum laying the foundation of a building project

A look at Zulum’s performance in office in just one year makes people marvel. He embarked on 375 projects.

To ensure peace and security become permanent features of Borno social and cultural life, Zulum places premium on the security of the citizenry. That is why he has been able to make several sustained efforts in tackling security challenges in the state. With 300 patrol vehicles purchased and distributed to CJTF, military and other sister agencies, establishment of security trust fund, formation of rapid security response team, special protection component for farmers tagged agro-rangers, created, procured security gadgets to CJTF and the upward review of their allowances, visitations to high-risk security areas for citizens’ needs assessments, among many other efforts has shown how focused and determined Zulum is, on security matters.

Aware that education is the key to scientific and technological advancement, the means to combat unemployment and the foundation of social equity, Zulum put it on his priority list. His  outstanding achievements in the area of education within the one year in office, is breathtaking. 76 verifiable projects were undertsken across 21 Local government areas. 49 projects are already completed while 27 ongoing in the education sector. Zulum embarked on massive construction, rehabilitation and renovations of hundreds of blocks of classrooms and offices in schools.

In the health sector he has recorded huge transformation , too. The sector benefited 46 physical projects in 19 LGAs out of which 37 are newly built primary, comprehensive and maternity healthcare centres with some few still ongoing. The governor was aware of the unmitigated disaster dearth of equipment could pose to the people’s wellbeing and therefore, promptly procured several equipment of world class standard and essential drugs for most of the healthcare centres in the state, among many others.

He equally seeks to promote commerce and industry in order to boost the state’s economy and its development. He has brought about great transformation for enhanced services and efficiency of  state-owned companies such as BOPLAS, BOSCO, Borno wire and nail industry.  This is in addition to construction of a new modern market in Kwaya-Kusar and market stalls in many LGAs. Agriculture, ecology and biodiversity were greatly considered as Firgi (dry season) farming, installation of rice mill Zabarmari, procurement and repair of modern farm implements, establishment of woodloot plantation, construction of drainage systems to counter erosion and flooding, 2.7 million trees raised, and many others.

Rural/ Urban Development has numerous footprints of Zulum.  He has clearly shown his committed resolve to build Borno State as he has embarked on massive construction of over 6000 housing units, installed litany of electrification and transformers on notably rural communities across the all local government areas. He drilled hundreds of solar powered boreholes, constructed and reconstructed several vocational centres or skills acquisition centres for job creation, constructed 53 municipal buildings in 12 local government areas, in a view to speed up his civil authority restoration processes in the recaptured LGAs.

The transport sector also receives the attention of the governor. In addition to the massive road construction projects, there has been remarkable improvements as Borno Express, the state-owned transport company, is witnessing rapid transformation.

In terms of reconstruction and psychological healing, Zulum is also firing on in all cylinders. This is because Borno state houses over two million internally displaced people (IDPs) forcefully chased out of their communities by Boko Haram in camps and host communities with women and children been the most affected due to their vulnerabilities. And this presents a huge challenge. But Zulum is up to the task.

Zulum who is also a humanitarian decided to get directly involved in coordination and supervision of distribution of food, clothes and conditional cash to displaced persons in many communities across the local government areas of the state. and since coming to office over  one year ago, Zulum has personally supervised and distributed palliatives to hundreds of thousand individuals and families in 14 local government areas.

To address policy inconsistencies and lack of coordination in humanitarian response,the Governor established Agency for Sustainable Development and Humanitarian Response with the mandate of coordinating activities of non-governmental organisations, among many other interventions rendered in the area of humanitarian support and social protection.

In June, this concern forced him to revoke the allocations of houses that remained unoccupied at the Indimi Housing Estate (INHE) in Bama Local Government Area. The governor was on a working visit to Bama when he gave the revocation order. The allocated houses at Bama has remained to be occupied for over a year.

Bama had severally been attacked and destruction of over 90 of houses and public buildings by Boko Haram terrorists, before troops re-captured it in 2016.  On that particular day, Governor Zulum also supervised aid distribution to more than 25,000 IDPs and vulnerable members of the host community in Bama. The IDPs,  staying in Bama town, were mostly from villages sacked by insurgents in Banki, Gulumba, and Ngurosoye of Bama Local Government Area. He told the IDPs that:

“I want to sympathize with you; you have been in a very difficult situation. The insurgents have displaced you from your houses and communities, without any means of livelihoods.The food items you see here are jointly provided by the Borno State Government and the Federal Government. President Muhammadu Buhari is very compassionate about your plights, may God bless him.”

He also announced the re-opening of three secondary schools in Bama. The re-opening, according to him, was to enable primary school pupils to continue with their education. “I will soon come back to Bama. I will personally supervise the enrollment of students.

“We’ve to reopen Government Day Secondary School; the Mega School will also be converted to a Secondary School, while a Girls’ Secondary School will be sited in Shettimari Primary School temporarily.”

At palace of the Shehu of Bama, Zulum informed the royal father of government’s plan to resettle people at Ngurosoye village and Banki, a border town with Cameroon.He said while the IDPs in Menawo and Kirawa taking refuge in Cameroon; will be repatriated to return Banki.

Earlier in August 2019, in his bid to ensure total restoration of civil authority to the local government areas previously ravaged by the Boko Haram insurgency, Zulum had ordered immediate relocation of Shehu of Bama and his Dikwa counterpart back to their respective palaces.

He also made possible the immediate return of all local government staff and primary school teachers to their respective local government areas of postings.

The two traditional rulers had fled their homes to Maiduguri at the peak of the Boko Haram crisis between 2014 and 2015.It could be recalled that the Shehu of Bama escaped death by whiskers when the terrorists invaded his palace then.

But with the restoration of peace by the security agencies, civilian joint taskforce and subsequent return of the displaced persons from the areas who were earlier taking refuge in Maiduguri back to their ancestral homes through the rehabilitation, reconstruction and resettlement programme of Borno State government, Zulum moves to ensure that the monarchs are also home to boost the morale of their subjects.

But who is Governor Zulum? What experience shaped him?  And why is able to do all these things, reconstructing lives in Borno state?  He has leadership qualities and enough experience. He understands that shaping the future essentially means planning to build a robust, prosperous and sustainable economy, as well as a successful development model that meets the competitive demands of the global economy.

This ensures that the concerned state or country excels in various areas of development compared to its counterparts worldwide.

He has been tested and trusted in the proper management of men and materials in his previous public positions. His wealth of experience and laudable achievements as the then Rector of Ramat Polytechnic and pioneer Commissioner Ministry for Reconstruction, Rehabilitation and Resettlement (RRR), put him on a good footing and this is brought to bear in the fight against  Boko Haram insurgency in the state.

The good people of Borno state believe that with his unrivaled passion and concern for the plight of the common man, Borno state was about to witness a tremendous shared prosperity in all its ramifications having Zulum as the governor.

In 2015, Zulum was appointed pioneer Commissioner for Reconstruction, Rehabilitation and Resettlement by Shettima. Despite being in control of billions of naira for the reconstruction of thousands of homes, schools and hospitals, he neither bought a personal house nor a personal car for himself. He also came under attack from Boko Haram twice but didn’t stop in his efforts to rebuild substantial parts of Borno.

It is also interesting to note that, as a don, Zulum had more than enough family challenges that he couldn’t even afford to build a personal house and lived in rented apartments with his families even when he was appointed Rector, Ramat Polytechnic Maiduguri and subsequently, Commissioner of Reconstruction, Rehabilitation and Resettlement (RRR), one of the newly created State Ministries by former Governor Kashim Shettima in his second tenure in office.

“Governor Shettima told me in September 2015 that he was trusting me with so much funds for the rebuilding of hundreds of communities destroyed by Boko Haram, and he was worried about the displacement of more than two million people of the state.

That appointment was one major challenge, and I took it up ready to die doing it or trying. Yes, at some point, there was the issue of safety since insurgents can spring surprises, but we had the overwhelming support of the military and the police in particular, as well as other security agencies, and volunteers. The rebuilding was something that needed to be done. As the governor said, we couldn’t wait forever. I’m happy that he succeeded in his determination to rebuild many communities, particularly places like Bama. Today, the government has resettled victims in most of the LGAs, including Bama, Kaga, Dikwa, Gwoza, Askira Uba and others.” Said Zulum in an interview before he became governor in 2019.

Early in life, Zulum had to join his father in tilling the ground at a tender age in Loskuri village, Mafa Council of Borno State. “Every day, I trekked for seven kilometres to reach my father’s farm from our home,” he recalled. He combined farming with his primary and school in Mafa and Monguno from 1975 to 1980 and 1980 to 85, respectively.”

When Zulum was in class five in a secondary school in Monguno, he began to fully cater to his education. “I became a commercial driver of taxis, particularly Peugeot 404. At some point, I also drove buses carrying passengers to different villages and neighbouring states. At a later time, I drove commercial pickup trucks carrying firewood from forests. While working as a commercial driver, I learned how to fix any vehicle I drove,” he said.

In 1986, Zulum gained admission into Ramat Polytechnic in Maiduguri, owned by the state government, to study for a National Diploma in Irrigation Engineering, and lived with relatives off-campus in Kofa Biyu, a densely populated area.

“I trekked for eight kilometres from Kofa Biyu to Ramat Polytechnic and back whenever I had lectures. But I was already used to long walk all my life, as I couldn’t afford transport to school. Whenever I drove taxis and returned the vehicles to owners, I used what I got for my basic school needs. I later also became a commercial operator of grinding machine, and I owned one in Mafa, and during weekends I went there to serve customers,” he added.

Then, from 1990 to 1994, he studied at the University of Maiduguri, where he obtained a degree in Agriculture Engineering, after which he served as a youth corps member with Katsina State Polytechnic. He proceeded to the University of Ibadan from 1997 to 1998, where he obtained a Master’s degree in Agriculture Engineering. In 2005, he enrolled for a PhD in Soil and Water Engineering with the University of Maiduguri, which he completed in 2009.

The courageous decision by His Excellence , Professor Zulum, to initiate actions that build peace for the prosperity of the people reflects a much-needed, pragmatic vision for the future of Borno State and entire North-East region.

Operating within the template of his 10-Pact Transformation Agenda within one year of being Borno governor, Zulum undertook 375 projects, of which 326 are physical projects. The  remaining 49 as capital-intensive programmes and policies.  An average of one project per day  that is the performance of a man popularly called “Governor Workaholic”.

Today , humanity is on the threshold of the Fourth Industrial Revolution, around which global economic development of the future will pivot. Governor Zulum is trying to gather his people for global economic development, so that they are not left behind in the scheme of things.  Under him, governance in Borno State has evolved into the finest relationship mechanism that binds the citizens and the leaders in a shared vision of progress and welfare of the people. The same sense of pride and passion for national excellence marks President Buhari ‘s working style, which has a frank and uncompromising approach to policies and their impact on progress, is also noticeable in Zulum leadership

This provides an echo of old Kanem Bornu Empire, which comes to mind when the issue of tolerance was mentioned. Then the region was in its brightest times tolerant of the other and receptive to the other, courtesy, peace prevailed , the world-attracting scholars, traders and tourists from places like Sudan to Egypt, Baghdad to Damascus, Mali to Senegal to the Bornu Empire. Its people were beacons of knowledge, industry and civilization because they were based on real values that govern their relations with all civilisations, cultures and religions around them.

Governor Zulum bonding with the survivors and victims’ of BokoHaram attacks provides for them an opportunity to ease their pain and suffering. And in all of their sadness, there is joy too — with Governor Zulum’s commitments to touching and transforming lives, showing the true spirit of Islam, its compassion, its peace and its joy, attributes devoid of bitterness, acrimony, distrust and violence.

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Umaru Garba Danbatta and the task of making Nigerians leverage on digital Economy to spur Economic Growth

Prof. Umar Garba Danbatta-  the Executive Vice Chairman and Chief executive Officer (EVC/CEO) of the Nigerian Communications Commission (NCC) held an interactive session with the media, the first since his re-appointment by President Muhamadu Buhari in August.

Prof. Danbatta is concerned with how the Commission can best empower Nigerian people and businesses to leverage digital technology to changes lives, generate wealth, and contribute to the growth of the country’s  GDP.

It was on the strength of this commitment and sterling performance in office in the last five years that President Muhammadu Buhari, in August, had considered him for re-appointment for another term of five years in office.

During the interactive session which he held with senior media chiefs from the mainstream and online media community,  he gave impressive accounts of his stewardship as the Chief Telecoms Regulator in the last five years, while setting priorities for the next five years, promising to cut the cost of data by 60 percent.

The event, held at the NCC’s Communications and Digital Economy Complex, Miatama Abuja, was attended by the top-notch of the fourth estate of the realm both physically and virtually, as well as the senior management of the Commission, including the Executive Commissioner Stakeholder Management, Adeleke Adewolu.

Addressing the forum, Danbatta listed the major policy initiatives which had produced record broadband penetration and enhanced the growth in the telecoms sector, especially in the contribution to the nation’s Gross Domestic Product (GDP).

He revealed that on the assumption of office five years ago, the Commission discovered 217 access gaps, a result that had affected 40 million Nigerians – having no access to telecom services. Then he tapped the drum:

“But today, we have reduced the access gap clusters to 114 with 15 million of the 40 million digitally excluded Nigerians now having access to telecoms services. We are committed to addressing the remaining access gap clusters, which are areas outside the frontier of economic viability to ensure the remaining 25 million Nigerians have access.”.

