The agency said the accusation is baseless and risks stirring political tension over an issue it considers routine and technical.

Aderonke Atoyebi, technical assistant on Broadcast Media to the FIRS Chairman, issued the agency’s response, saying the former Vice President’s comments distort how government tax channels actually work. 

She insisted there is no exclusive gateway and no company has been placed above others in the revenue-collection chain.

“The comments by former Vice President Atiku Abubakar are incorrect, misleading, and capable of unnecessarily politicising a purely administrative and technical process,” she said.

The tax authority explained that Nigeria currently operates a broad network of Payment Solution Service Providers. Quickteller, Remita, Etranzact, Flutterwave and XpressPay all run simultaneously, and the system, according to the FIRS, is designed to prevent any single operator from dominating.

The agency repeated the same point in stronger terms: “For clarity, the FIRS does not operate any exclusive or single-gateway revenue-collection arrangement, and no private entity has been granted a monopoly over government revenues.”

Why XpressPayments Entered the Picture

Xpress Payment Solutions Limited was recently listed as a collecting agent under the Treasury Single Account framework, allowing taxpayers to choose its platform, just as they would choose any other, when remitting statutory taxes. 

The FIRS stressed that this does not elevate the company above others, nor does it give it access to government funds.

Atiku Abubakar had argued that this resembles what he called a “Lagos-style revenue cartel”, warning that placing revenue channels in the hands of any politically aligned private operator could undermine public trust. 

He said the decision was made quietly and described the arrangement as state capture masked as innovation.

FIRS Counters Monopoly Claims

The agency dismissed those issues, insisting that PSSPs neither collect revenue nor keep a share of funds. All payments, it said, land directly in the Federation Account without being touched or held by any intermediary.

It reinforced this point again: “All payments made through the platforms go directly into the Federation Account without diversion, intermediaries, or private control.”

The FIRS also noted that recent reforms deliberately opened the space for more providers, not fewer. The intention, it said, is to expand access, increase oversight, and push financial-technology firms to innovate through competition rather than state preference.

Transparency and Reform at the Centre

Responding to Atiku’s claim of the wider process, Atoyebi said the onboarding of service providers is conducted through a transparent and verifiable procedure. She added that national tax reforms must not be reduced to political talking points.

“The reform has come to stay and should not be subjected to mischaracterisation for political gain.”

The agency then urged politicians to avoid framing operational decisions as partisan manoeuvres: “We therefore urge Mr Atiku Abubakar and other political actors to refrain from mischaracterising routine administrative processes for political gain. Nigeria’s tax system is too important to be subjected to misinformation or unnecessary alarm.”

A Continuing Disagreement

Atiku, who has repeatedly criticised the administration’s revenue and economic policies, maintains that placing XpressPayments in a sensitive role weakens institutional safeguards. The FIRS insists the system remains professional, transparent, and insulated from private influence.

The swearing-in ceremony took place Council Chamber of the State House, Abuja, before the start of the Federal Executive Council meeting. 

Dr Bernard Doro, a UK-trained clinical practitioner with vast experience, is a seasoned  pharmaceutical and public health administrator. 

He was earlier nominated to replace the current APC National Chairman, Prof. Nentawe Yilwatda, who formerly served as minister of Humanitarian Affairs and Poverty Reduction before emerging as the party’s chairman on July 31, 2025. 

The appointments comply with the Federal Character Commission Act, as Enugu and Plateau States previously had no representation at the Federal Executive Council. Their swearing-in brings the Tinubu administration’s cabinet size to 48.  

Some analysts have raised reservations about the number of ministers in the Tinubu administration. However, the appointments of Doro and Udeh are considered necessary, as both states were previously underrepresented.

Among those who have objected to government spending is the former Central Bank Governor and Emir of Kano, Sanusi Lamido Sanusi.

Speaking at the Oxford Global Think Tank Leadership Conference and Book Launch, the monarch said, “If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another. The real challenge now is the quality of government spending and the management of the revenues saved,” he said. 

Dr Doro hails from Kwall, Bassa Local Government Area of Plateau State. According to the Presidency, he holds multiple degrees in Pharmacy, Law, and Advanced Clinical Practice. 

Dr Kingsley Udeh, who served as attorney-general and the commissioner for Justice in Enugu State until his appointment, replaces Uche Nnaji, the former Minister of Innovation, Science and Technology.

Nnaji resigned on October 7, 2025, following public controversy over his academic records at the University of Nigeria, Nsuka (UNN). 

After the swearing-in, the Federal Executive Meeting went into a closed session, its first since July 2025. The reason the meetings have not been held weekly, as in the previous administration, has not been made public by the Federal Government. 

