Hello.cv is a promoter of Cape Verde country code top level Domain (Cape Verde ccTLD) under the 3 Million Technical Talent programme.

It will be recalled that FMCIDE under the leadership of Dr. Bosun Tijani, recently announced a $10 million partnership agreement with Hello.cv.

According to the Minister, the deal will see Hello.cv providing 20,000 3MTT fellows access to the company’s profile package valued at $500 per fellow, comprising a personal .cv domain, an AI-powered job search agent, and a professional CV writer.

But stakeholders in the industry argue that mandating the 3MTT fellows to acquire a foreign domain (.cv) contravenes the provisions of the “Nigeria First Policy” and relegates the Nigeria’s country code Top Level Domain (CcTLD) and identity, .ng.

While applauding the initiative to partner with a foreign company to join the indigenous trainers and train 20,000 3MTT fellows, some of the stakeholders, suggested that the Federal Government should have agreed on the other provisions of the partnership, but give Nigeria Internet Registration Association (NiRA), the Registry for the .ng domain, the right to host the 3MTT fellows on .ng domain, in adherence to the “Nigeria Firs” policy.

Others say Hello.cv could be mandated to host the fellows on .ng with .cv as a secondary domain host, such as hello.cv.ng.

Speaking on the issue, Chief Executive Officer, DNS Africa Media and Communications, Dr. Adebunmi Adeola Akinbo said: “Okay, the first thing we want to understand is this, the number of people that will be onboarded to the .cv ccTLD is huge. Does .cv ccTLD have the policy to protect the privacy of Nigerian’s data? Even if they have, it is it proper, when we are talking about a government that says, “Nigeria First” as its priority? it is very improper, very, very improper.”

He further noted that the .ng domain name is a domain name that can easily accommodate such a huge number of proposed job seekers. “If they say their brand is a Hello.cv, no problem, they should come and buy a hello.cv.ng if the branding is a priority for them. If they decide that this becomes like a business opportunity, an entrepreneurial ground for them to grow upon, they can send a mail and propose that, and we can onboard three million Nigerians or five million Nigerians to the .ng domain name.”

Approved by the Federal Executive Council (FEC) on the May 5, 2025, the “Nigeria-First Policy Agenda” is an economic initiative that mandates all Federal Ministries, Departments, and Agencies (MDAs) to prioritize locally produced goods and services in government procurement.

Its primary goal is to reduce import dependency on foreign goods and services, stimulate domestic industries, and boost job creation.

Pundits note that the $10 million Agreement package with Hello.cv (the Cape Verde ccTLD) by FMCIDE which includes a .cv domain, an AI-powered job search agent, and professional CV writing assistance for each of the 20,000 3MTT fellows, will only cede these fellows to utilize a foreign country’s domain, rather than Nigeria’s indigenous domain thereby promoting another country’s digital identity.

They argue that providing a domain name, which is a country’s identity on the internet space, shouldn’t have been part of the agreement, especially since Nigeria has the Nigeria Internet Registration Association (NiRA), the custodian of .ng CcTLD.

NiRA is the registry for .ng Internet Domain Names and maintains the database of names registered in the .ng country code Top Level Domain.

Speaking on the partnership, Emmanuel Amos, CEO, Programos and Innovationbed-AI Academy boss,  noted that the activities of government has made Nigerians gradually loose trust in its policies, as there is no stability in execution and compliance by the same MDAs responsible for driving the goals and objectives of government.

“Nigeria seems to have lost the collective-will to allow any technology deliver real value for the ecosystem. We plan elections, invest in technology, and yet we often lack the institutional resolve to let that technology work effectively for us. We do not have that system-will for us to envision solutions and implement something right for our system.”

Dr. Akinbo had reiterated also:

“Don’t forget that recently, the FMCIDE held a conference on cybersecurity. Now, when we’re talking about cybersecurity, these are the things that we should always put at the front burner, to ensure that the .ng is always at the forefront, and every other domain is at the back end in order to protect Nigeria’s data.

He concluded by stating that as good as it may sound, leaving the .ng domain name out of this circle of engagement is wrong.

“Taking information or data outside the .ng domain name and outside the domain of the Federal Republic of Nigeria is also wrong, where Nigeria has neither control nor significant influence to control how and where the data is used. I hope that the people in charge will hear this and make amends. All these, just started going out last month, so there’s room for amendments, there’s room to make the change, and ensure Nigeria retains its digital value”

According to Ugonma Egwuatu of ECAM Global Services, an ICT and Data Protection firm, if a government Ministry has given the trainees the permission to use a foreign domain, then the attention of the Nigeria Data Protection Commission (NDPC) should be drawn to it.

