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Unformatted text preview: Oshiomhole’s suspension a new dawn of peace in Edo, says Obaseki IDRIS MOMOH, CHURCHILL OKORO (Benin), FELIX OMOHOMHION & JAMES KWEN (Abuja) E do State governor, Godwin Obaseki, said the court-ordered suspension of Adams Oshiomhole as national chairman of the All Progressive Congress (APC) has ushered in a new dawn in the state chapter of the party. Obaseki said with the … Our position has been vindicated – Ojezua … APC National Working Committee to validate suspension court ruling, peace has returned to the party and the crisis rocking the party has finally been laid to rest. According to him, the court has spoken the mind of the majority members of the party that have been calling for the sack of the national chairman as he lacked the capacity to lead the party in the country. “I had on several occasions called on the party’s national chairman to publicly disown those that paraded themselves as members of Edo People’s Continues on page 39 L-R: Jatto Adams, GM, corporate and strategic communications, Nigerian Ports Authority (NPA); Hadiza Bala Usman, MD/CEO, NPA; Frank Aigbogun, publisher/editor-in-chief, BusinessDay Media, and Ogho Okiti, MD, BusinessDay Media, shortly after the meeting with NPA team in Lagos. Pic by Pius Okeosisi businessday market monitor Biggest Gainer NB N40.5 Foreign Exchange Biggest Loser ARDOVA 4.44 pc N17 26,415.54 FMDQ Close Everdon Bureau De Change Bitcoin NSE Foreign Reserve - $36.3bn Cross Rates GBP-$:1.29 YUANY - 52.47 Commodities -10.00 pc Cocoa US$2,633.00 Gold $1,638.35 news you can trust I ** thursDAY 05 march 2020 I vol. 19, no 513 ISAAC ANYAOGU & DIPO OLADEHINDE N ig e r ia sig n e d a Memorandum of Understanding with German energy giant, Siemens, last year to add about 25,000 megawatts (MW) of electricity by 2025. But the deal is coordinated from the office of Abba Kyari, the president’s chief of staff, whose table is overflowing with competing national issues and lacks expertise regarding the power sector. The country is yet to move the needle on the deal. In Nigeria’s north-eastern state of Taraba, after several fits and starts, the Federal Government and the Chinese will this year begin construction Continues on page 38 Inside Future of Nigeria’s justice system lies in complete automation – Experts P. 38 ₦3,179,641.46 +0.70 N300 Sell $-N 357.00 360.00 £-N 467.00 473.00 €-N 387.00 393.00 Crude Oil $ 52.36 I Buy g www. Market Spot ($/N) I&E FX Window CBN Official Rate 366.31 307.00 Currency Futures ($/N) g fgn bonds Treasury bills 3M 0.00 2.87 NGUS feb 24 2021 367.00 6M 5Y 0.00 3.28 0.00 10 Y 0.29 30 Y -0.02 6.98 10.69 12.08 NGUS feb 22 2023 375.00 @ NGUS feb 26 2025 380.00 g No leadership in power sector keeps Nigerians in darkness As Presidency, NERC, TCN, Power Ministry pursue separate agenda L-R: Lolu Alade-Akinyemi, chief financial officer, Lafarge Africa plc; Folashade Ambrose-Medebem, communications, public affairs and sustainable development director; Oscar Onyema, chief executive officer, The Nigerian Stock Exchange; Mobolaji Balogun, chairman, Lafarge Africa plc; Khaled Abdel Aziz El Dokani, chief executive officer, Lafarge Africa plc; Elenda Giwa-Amu, nonexecutive director, Lafarge Africa plc, and Adewunmi Alode, general counsel and company secretary, Lafarge Africa plc, at the closing gong ceremony at the Nigerian Stock Exchange in Lagos, yesterday. 2 Thursday 05 March 2020 BUSINESS DAY @Businessdayng Thursday 05 March 2020 BUSINESS DAY @Businessdayng 3 4 Thursday 05 March 2020 BUSINESS DAY @Businessdayng Thursday 05 March 2020 BUSINESS DAY @Businessdayng 5 6 Thursday 05 March 2020 BUSINESS DAY @Businessdayng Thursday 05 March 2020 BUSINESS DAY @Businessdayng 7 8 Thursday 05 March 2020 BUSINESS DAY @Businessdayng Thursday 05 March 2020 BUSINESS DAY Research&INSIGHT A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU) 9 In association with [email protected] 08098710024 How Nigeria can lift more people out of poverty ISAAC ESOWE I ncome inequality broadly refers to an extreme disparity of income distribution with a high concentration of income usually in the hands of a small percentage of a population. The obvious gap between the rich and the poor is peculiar to developed and developing countries alike. However, there are huge disparities in how people experience poverty, it could be in the form of health, education and standard of living. Findings from the 2019 Global Multidimensional Poverty Index (MPI) shed more light on the disparities in how people experience poverty, revealing vast inequalities among countries and among the poor themselves. In Nigeria, the proportion of people who are multidimensionally poor has remained constant at over 50 per cent since the past decades. The income of the nation has grown marginally since the country crept out of recession in 2016. However, the average wealth of the populace for the past 50 years and more has not grown equally among all the groups. The