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Promoting value addition of Nigeria’s mineral resources for economic growth

Promoting value addition of Nigeria’s mineral resources for economic growth

By Martha Agas, News Agency of Nigeria (NAN)

Nigeria is blessed with 44 different types of minerals  in commercial quantities, found in no fewer than 500 locations across the country. Among these, seven are classified as strategic and critical for the global energy transition.

These minerals have the potential to transform the nation and alleviate the increasing poverty rate in the country. Yet, Nigeria is still over dependent on oil, with 133 million people classified as multi-dimensionally poor.

The Nigeria Extractive Industries Transparency Initiative (NEITI) stated in a report  that in spite of the consistent year-on -year increase in revenue to the federation  account from the solid mineral sectors from 2007 to 2021, its contribution is still low compared to its enormous potential.

Data from the National Bureau of Statistics (NBS), showed that the mining and quarrying sector contributed 4.47 per cent to the overall Gross Domestic Product (GDP) in the fourth quarter of 2023, in 2022 of same quarter, 4.51 per cent while in 2021 it contributed 5.25 per cent.

Experts say the figures indicate the sector grappling with inadequate infrastructure, illegal artisanal mining, and various community challenges among other issues.

To address this situation, the Ministry of Solid Minerals Development is tasked with developing the sector to contribute more to the  nation`s industrialisation.

Graph: NAN, Data: NBS

However, in spite of this responsibility, political will is required to drive the process and maximise its gains for nation-building, a commitment that the administration of President Bola Tinubu has pledged to fulfil.

Upon assuming office as the Minister of Solid Minerals Development in 2023, Dr Dele Alake declared that under his leadership, the sector aims to contribute 50 per cent to Nigeria`s GDP, primarily through foreign direct investment.

Experts say the move to reposition the sector is even more urgent with the global upsurge for energy transition which requires a shift from the use of traditional fossil fuels and reducing dependence on oil hydrocarbon in favour of green energy.

Alake said that the mineral deposits are required to sustain the transition for decades and centuries, which Nigeria possess.

However, stakeholders say for Nigeria to wriggle away from over-dependence on oil, increase its contribution to GDP, and keep pace with the evolution in the energy sector, concerted efforts and strategic partnership are required.

This includes ensuring that its minerals resources receive their deserved value in the international markets.

The government has been engaging in both local and international efforts to attract foreign investors and encourage them to establish long-term businesses in the country.

However, experts observe that such deals should not deprive Nigeria of its rightful earnings from its mineral resources. Instead, they should be mutually beneficial for all parties involved.

 

 

The seven strategic minerals in Nigeria

To ensure this the federal government  has placed a ban on  the export of raw solid minerals,  and plans are under way to formulate policies that promote value addition to minerals  before exportation.

The minister said that the government would give license only to mining companies that would comply with value addition to Nigeria`s mineral resources.

In the quest to achieve this vision, the minister took a leading role in advocating for the cause during the Future Minerals Forum in Riyadh, Saudi Arabia, held in January.

At the conference, Nigeria and Uganda spearheaded the formation of a coalition among African countries to advocate for local value addition and maximum beneficiation from their vast mineral resources, for the benefit of their citizens and member countries.

Also, at the 30th edition of the ‘Investing in Mining Indaba` conference held in February in Cape Town, South Africa, African countries consolidated their efforts and resolved to forge a common vision aimed at ensuring the continent maximises the benefits of its mineral resources.

For the critical role of Nigeria as the giant of Africa in achieving the feat, Alake was unanimously elected as the chairman, Africa Minerals Strategy Group at the conference to help the region in advancing its mining sector.

He called for concerted efforts among African countries in striving to end the era of carting away solid minerals in the region and urged for unity in advocating and demanding value addition as a prerequisite for investment in their mining sector.

“Today, there is economic scramble for Africa, the critical metals needed for the transition are in Africa.

“Therefore, if we do not come together this time around and take our destinies in our hands, we will go through the same harrowing experiences of the past. That is why we form this body.

` Let those who want our minerals know that if you go to country A, you have the same regulations and laws guiding the sector. You go to country B, you find the same.

“So, there is no divide and rule anymore. That is when we can show sincerity of purpose, and the world will begin to take Africa seriously, “ he said.

As Nigeria strives to get value for its minerals, it is currently experiencing Lithium boom, a critical mineral needed for energy transition.

Five states are currently mining the mineral and even more have reported on discovering deposits, but experts say  urgent formalisation is crucial  in ensuring security at the mining sites during its exploration and extraction.

Stakeholders have noted links between the tussle for control of mining sites and banditry in the country.

Experts say that formalising the sector would involve incorporating illegal miners into cooperatives which would facilitate digitisation and the issuance of digital identity cards. These cards could be used by the government for identification purposes and to identify foreigners who exploit Nigeria`s porous borders for illegal mining activities.

To that effect, Tinubu established the Inter-ministerial Committee on Securing Nigeria`s Natural Resources in January as part of efforts to find lasting solutions to banditry.

The committee, led by the minister of solid minerals, aims to create a new security architecture.

Experts, however, advised that all critical stakeholders should be involved in the process to ensure its success and sustainability.

The Federal Government has also expressed commitment to establish the Nigerian Minnig Centre of Excellence (CoE) as part of its efforts to reposition the sector and equip it to   contribute optimally to improving Nigeria`s economic profile.

The CoE would be established as a one stop shop aimed at easing the process of doing business for investors in the solid minerals sector while also meeting their needs.

Dr Mary Ogbe, the Permanent Secretary overseeing the Ministries of Solid Minerals Development and Steel Development, stated that the centre would serve as a platform to facilitate collaborations among key departments in the solid minerals sector.

She said it would also serve as a focal point for international partnerships and collaborations in mining investments.

While efforts are ongoing in repositioning the sector, stakeholders say there is the need to also establish a structure that guarantees the sustainability of policies and promotes the local economies of mining host communities. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria.

 

Transformative leadership: A paradigm shift for Nigerian legislators

Transformative leadership: A paradigm shift for Nigerian legislators

By Razak Owolabi, News Agency of Nigeria (NAN)

In a dynamic global landscape where governance demands continual adaptation, Nigerian legislators find themselves at the forefront of multifaceted challenges.

Recognizing the imperative for strategic leadership, TEXEM UK, the United Kingdom based leadership development firm, recently orchestrated an illuminating in-plant programme, “Strategic Leadership through Parliamentary Oversight,” in collaboration with the National Institute for Legislative and Democratic Studies (NILDS).

Held from Feb. 12 to Feb. 16 at the esteemed Hilton London Kensington, this bespoke initiative proved to be a pivotal juncture for Nigerian legislators to delve into transformative leadership principles tailored to their context.

The programme’s agenda was meticulously crafted, spanning a spectrum of pertinent topics vital for effective legislative stewardship.

Commencing with immersive experiences such as tours of Arsenal and the House of Commons, delegates were immersed in environments fostering insightful dialogue and cross-cultural exchange.

Distinguished faculty, including luminaries like Prof. Nicholas Cheeseman, Prof. John Peters, Ambassador Charles Crawford, and Hon. James Duddridge MP, spearheaded sessions brimming with expertise and practical wisdom.

Peters, reflecting on the programme, remarked, “It was a privilege to explore Transformative Leadership for Legislative Excellence on behalf of TEXEM with Nigerian senators and federal representatives facing a wide range of dynamic and complex challenges.

“The programme was apposite and explored successful applications across Africa for the participants to gain new insights into adaptive new strategies.

“The dialogue generated was insightful, vibrant and pragmatic with members leaving with new tools to apply back in the legislature.

“I celebrate TEXEM for the design, their actionable methodology and impressive capacity to bring together illustrious leaders”.

Each day unfolded with precision, addressing critical facets of governance and leadership.

From Cheeseman’s elucidation on optimizing oversight functions to Peters’ discourse on transformational leadership, the agenda was a tapestry of invaluable knowledge.