The NDPC has subscription to .ng as requirement for its Data Protection Compliance Organisations (DPCOs).

The concern, she notes, is about the security of the data.

“We are talking about 20,000 data sources here, so NDPC should be concerned.”

“There should be explanations regarding the backend: what are they doing with the data of the people that visit the sites? What is the reason behind the use of foreign domain as against the .ng that we know about? Are they trying to phish data? Are they trying to sell data? These are questions that need to be asked to know the reason why the ministry insists on the trainees using a foreign domain.”

She suggested that there should be a third-party agreement.

“I want to believe that as a ministry, they have done their due diligence, because the security of people’s data is involved”, she said.

The plan, themed “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” reflects a shift from economic adjustment toward focused growth and stability.

Top-Line Numbers & Fiscal Framework

• Total expenditure: ₦58.18 trillion
• Projected revenue: ₦34.33 trillion
• Debt servicing: ₦15.52 trillion
• Capital expenditure: ₦26.08 trillion
• Recurrent (non-debt) spending: ₦15.25 trillion
• Budget deficit: ₦23.85 trillion (≈ 4.28 % of GDP)

The budget is based on conservative macroeconomic assumptions, including a crude oil price benchmark of US$64.85 per barrel, daily production of 1.84 million barrels, and an exchange rate of ₦1,400 to the US dollar for 2026.

Priority Sectors & Key Allocations

President Tinubu emphasised that the budget is not merely a financial document but a statement of national priorities:

• Security & Defence – ₦5.41 trillion: The largest single allocation, underscoring the administration’s belief that security is the bedrock of development. Funding is aimed at modernising the Armed Forces, expanding intelligence-driven policing, strengthening border security and supporting a new national counter-terrorism doctrine.
• Infrastructure – ₦3.56 trillion: Support for transport networks, energy projects and other critical public works designed to unlock economic opportunities and attract private investment.
• Education – ₦3.52 trillion: A commitment to human capital development, including support through the Nigerian Education Loan Fund, which has already benefited hundreds of thousands of students.
• Health – ₦2.48 trillion: Representing roughly six percent of the total budget (net of liabilities), this funding seeks to strengthen Nigeria’s healthcare system and expand access to essential services.

Beyond these headline figures, the budget also allocates resources toward enhancing agricultural productivity and economic resilience, including mechanisation, irrigation, storage and agro-value chain development.

Economic Context & Performance Indicators

Presenting the budget, Tinubu highlighted signs of economic stabilisation, including a 3.98 % GDP growth rate in the third quarter of 2025, moderation in inflation to around 14.45 % in November, and foreign reserves reaching about $47 billion, the highest in seven years.

These, he said, reflect the “difficult but deliberate” policy choices of his administration.

Implementation & Reform Agenda

The president stressed stronger discipline in budget execution, directing ministries, departments and agencies to adhere strictly to appropriated timelines and improve revenue mobilisation.

He also called for deeper tax reforms and improved performance by government-owned enterprises to enhance fiscal sustainability.

Outlook & Legislative Process

The National Assembly is now tasked with considering the Appropriation Bill, with both chambers expected to deliberate and ultimately approve the budget to ensure a timely start to the 2026 fiscal year.

This budget signifies a continued effort by the Tinubu administration to sustain macroeconomic stability, support security and infrastructure development, and deliver tangible improvements in citizens’ lives as Nigeria navigates toward broader economic growth and shared prosperity

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 doesn’t just tweak the rules; it rewrites the playbook.

By repealing and consolidating outdated insurance laws into a unified, forward-looking legal framework, the new Act is designed to supercharge investor confidence, consumer protection, and regulatory oversight, key pillars in the administration’s push toward building a $1 trillion economy.

At the heart of this reform is a bold ambition: to transform Nigeria into Africa’s insurance powerhouse.

“This is more than a bill. It’s a statement of intent, that Nigeria is ready to compete on the global stage,” according to Bayo Onanuga, special adviser to the President on Information & Strategy.

The NIIRA 2025 lays out a series of transformative measures that promise to reshape the industry:

• Stricter capital requirements to ensure only financially sound operators stay in business.
• Mandatory insurance policies to boost coverage and protect citizens.
• Digital transformation of the insurance market, making access seamless and efficient.
• No more delays in claims settlement — policyholders must be paid promptly.
• Policyholder protection funds, especially for insolvency cases, will serve as a safety net.
• Regional integration through stronger participation in schemes like the ECOWAS Brown Card.

