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Nigerian social register – A genius idea or mere self-delusion? By ‘Tope Fasua

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Still, on the subject of Nigeria’s social register, people like me had expressed cynicism about its veracity for several reasons when the Federal Government had attempted to rely on this register for the purpose of cash transfer to 12 million families with a view to targeting about 60 million people. I offered instead that if the World Bank loan must be taken and spent to ASSUAGE IMMEDIATE issues caused by the very bold reforms embarked upon by the Tinubu administration, the government should rather consider a food purchase and distribution program which means that governments should purchase from local farmers and distribute to deficit units around the country. This will help in opening up our rural areas and releasing the spurt of growth that Nigeria requires, eradicate post-harvest losses, put money in the hands of farmers in exchange for goods, thereby increasing productivity and the GDP, target improved nutrition for children around the country, encourage the building of infrastructure to these rural areas, catalyse the government’s food security policy, and reduce food inflation, among other benefits. I showed evidence of what was being done in this regard in capitalist countries so that no one will call it a socialist idea.

 

On another occasion, I have pointed out that perhaps our government does not need to go a-borrowing, certainly not for the purpose of providing palliatives for our millions of poor people who have been displaced even more by the recent biting neo-liberal policies. There is an organisation called the National Social Insurance Trust Fund (NSITF), which by its name was established for the purpose of providing social insurance for Nigerians that are down on their luck. Every year, this fund collects a percentage of the profits of every tax-paying company. At every point in time, chances are that the fund sits on trillions of Naira for which it has no genuine purpose, having deliberately moved away from its set objective of social insurance. What we hear from that agency is stories of corruption and embezzlement. The new administration should show seriousness in going after this organization and getting it to perform its set duties – and not what it now claims to do (providing money for workers who have accident ON THE JOB). NSITF has fraudulently twisted its objective to serve a few factory workers who bother to make claims on it. It serves a handful of people every year but collects money from hundreds of thousands of companies. Every management team that has been appointed in the last two decades seem to have gone insane the moment they see the amount of money they sit on in their bank accounts, and promptly proceeded to help themselves. Almost all have been sacked for financial malfeasance. And Ministers of Labour have used the NSITF – which is meant to be our own social protection like the British DOLE system, as slush fund.

And it is not only the NSITF sitting on money. There are many parastatals, known and unknown, who are sitting on huge stashes collected from taxpaying Nigerians, but whose management are cavalierly “largessing” on such funds with the connivance of government at the highest level. Rather than run cap in hand from World Bank to IMF, collecting toxic loans that will not augur well for the country and its people, I urge the government to look into these funds and commence immediate placation of the people of Nigeria. I understand that somewhere in Adamawa State people started looting warehouses. The administration should not forget the lessons of ENDSARs too quickly. We should understand that the people have tasted blood – they have looted and got away with it in the past. It was sweet for many. They have even faced up to law enforcement agents and liquidated a few. God forbid that they plan a repeat of October 2020, or someone instigates them to it. Opposition will of course do whatever it takes to discredit the government (any wonder why we are hearing about Adamawa?). But Tinubu should not give a desperate opposition grounds for exploiting the anger of the people. It cannot be couched in sweet words; the reformed are rather harsh, and too rapid. I particularly think the Naira floating policy is a terrible policy coming so soon after the fuel deregulation. I think Nigeria was conned by smart alecs who had since taken position with the US Dollar. Now it looks like the policy may unravel. Sad.

But some folks who were at the centre of the World Bank-led effort to collate a social register protested rather subtly after the governors, led by Professor Chukwuma Soludo also dismissed the idea of this National Social Register. A few of them have offered explanations as to how this register was collated and the painstaking effort which to them may have resulted in what they believe is a sound document. They explained how the register was developed from the ground up, depending on state government and how the World Bank was involved. They speak about a transparent process. I quote from Mr Waziri Adio, former Director General of Nigeria Extractive Industry Transparency Initiative (NEITI), who wrote in Premium Times on the said topic:

