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Nigeria’s Economy And Service Delivery

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A closer look at the contemporary Nigeria shows that her future lies less with heavy manufacturing industries and more with servicing industries. Although, there are certain manufacturing industries in which we still do very well, but the broad trend is that as compared with our rivals, we increasingly lack the competitive advantages required for a massive capacity to invest.

The general tendency is reinforced by our lack of indigenous natural resources apart from our old coal, cocoa and new oil and gas. On the other side, the servicing industries offer a much more service that does not demand mass production but still, we have skills that can be inherited or acquired and need to draw inspiration from education and sophisticated reputation.

Servicing industries are an integral part or area of any economy in which acquired reputation and tradition of service are assuming a higher dimension. Government statistics underline the increasing dependence of the country’s balance of payment on the so-called invisible exports. Banking and insurance, brokerage and commercial services loom larger and larger.

The other great field for services is the transport industries while the Nigeria shipping is still a major factor in our economy, although menaced by flags of inconsistence civil aviation and its associated tourist industry is a major factor in the Nigeria economy. Tourism to this country is one of the largest earners of foreign exchange and in this day and age, it is a means of carriage by air.

The Nigeria Civil Aviation industry earns a reasonable percentage of the nation’s income which is only one element in its contribution. Without the aviation industry, a greater loss would be suffered in our tourist trade. Air cargo plays increasing part in Nigeria’s economic effort, but it’s treated as an activity in which we are not well fitted to participate. Attention seems to be more focused on the seaports and sea cargoes.

Aviation is an activity involving professional skills and high technology and it is a thing the country is good at despite some occasional incidents. Our flight deck crews know their job and our cabin crews have a way of doing their business to satisfy their passengers. Service in the cabins of Nigeria airlines, be they publicly or privately owned, is very impressive.

Civil Aviation in Nigeria is good for the country’s struggling economy and every effort should be made to expand and develop it profitably. Something needs to be done to induce profitable growth in the Nigeria Civil Aviation because profitable growth is the main objective of the business. This is achievable only as a result of the combined efforts of the government, regulatory bodies, airline managements, air crews, operators of the business and ground crews as well as the public at large.

Although, aviation business is risk-bearing, a number of people are comfortable travelling by air. While it is absolutely splendid, and a very agreeable way of life, it is enormous and the economic efficiency requires high priority. In a highly populated country such as Nigeria, it is of no use kidding ourselves that we can only survive with oil and gas that may disappear in the future. The shipping industry no longer strive or boom as in the past, so we must begin now to accept and work our economy and productive activities to suit the present time when aviation has become a balance between amenity and efficiency.

Profitable airline operation depends very much on maximum utilisation of facilities at the airports. This is why it is pertinent to make available all the necessary equipment and ensuring proper maintenance of aircraft. Our local and international airports should be equipped to meet world standards. Owners of aircraft should be given the desired support and encouragement to allow for economic growth.

In the case of Nigeria Aviation where the great majority of operations go overseas, there is a greater need to apply well-meaning attempts marginally to improve existing amenities to avoid repercussive effects. Those with the responsibility in this sector of our economy must have considerations very much in mind and act with prudent caution in respect of any circumstances they may find themselves. The social and personal effects of aircraft noise must not be underrated at any moment.

In aviation, profitable operation involves careful consideration of the way in which fares are determined and capacity decided upon. Capacity is very crucial in the aviation business, especially in the ordering of aircraft, which causes fares to be high or low. If capacity is right, no one has any motive to take fares lower than the market level. It is important for airlines as responsible business to determine both capacity they offer and the price they charge. Fares fixed higher than economic forces would be susceptible to variants of cheating and an airline that wants to charge lower fare than has been fixed is free to do so.

Nigerians and other air travellers want to see certain expansion and development in the aviation sector and it should be in line with the philosophy of  seeking to avoid unforceable circumstances for which the ordinary public or passengers would suffer. The policy of all airlines must be customer/consumer oriented and moderate in its fare demands.

Airlines must in general be free to purchase the equipment which in their judgment is what the need to operate their particular routes. Nigeria’s aviation industry can be improved to become an important contributor to economic growth both in the country and the outside world. Inclusion of aviation in National Development Plan (NDP) will guide the government’s economic strategy in achieving the 20-2020 vision.

