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DAVE UMAHI’S TASK OF SPEARHEADING NIGERIA’S INFRASTRUCTURE RENNAISSANCE FOR BOLA TINUBU RENEWED HOPE AGENDA

by with No Comment By Tayo Are

Engr. Dave Nweze Umahi, Nigeria’s Minister Works is a seasoned technocrat and an accomplished engineer. He is a man who is committed to sound infrastructure and human capital development, whose philosophy is anchored in the belief that infrastructure serves as the backbone of national development. And his performance and leadership at the ministry of works is helping to propel the Tinubu government’s vision for a renewed Nigeria.

Since his appointment as Nigeria’s Minister of Works by President Bola Ahmed Tinubu in 2023, Engr. Umahi has embarked on an ambitious journey to transform the nation’s road infrastructure, positioning himself as a cornerstone in Tinubu’s “Renewed Hope” agenda- a comprehensive blueprint for national development, focusing on economic growth, infrastructure development, job creation, and social welfare. This former governor of Ebonyi State has seamlessly integrated his wealth of experience into this “Renewed Hope” agenda, making remarkable strides in the ministry of works.

Upon his appointment, Umahi pledged to overhaul Nigeria’s road network with a focus on improving quality, implementing cost-effective solutions, and ensuring timely project completion. In alignment with President Tinubu’s vision, Umahi set about addressing the nation’s infrastructure deficit with determination, transparency, and innovation.

As soon as he resumed office, he analyzed the challenges and future prospects in the task before him.  He saw several challenges in the mission to transform Nigeria’s road infrastructure. Limited funding, bureaucratic hurdles, and security concerns in certain regions remain significant obstacles. Then he mapped out ways to ensure things work really well. Umahi has proven to be a resilient and resourceful leader, navigating these challenges with pragmatism and determination.

Revitalizing Nigeria’s road network and a commitment to durability is central to Umahi vision at The ministry. Notably, one of the most significant challenges Nigeria faces is the poor state of its road network, which has hampered economic activities and contributed to road accidents. Umahi’s immediate focus upon assuming office was to revitalize Nigeria’s federal road infrastructure. Over the years, Nigeria’s roads have deteriorated due to poor maintenance, low-quality construction, and corruption within the contracting processes. Umahi’s first step was to audit existing projects and assess their status, a move aimed at identifying stalled or abandoned projects and fast-tracking their completion.

He introduced reforms to ensure that all ongoing road projects meet global standards for durability. In a move that embodies his commitment to transparency, he has placed emphasis on the use of concrete roads as a solution to the recurrent issue of potholes and degradation. While asphalt roads have been the traditional choice, Umahi has advocated for concrete alternatives, citing their longer lifespan and lower maintenance costs. This transition to concrete has begun to take root across Nigeria, with key highways and federal roads undergoing reconstruction using this innovative approach.

The Abuja-Kaduna-Zaria-Kano Road project is a prime example of how Umahi has championed this transition. The road, a vital economic artery connecting the northern and central regions, had been plagued by delays and substandard construction. Umahi’s insistence on quality and the introduction of concrete road technology has accelerated the pace of work, and when completed, the road is expected to have a significant impact on trade and mobility in the region. His leadership has brought about a refreshing shift in the narrative surrounding infrastructure projects, with Nigerians beginning to witness the tangible outcomes of Tinubu’s Renewed Hope agenda.

Under Umahi’s stewardship, the Ministry of Works has taken a proactive stance on the issue of project delays. Historically, federal road projects in Nigeria have been notorious for their lengthy timelines, with many spanning years or even decades without completion. Umahi has made it clear that such inefficiencies will no longer be tolerated. To this end, he initiated a review of all ongoing projects, identifying areas where bureaucratic bottlenecks, contractor inefficiencies, and funding issues were causing delays.

One of the minister’s key innovations has been the introduction of performance-based contracts. Contractors are now held to stricter timelines and quality standards, with penalties for non-compliance. This approach has already begun yielding results, with several key projects either completed or nearing completion far ahead of schedule. The Enugu-Port Harcourt Expressway, a vital link between the South-East and South-South regions, had been stalled for years. However, since Umahi took office, the project has gained renewed momentum, with a clear deadline for completion set.

Another remarkable achievement is the completion of the Second Niger Bridge, an iconic project that had long been symbolic of Nigeria’s infrastructure deficit. The bridge, which connects the South-East to the South-West, is crucial for trade, transportation, and regional integration. Umahi made the completion of this project a top priority, working tirelessly with contractors to ensure that all technical, financial, and logistical challenges were overcome.

Expanding the road network and reaching every corner of Nigeria is also crucial to the minister. While reviving and completing existing projects is a significant part of Umahi’s mandate, he has also focused on expanding Nigeria’s road network. He has identified regions with inadequate connectivity and has prioritized the construction of new roads to bridge the infrastructure gap between urban and rural areas. This is particularly crucial in fulfilling President Tinubu’s agenda of inclusive development, where every region of the country benefits from national growth.

In the North-East, where decades of insurgency have crippled infrastructure development, Umahi has worked in collaboration with security agencies and state governments to launch road projects that connect rural communities to major urban centers. This has not only spurred economic activities in the region but has also contributed to the broader goal of stabilizing conflict-affected areas by promoting economic growth and social cohesion.

Similarly, in the South-West, Umahi has made significant progress in the Lagos-Ibadan Expressway project, which has been ongoing for over a decade. This key road, which links Lagos, the nation’s commercial hub, to other parts of the country, had been riddled with delays and construction challenges. Under Umahi’s watch, substantial progress has been made, and the road is now expected to be fully operational within a short period, drastically reducing travel times and enhancing trade between Lagos and the hinterlands.

Umahi’s focus on rural roads has also begun to bear fruit. In a bid to integrate the agricultural sector more effectively into the national economy, Umahi has spearheaded the construction of farm-to-market roads across various states. These roads, often overlooked by previous administrations, are essential for ensuring that farmers can transport their produce to urban markets efficiently. This effort aligns with President Tinubu’s agricultural policy, which seeks to enhance food security and reduce dependence on imports.