Equally, he talked about capital importation, saying the EVC said in 2015, Foreign Direct Investment (FDI) in the telecom sector stood at $1 billion but declined to $212 million by 2018. He, however, noted that through regulatory efforts, the FDI in the sector had picked up again reaching $930 million according to recent figures from the Central Bank of Nigeria (CBN).

He also listed the various consumer-centric initiatives his leadership has put in place to strengthen consumer protection and empowerment in the last five years. These include the declaration of 2017 as the Year of the Consumer, the introduction of the Do-Not-Disturb (DND) 2442 Short Code, the introduction of the NCC toll-free Number 622; the stringent provisions of Subscriber Identification Module (SIM) Registration Guidelines, issuance of direction on forceful subscription and data roll-over, among others.

Such initiatives included the constitution of a multi-sectoral committee on e-fraud, revision of the consumer complaints, and service level agreements (CC/SLA) for prompt resolution of consumer complaints by the Mobile Network Operators (MNOs).

Prof. Danbatta receiving an Award

According to him, the careful implementation of the Commission’s Strategic Vision Plan (SVP) in the last five years with a focus on the 8-Point Agenda, had raised the country’s broadband penetration to 42.02 per cent by July, 2020 from 6 per cent in 2015. He pointed out that the telecoms sector’s contribution to the GDP increased from 8.50 per cent in 2015 to 14.30 per cent in the second quarter of 2020. This means that the Q2 2020 contribution translates to N2.272 trillion.

Prof. Danbatta also listed the Commission’s regulatory priority areas for the next five years to include:

  • facilitating attainment of 70 percent broadband penetration by 2025;
  • consumer protection and empowerment;
  • consolidation of spectrum trading to ensure maximum and efficient usage of available frequencies.
  • SIM registration audit to provide security and curtail incidences of banditry, kidnapping, and armed robbery;
  • creation of Emergency Communications Centres (ECCs) in more states of the federation;
  • execution of the counterpart funding agreements with the licensed Infrastructure companies (InfraCos) to facilitate the digital transformation of the economy.

He noted that when he came on board five years ago, there were 47,000 kilometers of fibre optic cables laid across the country. However, five years after, as a result of regulatory focus, there are now 54,725 kilometers of fibre cables laid across the country through the efforts of some private companies in the sector.

“In line with the Federal Government’s target, an additional 120,000 kilometers of fibre are being planned over the next four years. In this regard, the NCC is working on last-mile connectivity to different parts of the country through leveraging the 40 terabyte capacity of five submarine cables on the coastal shores of Nigeria,” he said.

He reiterated NCC’s commitment towards delivering on its mandate of ensuring the quality of service to the consumers, driving investment, and boosting healthy competition in the industry as enshrined in the Nigerian Communications Act (NCA), 2003. And he praised the role of the media in the reportage of the telecom sector over the years and urged the practitioners to continue to be objective and constructive in their coverage of the activities of the Commission and that of its licensees.

With the sterling performance by Professor Dambatta in NCC, one needs no wonder much as to why the organization regularly attracts accolades and awards. Some of these awards came in recently in recognition of the critical role the Commission has been playing in keeping Nigerians and businesses connected since the outbreak of COVID-19 pandemic in the country.

Two of the awards, ‘Human Rights Telecoms Defender’ for the EVC and ‘Human Rights Guard’ for the Commission, as a corporate entity, were presented by Wheel of Hope Human Rights Foundation (WHHRF), a frontline Nigerian Non-Governmental Organisation. The third award, ‘Icon of a Greater Nigeria’ was presented to the EVC by the Youth Coalition Against Corruption (YOCAC), a coalition of Nigerian youths from all walks of life. Coincidentally, WHHRF and YOCAC adduced similar reasons for finding the EVC and Commission deserving of the recognitions.

Director, Public Affairs, NCC, Dr. Ikeckukwu Adinde, who received the awards on behalf of the EVC, appreciated the organizations for their gestures, noting that the three awards will serve as an encouragement to the Commission to continue to strengthen effective, fair, and transparent regulation of the telecommunications industry.

“On behalf of the EVC and Chief Executive of NCC, we thank you for these recognitions. These latest awards will add to the long list of laurels in the NCC’s kitty. There are many initiatives by the Commission, to ensure increased connectivity, improved quality of service and consumer rights protection,” Adinde said while restating the NCC’s commitment to consumer-centric initiatives that promote digital inclusion and advance the digital economy vision of the government.

Jide Abdulazeez, Chairman, WHHRF, said the presentation of the two awards by the Foundation was in recognition of “the leading role the Commission has been playing in sustaining access to telecoms services throughout the period of the lockdown, following the outbreak of COVID-19  pandemic.”

He added that the role of NCC in making the 112 Emergency Number available to Nigerians to report COVID-19-related cases and other emergencies; as well as its efforts in consistently protecting the rights and privileges of telecoms consumers, through effective resolutions of service-related complains, are part of the reasons for finding the Commission worthy of the awards.

In his own part the National Coordinator, YOCAC, Dahiru Umaru, said, “the Icon of Greater Nigeria Award conferred on the EVC is in recognition of his leadership qualities and achievements which have engendered quality regulatory supervision of the telecoms industry by ensuring that telecom consumers are not unduly shortchanged, especially during the critical stage of the COVID-19 pandemic.”

According to him, the Commission has been contributing immensely to the growth of the Nigerian economy by ensuring robust telecom infrastructure, making it possible for Nigerians to leverage social media and other digital platforms to ventilate their views against corrupt practices in order to ensure good governance in the country.

While NCC has done well in the area of using digital platforms to fight corrupt practices so as to drive good governance in Nigeria, some experts still contend that needs to enthrone a culture Nigerians youth can leverage on online platforms to generate revenues and participate in the gig economy.

They add that the extent to which the use of Information and Communication Technology (ICT) devices by Nigerians can improve on the quality of their lives will remain low until the youth and many Nigerian small businesses become more productive online.

They made the comment when they were asked questions on the report of a recent study, which ranks Nigeria as fifth in Africa, and 81 out of 85 nations, in terms of improved digital quality of life. a product of Privacy Company, Surfshark,

The study titled Digital Quality of Life (DQL) 2020 was conducted by a  Privacy Company, Surfshark. It based its ranking on five pillars– Internet affordability, Internet quality, electronic infrastructure, electronic government, and electronic security, where it ranked Nigeria 85th, 81st, 70th, 53rd, and 53rd.

The Nigerian Communications Commission (NCC) informed that there are 146 million Internet users and 80 million broadband subscribers in the country. Statistics from Internet World Stat puts the Internet growth rate in the last 20 years in Nigeria at 62.9 per cent of an estimated population of 206 million.

President of the Association of Telecommunications Companies of Nigeria (ATCON), Olusola Teniola, observed that “digital  quality life goes beyond just the rising numbers, but we must be productive online.”According to him, there are many things that Nigeria is not doing right.

“Nigeria still counts subscriptions as if they are human beings. A lot of the subscriptions are duplicated SIM cards. There are multiple SIM cards, some are connected to machines, so it doesn’t give a true picture of those who are individual owners of devices with SIM cards who are doing productive stuff.

“The report is saying that having a mobile device doesn’t mean you’re digital native. Consuming YouTube, watching football, watching Big Brother are not productive activities, they are just entertainment and leisure coming from the fibre that is connected to the shows that is bringing traffic into the country. So we are just mere consumers, we have to stop being consumers, but producers.”

The ATCON president noted that digital economy is about creating an economy where you produce in the big markets, and other markets buy from you and revenues are earned.

Some telecoms expert equally decried the low productivity through the vast mobile connections in the country, saying Nigeria must reject the ‘consuming nation’ status placed on the country, which has resulted in it becoming a dumping ground for all sorts of good and services.

Kayode Aluko “It is disappointing and painful that despite the subscription figures, our impact is still very low in terms of productivity on the Internet. There is serious work before the Ministry of Communications and Digital Economy to make changes. We can’t just continue on a downward trend as a nation,” he stated.

While telecom analysts fume over the low productivity of the digital economy in Nigeria, many Nigerians are praising Professor Danbatta for his giant strides at NCC. And the COVID-19 lockdown period really provided the litmus test for the NCC to show that it is up to its mandate of pushing the Nigerian Digital economy on the watch of Danbatta.

An insight gained from the World Bank Nigeria Digital Economy Diagnostic Report reveals that the digital economy can change the way economies of scale are achieved. In 2016, the global digital economy was worth some $11.5 trillion, equivalent to 15.5 percent of the world’s overall GDP. It is expected to reach 25 percent in less than a decade, quickly outpacing the growth of the overall economy. It can also strengthen people’s trust in firms or governments by enabling some decentralized forms of trust (such as with a blockchain) where centralized authorities are not trusted.

It may allow products and services to be customized and targeted—enabling better inclusion but also easier ways to exclude some too. However, countries like Nigeria were reportedly capturing only a fraction of this growth and need to strategically invest in the foundational elements of their digital economy to keep pace. Professor Danbatta has been working on all these with some notable results.

These results became evident during the economic lockdown and cessation of movements caused by the novel coronavirus pandemic, with online service delivery restricted, the digital economy provided a soft landing for both buyer and sellers in a competitive market. And again, it is certain to address the issue of irregular information, solving some principal-agent problems where buyers and sellers are separated by intermediaries or even multiple levels of intermediaries.

Ernst & Young Nigeria, in 2018 defined Digital Economy as the part of the economic output derived solely or primarily from digital technologies with a business model based on digital goods and services. The digital economy is made up of various components, including a platform economy, a gig economy, an industry 4.0, a digital economy, data analytics, robotics and Artificial Intelligence (AI), machine learning, 3-D printing, and e-commerce among others.

Nigerians can benefit and make money from all these, most notably youth can take advantage of gig economy. And what is it/? The “Gig Economy” is a new work paradigm that has been gaining in popularity in recent years, largely as more people today rely on a secondary income or struggle to find full-time, stable employment. It describes the proliferation of temporary and flexible jobs that freelancers can pick up for quick pay. It’s a fragmented employment model where a worker has multiple shifts to work in a day or a handful of projects to make an income, being antithetical to the traditional nine-to-five shift that salaried employees would enjoy at a company they may expect to work at for years.

The success of companies like Uber, Lyft, Foodora, and many other players in the flexible workspace make these roles more accessible and popular to both casual freelancers and full-time gig economy participants. Other examples of gig work include freelance writing, doing small tasks for quick cash on a platform like TaskRabbit, and even renting out your property on Airbnb is included.

To make Nigerians benefit immensely from this digital economy, Prof Danbatta is pushing on all fronts to do things that allow Nigerians unlock a world of digital possibilities to improve their economic, psychological, social, and physical well-being, empowering youth to take charge of their own lives. In this way, they are better able to use creativity to build wealth and contribute to the development of individuals, families, communities and the country.

These and other measures are what Prof Danbatta is doing at NCC to make information and communication facilities and services easily affordable and accessible to the common man in Nigeria. And it is only through effective implementation of all these projects that Nigeria can lead or at least secure a seat among the comity of nations in the digitalized global economy. No wonder honour and awards keep flowing to the NCC.

AdesolaKazeem

The Enchanting Strategy of the Elephant:

First Bank Big Moves Dr. Adesola Kazeem Adeduntan on the Watch of Disrupting the Banking industry to usher in innovation and the FORBES  Award

It is easy to sit back and get complacent once you are successful. But not Dr. Adesola  Kazeem Adeduntan Managing Director/CEO First Bank of Nigeria  Plc. Under his watch, First Bank continues its aggressive push into different sectors of the economy, while also drawing more and more customers currently unbanked or under-banked into the banking sector as it continues growing its volume through its financial inclusion strategy. And with over 45,000 First Bank agents across Nigeria, First Bank on average processes more than eight billion transactions on a daily basis, yet the elephant is hungry for more.

Over the years, First Bank has been at the forefront of supporting agriculture, industrialization, businesses, and SMEs in Nigeria and has been one of their key dependable lenders. Its resilience and commitment as a financial partner have earned it an award-winning track record where it has been recognized by the pubic and many institutions across the globe for being the Best Commercial Bank and for Best Trade Finance Offerings in Nigeria. These are what have drawn numerous awards to First Bank from many reputable institutions, with the newest one being the Forbes Best of Africa Award was presented to Dr. Adeduntan this September. The award is bestowed on him by Forbes Africa in conjunction with Foreign Investment Network (FIN), for his contributions to the financial services sector in the country and the African continent.

“We are not going to relent and for us at First Bank, profitability is very important, but also supporting economic growth and development is equally important for us. It is only when the country is growing and there is the development and we are all collectively create a bigger cake or pack, that is when the whole country can thrive.” Adeduntan said in an interview sometimes ago.

Prestigious events such as the Forbes award are not just mere events in themselves; they are moments of acknowledging individuals who have made indelible imprints in the lives of others and great lessons for posterity. Adeduntan, with his performance in First Bank, in a rather spectacular way, has added values to many businesses, helping them weather challenges, therefore touching lives.

Dr. Adeduntan is a man who believes that the role of a business is to be adaptable and to enlarge the basket through value-added products. This is because the market is constantly evolving and you have to keep up with it. No wonder First Bank does not go to sleep, relying on its size. Rather it embarks on initiatives that make it more efficient. This means more research, more innovation, more digitalization, and automation while working at reducing cost profiles.