“The starting point for identifying the poor and the vulnerable in each state is the Nigeria Living Standards Survey (NLSS) conducted by the National Bureau of Statistics (NBS). The NLSS contains comprehensive socio-economic and demographic data and is used by the state teams to identify the areas with high incidence of poverty in each state. This is the geographic approach for targeting used for the social register… The second layer, and the core of the process, is Community-Based Targeting (CBT) where the task of identifying the poor and the vulnerable households in the different communities is devolved to the community members. This participatory process is led by a CBT team, usually made of a community development officer, a National Orientation Agency (NOA) officer, an agricultural extension officer, a women/social development officer and two enumerators… The CBT teams are divided into two groups: targeting officers and enumerators. The targeting officers handle the interface with the communities while the enumerators collect the required data on the households. The teams follow a four-step process: pre-sensitisation visits, sensitisation and mobilisation, community engagement and actual enumeration… The last stage is Proxy Means Testing (PMT) where data gathered by the enumerators is used to create a proxy of incomes and needs of the households and to rank them into deciles of the poorest and the most vulnerable in each community. All these are done at the state level before being transferred to the NSR. It is clear that some thought actually went into designing the process and the methodology of putting the register together… As at the last count, the NSR covers 748 of the 774 LGAs in the country, 174, 406 communities, 15.67 million households, and 62.69 million individuals in the country. The 15.67 million households covered so far represent the poorest of the poor, not all of the poor in the country.”

From this extensive quote of the effort by Mr Adio to enlighten our publics, it looks like a fairly good job was done in trying to put together a register. But when we stand back and consider what had been presented, a few questions cannot but pop into mind:

Why had the register not been made public? Some people raised an issue about privacy when I asked this question somewhere else. I asked them whether people who are so poor such that N5,000 monthly will matter to them would care about privacy… except if they are obtaining such money by false pretense. Of course, going by the INEC register, which if fraught with errors, irrelevancy, and massive falsification, Nigerians are right to believe that any register emanating through or by government will be designated for fraud and falsified. We do have a serious trust deficit between government and the people and so any government must be prepared to work extra clean and extra hard to regain credibility.
Why did we have to depend on World Bank again? As much as we too do not trust ourselves to do the right thing – even in government – we also cannot ignore the fact that the objectives of the World Bank and other such agencies may not align with ours. Recall that I wrote in my last published writeup that the WB wanted us to give cash to the people on this social register – a policy that has now been stepped down.
If this social register is so good, why are we not leveraging on it to spend much less for our upcoming national census. If the team so put together has been able to go round the country and collated 63 million poor people who are even more difficult to get to submit to any form of documentation, would it not be considered that the hardest part of a census job has been already concluded and now we may then collate the numbers of well-to-do folks and add up? Why are we hearing of humongous amounts to be budgeted for national census? Research showed that in the year 2021 World Bank approved a loan of $800 million for Nigeria, from which the census was done and from which the recent handouts were supposed to be taken. Are we saying the massive world-breaking register was done from that same loan, with enough left to distributed to 60 millions souls through 12 million families, N8,000 monthly and more left for the National Assembly and National Judicial Commission to share on their luxuries.
From what the proponents of the register have said, the register had been used as point of contact with 12 million FAMILIES who were getting cash transfers very constantly since then. But if such an amount has been disbursed consistently in spite of its paltriness to that number of people in a solid register, by now it ought to have trickled down massively and created a major buzz in the economy. My people say you cannot but recognise the passing by of an elephant. Trickles of water make a massive pond. Why are the people still angry and hungry?
The collated figure of 69 million people in the register should be correlated with our other databases. We have 90 million Nigerians registered for National Identification Number (NIN), 96 million in INEC’s dirty register from which they delist no names – not even those who died 20 years ago, and 56 million in BVN. These numbers have made people like me doubt Nigeria’s much touted 210 million population. In all of that, how was Nigeria able to record only 25.3 million voters in a keenly contested election, twenty years after we recorded 42 million for the same election?

Development professionals like to say ‘if you cannot measure it, you cannot improve it’. But counting ourselves and presenting reliable statistics has always been our problem in Nigeria. If anyone said we have a great database somewhere, it ought to be examined and celebrated so long as we can answer some of the above questions. But when I listened to the Borno State coordinator of the social investment program, Aisha Umar, on TV, she said at the last mile, a load of cash is taken by the team referred to above, to be disbursed to people in the bush who have non account. This is contrary to the claims of Reverend David Ugolor of ANEEJ (a consultant involved in the same problem), who said that they have achieved 80% financial inclusion meaning that everyone has an account. Many things just do not smell right.

But while we are still struggling to figure things out, and considering the fact that we really do need to move swiftly to comfort our people, I will still proffer my own option around raiding some of Nigeria’ slush funds like the NSITF and others, and also considering a food distribution program that patronises our farmers, empowers them, reboots our economy right from the base, converts a moment of disadvantage into one of great advantage, aside from creating millions of new jobs. And we don’t need as loan to do that. N500 billion divided into 774 local government for this food program translates to N645 million per local government. Imagine such cashflows getting into the hands of our farmers? Imagine how many more people will rush home, back to their farms? Imagine how much more prestigious it will be to be a farmer? Imagine the eradication of post-harvest losses in the land? And it is not every local government that is rural anyway. Many are urban and will not need that much intervention in the agric sector. Honestly, it’s time to think again and create a new economy from the base.