Ambassador Crawford’s insights on effective stakeholder communication and conflict resolution added a nuanced dimension to the discourse, equipping delegates with essential skills for navigating the intricacies of governance.

However, beyond the structured sessions lay a vibrant tapestry of dialogue, networking, and shared experiences.

Delegates seized the opportunity to engage in informal discussions, fostering camaraderie and collaborative learning.

Testimonials from participants echoed sentiments of gratitude and empowerment, underscoring the programme’s efficacy in equipping them with actionable strategies for legislative excellence.

The culmination of the programme was marked by a tangible sense of inspiration and camaraderie.

Armed with newfound insights and fortified by a network of peers and mentors, Nigerian legislators departed Hilton London Kensington with a renewed sense of purpose and resolve.

In retrospect, TEXEM UK’s in-plant programme stands as a testament to the transformative power of strategic leadership.

As Nigerian legislators chart a course towards a future defined by progress and prosperity, the lessons gleaned from this endeavour will undoubtedly serve as guiding beacons, illuminating the path towards legislative excellence and societal advancement.

“It was a pleasure to take part in another TEXEM session in London.

“There was a strong group of Nigerian legislators in attendance who were given the time and space to reflect on their role and interact with some stellar speakers from academia, business, and politics.

“All too often politicians, myself included, get caught up in the short term. These sessions allow you to take a step back and review your personal goals and ambitions alongside colleagues on a cross-party basis.

“Parliaments should do more to invest in the collective development of legislators, and this will lead to better results from better politicians,” Duddridge said.

“A fascinating day in which I learned as much as I taught, that covered everything from kick-starting development in difficult contexts to strengthening legislative scrutiny.

“And the valuable but often unappreciated role that national assemblies have sometimes played in defending democratic institutions – for example by protecting term-limits in countries such as Nigeria and Zambia,” says Cheeseman.

Cheeseman is a Professor of Democracy and Director of the Centre for Elections, Democracy, Accountability, and Representation (CEDAR) at the University of Birmingham.

“A pleasure to share ideas and experiences through TEXEM with this wise and engaged group of Nigerian legislators.

“We adopted TEXEM’s winning methodology and explored in depth different aspects of the key idea that “It’s not what you say – it’s what they hear!” says Crawford.

Crawford is a former British Ambassador to Bosnia and winner of the equivalent of two Oscars.

“This programme is critical, contemporary and relevant in these times.

“Effective oversight, high quality representation and superlative national comparative advantage and progress are not mere aspirations; they are the outcomes of deliberate action guided by strategic visions and unwavering commitment,” Dr Alim Abubakre, founder of TEXEM, UK asserted.

The Nigerian legislators also had the following to say about the programme.

“…I got the best, the programme’s content, the kind of people that facilitated the programme … top world-class people, and I learnt a lot.

“So many things; in honesty, in leadership style, in thinking, in managing my time, in thinking about my constituency. I want to do it differently,” says Hon. Aliyu Misau, Member representing Misau/Dambam Federal Constituency of Bauchi State.

“Well, I like the lecturers. They have done very well, precise in their delivery, very accurate, very incisive and educative. The programme is very educational, and so I like them and they come on time.

“They make us happy. Well, two things I’ve learned … I learned that as a legislator, firstly, I must succeed in the plenary. What I mean by plenary is that my constituents must see me as performing in the plenary, and they must also see me as being with them back in the constituency, I have to balance the two.

“And then secondly, I have learned that as a leader, I must bring real change. I must give a directive. Until the vision is achieved, you don’t have to rest. You must … ensure that real change, real transformation takes place.

“When I go back… what will I do…differently? Leadership is about transformation, so I must do things that will transform them, get them … the real change they want,” says Sen. Emmanuel Udende, Benue North East Senatorial Zone.

“The programme is the total package. It takes care of the capacity building aspects as well as mental health, physical health and so many other things.

“So it’s all- inclusive and it’s quite beneficial… So it’s quite interesting, it’s practical, it’s result-oriented and you can always apply the principles and the expected result is achieved, so it’s okay,” says Hon. Solomon Wombo, Member, representing Katsina Ala, Ukum and Logo federal constituency. (NANFeatures)

**If used, please credit the writer as well as News Agency of Nigeria (NAN)

War Against Hunger: A call for collective action

War Against Hunger: A call for collective action

By Tosin Kolade, News Agency of Nigeria (NAN)

“A hungry man is an angry man”, according to James Howell, a Welsh writer and historian. This timeless quote is resonating in some parts of Nigeria.

Some citizens are taking to the street to protest against some government policies which they allege are exacerbating hunger.

What started in Minna, Niger, has spread to Ibadan, Lagos Osun and Kano.

In Ibadan, the protesters commenced their march from the Mokola axis carrying placards with messages such as “End food hike and inflation,” “Insecurity not our birthright,” and “Mr President, this is not the hope, this is shege.”

They also chanted songs to show their grievances as armed policemen stood by to ensure the protesters conducted themselves within the ambits of the law.

There is a video currently circulating in the social media showing Nigerians looting a truck carrying farm produce.

This is akin to what happened in Venezuela, a country hit by acute economic hardship, as angry citizens forcefully entered shops and looted food items.

President Bola Tinubu’s decision to end the petrol subsidy regime on May 29, 2023, has triggered soaring food prices.

However, figures from World Food Programme indicate that Nigeria is not alone in this situation.

It says that in the 78 countries it operates, over 333 million people face acute food insecurity, unsure of where their next meal will come from.

The recent warning from the African Development Bank (AfDB) about potential unrest in Nigeria, coupled with rising living costs due to fuel subsidy removal and naira devaluation, adds urgency to the situation.

According to the AfDB, similar challenges in other African nations like Angola, Ethiopia, and Kenya could lead to internal conflicts and violence.

Similarly the Nigerian Red Cross Society (NRCS) sounded an urgent alarm, declaring that the country’s hunger crisis has reached a critical state.

Mr Abubakar Kende, the Secretary General of NRCS, emphasised the need for immediate attention and collective efforts to alleviate the suffering of vulnerable individuals.

While expressing deep concern about the escalating food insecurity in Nigeria, Kende called for decisive action from the government.

During the launch of a partnership between the Red Cross and Ecobank in Abuja, he highlighted the impact of rising fuel prices, leading to hyperinflation and pushing food prices beyond the means of many Nigerians.

Kende said that approximately 26.5 million Nigerians, including women and children, are currently facing acute hunger, urgently requiring assistance to prevent death and prolonged suffering.

He stressed that over half of Nigeria’s 36 states were food insecure, with the hunger crisis reaching alarming levels due to increased insecurity, inflation, extreme weather patterns, and global conflicts.

The Red Cross’s collaboration with Ecobank aims to mobilise local resources to address the pressing hunger crisis, signaling the critical need for swift and coordinated action to mitigate the dire situation.

Worried by the impact of the situation on workers, the Nigeria Labour Congress (NLC) announced that there would be a two-day nationwide protest on Feb. 27 and 28.

The labour body highlighted the pressing need for collective action to address the escalating food crisis and the challenges faced by citizens in the wake of economic reforms.

But the Federal Government is not relenting in its efforts to mitigate the impact of its economic reforms on the citizens.

On Feb. 6, the Presidential Committee on Emergency Food Intervention convened at the Presidential Villa in Abuja to address the escalating cost of living in the country.

Under the chairmanship of Mr Femi Gbajabiamila, Chief of Staff to the President, the meeting had in attendance key figures such as Nuhu Ribadu (National Security Adviser).

Also in attendance were Yemi Cardoso (Central Bank of Nigeria governor), AlhajiTahir Mamman (Minister of Education) and Mr Wale Edun (Minister of Finance).

Others are Abubakar Kyari (Minister of Agriculture), along with Mustapha Shehuri (Minister of State for Agriculture).