Engr. Umahi’s engineering background has equipped him with a meticulous understanding of project costing and resource management. One of his most commendable achievements in the Ministry of Works has been his ability to reduce the cost of road construction without compromising on quality. Through the elimination of wasteful spending, Umahi has redirected resources to where they are most needed, ensuring that every naira spent on road projects delivers maximum value.

Umahi has restructured the procurement process, introducing greater transparency and accountability. Contractors are now required to adhere to stricter guidelines on project costing, with independent audits conducted to ensure that funds are being used judiciously. This financial prudence has resulted in significant savings for the government, allowing for the initiation of more projects without placing undue strain on the national budget.

Umahi’s resourcefulness has also extended to the mobilization of alternative funding sources for road projects. Recognizing the limitations of the federal budget, he has actively sought partnerships with the private sector, leveraging public-private partnerships (PPPs) to fund key infrastructure projects.

Human capital development and empowering Nigeria’s Workforce through infrastructural projects has been part of Umahi development agenda since his days as governor in the south-eastern state of Ebonyi. Beyond the physical construction of roads, Engr. Dave Umahi’s stewardship- at the ministry of Works, makes a significant impact on human capital development. Infrastructure development is a labor-intensive sector, and Umahi has made it a point to ensure that road construction projects provide employment opportunities for Nigerians, particularly in regions with high unemployment rates.

Under his leadership, the Ministry of Works has implemented policies that prioritize the hiring of local labor for construction projects. This has resulted in the creation of thousands of jobs, directly benefiting local communities and reducing poverty levels. Furthermore, Umahi has introduced training programs to equip workers with the necessary skills to participate in road construction projects. These programs, conducted in collaboration with technical institutions and private companies, are designed to build a workforce that is not only employed in the short term but also equipped for long-term careers in the construction industry.

Umahi’s commitment to human capital development is in line with President Tinubu’s broader goal of empowering Nigeria’s youth through job creation and skills acquisition. By focusing on infrastructure as a key driver of employment, Umahi is contributing to the administration’s efforts to address unemployment and create a more prosperous future for the country.

At the heart of President Bola Tinubu’s Renewed Hope agenda is the belief that a robust economy can only be built on the foundation of a well-developed infrastructure network. Roads, bridges, and highways are the lifeblood of any economy, facilitating trade, commerce, and industrial development, prioritizing infrastructure development, Umahi is playing a central role in advancing the administration’s economic vision.

One of the most notable ways in which Umahi’s work supports Tinubu’s economic vision is by working to ensure that good roads are in place, helping to improve the ease of doing business in the process. Poor road infrastructure has long been a barrier to economic growth in Nigeria, contributing to high transportation costs, delays in the delivery of goods, and reduced competitiveness. Umahi’s focus on rehabilitating and expanding key transport corridors has begun to reverse this trend, making it easier for businesses to operate efficiently.

Additionally, the improved road network is expected to have a multiplier effect on other sectors of the economy, including agriculture, manufacturing, and tourism. For example, the ongoing construction of roads in the North-Central region is expected to boost agricultural productivity by providing farmers with better access to markets. Similarly, the rehabilitation of roads leading to tourist destinations in states such as Cross River and Ogun will encourage domestic and international tourism, contributing to the growth of the hospitality industry.

Looking ahead, Umahi’s vision for Nigeria’s infrastructure is one of sustainability and long-term planning. He has expressed a commitment to ensuring that all projects initiated under his watch are not only completed but maintained to prevent the cycle of deterioration that has plagued Nigeria’s roads in the past. His emphasis on concrete roads, public-private partnerships, and transparency in project execution provides a solid foundation for the future of Nigeria’s infrastructure development.

His engineering expertise and effective governance have earned him widespread admiration and respect. Umahi’s appointment as the first Igbo Minister of Works in Nigeria’s history underscores President Tinubu’s commitment to meritocracy and inclusivity.

With 30 years of engineering experience and his status as a Fellow of the Nigerian Society of Engineers, Umahi’s qualifications for the role are evident. His leadership in Ebonyi State demonstrated his ability to overcome economic challenges and deliver substantial infrastructure projects. Umahi’s tenure as governor proved his capacity to drive development and improve living standards in one of Nigeria’s poorest states.

Since assuming office as Minister of Works, Umahi has embarked on numerous infrastructure projects, including the successful reopening of the Third Mainland Bridge in Lagos after extensive maintenance works. His efforts have been instrumental in addressing Nigeria’s infrastructural deficits, earning him accolades from across the country.

Umahi’s selection as Minister of Works is seen as a significant departure from traditional political appointments, emphasizing competence and expertise. His ability to bridge political, religious, and ethnic divides positions him as a unifying figure in Nigeria’s development landscape.

The federal government’s awarding of the Lagos to Calabar coastal highway project has further solidified David Umahi’s reputation as a dedicated and effective leader. His hands-on approach and frequent site inspections underscore his commitment to delivering quality infrastructure across the country.

Engr. Umahi’s performance as Nigeria’s Minister of Works exemplifies the transformative potential of skilled and dedicated leadership. His achievements in Ebonyi State and his ongoing national projects mark a new era of infrastructural development under President Tinubu’s administration

No wonder a data governance analyst, Johnson Kolawole, a political analyst Jide Ojo, and the Executive Director of the Africa Polling Institute, Bell Ihua, rated ministers in the federal cabinet, listing the top performers, and Umahi was among them.

Umahi served as the governor of Ebonyi State from 2015 to 2023 and as the senator representing Ebonyi South senatorial district from June to August 2023. During his time as governor, Umahi achieved significant infrastructural development, including the construction of over 20 flyovers in eight years despite limited resources.

