Editorial

Rising Interest Rate And The Economy

Published

14 years ago

October 14, 2011

Since the Central Bank of Nigeria (CBN) increased interest rate on lending, speculations on the possible effect of the increase on the economy is worrisome. Already, the poverty rate in the country is reaching a breaking point and nothing should be done to worsen it.

Coming at a time when Nigeria is reported to have dropped in the best business environment rating, the increase in interest rate is capable of aborting some business endeavours that would have provided the needed support for the economy and the people in particular.

While we hope that the CBN knows what it is doing, the cumulation of some of the economic indices that appear negative might affect the ordinary people in ways that can be profound. In the face of this hostile business environment, the Naira, the nation’s currency also fell to its lowest level in years.

Indeed, it was also reported that Nigeria has the lowest volume of borrowed funds among the major economies of Africa. What this comes down to is that even the money available in the economy is not properly mobilised for the development of the country.

We think that this situation should worry the government and provide the reason for some deliberate steps to slow down the downward glide of the economy. This needs to be done because the average Nigerian is already a financial wreck. To bank on the famed resilience of the average Nigerian is to risk too much.

The tread holding some people to realism has become too worn out and tiny. Indeed for some, it has snapped and resulted in people taking desperate steps to silence the lion in the stomach. Should anyone still wonder why robberies, kidnapping and swindling are making a swift come back?

It is already bad enough that access to credit in Nigeria faces avoidable hurdles, the increase on interest rate would make it impossible for many businesses to even aspire. If the challenge keeps out new businesses, the development is a dis-service, but it could also limit existing business and even stifle them.

The increase in interest rate may not have been much, but may be the reason a business folds and throws many workers out of job. For those in agriculture and housing, the interest rate is particularly hostile. Of course, the ripple effect that would follow this can be rather far reaching.

But this is only one side of the problem. While the interest rate rose from 8.75% to 9.25% in the formal sector, some organisations ask for as high as 18 – 20 percent. The government should find out why many people cannot access credit from the banks and have to patronize shylock financiers.

Our country should also be worried that banks still report bad debts. While the genuine business people are denied credit under one guise or another, loans are given to politicians and high social figures to use on frivolities. Often, these funds cannot be paid back because it was not originally intended to be refunded.

But our country cannot become developed without credit funds that people need to finance business. Even for the worker, especially the public servant, whose pay falls short, no staff can provide housing, one of the most basic human needs, if credits are not available for them to access and at an affordable rate.

Indeed, that is why some governments, including that of Rivers State have provided loans for staff to build houses and buy cars among others. An average Civil Servant may never be able to save N1m in years but if granted one, can be re-paid over a period of time.

Bank credits are very important for the economy. As a government that is committed to the Millennium Development Goals and faced with the urgent need to provide employment for its teeming youths, it cannot afford to operate a run-away economy and expose the people to un-bearable conditions.

Efforts should be made to redress the irony that Nigeria is a rich country and its people are extremely poor. Nigeria cannot declare millions of petro-dollars monthly and have no money to run its economy. Let the oddities in the economy be redressed quickly starting with the interest rate regime in the country.

Editorial

Task Before New Defence Minister

Published

13 hours ago

December 8, 2025

The Tide

The appointment of General Christopher Musa as Nigeria’s Defence Minister has been met with widespread approval across the nation, and rightly so. After his commendable tenure as Chief of Defence Staff, where he demonstrated exceptional leadership and strategic acumen, Nigerians are justified in their optimism that he possesses the requisite credentials to tackle the country’s mounting security challenges. This is not merely another political appointment; it represents a deliberate and overdue shift towards placing experienced military personnel at the helm of our defence apparatus. The stakes could not be higher, and the nation’s expectations are correspondingly elevated.

For once, the Senate demonstrated the thoroughness that Nigerians have long demanded from their legislators. During approximately five hours of screening, General Musa faced rigorous questioning rather than the perfunctory “take a bow and go” treatment that has become the hallmark of senatorial confirmations. This meticulous approach signals a refreshing departure from the rubber-stamp mentality that has characterised many previous appointments. The lawmakers deserve commendation for recognising the gravity of the defence portfolio and subjecting the nominee to proper scrutiny. We can only hope this sets a precedent for future ministerial screenings.