This is because this giant is aware that there are huge opportunities for brands to connect with the consumers if they are willing to get out of their comfort zones and be disruptive in thinking and execution. As humans, we are unified by universally shared hopes and dreams, which are the blueprint for our psychology and, as such, underpin all our behaviors. The same way we share a physical template, we also share a predetermined psychological template that can guide brands on what they want to stand for and how they want to differentiate from the competition. This commitment to stand out of the multitude has been the preoccupation of First Bank for many years. And under Adeduntan the trend has gathered more impetus.

To him having a big market share is neither protected nor permanent. Someone else can take it away. Having been in the corporate world for around 30 years, he has seen it evolve, gained experience, and seen some big and successful businesses that didn’t sustain for a longer time. Business today has become more challenging because of the influx of numerous players, innovative ideas, and ever-changing customer’s wants.

He is aware of some prominent examples of companies that were No.1 in their respective markets. They became comfortable, forgot to remain innovative, and soon faded away. The first example is one that we are all familiar with; Nokia. There was a point in time where everyone held a Nokia phone. However, when touchscreen smartphones started becoming a trend, they did not adapt, and Apple and Samsung took over and Nokia is nowhere to be seen. Another example is Sony with TVs. It had the largest share and was the benchmark.

However, now there are others who sell smart TVs with varying features and have surpassed Sony. Adedutan would not allow this kind of thing to happen in First Bank. So he makes innovation, value for the customers’ financial inclusion strategy, and solid management capacity his watch words.

To stand-out, he makes agency banking a core part of First Bank’s strategy.  And in this way, it helping Nigeria to drive the United Nations sustainability agenda. For financial inclusion is very central to the Sustainable Development Goals (SDGs).

L.R   Ibukunmi Awosika (Chairman Deputy ) Gbanga Francis Shobo ( Managing Director)  Dr. Remi Oni (Executive Director Corporate Banking)  First Bank Plc 

Because it has a link to poverty eradication, women empowerment education, and health. And that is why the government, central bank, and all the banks are all working on promoting financial inclusion, because of its significance. A number of the SDGs are linked to financial inclusion. These include education, ending hunger, and achieving food security, good health, and well-being, gender equality, creating a decent work environment, all indicate that there is a direct correlation. With access to financial services people can invest in businesses; education; live healthy lives; farmers get rich agricultural produce and women are more empowered.

“At First Bank, our approach to driving the SDGs is in two-fold: firstly, aligning our corporate responsibility & sustainability strategy based on our business goals; the Nigeria Sustainable Banking Principles (NSBPs) and global best practice in integrating sustainability within the business operations; and secondly creating awareness amongst staff and other stakeholders through sustainable partnerships. While the Bank work towards promoting all 17 SDGs, we focus more on 7 of the goals because they are material to us. These goals are:1, 2, 3, 4, 5, 8, 13 & 17”

Positioning financial inclusion as an integral part of its business strategy, First Bank is a leader in agency banking, while taking other measures to enhance financial inclusion. This continues to help the bank gather customers on a daily basis, aided by the brand trust and security of its payment system. Driving this includes a plan called Agency 2.0, which means taking its agency banking business to the next level.

Apart from this financial inclusion strategy, FBN under Adeduntan drastically has reduced the incidence of non-performing loans in the bank. This came down to single digit in 2019.

“When I assumed office in 2016, part of what I said we are going to do was to strengthen our risk management capabilities with the goal of reducing the non-performing loans. I said it would be a two-prong approach and that we would strengthen our capabilities to ensure that we don’t create NPLs.

But remember that no matter how good your risk management capabilities are, because by default the kind of business we do, loans must always go bad from unexpected things.

My plan was to revamp risk management capability and the entire risk management architecture to ensure that we keep new NPLs to the barest level possible. So my team and I focused on the already existing NPLs and then worked on reducing it down to the levels that are in line with the central bank regulation.

What we have achieved is to successfully reposition the risk management system of the bank and today I am particularly very proud of what we have achieved. And it is a combination of these that ensured that we pushed the NPLs to single digits. When we started 2019, our presentation to the investor community was that we are going to end 2019 with single-digit NPL. And by October 2019, we actually achieved single-digit NPL ratio for First Bank.”

Equally, under Adeduntan  FBN has made big investments in Cybersecurity. This has allowed banks to remove online threats and protect customers from online fraudsters. It also has developed the strategy of being the leader in the digital banking space, an area in which it has been very successful. Yet, it is forging ahead to be more digital.

Today, on the USSD banking platform, it has over 8.2 million customers actively transacting business, with it being by far the largest in that particular space. It is also dominant. in mobile banking, being very strong in agency banking.

Over 80 percent of its customer-induced transactions are conducted on channels such as First Mobile, Unstructured Supplementary Service Data (USSD) and the automated teller machine (ATM). Consequently, it has been quite successful in -moving customers to electronic channels.

“This is because of the kind of comfort it has been able to give them in terms of security in cyberspace. So, we needed to as a matter of business priority, have made those kinds of investment.” Adeduntan said.

Just as over the years, FBN has been at the forefront of supporting businesses and SMEs in Nigeria, as it looks to the future, it is showing even more commitment to SMEs as well as women entrepreneurs by using innovative strategies to empower these businesses. Even during these testing times, it remains committed to support SMEs by extending facilities to them.

However, the playing field has changed with COVID-19.  With many customers now embracing technology, the digital world is essential if an SME is going to weather the new business climate.

And as First Bank caters for them, they need to adapt to the changing reality and digital landscape in order to survive and continue operations effectively. First Bank probably foresaw this new order coming a long while before COVID-19 broke out. This is courtesy of its platforms to bring SMEs together.

It is the first Nigerian bank to launch this type of forward-thinking platform in the country. The aim was to alleviate some of the challenges that currently exist by creating a community where SMEs can share their knowledge and expertise, connect with one another, and engage in industry-related conversations, as well as receive the latest market insights and learning about e-commerce and marketplace management, among many other banking and business services.

SMEs are essential to the Nigeria’s GDP and contribute as much to that. And the very fact that the First Bank is committed to the SMEs is indicative of their indispensable value to the country’s economic engine. As such, FBN aspires to continue playing an important role in extending its financial and business support to nurture the growth of this industry.

In terms of gender equality, and products for the women folks First Bank is the leader here. In 2017, it launched its female product line called First Gem. It followed this up in 2019 with its First Bank Women Network programme. This was one of -the biggest achievements of the bank last year.

The essence of  First Bank Women Network which it formally launched in March 2019 was to promote a more inclusive working environment for female staff in the bank. To ensure that the ladies working with Fist Bank are supported to be whoever they want to be.

So, if there is any bank that is in the forefront of promoting gender equality, it is actually FBN bank. A look through its board, and subsidiaries, shows that the females are adequately represented.

How come the Elephant is trumpeting so loudly under the watch of Adeduntan? Observers say this is as a result of his experience.

With his training and experience in Arthur, KPMG, Andersen, Citibank, and AFC through to First Bank, Adeduntan is schooled in the logic that a business that wishes to be successful must be Flexible to any degree.

These anchors on the fact that the role of a business is to be adaptable: be aware of what you are selling, what the competition is doing, and, more importantly, what the market wants. Market needs, resources and ideas are changing at a fast pace. There is always cop for improvement in the value that your product brings. Sticking to one working model and not recognizing market requirements will lead to oblivion.

At First Bank, his main message is to enlarge the basket by providing value-added products. Only selling just raw commodities is not so fruitful, one needs to have value-added as well. There are numerous things to do to make a brand vibrant and exciting, planting itself in people’s minds, as on-sell it.

Why a customer prefers one brand to another is because of the value-added through the toppings and flavor. Similarly, create products that meet those extra needs. This is his reminder to everyone to be mindful of market requirements and be adaptable.

This will ensure a market share that can be sustained. And this philosophy drives First Bank under Adeduntan and now drawing accolades to him and the brand across the waters-Mediterranean and Atlantic. Such is the Forbes best of Africa honour.

chiedu ugbo

HOW CHIEDU UGBO IS SHAPING THE FUTURE OF NIGERIA ELECTRICITY THROUGH NIGER DELTA POWER HOLDING COMPANY

Many Nigerians are happy now as it becomes clear that electricity power is improving and it is helping them to record some achievements in their business and productive activities. These achievements are the fruits of  active actions by the Niger Delta Power Holding Company (NDPHC), which has continued to operate the power plants in the interest of the Nigerian economy despite security challenges and huge debts of N121 billion owed it by players in the electricity market. This is because the company is characterized by efficiency, professionalism and deep understanding of the nature of its objectives and assigned roles.

The man behind this is Mr. Joseph Chiedu Ugbu. He is the Managing Director of Niger Delta Power Holding Company (NDPHC) — the radiant face of Nigerian power sector who leads national effort towards  improvement in power ensuring power gets to the people, with constant successes and consciously and faithfully defends Nigeria’s interests. Ugbu incarnates the country’s renaissance, values, entrenched principles and foundations, which promote hardwork, making him a factor in the country’s energy sector. No wonder his endorsement by the Presidency for a new term of office as President Muhammadu Buhari approved the renewal of   Mr. Ugbo’s as MD NDPHC.

He also reappointed Messrs Babayo Shehu and Engr Ifeoluwa Oyedele as Executive Directors of the Company. That re-appointments took effect from August 25, 2020 for a period of four years. This presidential gesture is an affirmation of the integrity and professionalism of Chiedu Ugbu and his team. Apart from Ugbu’s re-appointment, the appointment of three additional directors were also been approved for more effective and efficient coverage of the company’s areas of activity, according to presidency sources.

He was first appointed in June 2015. Following his inauguration back then, Ogbu and his team immediately set off at a round pace with their agenda in focus. At that time, doubts were raised, in some quarters, about the direction NDPHC would head under the watch of  Ugbo, reflecting the critical space that NDPHC occupies within the scheme of things in the power equation of  Nigeria.

The Niger Delta Power Holding Company Ltd, Nigeria’s generation, distribution and transmission infrastructure backbone and provider, is a national pride and one paradigm of a successful government’s incorporated limited liability company delivering stellar services in line with its mandate.

Its mandate is clear and unmistakable: to manage the power projects tagged, “ The National Integrated Power Projects (NIPP)”, a power intervention initiative involving the construction of seven (and later 10) medium-sized gas-fired power plants and associated gas infrastructure, and the critical transmission infrastructure needed to evacuate the added power into the national grid.

Many were wondering what’s next. The answer was more uncertainty. But Ugbu understood the mandate and his briefings. Since then on, NDPHC has taken the country to “next level” of re-engineering its operations with the attendant results of pulling the nation out of seemingly intractable power outage and collapse of power infrastructure.

In line with the vision of President Buhari, it has recorded and still achieving milestones in incremental power in Nigeria. Notably, the intervention of NDPHC is in three mainstream power sectors — generation, transmission and distribution.

The management was able to accomplish impressive and sustainable what is called incremental power in the sector for the country, a concept statement well articulated by the immediate past Minister of Power, Works and Housing, Mr Babatunde Fashola, in the three areas of generation, distribution and transmission. Ugbu and his team performed wonders under the supervision of Fashola, so much that by 2019 NDPHC has become a model of President Buhari’s success, with many projects to show.  And since the new Minister of Power, Saleh Mamman, took over, he has also added impetus to the projects with scrupulous supervision.

Serving with excellence

Prior to his appointment, he was the Senior Special Assistant to the President on Power Privatisation in the Office of the Vice President of the Federal Republic of Nigeria. He was also the Acting Head of the Advisory Power Team in the Office of the Vice President.

Chiedu is an electric energy law specialist. He qualified as a lawyer over 26 years ago. He holds a Bachelor of Laws (LL.B.) degree and a Master of Laws degree both from University of Lagos, Akoka, Lagos. He also holds a Diploma in International Legal Practice from The College of Law of England and Wales; a Certificate in Electricity Industry Restructuring from Canadian Energy Research Institute, Calgary, Canada and a professional certification as Certified Regulation Specialist, from Institute for Public-Private Partnerships, Washington D.C., USA in conjunction with WEDC, Loughborough University UK. He possesses extensive experience in electricity industry reform, power project documentation, and privatization. No wonder he understands the power sector management so well.

His strategy considers “serving with excellence the Nigerian’s citizens” as the first objective, emphasizing his keenness to make the Nigerian electricity power sector a force to reckon with, one of the five most reliable in Africa.

As at June 2019, NDPHC had completed many projects, especially,  in the three areas of its mandate:-generation, transmission and distribution. Equally, it has been doing other tremendous things to ensure Nigeria achieve adequate energy mix in order to fulfil President Buhari’s vision in the power sector. These include gas supply protocols, solar power scheme.

Power generation

First, is generation. In terms of generation, it has installed a total capacity of 4,051.2 MegaWatts (MH) from eight power plants connected to the National grid. The eight of the ten (10) power plants in the NIPP portfolio, along with associated gas transmission metering/receiving infrastructure projects to support commercial operation, have been commissioned and connected to the national grid contributing over 22,000,000kWHr of energy daily subject to availability of gas fuel.

