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10 Challenges Facing Buhari

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Muhammadu Buhari, Nigeria’s president
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President Muhammdau Buhari faces a tough battle to diversify an economy reliant on oil and hampered by terrorism and endemic corruption. Buhari won the 2015 election as a self-described “converted democrat,”took over from Goodluck Jonathan.

However, it’s not the first time he has led the Nigeria—he ruled as dictator between 1983 and 1985, after taking power in a coup.

But below are some of the top challenges the new leader of Africa’s most populous nation faces:

1. Too much oil, not enough fuel
The crisis caused this week by fuel shortages will make this the topmost item in Gen Buhari’s in-tray, but the problems in Nigeria’s oil and gas industry are more fundamental.
Nigeria is among the top 10 oil producers in the world and Africa’s leader, pumping 2.5 million barrels of oil out of the ground every day.
It is also one of the leading importers of petroleum products because its four refineries have long been run down through corruption and mismanagement, leading to an inefficient and wasteful subsidy system behind the regular fuel shortages.
Gen Buhari must find ways to divert the wasteful fuel-import subsidies into refurbishment of Nigeria’s oil refineries and sell some government stakes to bring in foreign investment and technical know-how.

2. Powered by generators
The fuel shortages this week exposed another chronic energy security problem in Nigeria: the country is powered by generators. A regular soundtrack to the hum and din of Nigeria’s cities is the diesel symphony of millions of generators purring away, powering everything from lights to water pumps to air conditioning units.
A quick solution to more stable power supply is to set up heavy thermal power plants fed by the country’s oil, but the power grid is in need of refurbishment and investment.
Official figures show that Nigeria requires about 40,000 megawatts of electricity for its population of more than 100 million.
It only produces a little more than 3,000 megawatts and this dropped to less than 1,200 megawatts during the recent crisis as 18 out of the 23 power stations were forced to shut down for lack of fuel.

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3. Boko Haram Inc.
The high level of insecurity since 2009 had become worrisome, starting with the menace of Niger Delta militant groups, but the Boko Haram insurgents in the north east have turned insecurity into a national crisis with terror attacks across the country.
As a Muslim leader from the north and with a military background, Gen Buhari has the credentials to get the Nigerian military back into fighting shape and seize the initiative against the insurgents, who have killed upwards of 10,000 people in a few years.
Rescuing the 200 girls captured from Chibok will be a psychological victory, but stamping out extremist views will take a lot more firepower and smarter anti-radicalisation policies.

4.Corruption
Many Nigerians complain about being stereotyped over corruption, and with some merit; you are more likely to be hacked by a Bulgarian or Russian gang.
However, Gen Buhari acknowledges that corruption is a big problem in Nigeria, as does Transparency International, which ranks only 39 countries out of 175 as being more corrupt than Nigeria.
Gen Buhari has promised a crackdown, but as a civilian leader, he is unlikely to resort to the executions he ordered against corrupt officials in his 20 months in office as a military dictator from 1983.
A good place to start is the $20 billion that former Nigeria Central Bank Governor Sanusi Lamido said was stolen from the country’s oil revenue account. The figure is contested; the extent of graft is not.

5. Education’s missing children
As with many African countries, Nigeria’s public education system is wobbling under large numbers, poor policies, poorly paid teachers, and poor facilities. Many move their children to the mushrooming and expensive private schools as soon as they can afford it. Most of the country’s 69 federal and state universities and institutions of higher learning are full.
Of the more than 1.4 million qualified candidates who write the matriculation examination yearly, fewer than 230,000, or less than two in 10, are placed.

6. No jobs
Thanks to the high drop-out rate, an education system that produces graduates ill-suited to the job market, and an economy growing without producing enough jobs, unemployment has been on the rise in Nigeria for many years.
This has been exacerbated by the lack of deliberate job-creation programmes; a high cost of doing business that has forced the relocation of industries, and non-payment of contractors.
The unemployment figure has been put at between 20 million and 24 million – about the entire combined population of Benin, Gambia, Gabon and Togo.