President Bola Tinubu deserves credit for making what appears to be a pragmatic and judicious decision. By appointing someone with robust military credentials and intelligence expertise, the President has demonstrated an understanding that Nigeria’s security crisis demands specialised knowledge and battlefield experience. This appointment suggests a willingness to prioritise competence over political patronage, a quality that has been sorely lacking in previous administrations. The President must be encouraged to maintain this standard across other critical appointments.

The departure of Mohammed Badaru Abubakar from the Defence Ministry should serve as a lesson in the importance of matching expertise to responsibility. Whilst Mr Abubakar may possess political acumen, his lack of military background rendered him ill-equipped for the complexities of national defence. He was, in every sense, a square peg in a round hole. The previous arrangement, which saw two politicians manning the Defence Ministry, was nothing short of a misnomer. One cannot credibly oversee military operations without understanding military strategy, tactics, and the psychology of warfare. The mistake should not be repeated.

Whilst we applaud both the President for this appointment and the Senate for their diligent screening, the real test lies ahead. General Musa must now prove his mettle in the theatre of action. Words and credentials, however impressive, mean little without tangible results. Nigeria has suffered too long under the scourge of insecurity, with bandits, terrorists, and kidnappers operating with impunity across vast swathes of the country. The new minister must act decisively to save the nation from the embarrassment of continued security failures. The time for excuses has passed; Nigerians demand results.

During his screening, General Musa made a particularly important pledge: to end the patronage of bandits and terrorists by state governors. This commitment strikes at the heart of one of Nigeria’s most troubling security contradictions. The practice of negotiating with criminals, often facilitated or endorsed by state governments, has emboldened these miscreants and transformed banditry into a profitable enterprise. Such negotiations amount to nothing less than aiding and abetting criminality. General Musa’s promise to treat these elements as the criminals they are, rather than as legitimate negotiating partners, is commendable and must be pursued with unwavering resolve. There can be no compromise on this principle.

The new minister must undertake a comprehensive overhaul of Nigeria’s security architecture to enhance military effectiveness. This requires close collaboration with the service chiefs to establish clear objectives and ensure coordinated execution. Beyond structural reforms, General Musa must address the discipline deficit within the military ranks. Reports of corruption, negligence, and complicity in security breaches have eroded public confidence in the armed forces. Restoring discipline is not merely an administrative matter; it is fundamental to rebuilding the military’s credibility and operational effectiveness. Without discipline, no amount of equipment or funding will suffice.

General Musa’s promise to investigate the mysterious withdrawal of soldiers from the school in Kebbi State, which preceded the kidnapping of students, demonstrates a welcome commitment to accountability. This incident exemplifies the inexplicable lapses that have characterised Nigeria’s security response. Someone ordered or permitted that withdrawal, and the timing suggests either catastrophic incompetence or deliberate sabotage. The minister must get to the root of this matter and ensure that culprits face appropriate sanctions. Only through such decisive action can he send a clear message that negligence and complicity will no longer be tolerated.

However, Musa cannot succeed without adequate resources. The Federal Government must provide sufficient funding to enable the Defence Ministry to perform optimally. Next year’s budgetary allocation must reflect the enormous task at hand. It is counterproductive to demand results whilst starving the military of the resources necessary for modern warfare. This includes investment in intelligence gathering, modern weaponry, surveillance technology, and troop welfare. A poorly equipped and demoralised military cannot be expected to defeat well-armed insurgents and bandits who increasingly possess sophisticated weaponry.

The political class must resist the temptation to interfere with the General’s work. Whilst many politicians publicly profess support for the fight against insecurity, evidence suggests that some work surreptitiously to undermine these efforts for personal or political gain. Whether through the aforementioned negotiations with bandits, the protection of criminal elements, or the diversion of security funds, political interference has consistently sabotaged military operations. General Musa must be given the autonomy to perform his duties professionally. Only then can he be fairly held accountable for outcomes. The President must shield him from political machinations and vested interests.

The military must abandon its reactive, fire brigade approach to security operations. Waiting to respond only after attacks have occurred is a strategy of perpetual failure. The armed forces must take the fight to the criminals’ hideouts, conducting sustained offensive operations that dismantle their infrastructure and eliminate their capacity to strike. This requires robust intelligence, rapid deployment capabilities, and the political will to sustain operations until objectives are achieved. Proactive military engagement, not defensive positioning, is what the situation demands.