  • Many of the NIPP power plants on the national grid also provide ancillary services like spinning reserve to support the system operations, a contribution critical for stabilizing the national grid.
  • The NPDHC has over 3000MW of generation capacity availability for deployment if the grid permits and this represents the best opportunity for the rapid improvement of power supply to the teeming Nigerians. It is important to note that completed power plants include 750MW Olorunsogo II, 450MW (Ogorode)Sapele, 434MW Geregu II, 450MW Omotosho II, 450MW Ihovbor, 450MW Alaoji, 563MW Calabar and 225MW Gbarain.
  • Imminently completed ones include 225MW Omoku, 338MW Egbema and 530MW Alaoji steam machines that would wrap up the total available capacity of the plants to 1, 774MW on full completion.

Transmission

Second, concerns transmission,  on transmission,  NDPHC has completed 2,194Km of 330kV transmission lines and 887km of 132kV transmission lines.  A total of ten (10) new 330/132kV substations and seven (7) new 132/33kV substations have also been completed with several other existing substations significantly expanded thereby adding 5,590MVA and 3,493MVA capacity at 330kV and 132kV levels respectively to the national grid.

  • NDPHC’s contribution to the Transmission grid system has transformed the hitherto radial 330kV/132kV grid into a more robust grid system with significant provision of alternative power flow routes which now serve as redundancies and which has resulted in a more reliable and stable National grid.

Of note in these respects are the commissioning of the over 220km long 330kV Double Circuit (DC) lines providing alternative supply route into Abuja and the FCT from Geregu, through a new Lokoja substation, a new Gwagwalada substation into the existing Transmission Company of Nigeria’s (TCN)  Katampe and Apo substations with several significant expansion works on existing substation developments along this route.

  • There is also the construction of a 12-circuit Switching Station at Ikot Ekpene which serves as a hub for marshalling power evacuated from the power plants based at Calabar, Afam, Alaoji and Ikot Abasi. From this hub a total of over 800km long Double Circuit lines emanate as a Power backbone to flow power generation to Jos and the North East through Ugwuaji and Makurdi in Enugu and Benue States, respectively.
  • With the commissioning of about 95% of this grid backbone in 2016, the Nigeria transmission Grid bid a firm and final goodbye to the radial grid era and entered a new hitherto unattainable level of grid security, reliability and stability that seemed elusive since the commencement of Nigerian grid operations in 1969.

Distribution

In the electricity distribution segment, NDPHC plays important role towards enhancing the capacity of electricity distribution infrastructure in the Nigerian electricity supply industry (NESI).

  • NDPHC has constructed and commissioned over 350 injection substations with a combined capacity of about 3540MW across the length and breadth of this country. NDPHC has further constructed about 2,600km of 11kV and 4,600km of 33kV distribution lines for improving access to electricity and quality of power supply to consumers.
  • It has also enhanced distribution capacity by the installation of 25,900 Completely Self-Protected (CSP) distribution transformers all over the country thereby significantly reducing technical losses.
  • The 296 Distribution projects which included Injection Substations, 33kV lines, 11kV lines and associated HVDS network are embedded within the existing networks of the 11 Distribution successor companies of Power Holding Company of Nigeria (PHCN). As such, the Distribution Companies are fully involved in the commissioning and integration of the new facilities into existing networks.

In addition, the company has also embarked on some 100 projects across the country under its Distribution Intervention Projects, most of which are now completed with attendant impact of raising electricity supply to Nigerians. Today virtually every parts of the country except areas experiencing localized distribution infrastructure problems enjoys at least 10 to 18 hours of electricity per day while in some cases 24 hours supply.

NDPHC’s intervention followed low coverage/penetration of initial distribution projects, extended requests from host communities to NDPHC power stations, reconstruction of power infrastructure vandalised or damaged due to activities of vandals or insurgency, request from critical stakeholders including state governors, legislators, local governments, government agencies, community leaders, etc.

Also, the distribution value chain has received a boost with the construction of injection substations capacity added 4,082.5MVA, construction of 33kv of about 2, 643km, construction of 11kV of about 4,760km and provision of distribution transformers(100KVA, 200KVA, 300KVA, 500KVA) giving 250MVA. In all, the number of Completely Self-Protected Transformers (CSP) provided totalled 25,900.

Recently, NDPHC also Completed Distribution Substations (SS) & Lines scattered across Nigeria. Some of these include· Tambuwal, Sokoto State;· 1x15MVA, 33/11kV, 1X7.5MVA Inj SS, Fegge, Anambra State·;1X7.5MVA, 33/11kV Inj SS, Potiskum, Yobe State· 1X15MVA, 33/11kV Inj SS, Gagi, Sokoto State; 1×7.5MVA, 33/11kV Inj SS. Otta, Ogun State·; 1X15MVA, 33/11kV Inj SS, Angwan Dosa, Kaduna Stat; · 2×7.5 MVA, 33/11kV Inj SS, Lamingo, Plateau State; 2X15MVA, 33/11KV Inj SS, Zaria Rd, Jos ; Construction of 33kV line from Oke Aro TS to Mowe SS;  2x15MVA, 33/11kv Injection SS, Asaba, Delta State;  2x15MVA, 33/11kV Injection Substation at Okene; ·2×7.5MVA, 33/11kV Substation at Kabba; 2x15MVA, 33/11KV at Confluence Beach; & and· 1×7.5MVA, 33/11KV at Felele all in Kogi State.

On gas supply, NDPHC completed several gas assets including construction of metering stations and gas pipelines to its power stations. Of note is the signing of a Partial Risk Guarantee (PRG) with the World Bank to ensure regular gas supply to Calabar Power Generation Company. The risk guarantee amounting to $112 million is a form of securitization for gas supply under the Gas Sale Agreement (GSA) between NDPHC/Calabar Generation Company Limited and Accugas and it is for a period of nine months during which about 500MW additional electricity will be wheeled into the national grid for stable electricity to Nigerians.

NDPHC also has a solar energy scheme. In January 2017, it  launched the Solar Home Systems (SHS) project which is anchored on the Presidential Initiative on Rural Solar Home Lighting Systems aimed at extending power to rural communities across the country which had no access to electricity from the national grid.

Tagged, “NDPHC Beyond the Grid”, the solar projects are being implemented in some rural communities in the six geo-political zones.

For instance, the company has deployed about 200 units of the SHS as pilot programme at Wuna. The beneficiaries of the 20,000 units were among the already identified communities of the 19 Northern states while NDPHC’s solar project is also directed at re-activating 1,073 solar powered boreholes to provide access to clean water.

The company was able to surmount some challenges facing it between 2015 and now which include shortage of gas to the NIPP Power Stations in the Western Delta Ogorode, Benin (Ihovbor), Omotosho and Olorunsogo, inadequate transmission capacity to evacuate power from the Eastern Delta plants, quick completion of the 12 circuit 330kV Ikot-Ekpene Switching Station and the dual circuit 330kV transmission lines from the Alaoji and Calabar Power Stations as well as the completion of the first circuit (line2) of the Ikot-Ekpene to Ugwuaji four circuit 330kV.

Others are inadequate gas pipeline infrastructure in the Eastern Delta (Alaoji and Calabar), completion of the NOPL by Total for gas supply to Alaoji Power Station, completion of the Seven Energy dedicated pipelines from Uquo to Calabar.

In collaboration with the State-owned Transmission Company of Nigeria, NDPHC will continue to maintain its relevance as infrastructure provider in the nation’s power sector with its different sets of projects further improve capacity in generation and networks

With Ugbu in the helms of affairs at NDPHC, the company has helped the power sector make a remarkable leap with available generation capacity of more than 7,000MW, enhanced transmission capacity that can wheel about 7,000MW and a consumption level gradually tilting towards a high level through various strategies by the managers and operators in the distribution segment of the power value chain.

The great accomplishments that have been achieved by the NDPHC under Barrister Ugbo’s leadership, do not come out of anywhere, but rather are based on his vision, philosophy, and approach to development activities, featuring numerous characteristics that represent a sure recipe for success and distinction.

Nigeria_naira

Protecting the Naira

It is no longer news that the plunging oil prices have increased pressure on the naira. since Nigeria produces less locally Africa’s largest economy exports mostly crude oil, but it spends its foreign earned currencies on supplies abroad for basic items such as food, wears, electronics, and refined petrol.

According to Nigeria’s foreign trade report, in 2019 alone Nigeria spent about Nl6.959 trillion ($47 billion) on imports compared to N 13.1 trillion ($36.5 billion) a year earlier. It spent about $28.7 billion on invincibles (spend on services such as professional fees, financial services, business travel, medical tourism, etc.)

This illustrates how Nigeria imports everything, and since it produces less locally, thereby increasing demand for the dollar needlessly; importers need American dollars to pay for goods bought abroad, causing depreciation of Nigeria’s local currency.

Though the disparity between the official rate and parallel market rates has narrowed to about 10%, the Naira is still experiencing pressure from the strong dollar.

As a result of this, the Naira has been tanking out as the greenback continue to draw many Nigerians who are moving their assets to dollar dominated assets, with it drawing strength from risk aversion. Since the start of the COVID-19 pandemic, the value of the American dollar has reached record highs, as many investors around the world are rushing to have a part ofit.

The sad part of the case for Nigeria is that the country is not seeing enough inflows of via the financial accounts that can help bridge the gap in the current account of the balance of payment. Right now, the country is looking to obtain over $6 billion in funding from World Bank, AFDB, and IMF as well as debt services relief on previous foreign debt. We believe the government is unlikely to obtain all the foreign borrowing it needs to plug the deficit.

If the needed amount of inflows is not obtained via external borrowings, FPI flows, or FD Is, the CBN could result to significant drawdown on reserves and may eventually bow to a devaluation when it runs out of armory to defend the Naira. Furthermore, a look at the Nigerian industrial sector shows that higher import costs, coupled with a fall in the foreign exchange reserves standing at about $33.9 billion as of 23rd April 2020, are increasing local production costs, spurring domestic inflation thereby depreciating the naira.

The case for further Naira re­ pricing is strong. Nigeria is facing a twin deficit crisis across its fiscal and current account books and these deficits are likely to get wider with the weak oil price and production. Given the trend in the oil market, the US (United States.) dollar rose against a basket of major currencies amid the sharp drop in oil prices, as investors move to haven assets. As lockdown continues and factories stay closed with travel restrictions, oil prices continue to dive lower due to low demand, it draws money from risk assets to the safety of the US dollar and its denominated assets. We, therefore, call on all to see protecting the Naira as a joint responsibility and cooperate with the government to bring down needless demand for dollar. This means we should curtail our consumption of foreign goods, increase productivity and export more.

youth

Making the Nigerian Youths to see Agriculture Beyond Farming

Now that crude oil has started to lose footing and relevance within the global energy need chain, it is time to fall back on agriculture as a strong source of revenue for the government purse. But it is disappointing that many youths equate agriculture with just mere farming, and so don’t see very strong reasons to tap into the agriculture value chain to help roll productivity and wealth generation in the country. So, there is need for strong government advocacy to encourage young people to go into agriculture, push agriculture as business, not just hoe-and­ cutlass farming affair as well as offering credit support to those in the agriculture sector, including farmers . Effort should be made to make the CBN backed NIRSAL loan work for the ordinary farmers. There is need to relax access to this loan. Next comes the need for advocacy over climate change and its adverse effects on food security and environmental degradation are rising, causing brutal clash over water and grazing resources. The situation in the Lake Chad region where the lake has shrunk to one sixths of its size calls for serious concerns. It is dangerously causing regular clashes in rural farming communities in the Benue valley and other areas.

And to think more than 70 per cent of Nigeria’s population live in rural areas and practice subsistence agriculture. The majority of people are highly dependent on the country’s forests and rivers for their food security and to meet basic needs. The agriculture sector has always been the backbone of Nigeria’s economy and successful partnership programmes were needed in addressing impediments in growth and Cotton. These cash crops were ones of the first means for people to make their own revenue and take part in the local economy. Then the food security aspect is also there as well as export opportunity to earn Strengthening agriculture can produce positive ripple effects in a country’s economy. Investments in agricultural development can help at reducing unemployment and poverty. Agriculture has been at the centre of recent economic progress for many developing nations. Most governments are taking concrete action to address the problems and there is a clear recognition of strengthening agriculture and food systems in a manner that brings more affordable, healthier and diverse food options within everyone’s reach.

Revenue from agriculture could cater for the increasing expenditure the Government had to take care of given the increasing population over the years. And so, in the coming years, there will be a growing need for farmers, horticulturists, agronomists and other related careers where many people can settle. Analysts have repeatedly said one of the common misconceptions about why students did not take up studies in the agricultural field was that it was only limited to farming and animal husbandry. What many do not realise is that agriculture provides a wide range of career opportunities for students so studying agriculture could also be a way for many to find success.

The one advantage we have, is that Nigeria is an agricultural nation. And while we know agriculture based on knowledge passed on from our fathers, we should now adapt to the changing practice in the world. At the same time, concerns over climate change and its adverse effects on food security and environmental degradation should be speedily attended to. For instance, extreme weather changes, such as heat waves and water scarcity, arc negatively affecting crop production. The United Nations warned that climate change is driving global hunger. The trend is changing. The trend is growing. Support for the agriculture sector is increasing. Attitudes toward agriculture arc already changing, but not fast enough. Young people should be made to see reasons as to why they should embrace agriculture as business. And they should be encouraged and supported.