country’s inequality has reached an extreme level, albeit being the largest economy in Africa and 30th in the world, according to the World Bank ranking, which was measured using the (GDP) as a key yardstick. The country’s economic diversification and strong growth, sadly, however, not much of that optimism has translated into the daily life of average Nigerian. About 399.5 million people globally live in extreme poverty and 16 per cent of the global population in extreme poverty lives in Nigeria. Across Nigeria, 95.9 million people live in ex- treme poverty, that is, people living below the poverty line of $1.90 per day. This, however, represents 48 per cent of the Nigerian population according to the World Poverty Clock as of 3rd of March, 2020. Further analysis of global extreme poverty population reveals that 55.6 million people or 14.1 per cent of the world’s poor rural population are resident in Nigeria, while Nigeria makes up 19.8 per cent of the global urban population in extreme poverty. Poverty and inequality in Nigeria have a strong spatial dimension. Poverty is considerably higher in rural than in urban areas: 35.5 per cent of the urban population live below the national poverty line in 2020, compared to 63.1 per cent of the rural population. Poverty and inequality in Nigeria are not due to lack of resources, but to the ill-use, misallocation and misappro- priation of such resources. At the root, there is a culture of corruption and rent-seeking combined with a political elite out of touch with the daily struggles of average Nigerians. The irony of the Nigeria situation is that as the country gets richer only a few benefits while the major share of the population suffers from poverty and deprivation. BusinessDay Research and Intelligence Unit (BRIU) found out that poverty in Nigeria is particularly outrageous because it has been growing in the context of an expanding economy where the benefits have been enjoyed only by few individuals. The inequality gap that characterizes the nation is such that the amount of money that the richest Nigerian man can earn annually from his wealth is sufficient to lift 2 million people or more out of poverty for one year. In 2016, five of Nigeria’s richest men have a combined wealth of $29.9 billion (N9.1 trillion at an exchange rate of N306/$) a value that is more than the country’s national budget of N7.1 trillion for 2017. Across the states in Nigeria, poverty finds expression in the following states according to the latest publication on National Poverty Rates for Nigeria: 2003-04 which was revised 2009-10 by the National Bureau of Statistics (NBS). This was captured using the following parameters – Absolute Poverty Approach, Relative Poverty Approach and Dollar per day. The results show that the following states make up the 10 poorest states in Nigeria with Jigawa leading the chart with 88.5 per cent on poverty level, while others – Sokoto, 86.1 per cent; Bauchi, 84.0 per cent; Ebonyi, 82.9 per cent; @Businessdayng Yobe, 81.5 per cent; Gombe, 81.6 per cent; Nasarawa, 78.4 per cent; Adamawa, 77.8 per cent; Katsina, 77.6 per cent, and Kebbi, 72.5 per cent. An increasing poverty level will variably translate into high crime rate. A report published by the National Bureau of Statistics (NBS) has shown that rising inequality has the tendency to push people to commit crimes. In recent past, the Nigerian crime rate stood at 68.23 per cent which was higher than the threshold of 63.94 and Safety Index of 36.06 per cent. Based on the rising level of inequality and poverty, much still needs to be done to lift the poor people from the bottom of the social pyramid to the middle-class strata. Bridging the inequality gap entails providing a means for the poor to access opportunities that will enable them to break free from the circle of intergenerational poverty and to do this requires providing basic infrastructure like power, water, access to basic health care and educational facilities, among others Secondly, the government’s programme of Conditional Cash Transfer (CCT) and access to cheap loans by artisans and traders will help to alleviate poverty and bridge the inequality gap. But the effect will be significant by better complementing it with far-reaching socio-political, economic and institutional reforms and also taking into cognizance, the impact of policies on the poorest poor. The tax system is highly dysfunctional because the rich are not been taxed enough and our redistribution system needs to be fixed too. The idea of bridging inequality in whatever guise (economic, social, political etc) entails not just taking from the rich to give to the poor but ensuring the rule of law prevails too. 10 Thursday 05 March 2020 BUSINESS DAY comment is free comment Send 800word comments to [email protected] Ngige, Mind Your Sef 2 and… Micah,6:7 ik MUO A good friend of mine and a brother to Ngige, Nze PE Egwuonwu had, after reading my treatise last week, asked me: Ichie, what has Ngige done to you? And