7. National debt
When the previous government took power, it inherited zero national debt. It leaves the country with more than $30 billion debt, according to Finance minister Ngozi Okonjo-Iweala.
This debt is likely to expand further as the government invests in energy and transport infrastructure, but Gen Buhari must make earlier investments work to provide the tax revenue the government needs to repay its creditors.

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8. Big economy, small base
Gen Buhari needs to find a way to wean Nigeria off oil and gas which account for more than 90 per cent of the total export revenues and 70 per cent of the tax revenues.
The recent slump in world crude oil prices has hit Nigeria’s tax revenues, export earnings and national reserves hard, and contributed to the Naira sliding from N160 to N221 to the dollar since November 2014.
To cure Nigeria’s Dutch disease, Gen Buhari must force through reforms to attract investments in the agricultural, services and manufacturing sector. The new government must use oil as the means to, not the end of, economic growth.

9. Big country, bloated government
Gen Buhari must find ways to cut down the size and cost of public administration. A mismatch between revenues and expenditures has seen 28 out of the 36 states fail or struggle to pay salaries.
Some 70 per cent of the Nigeria’s budget is devoted to recurrent expenditure, most of it wages. Although the country presently has 42 ministers for its 22 ministries, these are swollen by large retinues of aides, assistants and other political appointees.
In a megalomaniac society such as Nigeria, it is hard to think of a lean and efficient government, yet that is precisely what the country needs to work its way out of its difficulties.

10. Sleeping African giant
Finally, the Gen Buhari administration must take Nigeria’s rightful place alongside South Africa at the head of the African table. The country has long punched below its weight on continental issues.
With South Africa showing signs of uncertainty and hamstrung by a xenophobic outlook by some of its people towards the rest of the continent, Nigeria has an opportunity to emerge as the leader among African nations.
With the right diplomatic outreach in Ecowas, SADC and the East African Community, Gen Buhari might find that his election as President of Nigeria gives him a platform to shape continental policy. Africa is watching him and his government.

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ITUC-Africa Faults FG’s Plans to Remove Electricity Subsidy

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International Trade Union Confederation, (ITUC-Africa), representing trade unions from countries in Africa, has called on Nigeria and other African governments to ensure that industrialisation translates into improved living standards for workers and ordinary citizens.

ITUC-Africa Faults FG’s Plans to Remove Electricity Subsidy

According to ITUC-Africa, economic growth must lift Nigerians and other Africans out of poverty rather than deepen inequality, frowning at Nigeria’s government plans to remove subsidy on electricity.

Delivering his opening remarks at the New Energy for Africa 11 Convening: African Workers’ Contributions to Energy Sovereignty, Green Industrialization, and a  Common African for COP31, Akhator Joel Odigie, general secretary of ITUC-Africa, said, industrialisation remains central to Nigeria and Africa’s liberation and development agenda but warned that it would be meaningless if it failed to improve the welfare of the continent’s people.

He faulted the plans by the Nigerian government to remove so-called subsidy on electricity in 2027, arguing that it is aimed at satisfying the Bretton Woods institutions such as the International Monetary Fund, IMF, and the World Bank.

According to him, such removal would worsen the poverty rate in Nigeria and regress any marginal progress towards industrialisation. Subsidy removal will make electricity inaccessible to workers and the majority of the citizens.

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He said, “As we speak now, Nigeria is talking of subsidy removal on electricity. The plan is not to satisfy or help Nigerians, but IMF, World Bank and other donor countries. The talk that subsidy is bad economics is a lie. All developed economies depended on public sector-driven electricity and not private sector.

“For us as Africans, industrialisation is central to our liberation and development. It is part of our aspiration to define our own identity and achieve shared prosperity through an industrialised Africa. Unfortunately, that vision has yet to be realised.

“We have also come to understand that lamenting our circumstances is not enough. Identifying the barriers to Africa’s development or pointing fingers at those who may be responsible does not move us forward. The more important question is: What next? What solutions can we pursue together?

“It is from that perspective that we confront the reality that more than 600 million Africans still lack access to electricity, while privatisation continues to deny many people affordable access to energy. This compels us to ask: What can we do differently?”