Strictly Personal

Air Peace, capitalism and national interest, By Dakuku Peterside

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Nigerian corporate influence and that of the West continue to collide. The rationale is straightforward: whereas corporate activity in Europe and America is part of their larger local and foreign policy engagement, privately owned enterprises in Nigeria or commercial interests are not part of Nigeria’s foreign policy ecosystem, neither is there a strong culture of government support for privately owned enterprises’ expansion locally and internationally.

The relationship between Nigerian businesses and foreign policy is important to the national interest. When backing domestic Nigerian companies to compete on a worldwide scale, the government should see it as a lever to drive foreign policy, and national strategic interest, promote trade, enhance national security considerations, and minimize distortion in the domestic market as the foreign airlines were doing, boost GDP, create employment opportunities, and optimize corporate returns for the firms.

Admitted nations do not always interfere directly in their companies’ business and commercial dealings, and there are always exceptions. I can cite two areas of exception: military sales by companies because of their strategic implications and are, therefore, part of foreign and diplomatic policy and processes. The second is where the products or routes of a company have implications for foreign policy. Air Peace falls into the second category in the Lagos – London route.

Two events demonstrate an emerging trend that, if not checked, will disincentivize Nigerian firms from competing in the global marketplace. There are other notable examples, but I am using these two examples because they are very recent and ongoing, and they are typological representations of the need for Nigerian government backing and support for local companies that are playing in a very competitive international market dominated by big foreign companies whose governments are using all forms of foreign policies and diplomacy to support and sustain.

The first is Air Peace. It is the only Nigerian-owned aviation company playing globally and checkmating the dominance of foreign airlines. The most recent advance is the commencement of flights on the Lagos – London route. In Nigeria, foreign airlines are well-established and accustomed to a lack of rivalry, yet a free-market economy depends on the existence of competition. Nigeria has significantly larger airline profits per passenger than other comparable African nations. Insufficient competition has resulted in high ticket costs and poor service quality. It is precisely this jinx that Air Peace is attempting to break.

On March 30, 2024, Air Peace reciprocated the lopsided Bilateral Air Service Agreement, BASA, between Nigeria and the United Kingdom when the local airline began direct flight operations from Lagos to Gatwick Airport in London. This elicited several reactions from foreign airlines backed by their various sovereigns because of their strategic interest. A critical response is the commencement of a price war. Before the Air Peace entry, the price of international flight tickets on the Lagos-London route had soared to as much as N3.5 million for the  economy ticket. However, after Air Peace introduced a return economy class ticket priced at N1.2 million, foreign carriers like British Airways, Virgin Atlantic, and Qatar Airways reduced their fares significantly to remain competitive.

In a price war, there is little the government can do. In an open-market competitive situation such as this, our government must not act in a manner that suggests it is antagonistic to foreign players and competitors. There must be an appearance of a level playing field. However, government owes Air Peace protection against foreign competitors backed by their home governments. This is in the overall interest of the Nigerian consumer of goods and services. Competition history in the airspace works where the Consumer Protection Authority in the host country is active. This is almost absent in Nigeria and it is a reason why foreign airlines have been arbitrary in pricing their tickets. Nigerian consumers are often at the mercy of these foreign firms who lack any vista of patriotism and are more inclined to protect the national interest of their governments and countries.

It would not be too much to expect Nigerian companies playing globally to benefit from the protection of the Nigerian government to limit influence peddling by foreign-owned companies. The success of Air Peace should enable a more competitive and sustainable market, allowing domestic players to grow their network and propel Nigeria to the forefront of international aviation.

The second is Proforce, a Nigerian-owned military hardware manufacturing firm active in Rwanda, Chad, Mali, Ghana, Niger, Burkina Faso, and South Sudan. Despite the growing capacity of Proforce in military hardware manufacturing, Nigeria entered two lopsided arrangements with two UAE firms to supply military equipment worth billions of dollars , respectively. Both deals are backed by the UAE government but executed by UAE firms.

These deals on a more extensive web are not unconnected with UAE’s national strategic interest. In pursuit of its strategic national interest, India is pushing Indian firms to supply military equipment to Nigeria. The Nigerian defence equipment market has seen weaker indigenous competitors driven out due to the combination of local manufacturers’ lack of competitive capacity and government patronage of Asian, European, and US firms in the defence equipment manufacturing sector. This is a misnomer and needs to be corrected.