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, briefed the council on Nigeria’s return to the international capital market, noting that the $2.35 billion Eurobond was oversubscribed by an all-time 453%, attracting $13 billion in orders, as reported by the Debt Management Office (DMO).

“The next phase of reforms will remove barriers holding back investors. We will review tariffs and import restrictions to stimulate productivity and investment,” the Minister said.

Yet, beneath the hum of commerce was another, more unsettling sound: the deafening roar of generators.

The noise was overwhelming, like a thousand engines competing for dominance. One out of every five shops had turned to gas-powered generators, while the rest clung to the more familiar diesel units. In that moment, it struck me: Nigeria’s quest for a digital economy still rests on shaky ground. The greatest stumbling block remains what it has always been, power supply.

A nation cannot hope to digitise its economy when its entrepreneurs and citizens spend more time and money generating power than generating innovation. Until the power supply is fixed, Nigeria’s ambition for a true digital economy will remain more rhetoric than reality.

Private individuals and businesses have done more than their fair share. Many have moved from diesel to solar energy, inverters, and even bio-gas systems.

Others have embraced energy-saving systems to reduce consumption. These efforts, while admirable, represent only coping mechanisms, not sustainable solutions.

Generators, in particular, are a symbol of the broken system. Their drawbacks are well documented: unbearable noise, air pollution, escalating costs, and long-term health risks.

According to some health experts, constant exposure to generator fumes increases respiratory diseases. For small businesses, the costs of fueling and maintaining generators eat deep into profits.

The reality is stark: Nigeria cannot grow a digital economy on a foundation of noise and smoke. Power is not optional. It is the backbone of everything – data centres, fintech apps, e-commerce platforms, e-health systems, and even education technology.

The government must take immediate steps to ease the burden while working on long-term fixes. Some practical recommendations for the short term include:

First, expand grid reliability in urban hubs. Quick fixes such as upgrading transformers, replacing broken distribution lines, and improving load management in major cities will directly benefit businesses. A reliable grid in commercial hubs like Lagos, Abuja, Port Harcourt, and Kano will have a ripple effect on the economy.

Second, subsidise alternative energy for SMEs. Small businesses are the heart of Nigeria’s digital economy.

Providing grants or tax incentives for SMEs to adopt solar and inverter systems will drastically reduce their dependence on generators.

In addition, improve metering and transparency. Widespread installation of prepaid meters and real-time monitoring of distribution will cut down on electricity theft and ensure that consumers only pay for what they use. Transparency builds trust in the system. 

Moreover, explore hybrid energy initiatives. This involves encouraging public-private partnerships to set up mini-grids powered by solar, hydro, or wind in high-density business clusters. These can be scaled quickly and help to reduce pressure on the national grid.

For the long haul, Nigeria must aim for energy transformation, not just power restoration. Some strategies include:

We must start with massive investment in renewable energy. Nigeria has abundant sunshine, wind, and water resources.

A clear national roadmap to expand solar farms, small hydro dams, and wind energy will reduce reliance on fossil fuels. Countries like Kenya and South Africa already generate significant renewable energy. Nigeria must catch up.

Number two, is to reform the power sector value chain. From generation to transmission and distribution, the sector is riddled with inefficiency and corruption.

In my mind, genuine deregulation, strict enforcement of contracts, and increased private sector participation will improve performance. 

Three, we need to urgently improve the energy mix diversification. Relying on gas alone is risky. Nigeria must diversify its energy mix by integrating coal, nuclear, and renewable power into the system. This makes the grid more resilient.

Beside, regulatory oversight require strengthen. Agencies like NERC (Nigerian Electricity Regulatory Commission) must be empowered to enforce standards, protect consumers, and punish erring operators. A weak regulator equals a weak system. 

Furthermore, we need to explore the regional power pools. Nigeria can also collaborate with neighbouring countries through regional power pools, exchanging excess supply for stability. West Africa’s interconnected power systems are still largely underutilised.

The truth is simple: Nigeria’s digital economy cannot thrive without electricity. Private individuals and businesses have carried the weight for too long. It is time for the government to shoulder its responsibility.

Fixing power is not just about lighting homes and businesses; it is about creating jobs, driving innovation, and attracting foreign investment.

The digital economy is more than fintech apps and startup showcases; it is about creating an enabling environment where innovation can flourish.

Reliable power supply is the number one signal that Nigeria is serious about transformation. Until then, the noise of generators will remain the sad soundtrack of our so-called digital economy.

*Elvis Eromosele, a corporate communications professional and sustainability advocate, wrote via elviseroms@gmail.com.

With machines automating tasks and replacing jobs, that looks so possible. Artificial Intelligence (AI), encompassing generative AI, automation, and robotics, has grown from being a niche technology to an indispensable tool no industry or economy must miss out on. 