According to him, organised labour believes industrialisation can be achieved without worsening the climate crisis if governments, workers and development partners commit to energy justice.

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Odigie noted that “When we speak about sustainable industrialisation, we are asking how Africa can industrialise without increasing environmental degradation or worsening the climate challenges our people already experience every day.

“We know this is possible. But it will require negotiation, compromise and genuine partnerships. It demands serious discussions on technology transfer, skills development and financing.”

He stressed that developing technical skills and mobilising investment for energy infrastructure are essential if Africa is to industrialise sustainably, saying “These are not impossible skills to acquire. With the right investment and commitment, Africa can build them. Equally important is access to finance and the resources needed to develop the infrastructure that will support sustainable industrialisation.

“An industrialised Africa has little meaning if it does not improve the lives of our people. Our vision is an Africa where prosperity is shared.

“We must reverse the growing phenomenon of the working poor. We must end the situation where women, children and older persons bear the greatest burden whenever governments attempt to balance national budgets.

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“What does prosperity mean if ordinary people cannot enjoy a decent quality of life? A worker who returns home after a long day’s work should be able to switch on a fan during hot weather, watch television, listen to the news and spend meaningful time with family because electricity is available, reliable and affordable.

“If our people cannot enjoy these basic necessities, then what kind of prosperity are we really talking about?

“Energy justice means energy that is accessible, affordable and capable of improving people’s lives.”

Odigie also renewed ITUC-Africa’s campaign for stronger public participation in Africa’s energy sector, citing Finland as an example of how governments can ensure affordable electricity while working with private investors.

“Recently, we visited Finland, where we observed a successful model that combines public and private participation, with strong public leadership. Energy there is affordable. In fact, electricity costs less in Finland than it does here in Nairobi.

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“Our hosts explained that this is possible because the state retains an important role in the energy sector, including the ability to influence pricing to ensure affordability for everyone.”

Ahead of the COP31 climate negotiations, he called for closer collaboration between organised labour and the African Group of Negotiators (AGN), saying trade unions are partners in governance rather than adversaries.

“Trade unions are not antagonistic to governments, even though we are sometimes misunderstood.

“Our responsibility is to strengthen accountability and help governments perform better because, from time to time, leaders can become too comfortable.”

Using a metaphor that drew applause from participants, Odigie likened the role of trade unions to keeping leaders “close to the fire.”

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“Our responsibility is to keep the feet of our leaders close to the fire so that their heads do not become too cold. We want them to continue thinking clearly, making sound decisions and remaining connected to the realities faced by ordinary people.

“That is why we are not in opposition. We are not enemies.”

He said organised labour’s partnership with the AGN is intended to ensure African governments enter international climate negotiations with the full backing of workers across the continent.

Speaking, Dr Nana Amoah, chair of the African Group of Negotiators, AGN, said Africa’s energy transition presents both an urgent challenge and a historic opportunity, lamenting that “More than 600 million Africans still lack access to electricity, even though our continent possesses exceptional solar, wind, hydro and geothermal resources. Yet Africa continues to receive only a very small share of global clean-energy investment.”

Represented by Dr George Manful, AGN Senior Advisor,  Amoah, said: “This imbalance must be corrected if the transition is to support Africa’s development rather than reproduce existing patterns of dependence, extraction and inequality.

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“For the African Group of Negotiators, a just transition cannot be measured solely by installed megawatts, emissions reductions or new electricity connections. It must also be measured by the quality of jobs created, affordability of energy, protection of workers, participation of women and young people, development of local industries, and the capacity of African countries to retain value from their natural resources.

“Initiatives such as Mission 300 must therefore go beyond expanding access. They must strengthen public institutions, mobilise affordable and debt-sensitive finance, support local manufacturing and skills development, and guarantee that no worker, community or vulnerable group is left behind.

“Africa’s critical minerals must similarly become a foundation for green industrialisation—not another chapter of raw-material extraction. Our policies must promote local processing, technology transfer, decent work, environmental integrity and equitable participation in global value chains.”