The Reassuring Leadership Of Atiku Bagudu In Kebbi State

The Reassuring Leadership Of Atiku Bagudu In Kebbi State

The Reassuring Leadership Of Atiku Bagudu In Kebbi State

Building symbiotic partnerships with the people to create  growth that is more innovation-led, inclusive, and sustainable

Abubakar Bagudu , Governor Kebbi State Nigeria,  is an inspiring and reassuring leader. A well-organized man of process and strategy, he is, often admired, for his belief in building trust and bridges based on a shared future, decided by the ballot box. No wonder, he is concerned with the well-being and security of his people, giving hope, building trust, tolerance and understanding and safety in a corner of Nigeria numbed by brutal terrorist violence, social injustice, economic deprivation.

 

His all-inclusive style of leadership and governance activities have kept Kebbi state secure and businesses in different industries in profit. And this has downplayed the traditional rivalry between the four emirates of the state and provided a common pedestal for all sons and daughters of the state, irrespective of party affiliation, to discuss the common interest of the state. Whoever is who in Kebbi State identifies with the government.

in this regard, he is turning the state to a land where the rich are becoming richer and the poor becoming better off than they have ever been, where services are being delivered more to rural areas, where accessibility via roads and bridges which used to be of major concern are being constructed. Not a place where public servants are working just for the interest of their political leaders and not the way people want or deserve.

With these, Governor Bagudu has validated the assertion that the world needs a decisive leader to whom they can look up to for guidance and reassurance. True indeed, people in different states want to look up to a reassuring leader rather than one who gives excuses. That is why it is in their best interest that the people of Kebbi state considered voting for someone like Bagudu to lead them in 2015. It is a huge thing they have done for their own good and for the good of humanity.

A man of strategy and few words and a man true to his word, he has single-handedly done more to prevent crimes and violence in his own part of Northern Nigeria — where one of the longest-standing terrorist campaign in West Africa festers that has claimed over 1000 lives and displaced 36,000 more — than many other governors in the region.

On June 12, Governor Bagudu gave an address where he talked about some of his achievements. since coming into power in 2015. He said these achievements were recorded in many sectors of the state, notably in agricultural transformation. Apart from this, other areas where achievements have been recorded include education, healthcare delivery, infrastructural development, power distribution, security network and environmental sanitation.   He said that the state government had purchased 100 tractors, threshers, rice rippers and power tillers to enhance agriculture. These he said had given rise to 450,000 news jobs and created 40,000 multimillionaires in the agricultural sector.

Of course, it is not possible to capture the multitude of the glaring giant strides recorded by Governor  Bagudu, these achievements are indeed as tangible, as timely, relevant and efficacious in further uplifting the ‘Land of Equity’ to greater heights. This has been the dream of Bagudu.

Agriculture

There is no doubt that Bagudu’s re-election for a historic and momentous second term by the people of the state is a clear indication and testimony to the ceaseless and invaluable love people of Kebbi State have for him in view of his tireless efforts to move the state forward in all spheres of human endeavour. Kebbi has remained the unbeatable pacesetter and trailblazer in agriculture, especially rice production with the attendant multiplier effects for the citizens, as well as the economy of the state and that of Nigeria in general.

It is no doubt that governor Bagudu’s giant achievements in agriculture, through the Central Bank of Nigeria (CBN), Anchor Borrowers’ Program geared towards improving rice production. Although, the 15 billion Naira scheme is owned and financed by the Federal Government as part of President Buharis economic diversification agenda, to make Nigeria sustainably self-sufficient in food production, especially bolstering the rice value chain.

This effort has greatly assisted President Muhammadu Buhari’s diversification agenda, to reduce over dependence on oil, as well as assisted the country in overcoming the hitherto economic recession and the stoppage of rice importation into the Country.

The scheme which was launched and flagged off by President Buhari himself, in November 2015, in Kebbi, had achieved tremendous successes, with the political support of governor Bagudu. Governor Abubakar Atiku Bagudu’s administration supported the program by also providing logistics support to the Anchor Borrowers Program committee to go out to all the 21 LGAs, to capture the bio-data of all genuine benefiting farmers, in order to ensure that, the only genuine small holder farmers got the loan.The program has also made many youths and civil servants who were hitherto not farmers to go back to the farms.

From 2016 to 2017, most of the pilgrims that registered to travel on holy pilgrimage to Mecca were farmers who got their money through the rice cultivation. The story did not also end here as many Kebbi farmers became instant, jubilant millionaires. The state also witnessed the influx of both foreign and local investors. Rice processors established rice mills, both big and small. Modern rice mills like Labana and Wacot established their bases in Birnin Kebbi and Argungu, respectively. Other mini ones abound in different parts of the state, such as the one in Lolo, Kamba, in Dandi local Government Area, Jega and Bunza, among others. It is on record that Oxfam, an international non-governmental organization came out to openly commend Kebbi State Government for allocating 10% of its budgetary allocation to agriculture, for over two years in a row. In 2016, N12.6 billion was allocated to agriculture and in 2017, a whopping N14 billion was further injected into the agricultural sector by Bagudu’s government.

Education

Education is another vital sector Bugudu’s administration prioritised, sensing that the sector holds the backbone of development of any society. The educational sector in Kebbi had previously suffered serious neglect by previous administration.The Kebbi State Government undertook massive renovation and reconstruction of new and existing primary, secondary and tertiary institutions across the state. In his Inaugural speech on the 29th May,2015, he decried, “the educational sector of the state is in shambles, schools over stretched without qualified teachers and structural infrastructure like classes, toilets and dormitories are in ruins over the years.”

To demonstrate his determination to overhaul the educational sector in the state, education received the highest allocation in his maiden budget. Governor Bagudu doled out over 5 billion Naira for the renovation of both primary and secondary schools in the state, including setting aside additional funds for the purchase of assorted learning materials in that same year to 2016.

Teachers and principals were appointed on merit, unlike a few years back when appointments were politicised. The students are motivated to perform and there is positive competition and that make them work harder. As a result in Kebbi secondary schools today, any failure cannot easily get into the system.

The Governor also awarded a contract for the renovation of 25 secondary schools across the state. The schools cut across the six zones; Argungu, Birnin Kebbi, Bunza, Jega, Yauri, and Zuru. To further enhance teaching and learning in 2019, Governor Abubakar Atiku Bagudu also approved the recruitment of three thousand (300) teachers for schools across the state. Girls secondary Schools across the state from each of the 4 senatorial zones were provided with new busses to facilitate their movement, to take part in sports and extracurricular activities, within and outside the state.

Governor Bagudu also ensures the prompt payment of scholarship to students studying at various institutions of higher learning, within and outside the state, including the payment of WAEC and NECO examination fees for secondary School students of the state. He also upgraded three higher institutions which are under the Ministry for Higher Education. The Permanent Secretary of the Ministry for Higher Education in the State, Dr. Isa Muhammad Sama, confirmed the development. The three institutions upgraded are Adamu Augie College of Education, Argungu, the Kebbi State School of Nursing and Midwifery, Birnin Kebbi and the School of Health Technology, Jega.

Health

Health is vital to life. Governor Bagudu is concerned with the health of people, though with a philosophy that health is everybody’s business in Kebbi state.Whether farming, processing rice in the mills, gardening, dancing, attending mosque or church, selling fish at the market or in formal employment, all Kebbi people and their families benefit when each person participates.

This is to solve the threats  facing the health of his people, to ensure that families, communities and workplaces do not lose the productive years of their men and women, that many women do not die giving birth to children, that babies don’t lose mothers and husbands don’t lose wives, that babies and children under five are no longer dying from preventable diseases.

When Bagudu got into office in 2015, Kebbi health systems were facing tough and complex challenges, partly derived from new pressures, such as ageing populations, growing prevalence of chronic illnesses, including the procurement and distribution of medical supplies. He attacked these from the taproots. This is to ensure that serious illness and preventable diseases do not take the productive years of Kebbi men and women. Also that they are in a clean and safe environment.

Bagudu was able to prepare a road map for achieving and delivering healthcare to citizens of the state, as well as to bring all health care sections under one roof, by providing an enabling law through the State House of Assembly. A series of medical outreaches were successfully conducted in the state, in collaboration with Moses Lake Medical Foundation from USA. Medical services including surgeries and medication, including feeding of patients were all provided free of charge to thousands of patients in Kebbi and neighboring states. Primary health care centers are being rehabilitated across the 225 wards in the state.

With his effort, preventable diseases appear to be leveling in prevalence in many part of the state as awareness of healthy lifestyles, sanitation and primary healthcare continues to increase rapidly  throughout the state

Governor Bagudu was in Takalau and several other rural areas to commission the renovated primary healthcare centers. In an effort to increase the manpower of the health sector and improve their working conditions, he approved employment of health personnel, especially Doctors, Pharmacists, Nurses/Midwives and other lower cadre staff such as cleaners, drivers and watchmen among others . Bagudus government also strengthened the free drugs programme for pregnant women and children under the age of five years, as well as routine immunization which led to the success of eradicating transmission of wild polio virus in the state. Sir Yahaya Memorial Hospital, Birnin Kebbi , one of the oldest General hospitals in the Northwest, is totally reconstructed, with new blocks, to a new befitting modern health institution by the Bagudu administration for greater delivery.

On the Coronavirus Disease (Covid-19), pandemic that is ravaging the world, Bagudu swiftly swung into action by taking plausible measures to contain the disease in the state, including setting up a Taskforce to control the spread of the disease and provide medication to patients. The governor doled out mouthwatering allowances to the Frontline medical health workers and members of the Task force. Isolation center and ICU were set up in Kebbi Medical Center, Kalgo and Sir Yahaya Memorial Hospital , Birnin Kebbi, with adequate beds and ventilators. This is in addition to the massive awareness campaign on Covid -19 specific to personal and environmental hygiene carried out for women groups and associations across the state.

Investments

Investment and Infrastructural development are two areas the administration of Bagudu accords priority with a lot of successes recorded. Government policies and programs in the agricultural sector, especially the success recorded in the Anchor Borrowers Programme, triggered the establishment of private rice mills, hence, big, medium and small ricemills sprang across the state. Notably, Labana Rice mills in Birnin Kebbi, Dangote Rice Mills at Shanga and Wacot in Argungu are glaring examples of big modern ricemills established in the state. Other medium and small ricemills also followed suit in Lolo, Dandi, Bunza, Jega, Suru, Yauri local government areas and even within Birnin Kebbi metropolis.

The establishment of such private ventures has no doubt led to employment of thousands of Youths and even women in the agricultural sector. Other prominent investors like Dangote and other Companies, as well as International Organizations like United Nations Industrial Development Organization (UNIDO), and the partnership between the United States African Development Foundation (USADF), and the Kebbi State Government strategic partnership for $10 Million enterprise investments cooperation in February, this year, were all geared towards industrialisation and opening up more opportunities for investments in the state. The joint memorandum of understanding to promote enterprise development of producer cooperatives in the state had since became effective.

The two parties have agreed to support agricultural producers and enterprises in the state ranging from provision of funds, equipment and capacity building. Each party has provided $5 million, making it a $10m dollars scheme for selected farmers’ cooperative groups across the state. A major Cassava- based Ethanol Programme is being undertaken under the able leadership of an illustrious son of the state, Professor M.A Kaoje. The programme which is being undertaken in partnership with NNPC, shall lead to ethanol production in Zuru Emirate. This project promises to churn out a whooping N388 billion revenue when finalized. Tomato factory at Gafara in Warra, Ngaski local government area of the state has reached an advanced stage. All these developments were sequel to the conducive business environment provided by government, such as tax waiver or reduction, free land allocation, access roads and other incentives necessary for the establishment of any company.

Infrastructural Development :

 Bagudu also deployed man and machine to give the pothole riddled Koko-Mahuta-Dabai road a facelift, Commuters now ply the road with ease. The government has also executed various projects that includes construction of bridges, culverts, and erosion control across the state. The completed bridge on the Suru-Giro, Kaoje-Illo and the Shema-Bakoshi roads that allows for free vehicular movement, business and other developments that strive in the areas are some of these projects.
Others are the 2.0 Kilometer completed erosion control project in Bunza, the Kwanar Dabai- Zuru township road awarded has been complete as well as the completed Maga-Ribah road and another 56.8 kilometer Ribah-Bena road projects.

Governor Atiku Bagudus administration has embarked on the rehabilitation of several other township road across the state. These includes the Sultan Abubakar road which runs from First-Bank to Rima round about through the Government House, and the First Bank round about to Sir Yahaya round about as well as Ahmadu Bello way which have been completed with effective drainage system. Other roads projects are the completed access road around Mechanic village, Birnin-Kebbi, the completed 31km Jega township, the rehabilitation of the Koko township, as well as the Tudun Wada Zuru and Birnin-Kebbi roads The abandoned Sabiyel-Kashinzama road inherited from the previous administration has been completed.

To solve the problem of the perennial flooding in some areas of the state capital Birnin Kebbi, the government expanded the Rafin Barau outfall, one of the major drainage in Birnin-Kebbi metropolis, to allow for free flow of water. To elide the re-occurring problems of flood in Birnin Kebbi. The administration discovered that unless the drainage is extended, the problem will persist, thus contract was approved by the state government to extend the outfall down to the Fadama area. Work on the Badariya-Kola Zuguru road which was awarded to the Nigerian Army Corps of Engineers on direct labour.

To encourage land and housing ownership, the present administration has allocated 10 hectres of land Gwadangaji to the Federal Government for its Mass Housing Project. 140 applications have been processed for the grant of Statutory Rights of Occupancy, 20 applications for consent for Mortgages and 88 certificates of Occupancy processed.