Engr. Dave Umahi’s giant strides as Minister of Works have been nothing short of transformative. His achievements in reviving Nigeria’s road infrastructure, expanding the road network, ensuring financial prudence, and creating jobs have made him a key player in President Bola Tinubu’s Renewed Hope agenda. Umahi’s leadership, innovation, and commitment to quality have set a new standard for infrastructure development in Nigeria. As the nation continues its journey toward economic growth and development, Umahi’s contributions will remain a lasting legacy, supporting Tinubu’s vision of a prosperous and united Nigeria.

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The Outstanding Impact of Dumo Lulu-Briggs, the Golden Boy of Leadership and Philanthrophy

by with No Comment By Tayo Are

The tall, handsome and soft-spoken man greets you politely as you are ushered into his palatial office in Portharcourt, Rivers State. With smiles on his face, he listens to what you want to say and then he engages you in honest and frank dialogue on why he needs to do more for his people. He discusses objectively and helps you understand things better as you seek the best paths.

We need leaders that quickly overcome the barrier of misunderstanding to promote dialogue to reach cooperation again and again. Chief (Barr) Dumo Lulu-Briggs is one of these. DLB as he is fondly called is creative and down to earth and street-smart.

Rivers State has always been blessed with great men, and it continues to be so, amid all uncertainties. One of these blessings is Chief (Barr) Dumo Lulu-Briggs, OON, chairman of Platform Petroleum Limited, a reputable indigenous oil exploration and prospecting company. He is also the Chairman and chief executive officer of DLB group, a conglomerate of companies with interest in oil & gas, and marine.

 

He is one of the entrepreneurs who help not only to strengthen Nigeria’s economic power with their endeavors, but also flank the nation’s socio-cultural space and diplomatic thrust and enhance the reservoir of goodwill for the country.

Chief Lulu Briggs hails from an illustrious Portharcourt family. And this probably accounts for his long chain of values. No wonder, Briggs’s uncontested moral leadership in different fields –service, business, community development.

Lulu-Briggs also demonstrates great sartorial elegance, cultured breed and accommodation, humility and humanitarian bend. He is known for his admirable dressing style,  enthralling  presence that endears him to people-old and young alike and  his allure, and more so for his brave, generous, and effective contributions to  the development of  Nigeria through commerce and industry,  peace-building, tolerance  and community development.

Lulu-Briggs is a seasoned legal practitioner of over 35 years experence, an accomplished businessman, technocrat, politician, philanthropist and grassroots mobilizer. Born on June 13, 1964 in the city of Lagos, Nigeria to the family of High Chief O.B, Lulu-Briggs, he hails from Abonnema, a community in Akuku-Toru Local Government area of Rivers State.

Chief  Lulu-Briggs started his education at Port Harcourt Township primary school from 1970 to 1975. Then fro his secondary school education, he moved to Government Comprehensive Secondary School Port Harcourt, between 1975 – 1980. He attended Ahmadu Bello University, Zaria (1985) where he bagged an LLB degree in Law. He also holds a Masters degree (LLM) in Law from the prestigious London School of Economics (University of London); and was called to the Nigerian Bar in October 1986. He did his National Youth Service at the Institute of Legal Administration, Katsina State Polytechnic, Katsina, from 1988 – 1989.

As soon as he finished the National service, he took up appointment in a law firm and began to build his career before moving into business. Thus he has an excellent and distinguished working career in the private and public sectors in Nigeria. He was in Private Legal Practice from 1989 to 1994. He was the legal adviser/company secretary and contributing editor to Associate Media Limited 1990 – 1991, Solicitor and Notional Head of Chambers, Edu & Mohammed (Solicitor) 1991 – 1992, Principal partner in Nwoka & Lulu-Briggs Law office from 1992 – 1998. He also worked as Company secretary/Legal adviser to Moni Pulo Limited (Petroleum Development). He later served as the Managing Director, Pioneer Executive Director and Chief Operating Officer of Moni Pulo Limited; an indigenous, independent oil and gas exploration and production company from 1995 to 2004. He sits atop and/ or chairs several boards of Oil, Gas & Marine companies. He was past Chairman of two Federal Parastatals (Boards) namely, chairman, governing council, Maritime Academy of Nigeria, Oron, and Chairman, Board of Management, Federal Medical Centre, Owerri. He was a Member- Rivers State Economic Advisory Council for four years (2007-2011).

In the quest to build his leadership capacity, Lulu-Briggs attended several executive leadership courses including Southern Methodist University, Dallas, Texas, USA in 1999 to study Senior Executive training on Oil & Gas and JFK School of Government (Harvard University) Boston, Massachusetts on Training in Leadership for the 21st in 2001.

 

Political philosophy

Chief (Barr) Dumo Lulu-Briggs has not given up on his dream of “changing people’s life” as his passion has always been to serve the people where it matters most. And he does not have to be a ‘professional politician’ to do that. In fact, Lulu-Briggs is wary of people making a living from politics. The tag “professional politician” is a toga he argues nobody should be proud to adorn. Successful politicians, he points out, should make their mark in a profession or business of theirs.

As a man that has good intentions for the future of people of Rivers, Lulu-Briggs believes that the basis of politics and governance is to secure the life and well-being of the people as a guarantee for the future of the nation. According to him, “While some politicians think about how to enrich themselves, he thinks of how to secure the future through fostering a healthy nation with equal opportunities for all and not for a few.”

Lulu-Briggs is a very rare Statesman; He has a pet project, Women for Development, an initiative driven by his Dumo Lulu-Briggs (DLB) Support Group, which focuses on women’s health and development. He is also the Grand Patron of one of the most outstanding non-partisan youth organizations in Nigeria: the Dumo Lulu-Briggs Youths Foundation (DYF23), founded and duly registered and preaching peace amongst youths. This is a major tool for youth enlightenment and development. DYF23 since its inception, he has been mentoring youths to be worthy ambassadors in all ramifications, prepared to help build a strong and inclusive Rivers State and ultimately Nigeria and Africa, and preparing our youth for leadership.