A well structured development plan should be made to provide an appropriate framework for economic and instituted reforms to diversify the economy and enhance external competitiveness, thereby help to contain inflation and to achieve long-run fiscal sustainability. Placing more emphasis on the aviation sector and providing the right infrastructure at our airports would encourage human capacity development, raise employment potential of the nation, reduce poverty and help prepare for the tailing-off of oil production in the future.

In the present circumstances, aviation is essential to the prosperity of the country and Nigeria airlines should be free to buy the aircraft they want on their technical merits. Aviation in this country has a very great future and in the latter years, it will be placing more significant part than it is today in maintaining this nation’s economy, so government and other stakeholders should be involved more seriously in the running of our airports and its agencies.

 

Sheddie Okpara

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Rescuing Local Government From Limbo

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The local government system is one of the three tiers of government, set up by the Constitution of the Federal Republic of Nigeria to discharge different levels of social contracts with the Nigerian people. These governments – the federal, state  and local,  draw funds monthly from a pool of the nation’s commonwealth which accrues through the federation’s  account to enable them  function.  While the other two tiers independently articulate their respective affairs to pursue various governance goals and objectives, the local government has over the years remained under the dictates of the second-tier when in the real sense, the local government,  being the closest to the grassroots, should be the most important government level. Moreso, the local government area has the advantage of uniformity in ethnic, linguistic and cultural harmony, which enables for greater understanding, acceptability and mutual trusts, as against the polarising diversity encountered by the wider tiers.
It is therefore, unfortunate that the local government found itself  hamstrung by the actions of state government, the inadvertent acquiessence of the federal government, as well as by the pliability of some local government officials. The unhindered functionality of local councils should have created the vital governance connections needed between Nigeria’s leaderships and its peoples, as well as form  the foundations from which local officials, groomed in good governance affairs, are raised for both state and federal duties. It was therefore cheering when the news filtered that the federal government, through the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, had filed a suit at the Supreme Court against the 36 state governments to demand full autonomy for all LGAs in the country. It should be recalled that the National Assembly during the past regime of President Muhammadu Buhari had passed a bill for full local government autonomy but the process got stalled by non-ratification by state houses of assembly. The present National Assembly is also working on a bill that would empower the Independent National Electoral Commission (INEC), rather than governor-controlled State Independent Electoral Commissions (SIECs), to conduct local government elections. These are trail-blazing reforms, and deserve some  commendations.
In the latest onslaught by the Federal Government to ensure that democratically elected governments run the local councils, it has secured a Supreme Court order “restraining the governors, their agents and privies, from receiving, spending or tampering with funds released from the Federation Account for the benefits of local governments when no democratically elected local government system is put in place in the states,” with a further order stopping state governors from embarking on unilateral, arbitrary and unlawful dissolution of democratically elected local governments, while permitting that funds in the credits of local governments be directly paid to them from the federation account in line with the provisions of the constitution as against payments to joint accounts with state governments.  The court went further to bar governors from further constituting caretaker committees to run the affairs of local governments, as governors like Prof. Charles Soludo of Anambra State is bent on doing. Prof Soludo, having come from outside the usual pack of Nigerian politicians, his case has become the most bizzare, infamous and disappointing  for a prominent economist who supposedly knows the impacts of micro and macro economic policies, and had promised during his swearing-in on March 17, 2022, that “We will conduct local government elections. No doubt, the uniform local government system as the third federating unit is one of the contesting features of our federalism, but we must make the best of a bad system by unleashing the potential of governance at a lower level.”
Despite these reassuring statements, Prof Soludo rather broke the records by infamously appointing seven regimes of local government Transition Committees in just two years, each serving a tenor of three months. Yet, he has just dissolved the seventh set of committees to appoint an eighth, before recent court orders. Actions by the likes of Governor Soludo are capable of disorienting local government officials to the point of being inadequate in the discharge of constitutional duties. As part of outcries elicited by Governor Soludo’s baffling intransigence, member representing Ogbaru Federal Constituency in the House of Representatives and Labour Party’s House of Representatives Caucus Leader, Hon. Afam Ogene, in a press statement condemned the move while saying that, “This puppeteering style of leadership, which toys with the destiny, aspiration and desires of the grassroots, must be resisted and not allowed to continue to shrink the development potentials of the LGAs”. While emphasising that local councils should not be at the whims of state governors, Hon. Ogene said that, “Such undemocratic practice of appointing LGA administrators, rather than democratic election, is an enabler of impunity and lack of democratic accountability and also hurts transparency in the local government  and   state as a whole, as those so appointed would only scramble for personal interests during the three months of their stay in office.”
In a similar move, a lawyer, Chukwuebuka Mmeni Esq, in a suit filed against the Anambra State governor at an Abuja High Court secured an order, restraining the Accountant General of the Federation and the Federal Ministry of Finance from further remitting funds due to the 21 LGAs of Anambra State to the Soludo-led state government. The era when governors see monthly local government allocations as windfalls that grease their political ambitions should not be encouraged. When the local governments eventually get their full autonomy, it would enable them decisively tackle the challenges of poor basic educational infrastructure, disfunctional primary healthcare systems, poor environmental sanitation and erosion controls, rural markets, town planning and building developments, rural agriculture and sports development. It is pertinent at this point to note that local councils had greater freedoms ab initio, much of it during the military era, but due to failures to regularly pay the salaries of staff, especially primary school teachers and primary healthcare officials, state governments seized the opportunity to form joint accounts with which payment of council staff salaries have been somewhat regular, yet much staff still suffer stagnated promotions.
That incursion by state governments has created opportunities for impunity on the parts of many governors, leading to greater alienation of municipal administration and the neglect of its other crucial roles. Therefore, in the genuine pursuit of restoring full local government autonomy, a guiding framework should be put in place to forestall a repeat of the mistakes of past local administrations. The opportunity to undergo the learning process of state building at the basic level of society is, however very vital.