Globally, investments in AI have increased, with tech companies like OpenAI, Google DeepMind, Anthropic, Microsoft, Amazon and Nvidia pouring a lot into this innovation.

AI’s double role of enhancing productivity and potentially displacing traditional jobs has prompted nations to race towards effective regulation, as seen with the EU AI Act, the US Executive Order on AI, and China’s AI policies to mitigate risks.

For Nigeria, statistics leave us wondering if the country is prepared to handle what AI brings, especially as economic imbalances have already led to high workforce reductions. 

A recent report by Nigerian data company Mustard Insights revealed that 43.7% of business owners in Nigeria reduced their workforce in 2024 due to economic challenges, leading to talks about how AI-induced automation will further impact employment.

Nigeria’s Workforce and the AI Drive

Job Creation vs. Job Displacement

The integration of AI into various sectors can automate tasks traditionally performed by humans. As of February 2024, 13 Deposit Money Banks in Nigeria had integrated AI-powered chatbots into their services, making customer interactions better and reducing the need for humans. While this improves efficiency, it also speaks really loudly about job displacement.

The 2025 Future of Jobs Report projects that AI and information processing technology will displace 92 million jobs while creating 170 million new ones by 2030. This tells us AI’s impact on employment is not just a theory. 

However, the question about Nigeria’s workforce being ready to transition into these new AI-driven roles cannot be ignored.

The Nigeria Business Survival Report 2024 discloses that 85.4% of companies reported an increase in business costs due to inflation, leading many to adopt automation and AI-driven solutions to cut costs. Nonetheless, expenses are still increasing for companies, and AI could become both a tool for efficiency and a driver of job losses.

The Skill Divide & Nigeria’s Readiness

Assessing Nigeria’s readiness for wide AI adoption reveals both strengths and areas needing improvement. The AI Preparedness Index scores sub-Saharan Africa, including Nigeria, at just 0.34, showing a low level of readiness.

Even with the digital skills gap, there are promising signs of AI adoption. A report by Ipsos on behalf of Google found that 70% of Nigeria’s online population is already using generative AI tools, far above the global average of 48%. However, while adoption is high, structured education and skill development are inadequate.

Nigeria’s universities have been slow to integrate AI-focused curricula, leaving a workforce largely unprepared for AI-centric roles. While 41.7% of businesses have diversified their products and services to stay competitive, many still lack the AI expertise necessary to thrive in the digital economy.

Without targeted upskilling initiatives, Nigeria risks facing mass unemployment as automation replaces traditional jobs. Conversely, with strategic investments in education and AI-driven entrepreneurship, the nation can leverage AI as a push for economic growth.

The Economic Impact of AI on Nigeria

AI’s Work in Key Sectors

AI is already changing key industries in Nigeria:

• Finance & Banking: AI-powered fraud detection, credit scoring, and chatbots are simplifying operations.
• Agriculture: AI-driven precision farming and yield prediction tools are improving food production.
• Healthcare: AI-enhanced diagnostics and telemedicine are addressing gaps in healthcare access.
• Manufacturing: AI is driving smart factories and optimized logistics, boosting efficiency.
• Tech & Startups: Nigeria’s AI-driven startups are boosting innovation and economic diversification.

According to the Nigerian Bureau of Statistics, the ICT sector contributed 16.35% to Nigeria’s real GDP in Q3 2024, pointing to the thriving importance of technology even though there was a decline from 19.78% in Q2. Again, Statista projects that Nigeria’s AI market will grow by 27.08% between 2025 and 2030, reaching a market volume of $4.64 billion by 2030.

However, economic instability can hinder this. The Nigeria High Commission reports that Nigeria’s GDP per capita stagnated between 2015 and 2022, with policy missteps, high inflation, and currency devaluation dampening growth. While the current administration has introduced reforms to stabilize the economy, inflation is still pulling down business confidence, prompting companies to cut costs—including workforce reductions.

Foreign Direct Investment (FDI) & AI Startups in Nigeria

The boom of AI startups in Nigeria is attracting huge foreign investment, but infrastructure deficits, inconsistent electricity supply, limited internet penetration, and limited funding challenge the sustained growth.

Nevertheless, Nigeria’s large and youthful population can make up a huge market for AI solutions. With strategic investments in AI education, research, and digital infrastructure, Nigeria can become a hub for AI innovation without boundaries in Africa.

AI Policy, Ethics, and the Future of Work in Nigeria

Regulation and Government Response

Currently, Nigeria is in the early stages of formulating AI regulations. The National Information Technology Development Agency (NITDA) is expected to help build the country’s AI strategy. Observing global regulatory models, such as the EU AI Act and the U.S. Executive Order on AI, can help with ideas to develop our own.