Through this youth foundation, DYF23, he is able to reach out to youths in the 23 local government councils in Rivers State, campaigning against anti-socio vices and youth restiveness in the society, He has inspired and empowered countless youths into entrepreneurship, equipping them with the tools they need to succeed in this 21st century. He is ever ready to employ benevolence and selfless service to humanity. Dumo Lulu – Briggs Youths Foundation (DYF23) driving motto is: REPOSITIONING THE YOUTH FOR A BETTER TOMORROW!

He is a well acknowledged Giver and Philanthropist of high repute who does not relent in reaching out regularly to the less privileged in places like The Children Home, Home for the Elderly, and The Home For Street Kids in Port Harcourt. He gives grants regularly to women to start small trades, and pays for vocational training for young men and women to acquire relevant and marketable Skills.

As a result of his numerous contributions to development Chief (Barr) Dumo Lulu-Briggs is honoured with some chieftancy titles. He is a traditional title holder of the Iniikeiroari VI of Kalabari Kingdom and the Paramount Head, Oruwari / Briggs War Canoe House of Abonnema in Rivers State.

Quite religious , he is a church worker, contributing immensely to church activities both physically and financially. Yearly, he awards scholarships to indigent students from Rivers State across the 23 LGAs. He also gives financial assistance to persons with different health challenges including sponsorship of major surgeries locally and abroad. He is very passionate about helping the less-privileged because he believes that ultimately, it is in giving that humanity finds fulfillment. The true worth of a man is in the ways he responds to his environment he often preaches. Most of the beneficiaries of his philanthropy he may never know

One great thing about Chief Lulu-Briggs is religious tolerance. He recited two psalms in the course of responding to questions on religion. He embraces christain hymns passionately. Of course,

No wonder Lulu-Briggs is so tolerant and accommodating. Of course, he attributes this to family upbringing and culture. Listen to his views on religion.

“What is religion? It is just about serving God and you love your neighbor. That’s it.”

The world has already noticed Chief Lulu-Briggs on the entrepreneurial landscape and political scene or more than 20 years now without a blemish on his name or business brand. He is Nigeria’s entrepreneurial mirror. So young people aspiring to leadership should look into this mirror, as the world is about to start noticing your progress too, even though the majority have not made much progress.

This is the world of Chief Dumo Lulu-Briggs, a man on a mission to do more for his people and help move Rivers State to the next level.

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NIGERIA ECONOMIC OUTLOOK 2023

by with No Comment By Tayo AreEconomy

Economic growth in Nigeria this 2023 is expected to be at 3 percent., dropping from last year’s 3.2 percent. This follows a pattern of the last three years. Growth rate was at 3.6% in 2021. It dropped to 3.2% last year 2022 and will further drop by 0.2% to remain at 3.0%  this year. This is somehow still on a positive growth trajectory. This is far ahead of South Africa whose economic growth dropped from 2.1% in 2022 to 1.1% this year.

 In terms of fiscal, Monetary Policies, there is need for some rejigging. And the roles of  go-getters, major stakeholders within the command post of the economy is critical to Nigeria’s success this year 2023. The key players here include policy makers, especially those in the ministry of finance and the governor of the Central Bank, Then come movers and shakers of the economy such as Aliko Dangote, Oba Otudeko, Abudlsamad Rabiu. Mike Adenuga,Tony Elumelu  and others.

It is this crop of go-getters that Nigeria needs now to rescue the economy from going into recession. The in-coming administration, after May 29th, will need them so much to help in organizing a reboot of the economy, freeing it from the rot that is getting messier everyday. They have the wherewithal and courage to organise the clean-up in a way that will free the population from the pain, hopelessness and anger standing between them and a new beginning.

Of course, it is a fact that the link between President Muhammadu Buhari’s government and the incoming administration, that will succeed him with the February 25th polls, is the 2023 federal budget. Against this background, the budget focuses on maintaining fiscal viability and ensuring a smooth transition to the incoming administration. The proposed 2023 federal government budget implies a general government fiscal deficit of about 6 percent in 2023 compared to an estimated 6 percent in 2022.

As at now, the Nigerian economy is ailing. The indicators are not very encouraging. Nigeria’s N21.83tn 2023 federal budget has about N12tn deficit component. The capital expenditure component of it is about N6.4trillion while debt service will swallow N6.3trillion.

At the same time, multidimensional poverty is plaguing the country, putting 133 million Nigerians below the poverty line according to the National Bureau of Statistics. The unemployment figure stands at over 33 percent as many micro, small, and medium enterprises (SMEs) groan under the heavy cost of doing business. The mortality rate of many businesses in Nigeria is high, largely due to the high cost of energy (electricity and petroleum products insecurity, and lack of adequate infrastructure as well as the government’s policy summersault.

With the high cost of fuel importation and a weak Naira, it is possible that the petrol subsidy will be removed in the second half of 2023. According to government sources, trillions of naira being spent to subsidize the cost of imported refined fuel can best be deployed to improve social services and infrastructure.  Within the course of the year, if this is done, there is bound to be a rise in commodity prices, and this can lead to social unrest unless cleverly managed.

However, if those at the levers of policy-making and those in the forefront of economic power in Nigeria put in their best and harmonize things together, Nigeria can sustain its projected growth rate this 2023 without plunging into recession, predicted to assail a third of the countries of the world by both the World Bank and the International Monetary Funds (IMF).

So as President Muhammadu Buhari and his cabinet bow out in April, there are expectations that a new Nigerian economy will be unveiled when all the contending issues will be treated. These include the deregulation of the petroleum downstream sector; consolidation of the power sector reform; prioritisation of infrastructure financing, resetting of the monetary policy, resolution of the foreign exchange market crisis, and fight against corruption and policies that will aid employment generation.

Within the oil industry, issues to be tackled include the twin challenges of low crude oil production and oil theft. And within the economy generally, deregulation of the petroleum downstream sector, and the pending reforms in sectors like telecoms, aviation, capital market, insurance and Micro, Small and Medium Enterprises are of essence.