I replied him with the words of our elders (by the way, he is one of the elders) that there is no need pinching a parcel that would soon be opened up. And so, for him and others who were wandering what my “grouse” with Ngige is, here we are. In April 2019, Ngige, a medical doctor and our honourable Minister of Labour and Productivity told the whole world through Channels TV, our global broadcast octopus, that he was not worried about medical brain-drain because we had more than enough of them. All efforts made by his hosts to make him call himself to order failed as he went on to reemphasise his assertion. “Who said we don’t have enough doctors? We have more than enough; you can quote me; there is nothing wrong with their travelling out!” In this Nigeria, where some people still travel tens of kilometres to see a doctor? Of course, he came under raw fire from his colleagues, sundry organisations and public commentators. Is his assertion true? Obviously not. Should he know the true situation? Sure! Even if it were true should he have said so given his status? I doubt. For a medical doctor and Minister of Labour to say so in a country where 40,000 doctors were attending to 200 million patients left a sour taste in the mouth. I made a little comment about it then and decided to face other matters and let Ngige be. A few days later, our dear minister of labour, who should be telling us what his ministry has done under the change agenda to improve the worrisome unemployment situation, rather told us: “you ain’t seen nothing yet!” He told his bewildered compatriots that the unemployment rate should hit 33.5% by 2020. As if that was not enough, he reminded us that we were the poverty capital of the word, a trophy which India gladly handed over to us and that Nigeria suffering from high level of crimes and criminality! If he wanted to play the prophet, he failed because we are already in 2020. But why should an official of a “next level government” tell those expecting the amoebic dividends of democracy from him and his colleagues, that more suffering awaited them? He then went on to ask no one in particular, questions, which he was (and is) in the best position to answer: “what is the government not doing right; what changes are needed in policies and strategies; why do we employ expatriates for jobs Nigerians can do or why can’t Nigerians do those jobs…” As Omawumi would say: “if you ask me, na whom I go ask?” Luckily, his doomful prediction has mercifully not materialised but even if it would have, was he the best person to make such prophecy? Obviously not. Even Lai Mohammed would not have loved to make that kind of pronouncement. Of course, if he were serious about those questions, he should have contracted Muo & Muo Consulting unlimited for fail-proof answers. I found it odd that a minister was demarketing himself, his ministry and his government, but I kept my peace. The last straw that broke the camel’s back was his advice to our teaming unemployed youths: “don’t rely on government jobs”. In other words, there is not much my ministry and this government can do for you! He based his argument on the fact that “the richest youth of the world, are not employees of government but smart entrepreneurs…” Sure, everybody knows that governments are not meant to be the sole sources of employment. Everybody knows that the Nigerian government will not go out of its way to create jobs for the ordinary folks but will surely do so for those who are connected to those who are connected to the source. But should a minister tell his compatriots who are looking up to his ministry for succour to look elsewhere? Surely entrepreneurship is thriving and is a better source of wealth but what has Ngige and the government which he serves done to make the environment favourable for entrepreneurial exploits? In my recent outing on entrepreneurship (Ik Muo, 2018: Entrepreneurship in a changing environment, lessons from experience. Enugu, Potter Creations), only 10 percent of the sample had anything good to say of the government; the rest recounted the frustrating impact of government activities and inactivity. Is that the environment in which entrepreneurship will thrive? Ngige is a medical doctor and rose to the directorate level in federal civil service before jumping into the murky (but lucrative) waters of Nigerian politics. As a professional, a bureaucrat and a politician, he is well placed to situate things in proper perspectives; to make statements that give people hope and to optimise the science and art of diplomacy. After all, diplomacy is the art of telling people to go to hell in such a way that they eagerly prepare for the trip! It is a source of worry when a minister creates hopelessness for his constituents by saying right or wrong this at the wrong time in the wrong way. And that is why I am publicly telling him; “mind your sef” You are all my witnesses. And by the way for those who are “labourers” (labour union executives) who regularly