However, the World Bank warns that while recent economic reforms have eliminated fuel subsidies and unified exchange rates, inflation remains high, increasing hardship for businesses and workers alike. Economic instability challenges long-term planning and without a stable economic environment, AI regulation may take a backseat to more immediate financial issues.

Ethics & AI Bias

AI systems trained on non-representative data can exhibit bias, leading to unjust outcomes for Nigerian users. Ensuring ethical AI use requires frameworks that promote fairness, accountability, and transparency.

Added to this, data privacy and security are both big concerns. AI systems process large amounts of sensitive information, and without proper oversight, data breaches and misuse could worsen existing inequalities. Balancing the benefits of automation with the need to protect the human workforce is important to prevent increasing existing inequalities.

What Needs to Happen Next?

• Government & Policymakers: Develop and implement a structured AI strategy, including regulations, infrastructure investment, and AI research support.
• Businesses: Invest in AI upskilling programs to ensure employees stay competitive in the market.
• Individuals: Pursue AI education to stay relevant in this AI-driven job market.
• Global Collaborations: Promote partnerships with AI firms and institutions to facilitate knowledge transfer and technological progress.

Will AI Be a Curse or a Blessing for Nigeria?

The AI revolution is already changing Nigeria’s workforce and economy. While AI threatens traditional jobs, it also brings an opportunity for economic growth.

However, economic instability and high business costs have already led to job losses, as revealed by Mustard Insights. If AI adoption grows without a parallel investment in workforce reskilling, Nigeria could face even greater unemployment rates.

On the other hand, with targeted policies, digital infrastructure investments, and AI-focused education, Nigeria can leverage AI as a tool for innovation and economic growth.

Hence, Nigeria must embrace AI wisely—or risk being left behind in the next industrial revolution.

Finally:

The popular saying goes thus; “AI is not just the future; it is the present. The nations that embrace it wisely will determine the future of work and economic prosperity.” Will Nigeria be one of them?

Internet penetration is at 45.5%, and yet the digital economy is generating figures more astonishing than crude oil barrels rolling out of the Niger Delta. 

Data is no longer just an abstract term; it’s the 21st-century gold mine, and Nigeria might just be its richest untapped vein.

What if we told you that the black gold Nigeria has long relied upon is being overtaken by something invisible yet infinitely more valuable? In our world that thrives on connectivity and digital innovation, data is the “new oil” driving global economies. 

For Nigeria, this is an outstanding opportunity to pivot away from oil dependency and embrace data as a primary export commodity. But will Nigeria rise to the challenge or squander the moment?

The Global Rise of Data as a Commodity

Data now powers the engines of industries like artificial intelligence, e-commerce, and fintech, with the global data economy projected to hit $250 billion annually by 2025. 

Countries like India have capitalised on this trend, leveraging their tech systems to export services such as cloud solutions and analytics. 

Estonia’s e-governance model is another example of data’s prospects to enhance economies and attract investments.

This isn’t just theoretical. Nigeria already has homegrown tech success stories like Flutterwave, Andela, and Paystack, asserting the possibility of joining leaders globally. 

Nigeria has what it takes to shine in the international data trade, but the clock is ticking.

Nigeria’s Data Sector: The Sleeping Giant

Nigeria’s data sector is huge, rich, and full of potential:

• Internet Penetration: With 45% broadband penetration and a thriving digital economy, the foundation for growth exists but requires effective reinforcement.
• Social Media & E-commerce: Platforms like Instagram and Jumia are promoting social interactions and powering a $15 billion e-commerce industry (2024 estimate).
• Infrastructure Investment: Data centres like Rack Centre and MainOne are finally keeping Nigerian data on home soil, reducing reliance on foreign infrastructure.

However, there are challenges. From inadequate infrastructure to weak enforcement of the Nigeria Data Protection Regulation (NDPR), there’s a big need to turn potential into performance.

Economic Benefits of Data

If leveraged effectively, data could bolster Nigeria’s economy in the following ways:

1. Boosting GDP: Data monetisation could add billions to national revenue through analytics, artificial intelligence services, and cross-border data exchanges.
2. Job Creation: The emergence of a data economy could create high-paying roles in cybersecurity, data science, and software development.
3. Diversification: By reducing dependency on oil, Nigeria can achieve long-term economic stability and resilience.
4. Sectoral Innovations: From precision agriculture to health diagnostics, data can transform industries and improve livelihoods.

Importantly, Nigeria’s young, tech-savvy population bring a strong talent pool to ensure this process.