Joseph Nwankwo

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Build The City, Also Build People

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The effectiveness and relevance of a government is measured by its impacts on the people. Projects and Programmes not having direct bearing on the welfare of the people is to say the least, a waste of public funds. Every project must be consequence of the felt-need of the people. Looking at Governance in Rivers State in the last 24 years of unbroken democracy in Nigeria (May 1999 – May 2023), the governments of Rt. Hon. Rotimi Amaechi and Sir Dr. Peter Odili have done well in terms of selfless services and putting the people first. Others have also performed according to what their perspective about governance is. A Leader can only deliver by dictates of vision and mental capacity. They can only take the State to the place of their mental picture and their preferred destination. So development is a function of Leaders’ vision. Every society rises and falls on the vision of the leader. Rotimi Amaechi and Dr. Peter Odili balanced governance between infrastructure and human capital development. For instance, not only did Rotimi Amaechi built 105 health centres, 350 state-of-the-art primary schools, about 23 Model Secondary Schools, roads etc, he also built thousands of people. He initiated the Greater Horizon and Opportunities Programme (GHOP) to avail the less privileged in the 23 Local Government Areas of Rivers State the opportunity to be developed in capacity through the Rivers State Sustainable Development Agency (RSSDA). Thousands of Rivers’ people were given fully paid educational scholarship to be trained outside the shores of Nigeria. The eligibility for the overseas’ scholarship, under Amaechi’s administration was devoid of partisan, ethnic/tribal, religious, and nepotistic sentiments. That was why children from poverty-riddled background could travel outside the shores of Nigeria to study courses of economic value and foster development of Rivers State.
Unfortunately, the immediate past administration of Chief Nyesom Wike did not see the merit to sustain the laudable and lofty human capacity development programmes of his predecessor. Not only did he not kill the programmes in preference for project-infrastructure: roads, bridges, housing, Chief Wike also disbanded the Rivers State Sustainable Development Agency (RSSDA) who midwifed and drove the implementation of the human capacity development programmes. The immediate past administration in the State did not consider the harsh socio-economic implications of his actions on the staff of the RSSDA and their dependants. Staff of Demonstration Schools of State owned tertiary institutions and the Rivers State Transport Company (RTC), non payment of bursary to students for eight years, non promotion of civil servants and denial of increments for eight years are eloquent testimonies and testimonials of apathy and utter neglect of the immediate past administration to human capacity development. Value was disproportionately placed on capital projects  rather than human capital development.
In the words of the Russian Philosopher and educationist, Lao Russell, “In vain you build the city if you don’t first build the man”. The reason is not far-fetched: the man that is not built can become savage and destroy the magnificent city: the roads, bridges, houses, etc. Economists hold the view that in the value chain of production, manpower, not capital is the most critical factor of production because   inefficient workforce will inevitably translate to ineffective, unproductive, failed corporate goal and moribund institution. Humans are invaluable assets, they create wealth, drive implementation of government policies and programmes.
It is good for government at all levels to embark on capital projects but it is better to build the people. Capital projects should not be done at the expense of workers’ welfare. Peter should not be robbed to pay Paul.
Consequently, the neglect and sacrifice of human capital in preference for infrastructure has become a norm in Nigeria. This explains why negotiations for an upward review of acceptable wage regime is more often than not, deadlocked and fraught with incessant arguments that were settled by threat of, or industrial dispute between government and the central labour unions: Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
While workers-friendly governors such as Godwin Obaseki of Edo State has increased minimum wage of workers of that State from N40,000 he was paying workers ( as against the Federal Government’s N30,000) to N70,000 without pressure from labour unions in Edo State, the Federal Government under President Bola Ahmed Tinubu that assured Nigerian workers of a “Living Wage”  is offering a paltry N60,000 despite the harsh socio-economic challenges posed by  a depressed economy. It is baffling that a Federal Government proposing N60,000 minimum wage on the ground of economic challenges is spending heavily on frivolities: N6 billion Abuja car park, N90 billion Hajj Subsidy and several other programmes that are outrageous and wasteful.
It is being speculated that some government prefer spending on capital projects  to human capital because the former serves as a conduit to siphon public funds and corrupt enrichment.
It does beat my imagination how some governors could acquire with impunity, properties and make investments for personal use with public funds.
Government at all levels and the organised Private Sector should prioritise workers’ welfare and human capital development to drive development of the society.
The struggle will continue if infrastructures are built but humans are not built. Society exists for the people, if the people are neglected, the infrastructure will suffer decay and destruction.