 NNPC/Dangote Refinery

Amid the confusion in the petroleum industry and the perennial fuel scarcity, expectations are rife that with the coming onstream of the Dangote Refinery, especially in the first quarter of the year, Nigeria will heave a sigh of relief given the reality that a private refinery will be run profitably and efficiently.

Reports said that the Dangote Refinery is nearing completion as pre-commissioning tests reach concluding stages making a launch date in the first quarter of 2023 feasible.

Sources close to the company’s plans said the refinery, billed as the largest single-train refinery in the world with a capacity to process 650,000 barrels per day could see the first refining runs begin as early as March.

The integrated refinery and petrochemical complex in the Lekki Free Zone near Lagos, Nigeria, will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene and will likely generate 4,000 direct and 145,000 indirect jobs.

It is expected to double Nigeria’s refining capacity and help in meeting the increasing demand for refined petroleum products while providing cost and foreign exchange savings. It is estimated to have an annual refining capacity of 10.4 million tonnes of petrol.

On the other hand, the Nigerian National Petroleum Company Limited, on behalf of the federal government, controls four refineries which include: the Kaduna Refining and Petrochemical Company, Warri Refining and Petrochemical Company, and Port Harcourt Refining Company.

In the face of poor performance and huge overheads, experts say fixing Nigeria’s unprofitable refineries to functional capacity has remained a pipe dream since 1999.

Banking sector

Overwhelming pattern across Nigeria would seem to suggest a readiness of some banks to maximize Nigeria’s promise of greatness and support more the real sector. A slew of events is expected to determine in the economy this year. Whether most banks will play a growing emboldening of the business landscape is another thing, but certainly some of them

Telecom Sector in 2023 

The telecom sector will perform optimally this year. This is the verdict of the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, He said Fintech and Data Application will be the major drivers of the economy in 2023.

According to him, there will be increased data analytics that will inform major decision-making in 2023, driven by increased data application. He said Fintech would get more support from telecom operators in 2023 which would enable them to develop more solutions that would further support financial transactions across the board.

This is quite possible when one looks at the gains of the telecom sector and how it positively impacted the Nigerian economy in 2022 in the areas of GDP growth, broadband penetration, and Fintech growth.

Capital market Investors

Most listed banks, Fast Moving Consumer Goods (FMCG), and cement manufacturing companies will announce impressive performances in continuation of the 2022 performance that has attracted increased trading on the bourse.

As the inflation rate currently at 21.47 percent as of November has eroded investment, the pension fund administrators, and retail investors have increased their investment in fundamentals stocks and at the same time divest to fixed-income securities in a move to gain attractive yield on their investment above the inflation rate.

The trend, according to analysts will continue in 2023 as investors’ shift might thrust the stock market into negative territory in the first quarter of the year when Independent National Electoral Commission (INEC) will conduct the general elections.

The Chief Managing Director, of Highcap Securities Limited, Mr. David Adnori said, “With the expectation of relatively high yields in the fixed income market, especially in the first half of 2023, most investors are expected to patronise the bonds market more.

Equally, analysts at Cordros securities forecasted interest rates domestically to remain high over 2023. According to them, “At the same time, we expect currency pressures to persist in the absence of any positive signal that denotes an improvement in FX supply relative to the pre-pandemic levels.”

Naira Exchange Rate and Inflation

The USD to Naira Exchange Rate experienced a sharp rise last year,  and Nigeria’s CPI changes have been harsh. Since supply chain disruptions in developed countries have triggered global inflation, there is cause for concern within the Nigerian economic landscape. As the downward pressure on the Nigerian economy increases, it is imperative to stabilize growth. The combination of exchange rate depreciation of the Naira and imported inflation has aroused many concerns.

The nominal effective exchange rate trend of the Naira has high correlation with Nigeria’s CPI and has a tendency to gradually strengthen, while the correlation with PPI and import and export prices is higher.

In the one-way transmission mechanism, the exchange rate can, directly and indirectly, affect Nigeria’s consumer prices. Due to the relatively high proportion of import consumption in the country, the direct impact of the exchange rate on the Consumer Price Index is quite high. Therefore, it is mainly based on direct transmission and cost promotion.

However, whether the transmission is smooth or not is still affected by economic expectations and monetary environments.

The state of the economy, not the exchange rate, is the most important factor affecting the CPI in Nigeria. Therefore, the government should do a good job of stabilizing the supply of commodities and monitoring market prices to help alleviate the concerns of further inflation outbreaks, while also stabilizing monetary policy expectations and strengthening market confidence.

Experts say Nigeria can sustain its projected growth rate without plunging into recession, with all hands being on deck .

To Dr. Muda Yusuf- the Director of the Centre for the Promotion of Private Enterprise, political environment will have much to do with the economy this 2023. He is of the view that the quality of the transition programme will determine the quality of the leaders to be elected. According Dr Yusuf, this is why the current administration must ensure that people’s votes count on election day.

He maintains that “the political environment has a major impact on economic and business performance. Therefore, the quality of the political transition process, especially the credibility of the 2023 elections would be of contextual significance for the economy in 2023.  The elections must be free, fair, transparent and credible. “And it must be seen to be so.  This underlines the need for the independence, neutrality and credibility of the key institutions involved in the election management process – INEC, the Judiciary and the security agencies.  The quality of the democratic transition and choices would significantly impact economic outcomes in 2023.”

To Prof. Omowumi Iledare, petroluem subsidy payment is part of the woes of this country, as it is linked to foreign exchange problem. .A professor of Energy Economics and past President, Nigeria Association of Energy Economics, Prof. Iledare, insists on the need for stopping subsidy. He said Nigerians cannot afford to burn public funds on the tail pipe of cars.

“Subsidy will collapse the Nigerian economy and it is already doing it. When you are spending one trillion naira a year over 10 years to subsidize petrol consumption, not for economic sustainability, then you cannot survive it.”.

He adds that a general government deficit of this magnitude would entail additional central bank financing given the difficult external environment and the need to limit crowding out of the private sector. According to him, “Macroeconomic trade-offs imply that when inflationary pressures are high as is the case in Nigeria, fiscal policy should protect the most vulnerable while pursuing a tightening stance to avoid overburdening monetary policy in the fight against inflation.