Challenges

As with any major changes, there are obstacles:

• Infrastructure Deficits: Limited broadband access, erratic electricity supply, and insufficient storage facilities hinder progress.
• Regulatory Gaps: Weak enforcement of data privacy laws discourages both foreign investment and local adoption.
• Global Competition: Competing with data giants like China and the US requires innovative strategies and huge investment.

For Nigeria to become competitive globally in 2025, a lot has to be done:

• Policy Support: Provide tax incentives for data-focused startups and establish public-private partnerships.
• Infrastructure Expansion: Invest in high-speed internet, renewable energy, and additional data centres.
• Workforce Development: Launch nationwide training in AI, data analytics, and cybersecurity to close the skills gap.
• Public Trust & Regulation: Strengthen the NDPR and ensure transparent cross-border data policies.

The numbers are commendable, with a trade surplus of ₦5.81 trillion and exports reaching ₦20.48 trillion in Q3 2024, the services sector is already driving GDP growth. Data could amplify these gains exponentially.

The question is no longer if Nigeria can become a data-driven economy but how quickly it can adapt to leverage this opportunity. The pieces are in place—lots of talent, increasing investments, and a growing hunger for digital services.

The choice is simple: innovate or stagnate. The clock is ticking, and the data economy waits for no one. Will Nigeria make data its most valuable export by 2025? 

The answer can be found in our ability to leverage, protect, and monetise the resources that are already driving our world.

He stated this in his Democracy Day broadcast to mark the 25th anniversary of unbroken democracy in Nigeria.

“It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil”, the president said.

TEXT OF PRESIDENT BOLA TINUBU’S NATIONAL BROADCAST ON THE 25TH ANNIVERSARY OF UNBROKEN DEMOCRACY IN NIGERIA, DEMOCRACY ​DAY 12TH JUNE 2024 ABUJA:

My fellow Nigerians, let me begin by congratulating all of us for witnessing the celebration of another Democracy Day today, the 12th day of June 2024. This year also marks our nation’s 25 years of uninterrupted democratic governance.

On this day, 31 years ago, we entered our rites of passage to becoming a true and enduring democratic society.

Going through this passage was hard and dangerous. During the fateful six years that followed, we fought and struggled for our natural rights as human beings put on this earth by the divine hand of our Creator.

We lost great heroes and heroines along the way. In this struggle, the winner of the June 12, 1993 presidential election, Chief MKO Abiola, the most significant symbol of our democratic struggle, his wife, Kudirat, General Shehu Musa Yar’Adua and Pa Alfred Rewane, among others sacrificed their very lives.

They bravely surrendered their futures, so that our nation might have a better one.

Let us honour the memories of Chief Anthony Enahoro, Chief Abraham Adesanya, Commodore Dan Suleiman, Chief Arthur Nwankwo, Chief Chukwuemeka Ezeife, Admiral Ndubuisi Kanu, Chief Frank Kokori, Chief Bola Ige, Chief Adekunle Ajasin, Chief Ganiyu Dawodu, Chief Ayo Fasanmi, Chief Gani Fawehinmi, Chief Olabiyi Durojaiye, Dr. Beko Ransome-Kuti, Chima Ubani, and others who have transited to the higher realm.

The sacrifices of General Alani Akinrinade, Professor Bolaji Akinyemi, Professor Wole Soyinka, Chief Ralph Obioha, Chief Cornelius Adebayo, among many others, should never be forgotten. For at least six years, they bore the pains and difficulties of life in exile.

While the exiled pro-democracy activists kept the fire burning, their comrades at home sustained the pressure on the military brass hats. Among the latter are Olisa Agbakoba, Femi Falana, Abdul Oroh, Senator Shehu Sani, Governor Uba Sani, Chief Olu Falae, and other National Democratic Coalition leaders such as Chief Ayo Adebanjo and Chief Ayo Opadokun.

The sacrifices they made, and the precious gift brought about by their selfless devotion can never be repaid. Neither shall it be forgotten.

We could not have won the battle against military dictatorship without the irrepressible Nigerian journalists who mounted the barricades along with the pro-democracy activists. We celebrate them today, along with their media establishments such as The Punch, Guardian, National Concord, Tribune, The News/Tempo, and TELL Magazines. Military authorities proscribed these media establishments and jailed their journalists for standing for free speech and civil liberties

Despite the lethal might of the military government, what appeared to be high and unyielding walls of dictatorship came tumbling down. The dismal fortress exists no longer.

The power of an idea, the power of the people proved more potent than all the guns and munitions, than all the guns, the munitions and the threats of the strongmen.

The nation exited the yoke of military rule in 1999 to become the most populous democracy on African soil, the beacon of democratic self-determination for the black race and one of the largest democracies in the world.