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Many Nigerian Airlines May Collapse within 30 Days  – Onyema

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Allen Onyema, vice chairman, Airline Operators of Nigeria (AON) and chairman, Air Peace, has warned that several domestic airlines could cease operations within the next 30 days unless the federal government urgently intervenes in the challenges confronting the aviation industry.

Many Nigerian Airlines May Collapse within 30 Days  – Onyema

Allen Onyema

Onyema, gave the warning on Wednesday at the launch of the book, Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole, held in Lagos.

He described the aviation industry as capital-intensive but less rewarding, warning that airlines are facing serious threats to their survival.

“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding. Today, we are facing a phase that has existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Onyema said.

The Air Peace chairman also cautioned aviation unions against their planned picketing of airlines over the non-remittance of the five per cent Ticket Sales Charge.

He warned that if any airline is picketed, other domestic carriers would suspend operations in solidarity.

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“If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt,” he said.

Onyema lamented the harsh operating environment for Nigerian airlines, noting that more than 50 airlines have shut down over the years.

“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation. Over 50 airlines have come and gone. The owners of these airlines succeeded in other businesses, yet they failed in airline business,” he said.

He stressed that airlines were not opposed to helping the government generate revenue but called for a more sustainable approach.

“The airlines are not against helping government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for government,” Onyema added.

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QNET Denies Links to Ignite, Backs Nigeria Immigration Service Crackdown on Alleged Fraud Syndicate

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QNET has denied any association with Ignite following the arrest of 12 individuals by the Nigeria Immigration Service (NIS) over alleged fraudulent recruitment, irregular migration and other unlawful activities.

QNET Denies Links to Ignite, Backs Nigeria Immigration Service Crackdown on Alleged Fraud Syndicate

QNET

In a statement issued on Tuesday, the direct-selling company described reports referring to the suspects as belonging to a “QNET/IGNITE network” as inaccurate, stressing that Ignite is an entirely separate entity with no relationship to QNET.

The company stated that Ignite is neither part of QNET nor authorised to conduct any business or activities on its behalf.

QNET urged media organisations, commentators and members of the public to avoid linking the two organisations, warning that such reports could mislead the public and unfairly associate the company with alleged criminal activities beyond its control.

According to the company, it has fully cooperated with the Nigeria Immigration Service and will continue to provide any relevant information required as investigations progress.

It reaffirmed its commitment to supporting law enforcement agencies in identifying and prosecuting individuals who misuse the QNET name to facilitate fraudulent recruitment, human trafficking, irregular migration or other criminal acts.

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The company also clarified the use of the term “Model Q,” explaining that law enforcement agencies increasingly use it to describe criminal schemes in which fraudsters exploit the names of legitimate direct-selling companies and established brands to lure victims with false promises of employment, overseas travel, migration opportunities or guaranteed income.

It stressed that “Model Q” does not refer to QNET’s legitimate business operations but rather to criminal activities carried out through the unauthorised use of recognised brand names.

QNET maintained that it does not offer employment opportunities, visas, overseas travel or guaranteed financial returns through its independent distributors.

It explained that its business model is based solely on the direct sale of wellness and lifestyle products.

The company warned that anyone soliciting money for jobs, migration, travel or guaranteed investment returns in QNET’s name is acting without its authorisation.

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According to the statement, criminal groups have repeatedly impersonated the company’s brand to deceive unsuspecting members of the public.

QNET said it considers itself a victim of such brand impersonation and has been working with law enforcement agencies in Nigeria and other countries to share intelligence, support investigations and protect potential victims.

The company commended the Nigeria Immigration Service for what it described as an intelligence-led operation that resulted in the rescue of victims and efforts to dismantle transnational criminal networks.

It reaffirmed its readiness to continue collaborating with the Service and other relevant authorities to ensure that those exploiting its name for criminal purposes are brought to justice.

QNET also advised members of the public to verify any claims involving the company through its official communication channels and to report suspicious offers relating to employment, travel, migration or investment made in its name.

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