Nigeria’s porous borders represent a critical vulnerability that demands immediate attention. Countries around the world have recognised that border security is fundamental to national security. India has erected comprehensive fencing along its border with Pakistan specifically to prevent terrorist infiltration. Israel has constructed sophisticated barrier systems along multiple borders. Hungary built fences along its borders with Serbia and Croatia. Even the United States has invested billions in border security infrastructure. These nations understand what Nigeria seems reluctant to acknowledge: that uncontrolled borders invite national disaster.

Our borders remain scandalously porous, serving as entry points for the foreign fighters who constitute a proportion of those conducting attacks on Nigerian soil. The Lake Chad Basin, where Nigeria shares borders with Cameroon, Niger, and Chad, has become a particularly problematic corridor through which terrorists move freely. Without proper border infrastructure, surveillance systems, and adequate personnel deployment, Nigeria will continue to face an endless influx of armed criminals. The Defence Minister must prioritise border security as part of a comprehensive strategy to protect Nigerian lives and territory. The appointment of a competent Defence Minister means little if our borders remain open highways for those who wish us harm.

Editorial

HYPREP And The Collapsed Water Tank

Published

2 weeks ago

November 24, 2025

The Tide

The recent collapse of a water tank built by the Hydrocarbon Pollution Remediation Project (HYPREP) in the Gwara area of Ogoni in Rivers State is an alarming reminder of how easily public faith in government interventions can erode when development projects fail so soon after their unveiling. The incident has stirred deep concern across the state, raising doubts about whether the communities can truly rely on the structures meant to improve their lives.

Only days earlier, the Minister of Environment, Balarabe Lawal, had proudly inaugurated two water projects in Bane and Gwara communities in the Khana Local Government Area, with residents celebrating what they believed would mark a new chapter in access to clean and safe drinking water. The communities had hoped these projects would bring long-awaited relief and stand as symbols of meaningful government presence.

Yet in an unexpectedly disturbing turn of events, the Gwara water station, designed to supply potable water to about 14 communities, collapsed merely three days after the commissioning. This rapid failure has left residents not only shocked but also frustrated, as such an outcome suggests deep flaws in planning, execution, supervision, or all three combined.

Some natives allege that the debacle resulted from the use of inferior construction materials, raising a serious accusation that calls into question the level of professionalism involved. If such claims turn out to be true, then the collapse becomes more than an accident; it becomes evidence of negligence that could have endangered several lives.

Others are alleging outright sabotage, a troubling claim that suggests there may be forces actively working against the progress of development projects in the area. This possibility only widens the scope of questions that investigators must answer to restore public confidence.

Meanwhile, HYPREP insists that its water projects in other Ogoni communities are functioning efficiently and that this particular incident does not define the overall quality of its work. However, this defence, while necessary, does little to calm a community that has already seen too many failed promises over the years.

This situation raises an important question about whether the good work of HYPREP is being undermined by unscrupulous individuals whose interests may not align with the welfare of the people. If sabotage is indeed at play, then identifying those responsible becomes crucial in preventing further setbacks.

Given the gravity of the matter, the collapse requires an immediate and rigorous investigation to uncover what truly happened and why. It is reassuring that a committee has already been set up to delve into the details, but the public expects nothing short of a transparent and thorough process.

The fact remains that if the tank had collapsed on people, the community would be counting casualties and dealing with a deeply grievous tragedy. The near-miss should serve as a wake-up call about the potential dangers that poorly executed infrastructure projects pose in vulnerable areas.

It is therefore expected that the findings of the committee will expose the actual competence or otherwise of the contractors HYPREP engages. Only a reliable and professional team can successfully deliver the kind of durable infrastructure that the Ogoni people deserve.

If such a catastrophe can occur just days after commissioning, it indicates that similar incidents may happen again in the future unless deliberate and strategic efforts are made to prevent them. Preventive measures must become a standard part of project planning and monitoring.

The public cannot help but question why an organisation as financially endowed as HYPREP appears unable to deliver a credible water project for the Gwara community. With the massive resources at its disposal, the people expect excellence, not excuses.

Ogoni, being a historically volatile area whose people have endured relentless injustice and environmental degradation, cannot afford provocations of this nature. A crisis could easily have been triggered if the collapse had caused casualties or severe destruction.

More regrettably, the Ogoni clean-up has evolved into a lucrative cash cow for corrupt officials who seem more interested in contracts and kickbacks than in the wellbeing of the people. Meanwhile, residents continue to drink polluted water, suffer from inadequate healthcare, and navigate treacherous road networks.

Communities across Ogoniland must refuse to remain silent when substandard projects are imposed on them. Their voices and vigilance are vital in demanding accountability and ensuring that development interventions truly meet their needs.