The importance of potable water cannot be overemphasized especially considering the adverse effect of unsafe water on the health of the people.
People of Kebbi State have, for long, grappled with problem of inadequate water supply. The State capital and other major towns were having problems with their water works while villages had their hand pumps, boreholes and other schemes not functioning.
In realization of the importance of potable drinking water to the generality of the urban and rural populace, the administration of Governor Bagudu embarked on the expansion and renovation of broken down water supply schemes in various parts of the State. These include motorized, solar operated boreholes as well as hand pumps and the procurement of water treatment chemicals for the supply of clean and healthy water to Birnin Kebbi, Zuru, Argungu and Yauri.

Electricity

As for electricity supply in the state, the people cannot but thank the present administration for ensuring steady electricity supply, especially in the state capital. The Rural Electricity Board has expended huge sums of money on the repairs of high tension lines, the connection of Equity FM Radio and other communities to the national grid. These include improvement of electricity supply to Gwandu town, supply of electricity to the Adamu Augie College of Education Argungu, Supply of 30 units of assorted transformers in the first phase and 40 supplied in the second phase. The 500KVA capacity of the new transformers have been installed at Hajiya Turai YarAdua General Hospital Zauro/Ambursa, Haliru Abdu Secretariat in Birnin Kebbi and two others to service Jega town.

Other areas that received the transformers are Gamji Gulumbe, Birnin Kebbi Local Government, Zara Birni, Gumbin Kure, Kuberi, Giwa-Tazo, Kalgo as well as in Nakengan and Kwali-Kwali in Dandi Local Government. They were also installed at Gwabaren Kasawa and Alwasa in Argungu Local Government, General Hospital Bagudo, Jabaka town, and Gudale in Augie Local Government Area, Nasara, Jiga Birni and Gumbin Dari in Aliero Local Government as well as Arewa Local Government Secretariat, Kangiwa.

Women and Youth development

In recognition of their vital role as caregivers and home planners, the Kebbi State Government, through the Ministry of Women Affairs has recorded laudable achievements in the promotion and implementation of programmes and activities geared towards the welfare of women and children ranging from health, education and entrepreneurship. Many women and youth organizations have benefited from trainings on skills acquisition, in addition to soft loans given to individuals and organizations, for enhanced businesses. Livestock, fish farmers, handset sellers and even transport unions like the NURTW and NARTO, have benefited from the loans guaranteed by the State Government to enhance their business.

Tourism Development

Over ten years, the Argungu International Fishing Festival known world wide for its fascinating fishing and cultural festival had been inactive. The festival could not hold largely due to security concerns. However, with improved security and huge financial resources released by Bagudu led administration, the festival took place successfully with President Muhammdu Buhari, the Senate President, Ahmad Lawal and many state Governors and Emirs across the country and beyond attended the event. The Kebbi State Government spent millions of Naira to rehabilitate and reconstruct major infrastructure in Argungu like roads, hotels, the fishing village, street lights and other facilities in the town. The Yauri Emirate ‘Rigata’ Festival was also revived with the active financial backing of Bagudu led government. The Uhola festival of Zuru Emirate and the Hutungo Fulani festival in Gwandu Emirate too had been supported by government to ensure their sustainability and boost the tourism sector of the state.

Peace and Security

Strengthen security, law and order is of prime interest to Governor Bagudu. He rose to this occasion. and he is doing everything possible to ensure that Kebbi state safe and peaceful for all so that industry and social lives can thrive without interruption. The Government routinely supports security agencies in the state especially in the areas of logistics and some materials. Even the National Bureau of Statistics adjudged the state to be the most peaceful state in Nigeria.

 Some parts of Northern Nigeria have come under siege in recent times due to the fact that they are being used by foreign criminal syndicates for transnational crimes, targeting mostly the North-East and some parts of the West Africa region. This could well be the case for terrorist activities too. But not in Kebbi state..

Kebbi is different from the rest of the North because of its security architecture and cooperation with the different emirates. Under Bagudu, Kebbi seems to tenfold its security strategy and operations.  And this is a wakeup call for other states to upgrade the level of effectiveness of national security resources in terms of manpower, logistics, infrastructure and funding, to effectively contain the prevalence of criminal activities.

 Bagudu. Of course, advanced developments in telecommunications such as internet and mobile phones with advanced applications, has made the world more accessible in terms of networking, planning and coordination, especially on the part of the perpetrators. Bagudu is aware of this, he has equally deployed them for security purposes.

To ensure security of lives and property of all citizens in the State, the Bagudu led administration participated in a joint security operation covering the Kamuku/Kuyambana forest involving seven states of Kebbi, Sokoto, Zamfara, Kano, Kaduna, Niger and Katsina.
The state   operation code name Operation Sharan Daji

Through this Sharan Daji operation, involving the Nigeria Army, Police, Air-force and other security operatives the state is secured against the menace of cattle rustlers and other criminals. Because of this secure nature of the state, farmers in different areas go about their normal daily activities without any fear.

Realizing the importance of peace to the development and progress of the state, the administration of Governor Abubakar Atiku Bagudu has resolved the age long border dispute between Benin Republic and communities in Kebbi state and also wadded into herdsmen farmer disputes across the state by identifying and institutionalizing the old cattle routes and grazing reserves.
To ensure the traditional rulers played a critical role in the maintenance of peace and security of lives and properties in their domain, a security summit was organized for traditional rulers in the state to intimate them on them as chief security officers of their respective domains.This enables  security agencies to raise the level of performance in order to be able to provide counter operations, including enhanced counter intelligence sharing.

In the last five years that his administration came into office in Kebbi State.  Bagudu has delivered a lot of positive changes in the ways governance is done in the state and ensure the revival of critical sectors of the States economy such as Tourism, Massive Agricultural Production and Investment.

Garba Abubakar and the Promotion of Efficiency, Productivity and Service Delivery at the Corporate Affairs Commission

Garba Abubakar and the Promotion of Efficiency, Productivity and Service Delivery at the Corporate Affairs Commission

Garba Abubakar and the Promotion of Efficiency, Productivity and Service Delivery at the Corporate Affairs Commission

They say the public service is the engine room of any country and that is true. If it stops functioning well, whatever plans a Government has will never be achieved. Alhaji Garba Abubakar Registrar-General/CEO, Corporate Affairs Commission (CAC) knows this very much, and he has made maintaining the integrity of service delivery his watch word.

Since his appointment by President Muhammadu Buhari in January this year, he has strengthened efficiency and improved the work ethos in that capitalist institution of the Federal Government. Under his watch at CAC now, regardless of what is on the calendar, service to the public should be provided unhindered to ensure that the Ease of Doing Business policy of the Federal Government is achieved. In this way the CAC will be able to best play its mandate role to help lead the private sector to the economic transformation of the country.

Public servants, over time, have always been challenged to improve their efficiency and effectiveness. That means they should learn to listen, look around with an open mind on what the society/community goes through daily. These are parts of what guide Abubakar’s activities at the CAC. Only if one goes out and experiences the hardship then you will feel and understand the people’s cry for service. Like they say, “you have to be in it to feel it”.

Abubakar listens and works with stakeholders, in order for the CAC to better able to help drive productivity in different industries in the country, leading to economic transformation.

Of course, Economic transformation of Nigeria depends on a transition from the mono-source oil economy to a diversified and competitive economy that is heavy on manufacturing and exportation of goods and services. The Corporate Affairs Commission regulates and supervises the formation, incorporation, registration, management, and winding up of companies. The responsibility also extends to registration of business names, limited and unlimited liability companies, incorporated trustees (communal, religious and charitable associations). The discharge of these functions has much to do with how well Nigeria with economic transformation and the role of the Corporate Affairs Commission in the Ease of Doing Business in the country.

 In the past the CAC seemed to have fared badly in leading the private sector to transform the economy because its ability is circuitously dependent on the strength of the nation’s economy which is ‘under the weather’.

Starting the business was quite straightforward, a clear testament of where Nigeria stands today with regards to its global ranking in Ease of Doing Business, published annually by the World Bank. What wasn’t easy though was choosing a name, to our own surprise, and the costs involved.

Choosing the name is probably our own fault for naively presuming that we will pick any name within a certain theme, and be fortunate enough to find that name available. We figured it out eventually, without having to go for any of our names, or that of a poet or a philosopher because of the push for high-sounding names.

The first thing to be done was to remove the then steep entry cost, as getting the trading and business registration used to cost a lot and take a long time to be processed. This is, of course, not taking into account costs that could come up in the future as more individuals are employed by the business. Then to be able to open a business was tough, and many people found this a bit bizarre and out of place. Here’s why.

One, if government is really ready and like to support entrepreneurship and the development of a vibrant environment for small and medium enterprises (SMEs), high start-up fees were surely not the way to go. The higher those business start-up fees were, the more they discourage individuals from starting their own businesses, encouraging them instead to find a job, and most probably in the public sector.

In addition to that, high start-up fees could affect the nature of the business that one would get into, getting into a business with the ability to make a quick money and recover those high start-up fees. For instance, getting into food and beverages (F & Bs) instead of manufacturing.

Cost of a name

Now for Nigeria to stay entrepreneurially competitive, that high start-up cost of business registration had to go. In many countries like the UK, for instance, start-up costs are negligible. The idea is that those start-ups should not be squeezed out of business before they have even started, especially when there are other costs to take care of, including rent and payroll. As such, governments make it easy and cheap to start a business, realizing that doing so will generate additional economic activities and tax revenue for government.

That is, those businesses will create jobs and will obtain loans to expand their business or even expand into other sectors, which by itself fuels additional economic activities. Governments are, therefore, better off allowing those businesses to actually grow with fewer start-up financial obligations in their first years, then make more money from income-connected corporate taxation.

And with the coming of Abubakar,  CAC   swiftly moved away from burdensome start-up registration fees . then corporate taxes will kick in. With growing businesses and incomes, government will generate higher government revenues than would, ever.

As an institution whose mandate it is to lead the private sector to transform the economy, the CAC collaborates with critical stakeholders, such as the different chambers of commerce as well as different professional bodies, holding dialogues with them on topical issues that concern its mandate. This is particularly in regard to the Ease of Doing Business protocols. One of such was the one-day stakeholders’ forum  the institution held with  the Council of the Nigerian Bar Association Section on Business Law (NBA-SBL)  in April this year.

Speaking during that one-day stakeholders’ forum, Ayuli Jemide, vice-chair NBA-SBL said the Section, which is the specialisation arm of the NBA, would constantly engage the CAC because the CAC is the company house where all the businesses are registered and for business lawyers, it is the hub for businesses.

He was upbeat, saying that beyond the collaboration, he was hopeful that a new Companies and Allied Matters Act (CAMA) would bring changes that would help the ease of doing business, as he expected both organisations to engage more on how to make sure that the law is not just signed but the intent of the law is put into operation.

Speaking on the Section’s expectations from the CAC, he said, “The need to go digital for CAC is urgent for us and has been there for several years. We have been talking about deploying technology to enhance efficiency and it has been a very slow-moving train but with the current registrar general (RG) and the new chairman, we see a stronger will to get achieve this and to cross the finish line.

“The NBA-SBL will engage and collaborate more with the commission, to try to raise money by way of grants and endowments to achieve these objectives on a private basis and see how we can roll this out.”

Chief Ademola Seriki, chairman of CAC, observed that the NBA-SBL and the CAC are creating enormous awareness for the public. He lamented that a lot of people meddle with files inside the CAC office and people point accusing fingers at CAC, stressing that it is high time both bodies create awareness so that people can know the importance and position of the law.

Seni Adio, SAN, Chairman of the NBA-SBL, who spoke earlier on reform initiatives by the NBA-SBL said, declared that lawyers were very much involved with respect to the enactment of the Companies and Allied Matters Act. He pointed out that this is a very revolutionary bill and once that bill is signed by Mr President it will further help ease of doing business in Nigeria.

“The NBA-SBL has always been at the forefront in trying to enhance the proficiency of commercial lawyers in Nigeria. SBL advocates for lawyers to become specialists, so that people become experts in their given areas of work and can provide legal services efficiency with expertise in the commercial space.”

Speaking during a fireside chat with the vice-chair of the NBA-SBL, Mallam Abubakar said he took over as the Registrar-general, he had identified areas that require urgent reforms.

“We are currently doing a review of our checklist and guidelines to make it more business-friendly and to remove unnecessary bottlenecks that slow down our processes and procedures. So, what we have done is that most of the requirements that were alien to the law have been removed.”

This is true indeed as it will help many small companies come on board. Equally The importance and growing influence of the digital space is also one aspect that all government institutions  and business players need to consider. Jumping on this trend, CAC is committed to delivering omni-channel services that provide potential business owners with consistency and continuity across all interactions. it has enhanced and implemented various digital tools to make SMEs’ online registration journey as convenient as possible.

There is no doubt that people have started seeing significant developments across the region in 2020, however, technology and innovation are unlocking a host of opportunities to enhance sustainable registration process, improve time and elevate entrepreneurs experiences and confidence – ultimately leading to sustained growth in different industries.

Another area of innovation from the Corporate Affairs Commission is the action it took last June to further remove barriers for business start-ups.  The recent step taken by CAC management to ensure that business start-up don’t go through the inconvenience of spending months going to the Federal Inland Revenue Service, looking for how to get Tax Identification Number is commendable, indeed as it will help businesses.