Following the meeting, President Bola Tinubu, on Feb. 8, directed the immediate release of 42,000 metric tons of assorted food items from strategic reserves and the Rice Millers Association of Nigeria as a short term measure the address the challenge.

Alhaji Abubakar Kyari, the Minister of Agriculture and Food Security, has also assured that the federal government was committed to ensuring that the released grains reach impoverished Nigerians.

Collaborating with the National Emergency Management Agency (NEMA) and the Department of State Services (DSS), the Ministry of Agriculture is actively working to determine the recipients and locations for the distribution of these food items, he said.

Kyari said these efforts were in line with the broader agenda set during the first federal executive council meeting.

He said the agenda focused on food security, poverty reduction, economic growth, job creation, access to capital, inclusivity of women and youth, and addressing corruption and insecurity.

He clarified that the ministry’s blueprint includes immediate, short-term, medium, and long-term plans.

While the authorities are working round the clock to save the situation, insecurity seems to be putting spanner in the works.

This has prompted the National President of the All Farmers Association of Nigeria, Alhaji Kabiru Ibrahim, to urge farmers to establish vigilant groups to protect themselves amid increasing insecurity.

According to him, while the North faces concerns about bandit attacks, the South-West grapples with the herder-farmer crisis, and the South-East attributes insecurity to the proscribed Indigenous People of Biafra.

He cited the case of Zamfara where bandits allegedly take control of farms, demand access levies from farmers.

Ibrahim underscored the importance of farmers taking proactive measures to secure their farmland, stressing that the nation’s food production system is under severe strain.

Addressing the challenge, experts say, require a collective not only among Nigerians but also across Ministries, Departments and Agencies.

An Economist, Dr Sam Idaho, says for instance Ministry of Humanitarian Affairs mandates should include interventions to boost food production, distribution, and support to communities affected by hunger crisis.

Idaho highlighted the necessity for a comprehensive middle and long-term strategies, advocating investments in sustainable agricultural practices.

He said the intervention should also include the promotion of technology-driven farming, and the implementation of policies that address the root causes of the food crisis.

He recommended the establishment of an appeal fund, mobilising financial resources from both domestic and international sources to effectively combat the hunger crisis.

This fund, he said, could be utilised as emergency relief and long-term sustainable initiatives.

Experts say that developing state-specific agricultural plans, addressing local challenges, and collaborating with communities are essential in Nigeria’s battle against the hunger. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria.

Forex: Assessing policies that disadvantaged naira

Forex: Assessing policies that disadvantaged naira

 

By Deborah Coker, News Agency of Nigeria (NAN)

The value of naira has witnessed a downward trend in recent years. How this trend would be curtailed has been discussed at several economic fora, with economists, scholars and the man on the street proffering solutions.

The economic reforms of President BolaTnubu, which included the floating Nigeria’s legal tender, against international currencies; and the unification of exchange rate do not seem to yield desired effects.

In fact, it took the worst hit in the foreign exchange market in recent weeks going as low as N1600 per one U.S. dollar.

Fiscal experts have pointed at various factors as putting pressure on naira, including Nigerians’ unquenchable taste for imported materials, a mono-economy which is built around only export.

Some others blame it on the hangover from colonialism which ensured that expatriate workers were paid with hard currencies while local staffers were paid with local currency.

Even after gaining independence, the remnants of this unequal system persist, manifesting in the unequal treatment of foreign workers and local employees in Nigeria.

The payment of foreign workers in dollars, while Nigerian colleagues receive wages far below the conversion rate, is a blatant example of this ongoing injustice.

The consequences of this practice extend beyond mere discrimination; they have profound implications for Nigeria’s economy as seen today.

The alarming depreciation of the Naira against the dollar is exacerbated by the demand for foreign currency to pay professional services in dollars.

This not only erodes confidence in the domestic currency but also widens socioeconomic disparities within the country.

Whatever factors are responsible for naira’s low value against leading international currencies do not matter now, what is paramount is reining in the decline in value and this calls for concerted action.

Local traders and consumers are agitated, workers are complaining.

“My family is now living one day at a time (and) trusting God,” said trader Idris Ahmed to an international newswire service provider.

His sales at a clothing store in Nigeria’s capital of Abuja have declined from an average of $46 daily to $16.

Nigeria’s currency, the naira, further plummeted to 1,524 to $1 on Friday, reflecting a 230 per cent loss of value in the last year.

The glaring income inequality between foreign workers and their Nigerian counterparts within companies operating in Nigeria is a deeply concerning practice that perpetuates historical injustices rooted in the colonial legacy.

This practice exacerbates existing economic disparities and reinforces the master-servant dynamic that has plagued the region for centuries.

Income inequality in Africa, including Nigeria, has been entrenched since the colonial era when European settlers exploited the vast resources of the continent while systematically marginalising and impoverishing indigenous populations.

This exploitation was not only economic but also deeply ingrained in social and political structures, leading to a stark income gap between Africans and their colonial overlords.

Africans were often relegated to low-paying labour roles while Europeans enjoyed privileged positions with significantly higher incomes.

The absence of explicit prohibition on paying salaries in foreign currency in relevant legislation, such as the Central Bank of Nigeria Act and the Foreign Exchange Act, heightens regulatory ambiguity and allows such exploitative practices to persist unchecked.

Legislative experts therefore argue that urgent amendments to these laws are imperative to address this issue effectively and ensure equitable treatment of all workers in Nigeria.

Similarly, financial experts say the significant capital flight resulting from these unequal salary payments far surpasses most factors contributing to Naira depreciation, such as school fees and medical treatments abroad.

According to them, ending the practice of paying foreign workers in dollars is not only a matter of economic justice but also a crucial step towards dismantling neo-colonial structures and building a more equitable and prosperous Nigeria for all its citizens.

Also the notion of maintaining reserves in foreign lands, dubbed “foreign reserves,” is not only repulsive but also counter-intuitive to Nigeria’s economic sovereignty.

“Contrary to the practices of other nations like the United States, Britain, France, and Japan, which keep their reserves within their own borders, Nigeria’s adherence to this practice raises questions about its colonial legacy’’, said Sen. Ned Nwoko, in a statement in Abuja.

The primary argument often put forward to defend the existence of foreign reserves is the need to balance trade.

However, this argument lacks merit when considering the limited number of traders involved in importing goods into Nigeria, which constitutes a negligible fraction of the population.

Nwoko argues that it is time to prioritise the domestication of our reserves, anchoring our economic stability firmly within our borders.

“If we don’t get our currency to be needed, valued, known, and quoted, no one is coming to do it for us. Continued acceptance of the dollar as legal tender undermines our economic sovereignty and must be halted.

To match words with action, Nwoko, Delta-PDP, and Solicitor, Supreme Court of England and Wales sponsored a motion before the Senate on the use of the Naira as the only legal currency in the country.

The Bill  is entitled “Urgent Call for Immediate Prohibition of the Use of Foreign Currencies in Nigeria” and Bill for an Act to Alter the Central Bank of Nigeria Act, 2007, to Provide for the Prohibition of Foreign Currency Payment for Remuneration and for Matters Connected Therewith.”

Nwoko asserted that as the nation grappled with the free fall of the Naira and the near-collapse of the economy, there was only one short-term, medium-term, and long-term solution.

According to him, that solution is the use of the Naira as the only legal currency in the country as well as ending policies that put Nigeria’s currency at a disadvantage.

In 2023, the House of Representatives had asked the Central Bank of Nigeria (CBN) to address recurring depreciation of the naira against the dollar.

The lower legislative chamber had passed the resolution during a plenary session after the adoption of a motion sponsored by Ismaila Haruna Dabo, from Bauchi State.

The House had also resolved to investigate the alleged use of U.S. dollars and other foreign currencies as legal tenders for domestic transactions in the country.

The naira has consistently experienced variations in value ever since the CBN introduced the currency float policy, which now permits market forces to determine exchange rates.

While moving the motion, Dabo said the “alarming exchange rate” has impacted Nigeria’s economy, causing “untold hardship” due to increased demand for dollars and a dollar shortage.