For the in-coming administration, there is a need for political commitment at the highest level and broad buy-in from stakeholders is crucial to improving revenue collection.

What is critical for the government is that the economy must be diversified and the oil revenue projections in the 2023 fiscal appropriation must be met for the economy.

Next is the need to redesign the existing tax policy to favour growth-enhancing activities. The government also need to assess the effectiveness of existing fiscal incentives. Efforts to design more progressive tax systems and boost tax collection — particularly, property and/or land taxes — will surely help. This will have to be combined with increasing the VAT rate, streamlining existing VAT exemptions, and increasing existing excise rates on alcoholic and tobacco products.

As the two major monetary policies introduced last year take effect this January, analysts believe the current administration has begun to position the economy for the needed reforms. These are the Naira redesign and the withdrawal limit, which seek to checkmate the activities of currency dealers, criminally minded individuals who indulge in kidnapping and robberies as well as politicians who engage in vote buying.

Much is also expected in the foreign exchange sector as more dollars are expected to be generated by enhanced non-oil sector activities and the anticipated commencement of the Dangote Refinery. Then inflation must be anchored while the problem of foreign exchange should be significantly tackled when the Dangote refinery goes into operation, helping Nigeria to do away with using huge foreign exchange on importation of refined petroleum products.

 

 

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GOVERNANCE AND ECONOMIC OUTLOOK 2022

by with No Comment By Tayo AreGoverance

This year 2022 will be dominated by events in the political landscape, business and economy. Then there are some notable characters who will shape the polity in the course of the year. These range from politicians, opinion leaders, to business leaders and even entertainers whose activities are bound to shape the future of the country one way or another this 2022.

The 2023 general election is just a year away. As it approaches, the decisions of certain key personalities, organs of governments and agencies in 2022 will shape the country’s political dynamics,  Politics, economy and some influential figures will determine shape events this 2022. The national Assembly, the Judiciary and the Central Bank will play much roles this year.

Notable opinion leaders and influential elders including traditional rulers will dominate the public space. These include the Sultan of Sokoto, the Ooni of Ife, Chief Ayo Adebanjo, Chief Edwin Clark, former President Olusegun Obasanjo, will not resist the temptation of being in the news this year. The name of Dr Akinwunmi Adeshina of African Development Bank (AfDB) will also hug newspapers’ headlines .

As the tempo of political activities rises in the year, key figures in the ruling All Progressive Congress (APC) and the opposition Peoples Democratic Party (PDP) will dominate the landscape.

Since the opposition Peoples Democratic Party (PDP) successfully conducted its National Convention in October 2021, pressure has been on the Caretaker/Extraordinary Convention Planning Committee (CECPC) of the APC led by the Governor of Yobe State, Mai Mala Buni to do the same.

After immense pressure from stakeholders, the Buni committee as well as the APC some governors  met with President Muhammadu Buhari and approved the March 2022 target for the party’s convention, after more than a year of dilly-dally by the Buni committee. Even before March target was set, a former Governor of Abia State and the Senate Chief Whip, Senator Orji Uzor Kalu in a recent letter to Buni called for the postponement of the party’s convention in order to reconcile aggrieved members in some state chapters of the party torn by crisis.

But the Buni committee has however resolved to set up sub-committees on budgeting and other relevant structures for the National Convention of the party.

Though, it is not written in the constitution of the party that power will rotate between the North and South, party stakeholders and leaders had at several times claimed that there was an unwritten agreement that power would rotate to the South in 2023.

It is important to note that the Caretaker Committee of the party was only mandated to conduct the party’s convention; it does not have power to zone the party’s presidential ticket. It is however expected that the new National Working Committee (NEC) that will emerge after the convention of the party will be saddled with that task. The ruling party will make strong a decision over its 2022 on the issue of its national convention and the 2023 presidency.

Those to watch out for in the presidential race  in the All Progressive Congress (APC) include Senator Bola Tinubu, vice president Yemi Osinbajo, Senator Orji Uzor Kalu, Governor Dave Umahi of Ebonyi State,  Kayode Fayemi of Ekiti state.

Bola Tinubu

First to declare his ambition is the National Leader of APC, Senator Bola Tinubu. He has remained most active presidential aspirant of them all, with many groups are already drumming up support for his ambition across the country. And he may have an edge over other aspirants.

Despite narrowly losing out in the race for Buhari’s running mate in the 2015 general election, Tinubu has remained a strong pillar of the APC. Odds seem to favour him to take over from President Buhari, despite the mounting opposition by political enemies. This may happen except President Buhari have a secret weapon about who takes over from him.

Osinbajo:

With the increasing number of groups expressing support for the vice president, Professor Yemi Osinbajo, and urging him to join the 2023 presidential race, he is definitely going to be on the political radar  this year. Osinbajo, even though he has not expressed interest in running for political office in 2023, comes across as someone, who wants to run for president, but is more likely to keep his cards close to his chest for now.

With several groups asking him to join the presidential race 2023, there will be a lot of searchlight on him.

Kayoed Fayemi:

Dr. Kayode Fayemi has also not indicated interest to run for the presidency in 2023. But the Ekiti State Governor and Chairman of the Nigeria Governors’ Forum (NGF) may not be a joke. In March 2021, members of the Ekiti State House of Assembly endorsed the undeclared presidential ambition of Fayemi. The lawmakers had further pledged their full support to work with well-meaning Nigerians and groups for the realization of having an Ekiti son as the next president. In August 2020 his presidential campaign posters, emerged in some Nigerian cities. That sparked off some public debate on various social media platforms then regarding the possibility of his candidacy.

Electoral Law and Elections

If President Buhari signing the electoral bill into law, the determination of the Independent National Electoral Commission (INEC) to conduct credible elections in 2023 will become realizable.  It will certainly help to define the subsequent elections this year and 2023. The law will help to eliminate malpractices and compel politicians to sit up ahead of the 2023 general elections because it won’t be business as usual.