Not only should our government be the primary customer of this firm if its products meet international standards, but it should also support and protect it from the harsh competitive realities of a challenging but strategic market directly linked to our national military procurement ecosystem. The ability to produce military hardware locally is significant to our defence strategy.

This firm and similar companies playing in this strategic defence area must be considered strategic and have a considerable place in Nigeria’s foreign policy calculations. Protecting Nigeria’s interests is the primary reason for our engagement in global diplomacy. The government must deliberately balance national interest with capacity and competence in military hardware purchases. It will not be too much to ask these foreign firms to partner with local companies so we can embed the technology transfer advantages.

Our government must create an environment that enables our local companies to compete globally and ply their trades in various countries. It should be part of the government’s overall economic, strategic growth agenda to identify areas or sectors in which Nigerian companies have a competitive advantage, especially in the sub-region and across Africa and support the companies in these sectors to advance and grow to dominate in  the African region with a view to competing globally. Government support in the form of incentives such as competitive grants ,tax credit for consumers ,low-interest capital, patronage, G2G business, operational support, and diplomatic lobbying, amongst others, will alter the competitive landscape. Governments  and key government agencies in the west retain the services of lobbying firms in pursuit of its strategic interest.

Nigerian firms’ competitiveness on a global scale can only be enhanced by the support of the Nigerian government. Foreign policy interests should be a key driver of Nigerian trade agreements. How does the Nigerian government support private companies to grow and compete globally? Is it intentionally mapping out growth areas and creating opportunities for Nigerian firms to maximize their potential? Is the government at the domestic level removing bottlenecks and impediments to private company growth, allowing a level playing field for these companies to compete with international companies?

Why is the government patronising foreign firms against local firms if their products are of similar value? Why are Nigerian consumers left to the hands of international companies in some sectors without the government actively supporting the growth of local firms to compete in those sectors? These questions merit honest answers. Nigerian national interest must be the driving factor for our foreign policies, which must cover the private sector, just as is the case with most developed countries. The new global capitalism is not a product of accident or chance; the government has choreographed and shaped it by using foreign policies to support and protect local firms competing globally. Nigeria must learn to do the same to build a strong economy with more jobs.

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Strictly Personal

This is chaos, not governance, and we must stop it, By Tee Ngugi

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The following are stories that have dominated mainstream media in recent times. Fake fertiliser and attempts by powerful politicians to kill the story. A nation of bribes, government ministries and corporations where the vice is so routine that it has the semblance of policy. Irregular spending of billions in Nairobi County.

 

Billions are spent in all countries on domestic and foreign travel. Grabbing of land belonging to state corporations, was a scam reminiscent of the Kanu era when even public toilets would be grabbed. Crisis in the health and education sectors.

 

Tribalism in hiring for state jobs. Return of construction in riparian lands and natural waterways. Relocation of major businesses because of high cost of power and heavy taxation. A tax regime that is so punitive, it squeezes life out of small businesses. Etc, ad nauseam.

 

To be fair, these stories of thievery, mismanagement, negligence, incompetence and greed have been present in all administrations since independence.

 

However, instead of the cynically-named “mama mboga” government reversing this gradual slide towards state failure, it is fuelling it.

 

Alternately, it’s campaigning for 2027 or gallivanting all over the world, evoking the legend of Emperor Nero playing the violin as Rome burned.

 

A government is run based on strict adherence to policies and laws. It appoints the most competent personnel, irrespective of tribe, to run efficient departments which have clear-cut goals.

 

It aligns education to its national vision. Its strategies to achieve food security should be driven by the best brains and guided by innovative policies. It enacts policies that attract investment and incentivize building of businesses. It treats any kind of thievery or negligence as sabotage.

 

Government is not a political party. Government officials should have nothing to do with political party matters. They should be so engaged in their government duties that they literally would not have time for party issues. Government jobs should not be used to reward girlfriends and cronies.

 

Government is exhausting work undertaken because of a passion to transform lives, not for the trappings of power. Government is not endless campaigning to win the next election. To his credit, Mwai Kibaki left party matters alone until he had to run for re-election.

 

We have corrupted the meaning of government. We have parliamentarians beholden to their tribes, not to ideas.

 

We have incompetent and corrupt judges. We have a civil service where you bribe to be served. Police take bribes to allow death traps on our roads. We have urban planners who plan nothing except how to line their pockets. We have regulatory agencies that regulate nothing, including the intake of their fat stomachs.

 

We have advisers who advise on which tenders should go to whom. There is no central organising ethos at the heart of government. There is no sense of national purpose. We have flurries of national activities, policies, legislation, appointments which don’t lead to meaningful growth. We just run on the same spot.

 

Tee Ngugi is a Nairobi-based political commentator

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