This change stands as a pivotal moment in human history. From this change, we shall never turn, nor shall the annals of mankind’s progress forget the sublime meaning of this great moment.

Today, 25 years later, we celebrate the silver anniversary of our journey in democracy.

We have steadied the course.

Democracy is neither a foreign nor abstract concept devoid of real-life meaning for us. Neither can we afford to reduce or minimalise it to being nothing but the mere holding of periodic elections where one candidate and party outdo another.

While elections attract dramatic attention, they are but one aspect of democracy. Democracy is a way of life that encompasses a broad outlook of which elections are but a part. As such, a nation can have elections without being democratic. But a nation cannot be truly democratic without holding elections.

That we have established a tradition of holding transparent, open, and fair elections gives credence to our democratic bearing. That we have experienced peaceful transitions of government affirms our democratic temperament.

Fellow Nigerians, true democracy shines its light into the daily lives of the people who live under its nurturing wings. It affords us the freedom and liberty to think as we want, live where we want and pursue whatever legitimate endeavour that suits us.

Democracy does not assume some false or forced unity of opinion. In fact, democracy assumes that conflicting ideas and differing opinions shall be the order of the day. Given the diversity and variety of the human experience, there must be diverse perspectives and viewpoints.

What democracy demands is that we do not resolve differences through force and repression. But we make allowance for the legitimacy of views that differ from our own.

Where other forms of government impose against the will of the people, democracy aims to make leaders sufficiently humble that they conduct themselves as servants of the common good, not as viceroys of the narrow interests of the mighty.

My dear compatriots, Nigeria faced a decision of untold gravity twenty-five years ago: Whether to veer toward a better destination or continue aimlessly in the fog of dictatorship.

We made the right choice then. We must continue with that choice now.

As Nigerians, we must remind ourselves that no matter how complicated democracy may be, it is the best form of governance in the long run. We must also be aware that there are those among us who will try to exploit current challenges to undermine, if not destroy, this democracy for which so much has already been given.

These people do this not to make things better but to subject all other people and things to their control and dominance until the point that, if you are not counted among their elite, then your life will be small and no longer owned by you.

This is the great battle of our day and the major reason we specially celebrate this Democracy day.

Fellow Nigerians, our Democracy is more than a historic fact. It is a living, breathing reality.

The true meaning of this day is not to focus solely on the great deeds of the past that have brought us to this point.

Yes, we pay eternal honour to those who laid down their lives, sacrificing everything to pave the way for the nation.

I stand uniquely placed in this regard. I was among those who took the risk to midwife the birth of our democracy. I am now a direct and obvious beneficiary of the fruits of those historic efforts.

As president of this nation, I am morally and constitutionally bound to preserve this precious form of governance. I vow to do my utmost best to protect your rights, freedoms, and liberties as citizens of Nigeria.

Even more than that, I pledge to do whatever is necessary to cement democracy as our way of life.

Although the challenges are steep and multiple, I am grateful to lead Nigeria at this moment in her history and point in her democratic journey.

I come before you also to declare that our most important work remains before us. This real test has never been whether we would rise to challenge the slings of misfortune and grievous pain of dictatorship.

The real test is whether we shall lower our guards as the shadow of despotism and its evident physical danger fade.

I say to you here and now that as we celebrate the enshrinement of our political democracy, let us commit ourselves to the fulfilment of its equally important counterpart, the realisation of our economic democracy.

I understand the economic difficulties we face as a nation.

Our economy has been in desperate need of reform for decades. It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil.

The reforms we have initiated are intended to create a stronger, better foundation for future growth. There is no doubt the reforms have occasioned hardship. Yet, they are necessary repairs required to fix the economy over the long run so that everyone has access to economic opportunity, fair pay and compensation for his endeavour and labour.

As we continue to reform the economy, I shall always listen to the people and will never turn my back on you.

In this spirit, we have negotiated in good faith and with open arms with organized labour on a new national minimum wage. We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less.

In the face of labour’s call for a national strike, we did not seek to oppress or crack down on the workers as a dictatorial government would have done. We chose the path of cooperation over conflict.

No one was arrested or threatened. Instead, the labour leadership was invited to break bread and negotiate toward a good-faith resolution.

Reasoned discussion and principled compromise are hallmarks of democracy. These themes shall continue to animate my policies and interaction with the constituent parts of our political economy.

I take on this vital task without fear or favour and I commit myself to this work until we have built a Nigeria where no man is oppressed.

In the end, our national greatness will not be achieved by travelling the easy road. It can only be achieved by taking the right one.

The words of the American President Franklin Roosevelt certainly ring true:

” There are many ways of going forward. But only one way of standing still”!

We dare not slumber lest the good things awaiting our immediate future pass us by. We dare not plant our feet in idle standstill in the middle of the intersection of hope and despair.