He had added that about 90 per cent of Nigeria’s total export earnings were from oil, which is the mainstay of the country’s economy.

However, according to Nwoko, while the country may not have many products to expert to the global market, it does attract a significant number of visitors.

“When these investors understand that the dollar will not be accepted as legal tender in Nigeria, they begin sourcing Naira from their commercial banks and Bureau de Change (BDCs) even before arriving in the country.

“This increased demand prompts banks abroad to source and stock up Naira, making it readily available for exchange.

“Upon arrival, visitors can also obtain Naira from our BDCs. Imagine millions of visitors and prospective visitors from all over the world sourcing Naira; our local currency becomes increasingly relevant.

“This scenario creates a simple supply-and-demand dynamic, where the demand for Naira increases, making it more relevant globally.

“If we fail to create a need for Naira in other nations, their BDCs won’t even recognise it, let alone accept it for exchange“, the lawmaker said.

He also stressed the need to redefine the role of BDC, adding that the prevalence of BDCs in Nigeria must align with currency policies aimed at shunning the unfair fall of the Naira.

“BDCs should serve as facilitators of currency exchange for foreigners, promoting the use of the Naira in domestic transactions.

“By enforcing regulations that prohibit the acceptance of foreign currencies for local transactions, we redirect the focus of BDCs towards selling Naira and retaining foreign currencies for outbound travelers.

“Ambiguous practices, such as students paying school fees abroad, must also be addressed by BDCs in commercial banks”, Nwoko also said.

“Until there is enough supply to meet FX demand, the ability to stabilise the exchange rate will be difficult.

“It might force the CBN to use its limited reserves to intervene to stabilise the rate,” Yemi Kale, partner and chief economist at KPMG Nigeria, told a national daily. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria.

NEWS ANALYSIS: What forces are aiding the free fall of the Naira?

NEWS ANALYSIS: What forces are aiding the free fall of the Naira?

By Ismail Abdulaziz, News Agency of Nigeria (NAN)
Inspite of all efforts made by the Central Bank of Nigeria (CBN) to address the exchange rate volatility of the naira since the Bola Tinubu administration announced the floating of the Nigerian currency to peg the activities of unwholesome middlemen, stakeholders continue to wonder why the naira is still in free fall.

The CBN had initiated a comprehensive strategy to enhance liquidity in the forex market, including unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility Cap.
Yet, the naira keeps dropping in the forex market.

Indeed, there are palpable factors that have aided the fall of the naira, as explained by the CBN. For instance, the apex bank reported that Nigerians spent about $98 billion on foreign trips, medical tourism, and overseas education, a figure the bank said was more than the total foreign exchange reserves of the apex bank.

Responding to that alarm, the Economic and Financial Crimes Commission (EFCC) raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers and reduce the pressure on the naira.

The floating of the naira means people can get forex at the banks for whatever rate the banks can afford to sell it. Banks and other institutions can buy and sell dollars at their rates.

Financial experts say, ordinarily, this should have been sufficient enough to boost the power of the Nigerian currency.

However, in spite of all these measures, it appears that the unfortunate crisis bedeviling the naira has the voice of Jacob, but the hands of Esau.

According to a document obtained, recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market, in both virtual and in physical transactions, and one name has been a reoccurring decimal – Binance.

The Binance platform describes the organisation as a cryptocurrency exchange that lists more than 350 cryptocurrencies globally. In addition to cryptocurrency trading, it offers several services that enhance the experience for users and blockchain developers.

The report said the crypto platform’s merchants list their exchange rates for buying US dollars for Naira and aim to attract sellers by proposing high Naira values for the US dollar.

To remain competitive and attract sellers, the report said merchants advertise higher dollar-to-naira rates than they are actually willing to pay, causing the visible dollar rate to increase and the implied value of the naira to decrease.

“This practice has contributed to the Naira’s 113.1 per cent devaluation against the US dollar from February 9, 2023, to February 15, 2024. This implies an average daily depreciation rate of 0.3 per cent over the last 371 days – a period of high activity on the Binance platform,” the report said.

In June 2023, The Securities and Exchange Commission (SEC) ordered Binance, which happens to be the world’s largest cryptocurrency exchange, to halt its operations in Nigeria for courting investors through an illegal website.

“Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever,” SEC said.

Sources close to forex regulators in Nigeria said the government had sought several avenues to reach a middle ground between an outright ban on Binance crypto assets and their unregulated use, but the platform has been adamant, continuing its manipulation of the nation’s forex market and illicit movement of funds.

Curiously, the Nigerian regulators were not acting alone. That same week, the U.S. Securities and Exchange Commission sued Binance and Coinbase for allegedly breaching its rules.

Scores of other countries have either outrightly banned or restricted the operations of Binance, including the UK, Japan, Singapore, Canada, The Netherlands, China, Turkey, Indonesia, and Nigeria’s neighbours, Ghana.

There are specific country-by-country examples of how Binance has been violating regulatory standards and undermining legitimate forex trade.

In November 2023, Binance and its CEO pleaded guilty to federal charges in the US for violating anti-money laundering laws and facilitating transactions with sanctioned entities and individuals.

They agreed to pay over $4 billion in fines and forfeitures.

In June 2020, Binance was accused by the Japanese Financial Services Agency of operating in Japan without a license and enabling money laundering activities. Binance denied the allegations and claimed to have no exchange business in Japan.

In February 2020, Binance was accused by the Brazilian tax authorities of evading taxes and laundering money through its platform. Binance denied the allegations and claimed to comply with local regulations.

In April 2019, Binance was blacklisted by the French financial regulator, Autorité des Marchés Financiers, for offering crypto derivatives products to French investors without authorization.

In July 2020, Binance was warned by the UK Financial Conduct Authority for operating in the country without a license and posing a risk to consumers and the financial system.

According to sources, the list of countries that have taken action against Binance is endless.

However, some financial experts say what worries monetary regulators the most is how the continued use of digital currencies such as Binance raises concerns about potential exploitation for money laundering and a means for receiving proceeds of crime by criminal groups in the country.

They say recent events have indicated that the decentralised nature of crypto poses a risk for exploitation in financial exchanges.

It is easy to see why criminals, including terrorists and cybercriminals, can convert illicit funds into cryptocurrencies, transfer them across borders, and then convert them back into conventional currencies, making it difficult for authorities to trace the origins of the funds.

It can also offer a means for corrupt officials and businesses to siphon and clean up the proceeds of corruption.

The world over, cybercriminals exploit the lucid nature of crypto to receive proceeds of crime mostly from unsuspecting victims; an occurrence for which Binance has been punished or banned in many countries.

No doubt, the digital currency ecosystem offers substantial economic growth opportunities. However, as the creation of tech personalities for financial exchange, operating independently of any central regulatory framework or authority means that it is exposed to exploitation for money laundering and financial crimes.

It is therefore important for platforms such as Binance to operate responsibly and support the financial stability of countries where they operate rather than undermine it.
**If used, credit the writer and the News Agency of Nigeria (NAN)

Resolving Mali, B/Faso, Niger ECOWAS exit imbroglio

Resolving Mali, B/Faso, Niger ECOWAS exit imbroglio

By Mark Longyen, News Agency of Nigeria (NAN)

In a move that took the West Africa sub-region by surprise, Mali, Burkina Faso and Niger, which are under military rule on Jan. 28, announced their withdrawal from the sub-regional politico-economic bloc, ECOWAS.

Whereas Mali and Burkina Faso officially notified ECOWAS on Jan. 29, Niger followed suit on Jan. 30.

Since they carried out the putsches, the military leaders in the trio Sahel countries have engaged the leadership of ECOWAS in a standoff, defying all entreaties, including sanctions to vacate the seats of government for democratically elected persons.

Their body language indicated their unwillingness to continue being members of the bloc. However, the announcement came at a time most observers in the diplomatic scene least expected it.

