Connect with us

Strictly Personal

Is Nigeria ready for Big League with its refinery? By Tee Ngugi

Published

on

Nigeria has opened one of the largest oil refineries in the world. The country will now produce refined oil products for both local and international consumption.

Despite being Africa’s largest oil producer, Nigeria imports refined oil products and often experiences petrol shortages. This new refinery will not only be a game-changer in the oil and gas sector but should also put the country’s economy on a trajectory of rapid growth.

Energy costs will come down, spurring foreign and domestic investment. The sale of refined oil products will generate billions of dollars, while savings from import substitution can go into building the infrastructure needed to support a fast-growth economy.

If this new windfall is managed well, in addition to diversification into industrialisation, information, communication and technology services and agriculture, Nigeria can double its $400 billion GDP in 10 to 15 years, thereby moving — like China did in the 1990s — millions of poverty-stricken Nigerians into the middle class.

The operative word in that hopeful sentence is “if”. Will the Nigerian leadership see this windfall as an opportunity to rescue their country from the indignities of poverty and underdevelopment or will they see it as a way to increase their personal millions? Will they see it as a way of ending the shame of their citizens drowning in the Mediterranean Sea trying to flee to Europe or will they see it as an opportunity to enrich family and cronies? Will they restore Africa’s waning belief in itself or will it be business of stealing as usual?

Nigeria has no excuse to remain an underdeveloped country with a large impoverished section of the population. In 1956, it discovered oil, yet that discovery did not do for Nigeria what it did for Saudi Arabia when the desert Kingdom discovered oil in the 1930s. In a few decades, Saudi Arabia transformed from a desert wasteland with poor nomadic people into one of the wealthiest countries in the world.

Nigeria has well-educated and enterprising people, yet this advantage has not benefitted the country. Many educated Nigerians have left the country and are now key innovators in ICT, finance and engineering in foreign countries. Nigeria has agricultural and fishing potential, but both sectors have remained underdeveloped because those in charge are otherwise engaged in stuffing their pockets with dollars.

How is it possible that Switzerland, a country of few natural resources and a population of eight million, has a GDP double that of Nigeria, a country of 200 million people endowed with fabulous natural resources?

For a long time, African countries have given this or that excuse for their underdevelopment. But we have always had — some countries more than others — what it takes for an economic take-off. Our Achilles heel is thievery and mismanagement.

If we don’t cure these vices, no matter what windfalls come our way, we will remain the “sick man of the world.”

Tee Ngugi is a Nairobi-based political commentator.

Strictly Personal

African Union must ensure Sudan civilians are protected, By Joyce Banda

Published

on

The war in Sudan presents the world – and Africa – with a test. This far, we have scored miserably. The international community has failed the people of Sudan. Collectively, we have chosen to systematically ignore and sacrifice the Sudanese people’s suffering in preference of our interests.

For 18 months, the Rapid Support Forces (RSF) and the Sudanese Armed Forces (SAF) have fought a pitiless conflict that has killed thousands, displaced millions, and triggered the world’s largest hunger crisis.

Crimes against humanity and war crimes have been committed by both parties to the conflict. Sexual and gender-based violence are at epidemic levels. The RSF has perpetrated a wave of ethnically motivated violence in Darfur. Starvation has been used as a weapon of war: The SAF has carried out airstrikes that deliberately target civilians and civilian infrastructure.

The plight of children is of deep concern to me. They have been killed, maimed, and forced to serve as soldiers. More than 14 million have been displaced, the world’s largest displacement of children. Millions more haven’t gone to school since the fighting broke out. Girls are at the highest risk of child marriage and gender-based violence. We are looking at a child protection crisis of frightful proportions.

In many of my international engagements, the women of Sudan have raised their concerns about the world’s non-commitment to bring about peace in Sudan.

I write with a simple message. We cannot delay any longer. The suffering cannot be allowed to continue or to become a secondary concern to the frustrating search for a political solution between the belligerents. The international community must come together and adopt urgent measures to protect Sudanese civilians.

Last month, the UN’s Independent International Fact-Finding Mission for Sudan released a report that described a horrific range of crimes committed by the RSF and SAF. The report makes for chilling reading. The UN investigators concluded that the gravity of its findings required a concerted plan to safeguard the lives of Sudanese people in the line of fire.

“Given the failure of the warring parties to spare civilians, an independent and impartial force with a mandate to safeguard civilians must be deployed without delay,” said Mohamed Chande Othman, chair of the Fact-Finding Mission and former Chief Justice of Tanzania.

We must respond to this call with urgency.

A special responsibility resides with the African Union, in particular the AU Commission, which received a request on June 21 from the AU Peace and Security Council (PSC) “to investigate and make recommendations to the PSC on practical measures to be undertaken for the protection of civilians.”

So far, we have heard nothing.

The time is now for the AU to act boldly and swiftly, even in the absence of a ceasefire, to advance robust civilian protection measures.