Equally, the two out-of- season elections in Ekiti and Osun states governorship elections scheduled for this year will also benefit from this improved electoral law.

PDP and 2023 Presidency

Where the Peoples Democratic Party (PDP) the 2023 presidency will determine what happens to the party this 2022. The zoning, which will largely be determined by the governors will come on stream this year. The main opposition party had successfully conducted its National Convention where it elected a former President of the Senate, Dr. Iyorchia Ayu as its national chairman.

With the zoning of the national chairman to the North, it is expected that the party will zone the presidency to the South, especially given the public mood that favours power shift to the South.

Ayu and the PDP:

The leadership skills of the new National Chairman of the Peoples Democratic Party (PDP), Dr. Iyiorcha Ayu, would be tested in 2022. How Ayu would be able to manage the different tendencies in the party and keep them together would determine if his name would be in the PDP hall of fame or infamy. He has started well by identifying APC’s alleged failures and promising to rescue Nigeria from the ruling party. He has continued to remind Nigerians what he terms the good days under the PDP government and also how the APC has allegedly destroyed the country. Ayu has also cited the rising security challenge as one of the reasons the APC should not be allowed to lead the country beyond 2023. He has given himself a target of winning about 25 states in 2023, which sounds like a tall ambition. But the main task for him next year would be to manage the big egos in PDP, especially, some of the governors.

Atiku

Former Vice President Atiku Abubakar’s presidential ambition will make a huge impact in the 2022 politics. With a large political network and experience having started his presidential quest in 1993 alongside the likes of the late Chief MKO Abiola, he is likey to spring some surprises. Since 1993, Atiku has remained a consistent feature in every presidential election and his doggedness has earned him a lot of reputation as a credible and strong-willed politician.

Atiku remains a scion of the Shehu Yar’Adua political dynasty that played influential role in the formation of the PDP. If power shifts to the South, his ambition will suffer setback. Age is also not on his side.

Governor Wike

Governor Nyesom Wike of Rivers State is a rallying point of the main opposition party. He came into national fame and recognition in the party when as a governor he was able to take over the leadership of the party to the chagrin of supposed political heavyweights in the party.He installed Secondus as the national chairman in 2018 and also ensured his removal in 2021 when both of them became estranged. Despite the fact that the  PDP has many colourful politicians, none of them seems to have matched Wike’s political showmanship and audacity. So he will play influential role in the determination of the next presidential candidate of the PDP.

Saraki:

A former President of the Senate, Dr. Bukola Saraki, strongly believes the North-central geopolitical zone has paid its due by working very hard to keep Nigeria together as one united entity and should be given the chance to lead the country. He also thinks he is the perfect man to lead Nigeria, when the tenure of the present All Progressives Congress (APC) government ends. The former Kwara State governor has announced his intention to run for the office of the president in 2023. Going by his disposition, Saraki is not going to back down as he seeks the support of people of his region and other PDP leaders towards realising his presidential ambition. He is widely considered qualified, competent and boasting the requisite capacity for the job.

Tambuwal:

Governor Aminu Tambuwal of Sokoto State and Chairman of the PDP Governors’ Forum is a man to watch. Within his party, the Peoples Democratic Party (PDP), he remains one of the most influential members and it is not a coincidence that his name keeps propping up as the likely presidential candidate of the PDP in 2023.

The National Assembly

For the National Assembly, 2022 will be a year of political streamlining with various stakeholders playing its part to shape the nation’s politics in the political moves ahead of the 2023 general election,

The Judiciary

The place of the judiciary in any constitutional democracy needs not be overemphasised. This is why Nigeria, it continues to play a crucial role in the sustenance of the nation’s democracy as well as the survival of the country as a whole.

In order to constantly remind the judges of their roles, the current leadership of the judiciary under the Chief Justice of Nigeria (CJN), Justice Ibrahim Muhammad, has not only been talking tough but has also been making serious efforts at repositioning the judiciary and making it the hope and pride of the ordinary Nigerians.

One of the bane in the judiciary is the indiscriminate issuance of injunctive orders by judges particularly in political cases, be it leadership tussle among members of a political party or rightful flagbearers of political parties in an election.

But for the timely intervention of the CJN, the political terrain would have been in disarray as activities gears up for the 2023 general election.

The Economy

Emefiele:

Godwin Emefiele, Governor Central Bank of Nigeria (CBN)  will be one of the key personalities to shape activities in the Nigerian economy this year , 2022. His effort to support domestic production  has seen the CBN engaged in a lot of interventions in critical sectors of the economy with potential for high job creation. His effort to make credit flow to the private sector deserves praises, especially, in agriculture, through the Anchor Borrowers’ Programme (ABP), which has revolutionised local rice production and created massive job opportunities for Nigerians. The CBN intervention in the power sector has also helped to stabilise the sector, which had almost been crippled by its legacy debts to the financial industry.

Emefiele helped to broker a deal, which had since kept the ship sailing, despite all odds, and guaranteed improved electricity supply to homes and businesses. The apex bank under Emefiele played a crucial role in ensuring that the economy exited two consecutive recessions through its intervention programmes in key sectors as well as boosting government’s spending to reflate the economy. In addition, this year, the central bank under Emefiele launched a Central Bank Digital Currency, the first in Africa, and the ‘100 to 100’ policy that focuses on job creation.

Going into 2022, the Emefiele-led CBN, in collaboration with the fiscal authority, would be critical in steering the economy towards accelerated growth.

Zainab Ahmed:

Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, will play a critical role in shaping the direction of the Nigerian economy in 2022. Nigeria recently launched a five-year National Development Plan (NDP), a replacement to the Economic Recovery and Growth Plan (ERGP), which expired in December 2020. The finance minister will be expected to drive the process of actualising some of the set goals in the plan before the end of the present administration.