They justified their withdrawal from ECOWAS alleging that ECOWAS had moved away from the ideals of its founding fathers and Pan-Africanism, and had become a threat to its member countries.

According to them, ECOWAS has betrayed its founding principles, has subjugated itself to the influence of foreign powers, and has deviated from the fight against the existential threat of terrorism and insecurity.

The trio of Mali’s Col. Assimi Goita, Burkina Faso’s Capt. Ibrahim Traore, and Niger’s Gen. Abdourahmane Tchiani also slammed the sub-regional body for imposing on them “illegal, illegitimate, inhumane and irresponsible sanctions”.

Analysts are, however, of the view that the decision of the military leaders was tantamount to a ‘hasty, knee-jerk diplomacy.’

They say the action holds fatal repercussions that could, in the long run, mutually harm their countries and citizens on the one hand, with its ripple effects cascading across ECOWAS member states on the other.

Former Minister of Foreign Affairs, Prof Bolaji Akinyemi, argues that the current conundrum implies that ECOWAS faces a wave of crises, that must be carefully and swiftly handled through meticulous diplomatic actions.

“We’re going to need some clever steps, diplomatically, on this matter. ECOWAS needs some fast thinking to make sure that this situation does not get out of hand.

“This is because these three countries alone, in terms of landmass, comprise about half of ECOWAS. So, we’re not dealing with just a little hiccup on our hands,” he said in a recent television live programme.

On the allegations that ECOWAS was being teleguided by foreign powers, Akinyemi said: “You know the power that they are referring to, presumably, there is this fear in their minds that ECOWAS policies are actually French policies.”

Akinyemi, a former Director-General, Nigerian Institute of International Affairs, alleged that Russia may also be emboldening the three countries to factionalise ECOWAS, as part of attempts to weaken Western influence in Africa.

According to him, the flip side of the imbroglio is that Russia, unfortunately, has not shown that it has the capability to help the three exiting countries to combat the jihadists in the region.

The Tuaregs, as well as ISIS currently have sleeper cells in the Sahel region.

Ilaria Allegrozzi, Senior Sahel Researcher, Human Rights Watch, said that the withdrawal of the three countries from ECOWAS would deprive their citizens a key avenue for accountability.

He said it would limit their opportunities to seek justice for human rights violations.

“Their countries’ citizens are deprived from an independent and impartial Community Court tribunal, especially where access to justice at national courts is restricted,” Allegrozzi said.

She recalls that since 2005, the ECOWAS Community Court of Justice issued landmark decisions on human rights issues, including some concerning Mali, Burkina Faso and Niger.

She said the Court also issued a ruling in 2008 that held Niger responsible for failing to protect one of its citizens from enslavement by passively tolerating the practice.

On his part, Alioune Tine, the UN Independent Expert, described the military leaders’ decision as a  “unilateral decision taken by unelected officials, without any debate, any consultation with the people.”

According to Tine, the military leaders’ action is in breach of the provisions of the ECOWAS Treaty.

The treaty provides that member states wishing to withdraw from the bloc must give it an officially written one year prior notice.

Mr Olusegun Adeniyi, a foreign policy analyst and former Nigerian presidential spokesman, says the first step towards resolving the conflict is that ECOWAS must understand the dynamics and the desperation that triggered the trio’s desire to quit the bloc.

He says prior to quitting ECOWAS, they had long turned to Russia, after being subjected to a prolonged, tremendous domestic pressure since their suspension from ECOWAS.

While Mali was suspended in 2020, Burkina Faso came under the harmer in 2022 and Niger in July, 2023.

“As for the Russian meddlesomeness, it can be dealt with as part of the global anti-authoritarian drive.

“That, of course, presupposes strengthening our democracy at home and working for the peace and prosperity of our people,” he said.

The three countries, as a matter of necessity, have signed a mutual defence treaty called the Alliance of Sahel States.

The pact was founded on the Mafia code of ‘one for all and all for one,’ having severed military and cooperation ties with their former colonial power, France.

“Burkina Faso, Niger and Mali, collectively, account for eight per cent of the 702 billion dollars ECOWAS Gross Domestic Product (GDP). They are not being helped by their military adventurers on this issue.

“To that extent, Nigeria’s very strategic importance and political stability are tied to the survival of the regional bloc. The leadership role she plays makes the threat to its existence a serious matter.

“Therefore, the challenge of the moment requires deft diplomatic leadership that is inclusive and multicultural.

“That is the best way to neutralise the departure of France from the affected countries. After almost 50 years, ECOWAS has become part of the political and economic lifeblood of the sub-region,” he said.

Amb. Yusuf Tuggar, Nigeria’s Minister of Foreign Affairs, has underscored the need for member states to carefully assess the far-reaching implications of the three countries withdrawal from the bloc.

Tuggar, who is also the Chairman of ECOWAS Ministers Mediation and Security Council (MSC), while speaking at a meeting held in Abuja recently said it was important for ECOWAS to tackle its fallout.

“Our meeting provides the opportunity to carefully assess challenges presented by the decision of the military rulers of Burkina Faso, Mali, and Niger to arbitrarily withdraw from ECOWAS.

“This is amidst the potential implications for their people and indeed, for the Community as a whole, and to review unfolding situation in Senegal and develop a plan to navigate resulting complexities,” Tuggar said.

Ryan Cummings, a security and risk management consultant and Director, Signal Risk, is of the view the move by Mali, Niger and Burkina Faso could subject ECOWAS to significant fragmentation.

The implication of this, Cummings said, is that the bloc’s ability to protect democracy in the sub-region could be severely compromised.

Dr Sulaimon Hassan, an international relations expert and Lagos State University (LASU) don, believes that if the trio exit, ECOWAS, insecurity, particularly in Nigeria, will worsen.

“Most of the security issues in Northern Nigeria are a spillover of the crisis in Chad, Niger and Mali.

“Even though they are poor countries, Nigeria needs to have a good relationship with them to enable the Federal Government to curtail insecurity,” he said.

Some experts say to resolve the standoff, ECOWAS’ efforts should be more targeted at the military leaders rather than blanket sanctions that could predispose the citizens of the countries to economic hardship.

Dr Omar Touray, President of the ECOWAS Commission, while speaking at the recent Abuja MSC meeting, expressed the hope of resolving the conflict and its fallout.

“These claims have no real basis; the hasty intent on withdrawal of membership from ECOWAS did not take into account the conditions for withdrawal of membership from ECOWAS.

“Such decisions are espoused in the 1993 ECOWAS Revised Treaty, but more importantly, the three members had not reflected the implications of this decision on the citizens,” he said.

Speaking in the same vein, Moussa Mahamat, Chairperson, African Union Commission (AUC), called for urgent bold steps to tackle the issues emanating from the three countries exit.

Mahamat was represented at the meeting by Mr Bankole Adeoye, AUC’s Commissioner for Political Affairs, Peace and Security.

“We believe the extraordinary nature reflects the urgency to address these conflicting matters on our continent, particularly in West Africa.

“We are continually faced with terrorism, violent extremism, insurgencies, difficult disruption, and governance deficit, so if these issues are not addressed promptly and holistically, we may undermine our democratic gains,“ he said.

At the 37th Ordinary Session of Assembly of Heads of State and Government of the African Union in Addis Ababa, Ethiopia, on Saturday, President Bola Tinubu reinforced the prospect of resolving the lingering standoff.

“The drive for a peaceful, strong, and united West Africa is bigger than any one person or group of people.

“The bonds of history, culture, commerce, geography, and brotherhood hold deep meaning for our people.

“Thus, out of the dust and fog of misunderstanding and acrimony, we must seize the chance to create a new people-centric era of trust and accord,” he said.

Analysts, therefore, say the actions of the three countries are weighty issues that come with serious repercussions, which ECOWAS should quickly nip in the bud.

They believe that, given the prospect of the trio’s return to the bloc being the ultimate goal, there will be some form of compromise between ECOWAS and them that will culminate in resolving the issues amicably. (NANFeatures).