Igbiki Benibo

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Tinubu’s “Living Wage”: A Dashed Hope?

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It is  more than one year today, President Bola Ahmed Tinubu assured Nigerian workers that his administration will correct the anomalous hardship workers in Nigeria faced because he was irrevocably committed to doling out a “Living Wage” to them.
Nigerian workers under the two central Labour organisations: Nigeria Labour Congress (NLC), and Trade Union Congress (TUC) were captivated in an euphoria of Mr. President’s mouth watering promise. President Tinubu has whipped up the pleasant sentiment and sensation of workers to believing that at last a messiah in his person (the President Tinubu) has appeared and the era of the litanical, “ aluta, struggle continues” will be  consigned to history. Workers heaved a sigh of relief that a corrective and workers’ friendly regime that never was, is in the saddle at the centre. President Tinubu (then President -elect) had told workers in his goodwill message on the May 1 Labour Day, “In the Nigeria I shall have the honour and privilege to lead from May 29, workers will have more than a minimum wage. You will have a living wage to have a decent life, and provide for your families.
“On this special day as your President-elect, I extend my hand of friendship to Nigerian workers through the two central Labour unions- Nigeria Labour Congress and the Trade Union Congress. In me you will have a dependable ally and a co-labourer in the fight for social and economic justice for all Nigerians, including the working people. Your fight will be my fight because I will always fight for you. My plans for a better welfare and working conditions are clearly spelt in my Renewed Hope Agenda for a Better Nigeria. It is a covenant born of conviction and one I am prepared to keep”. In Nigeria today, can Mr. President say without iota of doubt that N54,000 is a “Living Wage”?
Today the  Mr. President’s covenant with workers is a mirage, it is translating to a delusion .
Workers under the President Tinubu seem to have suffered more hardship than in past administrations, civilian or military. Hope for a “Living Wage” seems dashed.
Considering the protracted dialogue on what is supposed to be a marked departure and turning point from previous  minimum wage regimes, Nigerians and workers can now decide if Mr. President really meant to give a Living wage to workers with the present Federal Government’s position on N54,000 against Trade Union Congress and Nigeria Labour Congress’ N500,000 as minimum wage.
When the nation’s House of Representatives proposed a N100,000 minimum wage many workers were dissatisfied with the proposal which they said was pre-emptive of the 37-members Minimum Wage Committee report. Workers had hoped the outcome of the negotiation would be more than N100,000 proposed by the House of Representatives. I believe workers can realize that the Representatives are empathetic and in touch with the plight of  Nigerian workers better than the Presidency.
It is crystal clear that  President Tinubu never meant what he said about a “Living Wage” for workers. While the Federal Government hinges its decision to pay workers on sustainability of new wage regime because of economic challenges the nation under the present leadership faces, one wonders how a nation grappling with multi-dimensional socio-economic challenges will be enmeshed in frivolous expenditures. For instance, the recent approval of N6 billion for a car park in Abuja, the N90 billion Hajj Subsidy, barefaced looting of public funds by some public officers, myriad of corrupt practices that are associated with some of those in Government and the extravagant expenditures by members of the National Assembly, some State Governors political office holders, clearly show that the Federal Government is not committed to a ‘Living Wage” to ameliorate the plight of workers.