A physical protective presence, even one with a limited mandate, must be proposed, in line with the recommendation of the UN Fact-Finding Mission. The AU should press the parties to the conflict, particularly the Sudanese government, to invite the protective mission to enter Sudan to do its work free from interference.

The AU can recommend that the protection mission adopt targeted strategies operations, demarcated safe zones, and humanitarian corridors – to protect civilians and ensure safe, unhindered, and adequate access to humanitarian aid.

The protection mission mandate can include data gathering, monitoring, and early warning systems. It can play a role in ending the telecom blackout that has been a troubling feature of the war. The mission can support community-led efforts for self-protection, working closely with Sudan’s inspiring mutual-aid network of Emergency Response Rooms. It can engage and support localised peace efforts, contributing to community-level ceasefire and peacebuilding work.

I do not pretend that establishing a protection mission in Sudan will be easy. But the scale of Sudan’s crisis, the intransigence of the warring parties, and the clear and consistent demands from Sudanese civilians and civil society demand that we take action.

Many will be dismissive. It is true that numerous bureaucratic, institutional, and political obstacles stand in our way. But we must not be deterred.

Will we stand by as Sudan suffers mass atrocities, disease, famine, rape, mass displacement, and societal disintegration? Will we watch as the crisis in Africa’s third largest country spills outside of its borders and sets back the entire region?

Africa and the world have been given a test. I pray that we pass it.

Dr Joyce Banda is a former president of the Republic of Malawi.

Continue Reading

Strictly Personal

Economic policies must be local, By Lekan Sote

Published

on

With 32.70 per cent headline inflation, 40.20 per cent food inflation, and bread inflation of 45 per cent, all caused by the removal of subsidies from petrol and electricity, and the government’s policy of allowing market forces to determine the value of the Naira, Nigerians are reeling under high cost of living.

 

The observation by Obi Alfred Achebe of Onitsha, that “The wellbeing of the people has declined more steeply in the last months,” leads to doubts about the “Renewed Hope” slogan of President Bola Tinubu’s government that is perceived as extravagant, whilst asking Nigerians to be patient and wait for its unfolding economic policies to mature.

 

It doesn’t look as if it will abate soon, Adebayo Adelabu, Minister of Power, who seems ready to hike electricity tariffs again, recently argued that the N225 per kilowatt hour of electricity that Discos charge Band A premium customers is lower than the N750 and N950 respective costs of running privately-owned petrol or diesel generators.

 

While noting that 129 million, or 56 per cent of Nigerians are trapped below poverty line, the World Bank revealed that real per capita Gross Domestic Product, which disregards the service industry component, is yet to recover from the pre-2016 economic depression under the government of Muhammadu Buhari.

 

This has led many to begin to doubt the government’s World Bank and International Monetary Fund-inspired neo-liberal economic policies that seem to have further impoverished poor Nigerians, practically eliminated the middle class, and is making the rich also cry.

 

Yet the World Bank, which is not letting up, recently pontificated that “previous domestic policy missteps (based mainly on its own advice) are compounding the shocks of rising inflation (that is) eroding the purchasing power of the people… and this policy is pushing many (citizens) into poverty.”

 

It zeroes in by asking Nigeria to stay the gruelling course, which Ibukun Omole thinks “is nothing more than a manifesto for exploitation… a blatant attempt to continue the cycle of exploitation… a tool of imperialism, promoting the same policies that have kept Nigeria under the thumb of… neocolonial agenda for decades.”

 

When Indermilt Gill, Senior Vice President of the World Bank, told the 30th Summit of Nigeria’s Economic Summit Group, in Abuja, Federal Capital Territory, that Nigerians may have to endure the harrowing economic conditions for another 10 to 15 years, attendees murmured but didn’t walk out on him because of Nigerian’s tradition of politeness to guests.

 

Governor Bala Muhammed of Bauchi State, who agrees with the World Bank that “purchasing power has dwindled,” also thinks that “these (World Bank-inspired) policies, usually handed down by arm-twisting compulsions, are not working.”

 

What seems to be trending now is the suggestion that because these neo-liberal policies do not seem to be helping the economy and the citizens of Nigeria, at least in the short term, it would be better to think up homegrown solutions to Nigeria’s economic problems.

 

Late Speaker of America’s House of Representatives, Tip O’Neill, is quoted to have quipped that, at the end of the day, “All politics is local.” He may have come to that conclusion after observing that it takes the locals in a community to know what is best for them.

 

This aphorism must apply to economics, a field of study that is derived from sociology, which is the study of the way of life of a people. Proof of this is in “The Wealth of Nations,” written by Adam Smith, who is regarded as the first scholar of economics.

 

In his Introduction to the Penguin Classics edition of “The Wealth of Nations,” Andrew Skinner observes: “Adam Smith was undoubtedly the remarkable product of a remarkable age and one whose writing clearly reflects the intellectual, social and economic conditions of the period.”

 

To drive the point home that Smith’s book was written for his people and his time, Skinner reiterated that “the general ‘philosophy,’ which it contained was so thoroughly in accord with the aspirations and circumstances of his age.”