The Corporate Affairs Commission says certificates of registration of business and non-business entities will be issued with Tax Identification Numbers. The Commission in a statement in June said the development conformed with the Ease of Doing Business Initiative being promoted by the Federal Government. It explained that customers won’t need to apply separately for tax numbers from the Federal Inland Revenue Service.

The statement read, “This is to inform our dear esteemed customers that as part of the Ease of Doing Business Initiative, Certificates of Incorporation of Companies registered under Part A of CAMA will henceforth carry Tax Identification Numbers issued by the Federal Inland Revenue Service.

“This has dispensed the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation.”

This particular action by the CAC will provide much relief for business start-ups.

But why is Alhaji Garba Abubakar able to do things with so much passion to deliver on CAC mandate on Ease of Doing Business? He has been around at the CAC for a while, holding a strategic post.  He joined the CAC in April, 2004 as Principal Manager Compliance and rose through the ranks to become a Director in January, 2016. He was Special Adviser to Bello Mahmud the then Registrar-General of CAC between August, 2010 to October, 2017.

 Before joining the CAC, Mr. A.G Abubakar worked with the Nigeria Social Insurance Trust Fund (Formerly National Provident Fund) as Compliance Officer between 1991 to 1993. He also worked at NICON Insurance between June, 1995 to December, 1997.

A lawyer by training, he hails from Bauchi State. He was born on 14 October 1966. He attended the prestigious Ahmadu Bello University, Zaria. He was called to the Nigerian Bar in 1989.  He is a Member, Governing Council Nigerian Bar Association Section on Business Law, March 2017 – date, Member, Inter-Agency Committee Against Money Laundering and Terrorists Financing, 2007-date, CAC Focal on open Government Partnership, amongst others. He is also a Member, In-House Committee on the Review of the Companies and Allied Matters Act (CAMA)

 Abubakar is a great model to public servants on need for efficiency and productivity. Another area that should be improved on is the punctuality and productivity of public servants. Abubakar is straight up with what he expects of CAC departmental heads and that he does not tolerate laxity. The message, most times, is simple and clear, shape up or ship out.
To him the Nigerian habit or style of getting things done should stop. Starting work very late, frequent absenteeism, unnecessary breaks, bad habits and culture and abusing ones position for personal benefits should come to an end. Work ethics refer to a basic set of moral values associated with the way work is done whatever its nature or status.

The departmental heads, by now, should know what they want to achieve so it’s now about planning to achieve their target with the limited financial support and resources.We need public servants to be smarter in managing the limited funds to deliver services, even to remote areas.

If they copy Abubakar’s work etho, they would not just believe in Nigeria, but also, demonstrate their honesty, integrity and accountability at the workplace. For hardworking and committed people contribute to the country’s progress to the best of their ability. The challenge is now on everyone, especially those entrusted to deliver, to learn from Alhaji Abubabakar at the CAC and continue to chart and develop a new part for service delivery.

NEXIM BANK: Nigeria’s Hope of Favourable Balance of Payment – Under The Watch Of Abba Bello

NEXIM BANK: Nigeria’s Hope of Favourable Balance of Payment – Under The Watch Of Abba Bello

The Nigerian Export-Import Bank (NEXIM) represents a new era of hope with regards to its financial inclusion programmes and innovation. These involve the enhancement of corporate organizations, as well as the Small and Medium Enterprises (SMEs) to export, thereby preparing the country for prosperity growth, with the power to transform citizens’ lives for the better. These are happening under the watch of Mallam Abba Bello, Managing Director/CEO NEXIM Bank.

Abba Bello fits into Gregory Clark’s visionary personality. Clark, a professor of economics at the University of California – Davis, who specializes in analyzing the long-term growth and wealth of nations, made some valid points in his 2007 book A Farewell to Alms, A Brief Economic History of the World. He reiterates that the wealth of nations and their success in achieving economic progress and prosperity depend greatly on the principle of competitiveness and equal opportunities through flexible laws that can boost the development of economic activities in various sectors.

Therefore, it is imperative for visionary leaders of institutions as well as governments to provide the necessary funding for entrepreneurs and youth aspiring to improve their economic situation, through developing a spectrum of SME financing programs. These will lead to more job opportunities, increased income and higher demand, leading to effective and sustainable growth that contributes to changing people’s lives for the better. Abba Bello’s activities at NEXIM Bank relate to a charting of path towards all these.

Bello was appointed into office in April 2017, and ever since then Bello has been showcasing excellence in practices and putting on ground some innovations at NEXIM Bank. These activities have made the bank more visible to the public, making NEXIM image to go beyond the perception of mere trade facilitation between Nigeria and the outside world to an institution whose touch is seen in several aspects of the Nigerian economy, banking, transportation , education, environment and others.

He is an insightful, multifaceted personality, who enthusiastically embodies the corporate values of NEXIM;, an extremely wise, meticulous person, who has a flair for helping entrepreneurship grow and international trade bigger. He solid administrative acumen that few people have from the beginning, which helps him better able to relate with business people as they grow, providing  them useful advice to build a business empire.

As part of his insightful nature, he thought it wise to help support  crucial decisions related to a major infrastructure and economic development effort – the Sealink Project.  According to NEXIM website, the institution is facilitating the establishment of a regional maritime transnational company (the Sealink Project) in collaboration with the Organized Private Sector under the auspices of the Federation of West African Chambers of Commerce and Industry (FEWACCI). The proposed Sealink Project is aimed at mitigating current non-tariff barriers and high logistics costs that has hindered the growth of intra-regional trade and competitiveness of Nigerian manufactured exports regionally.

Of course, the Sealink Project is said to be essentially conceived as a Public Private Partnership initiative to be managed by the private sector.  “The Sealink is about to commence a pilot run of its services and is engaging with potential customers for service offtake, especially for bulk cargo in West and Central Africa, and is working with the National Inland Waterways Authority (NIWA) on collaborative partnership (between NIWA, NEXIM and Sealink) to undertake a joint survey of the lower Niger river, with a view to promote the use of Nigerian inland waterways for moving bulk cargo.” Says the report on NEXIM’s website.

Another great initiative from NEXIM Bank comes in the area of enhancement of  human capital development in Nigeria as its own form of corporate social responsibility. The presence of Bello as CEO has given impetus to NEXIM in this regard. The Bank under its Corporate Social Responsibility Programmes is committed towards supporting structures and initiatives across diverse areas of healthcare, education, sports, environment, human capital development and the Arts.

Its CSR initiative embodies an ardent commitment and social pact with all the stakeholders. Thus, the bank is committed to creating enduring partnerships for sustainable development whilst adding immense value to its diverse beneficiaries and stakeholders.

It was reported that in 2019, NEXIM Bank engaged and reached out to various entities by promoting skills development and acquisition, supporting small and medium scale enterprises, sports and educational development, healthcare management, sponsorship and support to Associations, and Disadvantaged groups.

Apart from brilliant initiatives, Bello also came out with an innovation to solve financing problems for even small and medium enterprises. This has to do with the introduction of factoring system into the Nigeria business landscape. This is to help business solve some financing issues.to do this, NEXIM bank, under the auspices of FSS 2020 is collaborating with the African Export-Import Bank (Afreximbank) and the Factor Chain International (FCI) to develop and implement a legal framework for Factoring in Nigeria.

According to reports, the Draft bill on this has been developed and is undergoing legislative processes following which it is expected to be passed into law towards promoting a legal/regulatory environment for factoring. This will help integrate Nigeria into the global factoring market

Factoring is a financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital. Factoring is very common in certain industries, such as plank trade, and the clothing industry, where long receivables are part of the business cycle.

In a typical factoring arrangement, the client (you) makes a sale, delivers the product or service and generates an invoice. The factor (the funding source) buys the right to collect on that invoice by agreeing to pay you the invoice’s face value less a discount–typically 2 to 6 percent. The factor pays 75 percent to 80 percent of the face value immediately and forwards the remainder (less the discount) when your customer pays.

Because factors extend credit not to their clients but to their clients’ customers, they are more concerned about the customers’ ability to pay than the client’s financial status. That means a company with creditworthy customers may be able to factor even if it can’t qualify for a loan.

Three misconceptions that need being corrected about factoring:  First, factoring is not a loan; it does not create a liability on the balance sheet or encumber assets. It is the sale of an asset–in this case, the invoice.

Second, some consider factoring to be one of the most expensive forms of financing, but that is not always true. Yes, when you compare the discount rate factors charge against the interest rate banks charge, factoring costs more. But if you can’t qualify for a loan, it doesn’t matter what the interest rate is. Factors also provide services banks do not: They typically take over a significant portion of the accounting work for their clients, help with credit checks, and generate financial reports to let you know where you stand.

Third, the idea that factoring is a last-ditch effort by companies about to go under is another misperception., and analysts say the opposite is true: “Most of the businesses that factors deal with are very much in an upward cycle, going through extremely rapid growth.”

As a business man if your company regularly generates commercial invoices but your clients are not paying on time, you could benefit from reducing the time receivables are outstanding. Factoring may provide the cash you need to fund growth or to take advantage of early-payment discounts suppliers offer.

Factoring is a short-term solution; most companies factor for two years or less. Analysts say the factor’s role is to help clients make the transition to traditional financing.  And with what NEXIM is trying to do, your banker may be able to refer you to a factor. Shop around for someone who understands your industry, can customize a service package for you, and has the financial resources you need. As an alternative trade finance instrument, Factoring is expected to promote financial inclusion and enhance the contributions of the Small and Medium Enterprises to exports, thereby reducing the incidents of informal trade.

But then who is Abba Bello ? Why has he able to introduce innovations at NEXIM Bank?

A kind of man who has devoted his working life to serve the nation and support people. Through NEXIM Bank, his ambition is to create more and more jobs by extending finances to entrepreneurs. Bello has exemplary work ethics and commitment to the nation.

With decades of experience in serving the private sector, he is the right one needed to stir the ship at NEXIM Bank where he is leading Government mandate to promote trade, productivity and growth and do everything needful to deliver trusted practical solutions to enable impactful government actions and transformation in regards to helping local businesses find their footing in the waters of  global competitiveness.

Mr Abba Bello has 28 years’ experience in banking, where he has held senior management positions in corporate banking, regional and commercial banking, and public sector banking in more than a decade. Abba also had a brief stint in auditing. Abba has cognate experience in international banking. He was the pioneer Managing Director/CEO of United Bank for Africa Plc’s subsidiaries in the Republic of Chad and Zambia for several years.

Abba has attended several courses in Nigeria and abroad in leadership, advanced management, and executive management. He is a member of Chartered Institute of Bankers Nigeria, and a Fellow, Institute of Credit Administration.

Prior to being appointed to head NEXIM Bank, Bello was Executive Director, Unity Bank Plc, in charge of Corporate Banking, Agriculture and North Directorate until he was appointed as Managing Director and Chief Executive Officer of Nigerian Export-Import Bank in April 2017. This wealth of experience he deploys to run NEXIM and  to enhance policy development, strategic planning programme and financial management, operations, auditing, deployment of technology and innovation.

Under Bello’s watch, NEXIM consistently attracts recognition to excellence in its core banking functions to facilitate international trade environment, with contributions to social, governance, and  to sustainable development

The staff share a rigorous method when it comes to building and managing a sustainable operation. Their boards set strict standards and clear goals on ESG (Environment, Social and Governance), as well as measure and monitor their progress towards meeting them. Their corporate culture places an uncompromising emphasis on ethics, productivity and is characterized by a strong drive to reach out to stakeholders and to promoting transparent reporting.

The actions of its board and its management have impacted the country in many ways. They have shown to business men- importers and exporters,  how to truly build a company with purpose, where every corporate action zeroes in on crucial goals around people, the planet and its products.

Through its self-imposed mandate of being instrumental in promoting financial inclusion for businesses and sustainable development in the country, NEXIM under the watch of Bello is helping Nigeria advance the pace of business in order to achieve inclusive prosperity and favourable of trade and balance of payment.

Ocean Marine Solutions: Confronting the $195 Million HLSI Deal and the Collusion to Evacuate Nigeria

Ocean Marine Solutions: Confronting the $195 Million HLSI Deal and the Collusion to Evacuate Nigeria

At what point does “creative tension” turn into something more destructive and sinister? This is a question that the Hon Minister for Transport, Rotimi Amaechi should ask himself. The management of the Nigerian Ports Authority (NPA) should ask themselves similar question. And they may be getting perilously close to stepping over the line where legitimate argument ends and direct challenge to the minister’s reputation begins for disregarding national morality. This is over role of the Ocean Marine Solutions Limited rumblings.

Three things guide the policy operation and investment drive of any progress-seeking capitalist economy. These are capitalist institutions, regulators and rule of law to guarantee safety of investments. The palaver being made by the minister and the Nigerian Ports Authority (NPA) with Ocean Marine Solutions Limited over the Secured Anchorage Area (SAA) is a direct kick on this basic principle of investment. This action has made a lot of maritime stakeholders, investors and observers to voice out serious concerns that this kind of action has the implication of discouraging investors from investing their money in Nigeria. It also has the implication of scaring away investors from Nigeria, thereby evacuating the country of investments.