Dangote:

Africa’s richest man and President of Dangote Group, Alhaji Aliko Dangote, is among those expected to shape events next year. While products from his $2 billion granulated urea fertiliser plant hit the market this year, in 2022, his first private crude oil refinery is expected to commence operations in Nigeria. This refinery, expected to be a game changer for the country in 2022, would to be a major forex saver for the country. The Dangote Refinery is under construction in the outskirts of Lagos State, and when fully operational, the $7 billion investment would have the capacity to process about 650,000 barrels of crude oil per day, making it the largest single-train refinery in the world.

Otedola: A Critical Factor in First Bank’s Future

Billionaire businessman and philanthropist, Femi Otedola will be one of the shakers of the Nigerian economy this 2022. He is the Chairman of Geregu Energy Group. He became one of the personalities that shaped 2021, through his strategic investment in FBN Holdings, making him the single largest shareholder in the holding company with a total shareholding of 7.5 per cent and he is going to play a role in determining the future of First Bank, the leading subsidiary of FBN Holdings and an important bank in Nigeria.

Elumelu:

Founder, Tony Elumelu Foundation (TEF), Mr. Tony Elumelu, is expected to remain focused on building the next generation of entrepreneurs in Africa, which he says is his lifetime ambition. His goal is to impact lives and transform societies in Africa. Through his TEF Entrepreneurship Programme, a $100 million commitment to empower 10,000 African entrepreneurs, he intends to the continent better than he met them. Elumelu is driven by his philosophy of Africapitalism, through which he wants to see the private sector play its role in the economic development of the continent. In 2022, he is expected to continue to promote the development of young African entrepreneurs.

Wigwe:

Group Managing Director of Access Bank Plc, Mr. Hebert Wigwe, who this year was involved in an aggressive expansion drive, is not likely to slow down in 2022. The bank is targeting expanding its footprints to 20 countries in Africa. From Nigeria to Rwanda, South Africa, Mozambique, Kenya, Zambia, among several others, Wigwe’s expansion drive has remained on the rise.

Entertainment

Davido: Taking Philanthropy to Another Level

David Adeleke, whose stage name is Davido, made news towards the end of 2021 following his N250 million donation to orphanages across the country during his birthday celebration. The award-winning singer has since set up a five-man committee to supervise the disbursement of the fund. Nigerians would be expecting to see how the committee would distribute the money. In addition, Nigerians would be looking forward to more releases by the award-winning musician in the new year.

Wizkid: A Consistently Rising Star

Ayodeji Ibrahim Balogun, popularly known as Wizkid is a very influential musician. He was one of the most influential entertainment icons on the continent last year 2021. This year 2022 won’t be different.

Then he made history when he edged out Drake to win Mobo Awards. He also made history as the most awarded African act after winning the Best International Act and Best African Act awards. His “Essence”, which featured Justin Bieber and Tems, crossed genre lines to top Billboard’s R&B, hip-hop, rhythmic and world charts. Coming up on the one-year anniversary of its release, it reached the top 10 of the Billboard Hot 100 and became the first song with lyrics in Nigeria’s Yorùbá language to debut on the Global 200 chart, with 269 million on-demand global streams, according to MRC Data. 2022 will be a more juicy year for Wizkid.

Burna Boy:

Damini Ebunoluwa Ogulu, commonly known as Burna Boy- singer, rapper and songwriter- will shake national limelight this year 2022.  Last year, he made remarkable progress as a musician this year and lived up to his title of African Giant. He won the Best International Act Award this year and also his album, Twice as Tall, won a Grammy, the Best Global Music Album in 2021. He is one of the biggest and most successful African artists. Burna Boy became the first African artiste to bag three nominations consecutively, having won the BET Award in 2019, 2020 and 2021. The year 2022 will surely see the award-winning artist maintain his rising profile.

Mele Kyari:

Events in 2022 will put Mele Kyari in limelight. The action of the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) will, to some extent, define the direction for Nigeria’s economy in 2022. With the Petroleum Industry Act (PIA) which has been described as a game-changer for the industry, the NNPC would be expected to drive the process of transforming the nation’s petroleum industry into a hub of business opportunities. The Act is also expected to attract huge capital globally into the country’s oil sector, strengthen cost recovery and ensure decent returns on investment. Kyari wil have his plate full this 2022,

Iyinoluwa Aboyeji: The Power of Tech and Innovation

Iyinoluwa Aboyeji co-founded two successful fintech startups in Africa before launching Flutterwave in 2017. With $15.7 million in funding, the payments company is empowering Pan-African merchants to execute business on global scale.

In 2021, Flutterwave started the year by securing a $170 million deal in the first quarter. New York-based private investment firm Avenir Growth Capital and US hedge fund and investment firm Tiger Global led the Series C round. New and existing investors who participated include DST Global, Early Capital Berrywood, Green Visor Capital, Greycroft Capital, Insight Partners, Salesforce Ventures, Tiger Management, Worldpay FIS and 9yards Capital. The Series C round came a year after Flutterwave had closed its $35 million Series B and $20 million Series A in 2018. The company helps businesses build customisable payments applications through its APIs.

Shola Akinlade: Expanding the Frontiers Beyond Africa

Akinlade is the Chief Executive Officer and Co-founder of Paystack, a fintech company. The company provides modern online and offline payments services for users across the continent. It was founded in 2015 and was acquired by Stripe in 2020 for over $200 million in what was then described as one of the biggest exits in the African tech space. Paystack currently services more than 60,000 businesses and millions of individuals scored 27.5 for ingenious storytelling, 28.5 for brand tribe and 31 for brand experience thus ranking it at Number 8 with a total of 87 points. But despite the acquisition, Paystack has continued to operate independently. Stripe had estimated that the African internet economy was expanding quickly, with online commerce in the region growing at 21 per cent year-over-year, which was said to be 75 per cent faster than the global average. Akinlade believes that with the right tools, African creators, developers, and entrepreneurs would be able to do incredible things.

These people listed above as well as the government institutions listed in this story will also be parts of the events to shape the landscape in 2022.