We know the proper way forward and we shall take it!

The initial rays of a brighter tomorrow now appear on the early horizon. An abundant future and our capacity to achieve that future lie within our reach. Democracy and the institutions it begets offer to take us to our profound destination.

Let us board this progressive train together. Together, let us move Nigeria forward.

Let’s continue to keep the fire of democracy burning. Let’s keep the torch lit for generations to come.

May God continue to bless the Federal Republic of Nigeria and preserve our democracy.

I wish us all a Happy Democracy Day.

PRESIDENT BOLA AHMED TINUBU

In a keynote address at the Business Day Chief Executive Officers (CEO) Forum in Lagos, Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), shed light on the pressing need for an industrial revolution in Nigeria.

This analysis examines the challenges posed by inadequate infrastructure and the implications for the country’s manufacturing sector.

Infrastructure Limitations

Nigeria’s manufacturers encounter numerous obstacles that impede their operations and competitiveness.

Insufficient power supply, inadequate road networks, and limited access to ports and airports severely hamper the movement of goods and raw materials within and beyond the country.

These infrastructure deficiencies contribute to delays, increased costs, and inefficiencies, making it difficult for companies to effectively manage their supply chains.

Diversification and Competitiveness

The manufacturing industry plays a crucial role in Nigeria’s efforts to diversify its economy away from oil dependency.

By reducing reliance on imports, boosting the trade balance, and enhancing overall competitiveness, a thriving manufacturing sector can contribute to sustainable economic growth.

However, Nigeria’s manufacturing sector is currently underperforming, accounting for only a modest share of the country’s GDP.

A Wake-Up Call for Nigeria

Dr. Adesina likened Nigeria’s situation to the story of Simba in Disney’s “The Lion King.” He emphasized that Nigeria, like the lion cub Simba, holds great promise, but that promise remains unfulfilled.

To unlock Nigeria’s potential and become an economic giant, Adesina stressed the need for an Industrial Revolution, marking a significant departure from the current import substitution model.

Nigeria must focus on developing a policy-enabled manufacturing sector with export orientation, fostering innovation, industrial policy for export market development, and structural transformation of the economy.

Slow Progress and Missed Opportunities

The performance of Nigeria’s manufacturing sector in recent years has been disappointing. It experienced negative growth rates of -1.5 percent, -4.3 percent, and -0.2 percent from 2015 to 2017, in stark contrast to the rapid growth witnessed in Asian countries such as Singapore, Malaysia, India, and China.

Additionally, the manufacturing sector’s contribution to Nigeria’s export revenue remains minimal, accounting for only three percent, while it contributes to 50 percent of the country’s imports. This demonstrates a missed opportunity for Nigeria to expand its export base and reduce its reliance on imported goods.

The Way Forward

Nigeria’s manufacturing sector requires significant policy reforms and infrastructure improvements to overcome its challenges and seize its potential. Addressing power shortages, enhancing transportation networks, and improving access to ports and airports are essential steps toward creating an enabling environment for manufacturers.

Furthermore, the government must prioritize export-oriented industrial policies, innovation, and investment in human capital to foster a globally competitive manufacturing sector.

Conclusion

Nigeria’s manufacturing sector faces significant obstacles stemming from inadequate infrastructure, hindering its growth and potential. Dr. Adesina’s call for an Industrial Revolution serves as a wake-up call for Nigeria to unlock its promise and become an economic giant.

Reforms, investments, and a shift toward an export-driven manufacturing sector are necessary to revitalize the industry, diversify the economy, and promote sustainable economic growth.

By addressing infrastructure limitations and implementing sound policies, Nigeria can chart a path toward a thriving manufacturing sector that drives employment, productivity, and overall economic development

This report examines the viewpoints expressed by key stakeholders, including the President of the Institute of Chartered Accountants of Nigeria (ICAN), Innocent Okwuosa, and the recommendations put forth by KPMG, highlighting the necessity of sustainable debt management and exploring alternative funding avenues for development.

Advocacy for Domestic Resource Mobilization

ICAN President, Innocent Okwuosa, has called for a shift in Nigeria’s approach to financing development.

He asserts that the loans taken by the government are not necessary, contending that the country possesses vast untapped resources that could be leveraged to generate funds internally.

Okwuosa cites the lack of indigenous scientists and petroleum engineers in the oil industry despite decades of oil exploitation, attributing this to an unfavorable environment.

He emphasizes the need for creating an enabling environment that fosters the utilization of Nigeria’s human capital, thereby eliminating the need for excessive borrowing.