**If used please credit the writer and News Agency of Nigeria

Indigeneship and the challenge of citizenship in Nigeria

Indigeneship and the challenge of citizenship in Nigeria

By Emmanuel Afonne, News Agency of Nigeria (NAN)

For Mrs Caroline Ukabundu, a retired primary school teacher in Enugu, the memory of being a non-indigene can never be forgotten in a hurry.

Ukabundu was a successful teacher who rose to the level of assistant headmistress in one of the government–run schools in Enugu, before she was disengaged under the administration of Chimaroke Nnamani.

Her aim was to get to the peak of her career, but that didn’t happen, as she was not recalled until her retirement.

Her crime is that she is not an indigene of Enugu State.

According to social scientists, being an indigene is a natural link between a person and a geographical location (his ancestral home) where he traces his roots through a blood lineage and genealogy.

This puts him or her in contact with his kin and kindred.

However, citizenship or nationality is the status by which an individual has full rights and responsibilities in a country.

This is either as a result of being born there or by having acquired it through the legal immigration and citizenship process.

Ukabundu who now lives with the daughter and her family in Enugu, told the News Agency of Nigeria (NAN) that the non-indigene policy affected her life and career in the civil service.

“I am from Enugu State but married to an Imo man, yet my state of origin disengaged me from work,” she said.

She said that the policy was eventually reversed by the successive government of Sullivan Chime, but that didn’t stop the then Gov. Theodore Orji from owing the path of Nnamani.

Orji’s reason for disengaging non-indigenes in the Abia State civil service was borne out of the desire to protect his citizens who faced similar ordeal in other states of the South-East.

The disengagement which occurred on Aug. 25, 2011 saw about 2,604 non-indigenes mostly from Imo State removed from the payroll of Abia State civil service.

Imo indigenes appeared to be the worst hit, though other states such as Ebonyi, Enugu, Anambra also got their share of the disengagement.

Although some politicians have braved the odds and won elections at the lower rug of political ladder such as counsellorship and local government chairmanship, it is rare at governorship level.

In fact, in many states, doing so will be akin to the Biblical head of a camel passing through the eye of the needle.

Indigeneship is also key to recruitment in public sector as applicants are usually required to present certificates of indigeneship before they are considered for certain positions or jobs.

A human rights lawyer, Pelumi Olajengbesi, said the actions of these states are illegal and run contrary to the provisions of the constitution.

He wondered why some of the governors would prefer to implement a non-indigenes policy when they and their family members have dual citizenship in other countries.

The legal practitioner said that Section 42 of the Constitution prohibits discrimination against anyone by reason of his origin, birth, status, ethnic, religion among others.

He therefore said it was wrong and inequitable for the government of any state to deploy a policy or make any laws that tend to go against the spirit of the Constitution.

“That law shall, to the extent of it’s inconsistent with the constitution be null and void as provided under Section 1 (3) of the Constitution,” Pelumi said.

According to him, an appraisal of the chapter of the constitution on “Fundamental Objectives and Directive Principles of State Policy”, shows that the intent of the law is not to empower the state to protect only the interest of the indigenous citizens.

Rather, it concerns itself with an all-inclusive federal government where the interest of each state is represented and protected.

This section of the constitution birthed Federal Character Commission.

“Take for instance; NYSC was inaugurated with the sole aim of fostering unity in diversity.

“Hence, corps members are deployed to different part of the federation for national service where they are expected to mingle and inter-relate with people of other cultures and beliefs.

“On the issue of 10 years residence, it’s actually a misconceived idea that must be immediately checked out if we must build a society free of discrimination and favoritism“, he said.

For example, he asked, if a Corp member from Osun State is serving a ministry in Kano State demonstrates resounding expertise in his work, should not be retained simply because he’s not an indigene of Kano?

“Or does he have to wait and live in Kano for 10 years before being considered for a deserved employment? Also, there are several citizens who got married to an indigene of another state.

“What is the fate of their spouse’s employment in the State? Should my wife be denied employment opportunities in my state simply because she is an indigene of another state?

“These are clear discriminatory policies which do not represent the spirit of our laws,” Pelumi added.

He cited the Oguamanam Ann Dibugo vs Gov. of ABIA State & others in Suit No: NICN/PHC/73/2021.

The claimant who was in the employment of the Abia State was forcefully transferred on the account of a directive by the state government simply because she is not an indigene of Abia State.

The court while delivering judgement declared the act of the government of Abia State unconstitutional.

It ruled that citizens of the country are entitled to stay and enjoy equal employment opportunities in any state of the federation.

Ukabundu retired from service with the pain of her disengagement, but the judgement of the court was a big reprieve for her and other still in service.

Another Abuja-based lawyer, George Iwuoha, said governors have refused to listen to anybody including courts, on issues bothering on indigeneship in Nigeria.

“We need to strive and build a nation first. Today, we are experiencing what I will term ‘ethnic cleansing’ for lack of better definition, in several indigenous communities.

“How can you explain the non-indigene policy to the natives in Mangu or to the Tivs in Benue?

“How do you explain this policy to Igboeze people in Enugu state, since the herdsmen are running rampage claiming other people’s homesteads?

“Let us first understand who are Nigerians and who are not in our midst’’, he said.

According to him, the African is tied to his roots and it cannot be wished away.

“Europe and America are not like that. There is no basis for comparison,” he said.

Iwuoha some federal government institutions and policies tacitly support indigeneship.

According to him, they include federal character provision, quota system, contents of the exclusive legislative list, local government system as well as some institutions such as Federal Character Commission.

He prescribes a brand new “people’s constitution” or alternatively, the adoption of the 1963 constitution if the indigeneship and citizenship challenge would be compressively addressed. (NANFeatures)

Exploring nexus between food security and national security

Exploring nexus between food security and national security

By Kayode Adebiyi, News Agency of Nigeria (NAN)

Lately, angry youths and women are taking to the streets in some cities to register their grievances about the rising cost of living in the country, especially of food commodities.

In Minna, the capital of Niger, some residents blocked one of the major roads in the city to voice their frustration over the escalating cost of living in the country.

The protesters chanted protest songs to draw attention to their predicament while security agents monitored the situation.

In Kano, hundreds of protesters marched through the streets of the ancient city.

They chanted, “Everything is expensive, especially flour and grains, Tinubu come to our aid, we cannot feed our families, most of us are widows, and people are dying of hunger.”

Similar protests have been carried out recently in other parts of the country, including in Ondo State.

Some residents of Lagos Island and traders at the popular Idumota market have decried the increasing hunger in the land.

In a viral video, Lagos residents were seen in a trending video telling President Bola Tinubu who was in the state to celebrate Christmas in Yoruba language – “Ebi npa wa oo” meaning `we are hungry’.

As a responsibile government, the Tinubu administration has not feigned ignorance to the situation and promised a robust action against it.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, admitted the rising prices of food and other commodities in the country had become increasingly worrisome.

Edun also acknowledged that the situation had produced growing discontent among the citizenry, but blamed it on demand and supply forces.

Apparently aware of the security risk inherent in inflation and rising food cost, the Federal Government has pleaded for patience and tolerance as seeks to fix the economy and tame menace of food inflation.

The Minister of Information and National Orientation, Muhammed Idris, said President Bola Tinubu had directed immediate interventions to alleviate the suffering and forestall a further breakdown in security.

Speaking after the meeting of the Special Presidential Committee on Emergency Food Intervention, Idris said the government was addressing the issue of food shortage.

Indeed, the National Security Strategy (NSS, 2019), which was developed by the Office of the National Security Adviser (ONSA), contains the government’s recognition of the importance of food security.

“We recognise our farmers as the bedrock of this strategy; hence we will prioritise a range of measures to enhance their productivity.

“We have one of the most conducive environments for food production.

“With the drastic reduction in food importation, we will continue to develop our agricultural potential to attain self-sufficiency in food production as well as exportation“, the document said.