contend with Ngige I wish to remind them of the words of our elders which has been in existence long before Ngige was born: that whenever a ‘ As a professional, a bureaucrat and a politician, he is well placed to situate things in proper perspectives; to make statements that give people hope and to optimise the science and art of diplomacy. After all, diplomacy is the art of telling people to go to hell in such a way that they eagerly prepare for the trip! cock perches on a rope (Ngige), neither the cock nor the rope will ever be at peace; because both the cock and the rope will continue to engage in a limitless, restless “kurukere” dance. Other Matters : Micah,7:6-7; Household Wickedness We are still discussing the frightening level of household wickedness in which parents’ children and spouses are engaged in indescribable wickedness against each other. Years ago, Prophet Micah foresaw the era in which “son dishonours father; daughter rises against mother and daughter¬-in-law against mother-in-law. A man’s enemy are members of his household (Micah,7:6-7). Our Lord Jesus Christ later reiterated that prophesy (Matthew, 10.36). It did not start today. After all, in the early days of creation, Cain murdered Abel, who did not offend him in any way! Athalia murdered all her grandchildren in a desperate quest to take over the kingdom after the death of her own son. Joseph narrowly escaped death in the hands of his brothers who sold him into slavery (Genesis,37) while Absalom led an insurrection against his father. The burial of 4 kids aged 2-9, (1/3/2020) murdered by their father, due to the mothers alleged infidelity in South Africa is still fresh in our minds. It shows that this household wickedness has been take a notch far above what we ever imagined. So, what has gone wrong? Is it the end times as some of our “casting and binding” brethren have been reminding us? The family is the nucleus and foundation of the society and if the foundation be destroyed, what is the fate and future of the society (Psalm 11:3)? One Bisi Adewale recently asked all right the questions on social media and I join him/her in asking “What has come over us; where did we get it wrong; were we like this before? What is happening?” Indeed, WHAT IS HAPPENING? Dr Muo is of the Department of Business Administration, OOU, Ago-Iwoye The cause of leadership in Africa: Nigeria in perspective A frica’s greatest obstacle to attaining the global status that befits her has been the cause of leadership, a major drawback to a supposed impeccable sustainable transformation that the continent deserves. A wise man simply puts this in real terms “Common sense dictates looking both ways before crossing a street, or risk being hit by a truck”, For the leadership in Africa, they have always looked one way, no wonder the continent experiences so much setbacks at every turn. How come a continent so rich in terms of natural resources, still fails to provide her citizens basic social amenities? As the world’s richest continent which has 50 percent of the world’s gold, most of the world’s diamonds and chromium, 90 percent of the cobalt, 40 percent of the world’s potential hydroelectric power, 65 percent of the manganese, millions of acres of untilled farmland, as well as other natural resources including (crude oil), it’s unacceptable for her to remain home to the world’s most impoverished and abused people on planet earth despite all this wealth. A Japanese diplomat told me some time last year that he wishes Africans can agree to swap continents where all the people in East Asia will come over to Africa and Africans going the other way which looked odd to me. However, before I could respond, he went further to say if that was to be the case, Africans would not recognize the continent they left in 4 years. This strikes a chord, making it abundantly clear to me that Africa leadership needs a paradigm shift on a massive scale, based on a shared purpose with a global perspective. “Leadership for the people and by the people in real terms,” meaning it is time to end this self -centered leadership style driven by greed, obsession, intimidation, oppression and power grab with massive corruptions issues and ethnic under tones which has resulted to so much blood shed because of inter-tribal wars and ethnic cleansing pitching one community or tribe against another. In relation to Nigeria, we have seen kinsmen, family members and relatives of the then candidate who were begging for transportation fair every now and then during the election campaign, become shareholders overnight in major multi-nationals in the country since he became President with no qualifications, no business experience, a clear sign of corruption yet he says he is fighting corruption. Intimidating everyone, who dares to criticize them, and even destroying the lives of peaceful agitators like my people of the south eastern Nigeria who are legitimately asking for th...
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