DMO’s Projection and Debt-to-GDP Ratio

The Debt Management Office’s projection, outlined in the 2022 Debt Sustainability Analysis (DSA) Report, raises concerns about the rising debt-to-GDP ratio. The projection indicates an increase from 23.4% in September to the projected 37.1% by the end of the year.

This rise is attributed to new borrowing and the Central Bank of Nigeria’s loan-to-bond swap. The growing debt burden necessitates a critical examination of Nigeria’s borrowing practices and the implications for long-term debt sustainability.

Government’s Borrowing Plans and Debt Conversion

To cover the budget deficit, the Federal Government plans to borrow N8.8 trillion in 2023. Additionally, temporary overdrafts worth N23 trillion have been converted into long-term bonds this year.

These measures indicate the government’s reliance on borrowing to finance its expenditures. While borrowing may be unavoidable in some cases, it is essential to evaluate the impact of increased debt on the country’s financial stability and economic growth.

Sustainable Debt Management

KPMG, a renowned professional services firm, advises the Nigerian government to establish comprehensive guidelines and frameworks for borrowing. They emphasize the importance of sustainable debt management and urge prioritizing investments that yield long-term economic returns.

KPMG highlights the need to strike a balance between deficit financing for governance and stimulating economic growth. They also suggest reevaluating legal and self-imposed restraints and buffers related to deficit financing to accommodate the government’s borrowing requirements.

Recap

Nigeria’s rising public debt and the approaching self-imposed debt-to-GDP limit necessitate a reevaluation of the country’s borrowing practices.

The viewpoints expressed by Innocent Okwuosa and KPMG underline the significance of domestic resource mobilization and sustainable debt management.

Balancing the need for funding development initiatives with long-term debt sustainability is crucial for Nigeria’s economic stability.

The government must carefully consider alternative avenues for financing, foster an enabling environment for domestic resource utilization, and establish robust frameworks to guide borrowing decisions.

A prudent and strategic approach to debt management will play a vital role in ensuring Nigeria’s economic resilience and future growth

This decision was made during the 63rd Ordinary Session of the Authority of Heads of State and Government of the Economic Community in Bissau, the capital of the Republic of Guinea-Bissau, on Sunday.

In his role as the Chairperson, Tinubu will assume a critical position in guiding the ECOWAS member states towards economic advancement, political stability, and cooperation.

As the newly appointed Chairperson, Tinubu will closely collaborate with member states, regional institutions, and international partners to implement initiatives aimed at fostering economic growth, enhancing regional trade integration, and promoting social development.

Moreover, he is expected to prioritize bolstering the collective response of ECOWAS to security threats and fostering increased cooperation among member states in addressing regional challenges

This recommendation comes in response to the recent release of Consumer Price Index (CPI) data by the National Bureau of Statistics (NBS), which revealed a continuous increase in the headline inflation rate, reaching 22.41 percent in May.

Additionally, the food inflation rate rose to 24.82 percent, further exacerbating the challenges faced by the populace.

The LCCI emphasizes the need for the government to implement fiscal measures that would address the concerns surrounding inflationary pressures. One of the proposed measures is the reduction or elimination of taxes on essential food items.

By doing so, the government can protect the most vulnerable members of society and stimulate demand-side growth, thereby mitigating the adverse effects of inflation.

The LCCI’s recommendation to pause interest rate hikes is another crucial aspect of their proposal. By halting increases in interest rates, economic agents can be relieved of the financial burdens they currently face.

This move would provide much-needed respite to businesses and individuals, allowing them to better navigate the challenges brought about by rising inflation.

The chamber also expresses concerns about potential future inflationary pressures, particularly in relation to the removal of fuel subsidies and the floating of the Naira exchange rate. These policy changes may have inflationary implications, further impacting businesses and households.

To mitigate the potential negative effects, the LCCI urges the government to expedite the provision of anticipated palliative measures that could alleviate the rising trend in prices faced by economic agents.

As a result of the anticipated inflationary pressures, businesses are likely to adopt cost reduction strategies such as downsizing and sourcing inputs locally. These measures aim to lower operating expenses and adapt to the challenging economic environment. However, such strategies may lead to job losses and hinder economic growth in the short term.

Household real income is expected to continue declining, particularly in the near term, due to the persistence of inflation. This would further strain the financial well-being of individuals and families, making it imperative for the government to take swift action to address these concerns.

LCCI’s call for the government to cut taxes on basic food items is a reasonable recommendation in the face of rising inflation in Nigeria. Such a measure would provide relief to vulnerable segments of society and stimulate demand-side growth.

Alongside this, the pause in interest rate hikes and timely provision of palliatives are essential to mitigate the impact of inflation on economic agents. The government must consider these recommendations seriously to ensure the well-being of its citizens and foster economic stability.