HYPREP, on its part, must reaffirm an unwavering commitment to quality, transparency, and accountability in all ongoing and future water projects across Ogoni. Only through this can it rebuild trust and demonstrate that it genuinely prioritises the people.

Finally, HYPREP must enforce rigorous internal and external quality assurance mechanisms that leave no room for negligence. Restoration work should commence urgently, with all efforts dedicated to ensuring that project delivery meets global standards and restore hope to the long-suffering communities of Ogoniland.

Editorial

Resurgence Of Illegal Structures In PH

Published

3 weeks ago

November 19, 2025

The Tide

The resurgence of illegal structures in Port Harcourt has become a thing of deep concern for residents who remember what the city once looked like and what it has now become. From street corners to backyard spaces, unapproved buildings and makeshift extensions are rising once again, disturbing the orderliness that once defined the capital of Rivers State. The return of this ugly trend signals a worrying decline in urban discipline.

Illegal structures were decisively prohibited during the administration of Rt. Hon. Chibuike Rotimi Amaechi, who enforced the ban in 2008. His government recognised that Port Harcourt was slipping into chaos, and firm action was taken to restore the integrity of the city’s physical environment. What followed was a sweeping clampdown on structures that violated the city’s masterplan.

The enforcement was so severe and so uncompromising that many residents of the Garden City took it upon themselves to demolish their own illegal structures in order to avoid heavier sanctions. It was a defining moment in the city’s recent history, because it demonstrated that with political will and consistent implementation, urban order could be restored.

The demolition exercise brought back the beauty of Port Harcourt. The city began to breathe again as congested spaces opened up and previously blocked access routes became free. There was a noticeable improvement in cleanliness and spatial organisation, and the renewed aesthetic appeal was appreciated by many who had longed for a well-planned urban landscape.

Many backyards became so spacious that they were not only neat but motorable. Before the enforced clean-up, these same spaces had been used for all kinds of menial activities. Some were turned into mechanic workshops, while others were cluttered with kiosks and shanties that distorted the environment. The transformation that followed the demolition was evidence of what strong governance can achieve.

When former Governor Nyesom Wike assumed office in 2015, he sustained the ban and continued the demolition of illegal structures. This ensured that the gains of the previous administration were not eroded. Residents saw a continuation of orderliness and appreciated the consistency in urban policy.

Sadly, today, illegal structures have returned in full force, defacing the state capital and reintroducing the very problems that had earlier been tackled. These structures now appear everywhere, giving Port Harcourt the look of a city sliding back to its infamous reputation as a Garbage City. This development is unacceptable and raises questions about the laxity of enforcement agencies.

We therefore urge the Ministry of Physical Planning and Urban Development to halt this dangerous trend by rigorously enforcing the ban on illegal structures across Port Harcourt. Without immediate action, the city risks losing the gains of years of disciplined planning.

Such structures must be identified and demolished without hesitation, and their owners prosecuted in accordance with the law. This is necessary to send a clear message that Port Harcourt cannot be returned to filth, especially in an era when cities around the world strive to modernise and maintain order.

Additionally, the Urban Development Ministry should intensify the monitoring and control of physical development in the city. Before any new site is approved, the Ministry must ensure that access roads, drainage systems, markets, and other social amenities are included in the layout. Proper planning must precede construction.

The Rivers State Government must take more than a passive interest in the development of virgin areas within the metropolis. It is discouraging that illegal structures continue to spring up even in locations where earlier demolitions had taken place. This shows a lack of consistent supervision.

A responsible government sustains good policies introduced by previous administrations rather than discarding them. The fight against illegal structures should not depend on who occupies the Brick House, but on the collective desire to preserve the city’s integrity.

One of the primary features of a modern city is its aesthetic value, complemented by good roads and effective sanitation. Illegal structures distort these values. They obstruct traffic, endanger pedestrians, and increase the likelihood of accidents. When order is compromised, everyone suffers.

There must also be policies to regulate the indiscriminate sale of properties in the state. Many illegal structures exist because land transactions are poorly monitored. Enlightenment campaigns will help residents understand the dangers and legal implications of contributing to urban disorder.

Finally, the authorities must rise to their responsibilities. The Ministry of Urban Development must take immediate action to restore sanity. Port Harcourt is the only real metropolitan centre that Rivers State can boast of, which means it must be carefully maintained. Its masterplan should not be tampered with, and the city must be preserved for future generations.