According to the document Nigeria will also endeavour to overcome further challenges such as climate change, land conflict, land degradation, rapid urbanisation and insurgency.

“Our food security strategy also requires support for initiatives that protect long-term leaseholds on farmland

“It also requires the institution of clear property rights as well as promote national sufficiency in strategic commodities and increase access to markets through massive rehabilitation and construction of rural infrastructure,” it states.

However, some security experts say in spite of government’s recognition of the crucial role food security plays in national security, policy inconsistency and duplication of functions remain major stumbling blocks.

They ask why the Special Presidential Committee on Emergency Food Intervention should be set up to perform a similar function as the National Food Security Council (NFSC).

The NFSC was established in March 2018 by former President Muhammadu Buhari under the chairmanship of Buhari with a mandated to get into the root of Nigeria’s food crisis.

The broad objectives of the NFSC include developing sustainable solutions to the farmers-herdsmen clashes, as well as climate change and desertification and their impact on farmland.

It also aims to address the issues of grazing areas and lakes, rivers and other water bodies; oil spillage and its impact on Niger Delta fishing communities.

Its mandate also covers piracy and banditry; agricultural research institutions and extension services and the problem of smuggling.

Part of the mandates is to take an interest in regional and global policies and trends that bear implications for food security in Nigeria.

“What happened to that council?” asked a security expert.

“During his tenure, Buhari also directed the National Agricultural Land Development Authority (NALDA) to set up integrated farm estates in all 108 senatorial districts nationwide.

“Have we abandoned that programme? If yes, did we evaluate its challenges and prospects before ditching it?

Some stakeholders also said that, apart from inadequate production to meet demand, soaring inflation is shrinking households’ purchasing power, thereby contributing to the rising cost of food commodities.

They said the removal of subsidy on petrol and the unification of the exchange rate without adequate measures to cushion their effect have not made life easier for the citizenry as envisaged.

A National Bureau of Statistics report said the cost of food in Nigeria increased 33.93 per cent in December 2023 compared to same period in 2022.

However, neither the general cost of living crisis nor rising food prices is peculiar to Nigeria.

In 2023, a report by the State of Food Security and Nutrition in the World (SOFI) estimated that between 691 and 783 million people in the world faced hunger in 2022.

“Considering the midrange (approximately 735 million), 122 million more people faced hunger in 2022 than in 2019, before the global pandemic,” the report said.

According to the World Food Programme (WFP), from 78 of the countries where it works and where data is available, more than 333 million people faced acute levels of food insecurity in 2023.

The Africa Center, a nonprofit, nonpartisan, multidisciplinary institution, quoting the IMF said food and energy costs amount to the bulk of the costs of rising inflation in sub-Saharan Africa, including Nigeria.

It said disruptions in supply chains caused by the outbreak of war in Ukraine, weakened currencies, and unsustainable public debt servicing obligations are partly responsible for the economic crisis.

Some stakeholders, however, say in place of data concrete efforts to ameliorate their plight should be intensified. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria

When Taboo is business: The flourishing gigolo escapades in Abuja

When Taboo is business: The flourishing gigolo escapades in Abuja

By Tosin Kolade, News Agency of Nigeria (NAN)

A gigolo is a male escort or social companion who is supported by a woman in a continuing relationship, often living in her residence or having to be present at her beck and call, according to Oxford Dictionary

Generally, the term “gigolo” refers to a man who dates older women for financial gains.

This taboo-breaking “profession” is quietly flourishing in Abuja’s crowded streets, defying social norms and sparking discussions about unconventional careers.

Openly engaging in prostitution may be illegal in Nigeria, but there is a sub-culture of male gigolos who are brazenly navigating the clandestine world of paid companionship.

Nnenna Elekwachi, a witness to this unconventional trade, shares a unique encounter with one male sex worker who walked into her store one year ago.

Having offered him a chair and water, she unwittingly found herself drawn into a conversation about his unusual profession.

The man, who remains anonymous, expressed a liking for Elekwachi and offered his services free of charge due to his affinity to her.

In spite of her initial reluctance, the male escort divulged the intricacies of his profession.

With packs of condoms for both male and female clients to show, he described his role as a male escort, highlighting the demand for his services among ‘sex-starved’ women.

According to him some of his clients even sought his assistance in conceiving, emphasising his role as a provider of both companionship and fertility services.

A dumfounded Elekwachi, listened as the male escort frantically tried justified his choice of profession by creating a job opportunity for himself in a society with limited prospects for young people.

His story sheds light on the complex dynamics of the sex industry, challenges and preconceived notions about those involved.

The phenomenon of male gigolos does not come in isolated incidents, with many residents in areas like Wuse, Kubwa, Gwarimpa, Karu, and Nyanya, encountering these strange professional regularly.

These men, conscious of their appearance, regularly visit the gym, and maintain a healthy lifestyle. They have embraced their unconventional career choice. Lonely older women are their prime targets.

Ms Isoken Briggs, shares a story about a neighbour, known for hosting mature women in his home. Her story further highlights the prevalence of gigolos in various neighbourhoods.

Briggs says the satisfaction and financial rewards they receive from their older clientele create unique dynamic ambiance and challenge traditional gender roles.

“These people are paid well, my neighbour has bought a new car, he has no known employment, but lives flamboyantly”, she said.

In a shocking revelation, 34 year-old Ms. Adaora Nnaji, a female civil servant, shares a troubling experience during a body massage at a renowned hotel in the heart of Abuja.

Nnaji, who yielded to persistent pressure from friends, enrolled in a month-long body massage programme on weekends.

In a troubling incident, Nnaji described her massage experience where the masseur crossed boundaries, fondling her breasts and making unwarranted advances.

In spite of her objections, he continued on the irritating path, even intruding with his fingers.

Faced with discomfort, she had to abruptly end the session, prompting the masseur to plead for her silence to protect his job.

This unsettling encounter underscores the pressing need for increased scrutiny and stringent measures to ensure safety and professionalism within the massage industry.

Instances like these explain the importance of creating an environment where individuals can seek such services without fear of harassment.

Nnaji’s experience sheds light on the challenges individuals may face in seemingly harmless situations and calling for a re-evaluation of safety standards in various service industries.

Furthermore, instances of male gigolos approaching potential clients, as witnessed by this reporter recently, underscores the boldness with which they pursue their craft.

Even in public places like Wuse market, they distribute their business cards indication that they are morphing into a more sophisticated service bloc.

The emergence of Abuja’s male gigolos is a testament to the changing faces of societal norms, economic challenges, and the pursuit of alternative livelihoods in the face of limited opportunities.

These individuals are unapologetically challenging taboos, triggering conversations that prompt the society to reconsider its judgments about irregular trades and the complexities of human relationships.

Currently, there may be limited official data on male sex workers in Nigeria due to the sensitive nature of the topic.

The underground, therefore unregulated existence of the gigolos has lots of implication for HIV/AIDS and other sexually transmitted disease for a country already battling with high rate of these infections.

Medical experts say its main mode of transmission is heterosexual, and consequently, a key population of interest is female sex workers (FSWs) and Male sex workers.

While HIV prevention services are increasingly implemented by community-based organisations (CBOs) in Nigeria for the FSWs, there is a paucity of evidence on the implementation of interventions for their male counterparts.

A 2018 report by a group, Face to Face Africa, showed that sex tourism on the African continent was swaying towards male prostitution.

It stated that sex business did not exclude men, who were often lured into the trade by desperation due to economic situations and cravings for a high-class lifestyle.

The report said the business was mostly booming in coastal African cities like Accra, Mombasa, Lagos and Pretoria.

According to a Sociologist, Dr Rose Igweze, the factors driving young men into prostitution in Nigeria are complex, often stemming from economic challenges and limited employment opportunities.

She suggested that societal norms, coupled with a lack of social support, may lead individuals towards unconventional careers like sex work as a means of financial survival.