 

In a Freudian slip of the Darwinist realities of the Industrial Revolution that birthed individualism, capitalism, and global trade, Smith averred that “How selfish soever man may be supposed, there are evidently some principle in his nature which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasures of seeing it.”

 

And, he let it slip that capitalism is for the advantage of Europe when he confessed that “Europe, by not leaving things at perfect liberty (the so-called Invisible Hand), occasions… inequities,” by “restraining the competition in some trades to a smaller number… increasing it in others beyond what it naturally would be… and… free circulation of labour (or expertise) and stocks (goods) both from employment to employment and from place to place!”

 

Policymakers, who think Bretton Woods institutions will advise policies to replicate the success of the Euro-American economy in Nigeria must be daydreaming. After advising elimination of subsidy, as global best practices that reflect market forces, they failed to suggest that Nigeria’s N70,000 monthly minimum wage, neither reflects the realities of the global marketplace, nor Section 16(2,d) of Nigeria’s Constitution, which suggests a “reasonable national minimum living wage… for all citizens.”

 

After Alex Sienart, World Bank’s lead economist in Nigeria, pointed out that the wage increase will directly affect the lives of only 4.1 per cent of Nigerians, he suggested that Nigeria needed more productive jobs to reduce poverty. But he neither explained “productive jobs,” nor suggested how to create them.

 

In admitting past wrong economic policies that the World Bank recommended for Nigeria, its former President, Jim Yong Kim, confessed, “I think the World Bank has to take responsibility for having emphasized hard infrastructure –roads, rails, energy– for a long time…

 

“There is still the bias that says we will invest in hard infrastructure, and then we grow rich, (and) we will have enough money to invest in health and education. (But) we are now saying that’s the wrong approach, that you’ve got to start investing in your people.”

 

Kim is a Korean-American physician, health expert, and anthropologist, whose Harvard University and Brown University Ivy League background shapes his decidedly “Pax American” worldview of America’s dominance of the world economy.

 

Despite his do-gooder posturing, his diagnoses and prescriptions still did not quite address the root cause of Nigeria’s economic woes, nor provide any solutions. They were mere diversions that stopped short of the way forward.

 

He should have advocated for the massive accumulation of capital and investments in the local production of manufacturing machinery, industrial spare parts, and raw materials—items that are currently imported, weakening Nigeria’s trade balance.

 

He should have pushed for the completion of Ajaokuta Steel Mill and helped to line up investors with managerial, technical, and financial competence to salvage Nigeria’s electricity sector, whose poor run has been described by Dr. Akinwumi Adesina, President of Africa Development Bank, as “killing Nigerian industries.”

 

He could have assembled consultants to accelerate the conversion of Nigeria’s commuter vehicles to Compressed Natural Gas and get banks of the metropolitan economies, that hold Nigeria’s foreign reserves in their vaults, to invest their low-interest funds into Nigeria’s agriculture— so that Nigeria will no longer import foodstuffs.

 

Nigerians need homegrown solutions to their economic woes.

Continue Reading

EDITOR’S PICK

Musings From Abroad3 hours ago

Military advisors from Russia arrive Equatorial Guinea

Russian military advisors are in Equatorial Guinea training indigenous soldiers. Anonymous sources cited by Reuters during the week claim that...

VenturesNow3 hours ago

Food prices drive second straight monthly hike in Nigeria’s inflation

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to...

Metro3 hours ago

Morocco’s Mpox test gets African CDC endorsement

A major step forward in Africa’s response to the continuing epidemic was taken Thursday when the Africa Centres for Disease...

VenturesNow3 hours ago

MTN financial report reveals drop in group service revenue

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced...

VenturesNow3 hours ago

Nigeria’s $700bn mining potential attracts investors worldwide

Diplomatic sources cited in a local report have claimed that global investors are interested in Nigeria’s mining sector reforms under...

Sports4 hours ago

South Africa FA President Danny Jordaan detained. Here’s why

Danny Jordaan, the president of the South African Football Association (SAFA), was taken into custody on Wednesday on suspicion of...

Uncategorized4 hours ago

Ivory Coast to create $500 million green financing fund

Ivory Coast will establish a $500 million green financing fund to assist sustainable growth, the IMF said. Africa’s 54 countries...

Musings From Abroad4 hours ago

Russia claims African, ex-Soviet nations want its mpox vaccine

Several African and former Soviet nations have shown interest in purchasing Russia’s smallpox and Mpox virus vaccine, testing equipment, and...

Metro4 hours ago

Mpox immunisation scarcity slows Kinshasa’s epidemic fight

A lack of mpox vaccine doses has prevented the Democratic Republic of the Congo from starting a campaign in the...

Metro8 hours ago

Nigeria has become a ‘failing state’ under Tinubu— Ex-President Obasanjo

YFormer Nigerian President, Olusegun Obasanjo, has described the country under incumbent President Bola Tinubu as a “failing state” which is...

Trending