The gist of the matter is that the NPA has concluded moves to push out Ocean Marine Solutions Limited from the Secured Anchorage Area (SAA) of Lagos port and replace it with a foreign company called HLSI Security Systems at a cost of $195million to the Federal government.  This   surprises industry stakeholders and analysts alike. And angry questions are being asked. Why paying $195 million to a foreign company for what Ocean Marine has been doing at no cost to government?

And this has set people thinking that apart from the implication of business evacuation, there also seems a grand agenda of opening Nigeria up for foreign take-over of the country. This is coming at a time when the noise generated by the controversial Chinese loan entered into by the ministry of transport is yet to die down.   And if this proposed plan with HLSI goes ahead, Nigeria may lose $195million, which is the value of the contract proposed for an Israeli-owned company, HLSI Security Systems and Technologies, Limited.

“Our very own country men and women are betraying us and selling our country to foreign maggots. And those with corrupted ego are putting their own self interests ahead of the nation’s and our collective interests.” Said Kunle Odetoyinbo, a Lagos public affairs analyst.

It is gathered that despite the fact that the SAA had been running successfully under OMSL for years at no cost to the Federal Government, some highly placed officials in government, for selfish reasons, are desperately rocking the boat. In fact, the champions of the agenda of stopping OMSL from operating the SAA are so determined that they resorted to blackmail while spewing out pathetic and spurious allegations against the operators of the SAA.

The OMSL mandate to secure in-coming ships came in 2012. And ever since that intervention of OMSL insecurity not only reduced but has been wiped out, creating a safe haven for foreign and local vessels to berth and operate.

 In October that year, the Navy seized a foreign-flagged ship carrying arms and ammunition on the nation’s territorial waters. At that time, insecurity in the maritime domain was rising. The insecurity prompted a series of intense talk among relevant government agencies such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Navy (NA) on how to protect ships and the environment.

The OMSL argued that the insecurity had compelled foreign vessels seeking to berth in Lagos to stay outside Nigerian territorial waters up to a distance of 200 nautical miles where they believe pirates would not reach them or prefer to come into the country with foreign mercenaries for their safety. By so doing, Nigeria was losing businesses and huge revenue to neighbouring countries such as Benin, Togo and Ghana as foreign vessels found comfort in ports in those areas. Consequently, the OMSL was given the mandate to provide security for incoming ships through the SAA.

The intervention of OMSL in 2012 was, however, not automatic. It followed due process. That is why a lot of people are worried about the rumored action of NPA and  he Ministry of Transport.  According to a source “In the first place, Ocean Marine pedigree as a result of successes recorded while being engaged by reputable firms caused the Nigerian Navy to introduce the company to NPA and NIMASA. The OMSL was subsequently invited to series of strategic meetings with stakeholders on how to provide security on the harbour approaches, and a deal was officially struck.

The intervention of OMSL was, however, not automatic. It followed due process. “The company went out of its way to provide the needed services by undertaking significant investment in the acquisition of assets and logistics backup required by the Navy to offer all-round patrol services.”

Surprisingly,  in November 7, 2019, the battle over the control of the SAA took a different tuen when a motion was raised at the Senate following an alarming letter by the Nigeria Ports Authority (NPA) on alleged illegal security activities perpetrated by OMSL at the SAA, Lagos port. But this is a false, according to the company.

With a newspaper report. that followed the allegation by the NPA, “the Senate then detailed a 44-man committee, including three members from the secretariats, joint committee, comprising Navy, Marine Transport and Finance to investigate the matter. Their terms of reference were to determine the legality of the operations, its revenue, security implications and the legality of the entire chain of the operation.

“It also mandated the joint committee to investigate the lingering quarrel among the agencies, with a view to resolving the security impasse it will bring to the nation as well as the legality of OMSL and its operations.

“The Senate, considering the importance of the matter allowed four weeks for the conclusion of investigation and reports, as well as approved three independent chairmen, to forestall manipulations of any kind. The chairmen were Senators George Sekibo, Mohammed Danjuma Goje and Senator Solomon Adeola Olamilekan.”

During the hearing, the chairman of OMSL, Capt. Hosa Okunbo, gave an insight into the history of SAA and its modus operandi. “OMSL started in 2007 at the height of militancy where this country was producing less than 300,000 barrels a day. The late Admiral Augustus Aikhomu, who was the first Chairman of OMSL, and who had been a one- time Chief of Staff, was the one who came up with this idea.

“He had referred to a company in London, that provides platforms to the Navy to protect the fisheries industry in the North Sea, and also referred to Indian Ocean where private companies would procure platforms to the Indian Navy to protect the oil and gas industry. At this time, it was just an intervention and we wrote to the Navy in 2007.

“We started this business with just three vessels because it was pertinent to open risk tracks, which had shut down with production of 70,000 barrels per day. There were bullet holes on Shell EA Field; Addax was attacked on a daily basis, and Shell was going to close the whole of Eastern production because of hoodlums in Bonny. There were numerous challenges and we came in. We intervened, in national interest.

“I want to see one Nigerian businessman, who would want to procure a vessel of over three, four million dollars, sometimes up to six million dollars and hand it over to the Navy completely, without insurance, to defend this country. Nobody was ready. We took the risk, and the 70,000 barrels were restored.

“We stood in the gap between the Navy to carry out its statutory responsibilities, and the oil companies, who were ready to pay for our services. If we were to pay the Navy, then prices would have been crazy. We took that responsibility, sat with the oil companies, and everything was benchmarked in line with industry practices.

“Before OMSL strategy, Navy men were put on vessels; they were put on tug boats and houseboats and when pirates came, they were killed. They killed a lot of Navy men, and I am surprised why the Navy is not talking. Your men were killed in this country until we came on board to find the solution. Many operations were then restored; Shell EA production of 200,000 barrels per day was restored; Addax too ran to us, Bonny too restored. That was how we started borrowing money to buy vessels. And that is how we were able to build this capacity we are talking about today.

“At the advent of amnesty, all the conditions the Navy presented to us, we met in 2007, leaving none out. If you remember, there was a time all shipping activities were relocated to the West African coasts. If you want to clear your goods, you go to Lome, Cotonou and Accra. There was high piracy rate in Lagos.

“We were invited by the Navy in line with our success in the past and because of our capacity, to come and help; that was how we came. They asked us to provide this platform for the Navy. It is just like you buying a bullion van for the police to protect the cash that banks carry. That’s the simple thing we are talking about.

“We provided the platform and maintained it at our own cost; but what happened? We wanted to stop in the first year because we were losing so much money. We went to Norway, London, Singapore, South Africa at our own cost to meet with ship owners to tell them, listen you are bringing mercenaries to our shores costing you $22,500 per day at $7,500 per mercenary, when our company can give an equivalent service at lesser cost, more of a stipend for their vessels.

They agreed that it was a win-win situation. That is how SAA started. And if we were to pay money to NPA or Navy, the cost probably will be higher because we did a proposal to Navy and they gave us the go-ahead with a caveat that as long as we don’t come back to the government for anything, and that was how we embarked on this business.

“At no time, having been operating this service for six years and procuring this equipment, did NPA call us for collaboration or to say you are making so much money here, let us rent your vessels, don’t charge any fees; we would have agreed. There was no discussion whatsoever. The only thing we saw were some stories on the pages of newspapers. And the most painful of everything was derogating my integrity and image. That is what is bothering me, not the business.

   “I am not running this business because of money. I have served this country meritoriously with honesty, with my integrity intact. At the moment, I have 50 vessels with the Navy that could go to war for this country without recourse to OMSL. They don’t need to contact us before they go to war. That is the extent of our commitment to national development. Our records are there in Nigeria National Petroleum Corporation (NNPC); our records are there in IOCs and others.

“My grouse about this whole matter is my integrity that has been tampered with. NPA never called us for a meeting; NPA never contacted us to inform us we are terminated.

“And the Navy, it’s very obvious that you were aware that they wanted to dismantle SAA. Did you call us at any time to tell OMS that this is the plan of NPA? And we have an MoU with you on which we are operating. So, we will stand in the gap for you and this country and you treat us like nobody even with all these investments. The issue is not money, but my integrity. I have over 50 vessels with you and with all my investments with you then you throw me out of the window like that and derogate my character. That is unacceptable.”

The committee also took presentations from nine critical stakeholders, who stated their opinions or positions on the matter. The respondents included Federal Ministry of Transportation, Nigerian Ports Authority, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Navy, Ocean Marine Solutions Limited (OMSL), Nigerian Shippers Council (NSC), National Association of Government Approved Freight Forwarders (NAGAFF), Ship Owners Association of Nigeria (SOAN) and Marine Section of the Nigerian Police.

 The majority of these submitted that the stoppage of the SAA operated by OMSL without provision of an immediate alternative could lead to security lapse and return the Lagos Anchorage approach to security dangers as experienced in 2012 and 2013.

The Managing Director of OMSL, Rear Admiral Aminu Oyone Ikioda (retd), submitted thus: “That the company has provided various forms of security services to international oil companies (IOCs) operating in the country particularly at the height of militant attacks in 2007.

“That the intervention of the company led to the continuous production of oil and aided in combating the effect of the drastic drop in national oil production and revenue accruing to both government and IOCs.

“That on the basis of the publication of the maritime notices, OMSL was encouraged to develop and submit a business plan to support the SAA operations which would guarantee a return on investment at no cost to the government.

“That upon receiving the approval of the Nigerian Navy, OMSL proceeded to undertake significant in the acquisition of assets and logistics backups required by the Nigerian Navy to offer dedicated 24/7/365 security patrol services demanded by some of the vessels that desire extra protection while waiting offshore Lagos for berth allocation of conducting STS transfer operations.

“That the services of the SAA facility was embraced and accepted by foreign vessels owners putting into consideration the safety, security and environmental protection that would be rendered to them, and were ready to pay for such.

In its presentation, the Ship Owners Association of Nigeria (SOAN) strongly recommended that the status quo be maintained in terms of the SAA arrangement.It said: “The SAA facility had helped in increasing the presence of the Nigerian Navy at the sea and serves as a deterrence to pirates and other criminals in the sea

“That the SAA is operated by the Nigerian Navy that is saddled with the responsibility of protecting the Nigerian waterways and as such will not have any negative security implication, and that SAA operation has drastically helped to reduce freight cost and other associated charges while also reducing the waiting time of vessels.”

According to the ship owners, any attempt to stop the SAA facility could render Nigerian ports unattractive to shippers because ships would be prone to attacks. They prayed that the arrangement should not be tampered with.
National Association of Government Approved Freight Forwarders (NAGAFF) lauded the establishment of the SAA, as its operation is at no cost to government but users of the platform.

Consider what the president of NAGAFF, Chief Increase Uche, said: “That the amount paid by ship/vessel owners for the services rendered at the SAA is so insignificant and cannot add any reasonable cost on cargos compared to cost of ransom, damage, destruction or loss of cargo through sea robbery, piracy and kidnapping.”

 The Nigeria Ports Authority (NPA), represented by its Managing Director, Hadiza Bala-Usman, remarked: The Ministry of Transport noted in its presentation by the Minister of State, Sen. Gbemisola Ruqayyat Saraki, that it was written to on October 16, 2019, to intervene in respect of a Marine Notice published by NPA about the stoppage of the SAA without putting into consideration the huge investment made in the SAA and successes recorded so far. It told the committee that based on that letter and the one written by the NPA to the Navy to stop the SAA, it called for a meeting of stakeholders on December 9, 2019 “to deliberate holistically and take appropriate action, the outcome and resolution has not been made public.

It, however, noted: “That the ministry agrees with the fact that the Marine notice issued by NPA for the stoppage of SAA operation by OMSL was hasty as there was the need to interact with all stakeholders to review the situation before issuing such proclamation.”

The Marine Section of the Nigerian Police also pointed out at the hearing that its agency sent notices to mariners informing them of the availability of the SAA. Speaking through the Force Marine Officer, CSP Benjamin Ogungbure, the section noted that “OMSL through the SAA had provided security platform for ships berthing at offshore to the Lagos ports to utilise but the management of NPA are not fully in support of the operation and that the SAA is situated 10 nautical miles away from the Fairway Bouy, which is outside the jurisdiction of the NPA.”

The beneficiary company, HSLI International, is incorporated under the laws of Seychelles with a registered office in Cyprus. Its local subsidiary, HSLI Systems and technologies, is located in Wuse II, Abuja and represented by Mr. Pinhas Moria and Mr Oren Chaluzi, both said to be Israelis. was gathered.
HSLI is to establish an integrated National Coastal Surveillance and Waterways Protection solutions.

According to the Ministry of Transportation, its reason for embarking on a change was “to increase its monitoring and compliance enforcement within Nigeria’s Exclusive Economic Zone (EPZ) due to illegal activities that have increased and intensified in the Gulf of Guinea in recent time.
The contract sum for this project shall be the sum of $195,300million equivalent to N59, 839, 920billion, while 10% of the sum $19,530,000 will be for management training, it was gathered.

The inevitable questions are, what is the essence of bringing in HSLI to do a job that had been efficiently done at no cost to the government by a Nigerian outfit company? And even if there was an area of dispute between the ministry and OMSL, why didn’t the former seek an amicable settlement rather than bringing in a foreign outfit in haste? Why was the capability of OMSL not  considered, having already deployed 50 vessels and invested heavily in building capacity, while HSLI is proposing to purchase two vessels?
There is certainly much more to this transaction than meets the ordinary eye.is certainly much more to this transaction than meets the ordinary eye.