Workers under the present administration of President Tinubu have suffered loss of purchasing power. In less than one year of President Tinubu-led administration, the prices of petroleum products have been increased several times. Today, premium motor spirit is about N900 a litre. And this unfriendly price regime rubs off negatively on every Nigerian, because at the centre of commercial and economic activities is petroleum products. For the first time in the history of Nigeria, prices of food items are outrageous, outside the reach of the common man: a  basin of garri sells for N18,000, rice, beans etc are food the rich only. House rent has gone up. A self contain that was between N60,000 and N80,000 is N250,000.
The adverse  social-economic realities informed the Labour’s insistence on N615,000, which they have reviewed downward to N500,000.
Breaking down the figure the National President of the Nigeria Labour Congress, Joe Ajaero said the N615,000 was a fair demand considering the socio-economic realities of the country.
Discussion on another minimum wage regime, therefore, should not be an exercise in futility, because since  the N30,000 Minimum Wage became a legal document in April 18, 2023 most State Governors and Local Government Area chairmen across the country, have refused to implement it. And the Federal Government could not enforce compliance.
It is also speculated that some governors who claimed to have implemented the National Minimum wage only paid the difference of what their predecessors were supposed to pay  workers consequent on the shortfall of financial benefit due workers.
With the veiled liberalisation policy of the National Minimum Wage which mandates the Labour unions in the State  to negotiate with their various State Governments on what is feasible for States to pay, based on their financial capacity, State governors now have the power to determine how much to pay their workers based on outcomes of negotiation with the workers under their umbrella bodies. That is why Labour-friendly Governments of Lagos, and Edo, among other States of the Federation have approved  N70,000 National Minimum Wage with effect from May, 2024, at a time some State Governors, such as Soludo of Anambra are foot-dragging to pay the old wage which expired April, 2024.
It is mind boggling that while elected officers and political office holders go home with mouth watering salaries at the end of every month and severance benefits, the civil servant wage is paltry, a peanut and they have to wait for years to access their gratuity and pension which cannot be compared to political officers salaries. Some never received after all. They died while waiting for their benefits.
While the Nigeria Labour Congress and its Trade Union Congress counterpart negotiate with the Federal Government’ on increase of Minimum Wage they should ensure that no stone is left unturned towards achieving a “Realistic” living wage.  A Living Wage, according to “investopedia” is “a theoretical income level that allows individuals or families to afford adequate shelter, food and other necessities.
Though the N500,000 minimum wage proposed by Labour is not realistic considering the economic realities in the country, the  least minimum wage the Federal  Government should consider is N100,000 proposed by the House of Representatives.
Most State Governors have refused to pay the expired N30,000 minimum wage on the unacceptable reason of unavailability of funds.
But if the looting instincts, leakages and frivolous spending of public funds were checked, an upwardly reviewed  wage could be paid with ease.
A situation where elected public officers build estates and leave  trans-generational assets for their children after eight or as the people’s mandate last, while the civil servant retires home after 35 years with virtually nothing, is repugnant to good conscience, equity and morality. In fact it is heartbreaking.
Both elected public officers and civil servants are exposed to the same socio economic realities.

Igbiki  Benibo

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