Igweze said that economic hardship and the desire for financial independence compel some young men to enter the sex-for-money industry.

In the effort to curb male sex tourism, Dr David Isyaku, a prominent psychologist, advocated a holistic approach encompassing economic, social, and legal dimensions.

Isyaku emphasised the significance of economic empowerment through programmes offering job opportunities and training for young men, aiming to alleviate the desperation often leading to engagement in sex tourism.

Furthermore, he underscored the importance of education and awareness campaigns to inform individuals about the risks associated with sex tourism.

Isyaku stressed the role of social support systems, urging the establishment of counselling and mental health services to assist those facing economic challenges.

“Strengthening community ties is crucial in reducing vulnerability to exploitative practices”, he said.

Isyaku called for more stringent enforcement of laws against sex tourism and collaboration with law enforcement agencies to combat all illegal activities.

Experts believe that a more robust response should include targeted interventions, industry regulations, and empowerment programmes to disrupt the cycle of exploitation and create lasting change. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria

Sachet and PET bottles ban: Implications for environment, unemployment

Sachet and PET bottles ban: Implications for environment, unemployment

By Tosin Kolade, News Agency of Nigeria (NAN)

Iya Semiu, as she is popularly called,  sits in her makeshift shop at Jabi garage, a bustling motor park in Abuja metropolis, displaying her wares, which includes sachet of alcoholic drinks.

She is oblivious of the ban on Polyethylene Terephthalate (PET) bottles and sachets in packing alcohol and other beverages by the National Agency for Food and Drugs Administration and Control (NAFDAC).

The agency recently announced its readiness to enforce the ban. Because such beverages are cheap, they are popular among alcohol consumers.

Ms Kehinde Ariyo also sells these products, which she said is the most profitable business she has ever owned.

“I have sold bread, clothes, and other household goods in Karmo market, but many times, sales are low.

“My neighbor encouraged me to go into this business, and it’s been very helpful for my family.”

According to her, sales are constant, and profit margins are between N3,000 and N4,000 daily.

Various brands, called ‘Fenuja’ in local Yoruba parlance, are priced between N50 and N100.

From Semiu to Kehinde, the story echo the integral role of alcoholic beverages in cultures for millennia.

Globally, alcohol stands as the most widely used psychoactive substance, accepted and encouraged by society.

Marketing advancements over the years have escalated its availability and consumption.

In Nigeria and other African countries, spirits packaged in sachets represent the latest trend in alcohol packaging.

The World Health Organisation links alcohol consumption by children to several risks, including drug use, poor academic performance, injuries, risky behavior, and health problems.

NAFDAC’s ban, initiated in 2018, prohibits the production of alcoholic drinks in sachets and pet bottles.

The enforcement began on Feb. 1, following a phased approach discussed by a multilateral committee.

The NAFDAC Director-General, Prof. Mojisola Adeyeye, clarified that NAFDAC did not renew manufacturers’ licenses in January.

According to Adeyeye, the agency took the route of eliminating the drinks in such sachets because of the negative effects on underage children.

She said because the drinks come in pocket-friendly sizes, accessible and affordable, children easily fall for the packages only to face the consequences in the future.

She said in the course of enforcing the ban, it was discovered that some manufacturers were still in production of the banned products.

“The Agency strongly condemns this unacceptable situation, deeming it a blatant violation of Nigerian laws.

“NAFDAC is determined to address this matter seriously, considering potential legal actions, such as prosecution”, she told newsmen in Abuja recently.

The Minister of State for Environment, Dr Iziaq Salako, had previously said ending underage drinking and promoting responsible drinking was crucial for the country.

He said this when he hosted the team from Guinness Nigeria, led by Mr John Musunga.

He said the organisation’s decision to halt the production and sale of alcoholic drinks in sachets was impressive, saying it would help reduce underage drinking and environmental pollution, calling it a public health issue.

“One of the things that I advocated when we were doing the review of the public health law in Ogun State is for the state to ban the circulation of alcohol in sachets.

“This is because just like you have said it makes it easier for people to access, the underage and everyone else.

“Some other people with health conditions who should not be taking alcohol still do because it it’s so easy for them to access.

The minister said he would be at the forefront of the campaign to stop the production and sale of sachet alcohol products.

Apart from its implications for the health of consumers, experts say the sachets and small plastic bottles also constitute environmental threat due the indiscriminate manner the consumers of their contents get rid of them.

A researcher, Dr Idowu Kunlere, predicts that by 2025, the Nigeria’s  waste generation will constitute 25 per cent of Africa’s total.

According to him, in spite of escalating extraction to meet population needs, waste management remains a critical issue, leading to environmental and health consequences.

This unsustainable, vicious twin cycle of indiscriminate exploitation of natural resources and poor waste management holds dire consequences for the environment and human health.

However, with environmental awareness on the rise globally, there have been various policy attempts at entrenching sustainable use of natural resources, effective waste management, sustainable materials management, and a circular economy say, I.A Ajani and Idowu Kunlere in a study.

The study entitled: Implementation of the Extended Producer Responsibility (EFR) Policy in Nigeria: Towards Sustainable Business Practice was published in Nigerian Journal of Environment and Health.

One such attempt is the Extended Producer Responsibility (EPR), also called the Buy-Back Scheme (BBS), which makes manufacturers responsible for the management of their post-consumer products.

In 2014, the Federal Government, through the National Environmental Standards and Regulations Enforcement Agency (NESREA), adopted and released guidelines for the implementation of the EPR policy in Nigeria.

However, it has not been fully implemented due to paucity of health data in the country which is vital to promoting environmental health.

Dr Edwin Isotu-Edeh, the National Consultant, Public Health and Environment, WHO Nigeria, said digitising environmental health data was of public health importance.

He said that an estimated 12.6 million deaths annually were attributed to unhealthy environment with over 100 deaths and injuries linked to environmental risk factors.

He said that every Nigerian deserved to live in a healthy and clean environment, saying “this is key to achieving universal health coverage’’.

As NAFDAC intensifies its efforts in implementing the ban as a means of promoting public health and environment, some stakeholders in the manufacture and distribution of these products are kicking.

Trade unions, including the Food, Beverage and Tobacco Senior Staff Association (FOBTOB), and National Union of Food Beverages and Tobacco Employees (NUFBTE), recently took their protested against the ban to NAFDAC’s Lagos office.

The TUC Vice-Chairman, Idogen Emmanuel, said the ban will adversely affects struggling families and add to economic challenges caused by subsidy removal and inflation.

The FOBTOB and NUFBTE in a joint statement further claimed that the ban has the potential to throw 500,000 workers out of job in an already saturated labour market.

The Manufacturers Association of Nigeria (MAN) has also criticised the position of the NAFDAC on the ban.

The Organised labour further took the protest to the Lagos House of Assembly, Ikeja.

Comrade Anthony Oyagha, Branch Secretary, FOBTOB, said the ban was harsh on those operating in the sector and denied accusations that the products were unhealthy.

“Our products are well refined for consumption and we beg the Lagos State House of Assembly to reach out to the relevant authorities to unlock our factory.

“If we leave this ground, we have nowhere to go as our factories are shutdown,” Oyagha stated.

Chairman, Trade Union Congress, Lagos Chapter, Mr  Emmanuel Edoghe, reiterated the need for NAFDAC to rescind its decision on the ban of the premium alcoholic drink and sachets.

He urged the agency to consider the huge investment made by the companies and the existing purchasing power of the people.

“The Lagos parliament should join its voice with Manufacturers Association of Nigeria to consider the wellbeing of the workers especially with the mantra of Renewed Hope of the current President, Asiwaju Bola Ahmed Tinubu”, he said.

Experts argue that the plastic bottles and sachets their pose a danger to environment and health.

They say, however, the NAFDCA ban should be implemented with a human face in a manner that will engender win-win situation for all stakeholders.  (NANFeatures)

**If used please credit the writer and News Agency of Nigeria.

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