For industry watchers, the law signals a significant shift. No longer will insurance be seen as a peripheral financial service, it’s now positioned as a critical engine of national development.

To ensure its smooth implementation, the National Insurance Commission (NAICOM) has been empowered to enforce the Act’s provisions and steer the industry toward deeper market penetration and innovation.

With this move, President Tinubu has reaffirmed his administration’s commitment to financial sector reforms under the Renewed Hope Agenda, a vision anchored on inclusivity, modernization, and global competitiveness.

As the ink dries on this historic legislation, one thing is clear: Nigeria’s insurance industry is no longer waiting for the future, it is building it.

The Senate Leader, Senator Opeyemi Bamidele, who presented the bill to the Senate said out of the N49.7 trillion budget, the sum of N4,435,761,358,925 only is for statutory transfers, N16,327,142,689,549 only is for debt service, N14,123,544,196,406 only is for recurrent (non-debt) ex­penditure while the sum of N14,853,717,110,517 is for con­tribution to the development fund for capital expenditure for the year ending December 31, 2025.

Senator Barau Jibrin, the deputy President of the Senate, in his contribution to the debate on the second reading of the 2025 budget commended President Bola Tinubu for “his political will to bring prosperity to this country.”

He said the 2025 budget christened ‘Budget of Restoration: Securing Peace, Re­building Prosperity’ is sine qua non for a sound economy and up-and-doing society.

“What we need to do after the passage is to make sure that we do all that is human­ly possible to ensure that it’s fully implemented. I’m sure by the time we implement this budget, this country will turn into a land of El Dorado, a land of plenty and prosper­ity,” he said.

Akpabio, in his final re­marks thanked his colleagues for their contributions to the general principles of the 2025 budgetary estimates.

He wished them a Merry Christmas and a very Happy New Year in advance, par­ticularly for the Christian brethren.

“And I also want to say that God Almighty and Almighty Allah will definitely bless your New Year. No tragedy will touch your families. You will go and come back in good health. And Almighty Allah, may God be with you and with your families. May you come back to continue the service to your fatherland”.

He charged those who are in charge of ad-hoc commit­tees that they must do their work, adding “as soon as we come back, please get your reports ready.

“Then those who are in charge of conference com­mittees, to ensure that we marry the petitions of both chambers together, get your reports ready. So that once we come back in January, we can get cracking.

“If there is a need to call you back, in line with legis­lative practice, while you are on holiday, we will do so. So don’t forget that you are like what they call it in the army, I think reservists. You are on reserve. You can be called back any time if there is need, so that we can convene in the national interest.”

Therefore, he adjourned the Senate to the 14th day of January, 2025.

Reps Pass N47.9trn 2025 Budget for Second Reading

Similarly, the House of Representatives, on Thursday, passed the N47.9 trillion 2025 Appropriation Bill for the second reading after a comprehensive debate on the general principles.

At the plenary session, Speaker Tajudeen Abbas commended the focus of the 2025 budget, emphasising the importance of ensuring accountability and effective implementation.

“This budget reflects our collective determination to lay a foundation for econom­ic recovery and national de­velopment,” Abbas said.

The Chairman of the House Committee on Appro­priations, Abubakar Kabir Bichi, highlighted the fiscal discipline embedded in the proposal, noting that it includes measures to re­duce borrowing and increase revenue through reforms in taxation and public finance management.

However, some lawmakers expressed concerns over the increasing debt servicing costs, which account for a significant portion of the budget.

They urged the govern­ment to explore innovative ways to generate revenue and reduce the nation’s de­pendence on loans.

The House Leader, Julius Ihonvbere, assured Nigerians that the Appro­priations Committee would scrutinise the budget during subsequent stages to ensure every naira is judiciously al­located.

The bill will now move to the committee stage, where lawmakers will analyse the budget’s details, sectoral al­locations, and policy assump­tions before the final passage.

If passed into law, the 2025 budget will be the largest in Nigeria’s history, underscor­ing the government’s com­mitment to addressing the nation’s pressing socioeco­nomic challenges.

At Thursday’s plenary presided over by Speaker Tajudeen Abbas, members debated the budget, empha­sising its prospects and challenges.

The debate commenced following the adoption of a motion for ‘A Bill for an Act to authorise the issuance of N49.74 trillion from the Consolidated Revenue Fund of the Federation,” moved by House Leader, Prof. Julius Ihonvbere.

Leading the debate, Prof. Ihonvbere urged members to support the appropriation bill, emphasising that its successful implementation would significantly address the nation’s current chal­lenges.

“The budget proposal addresses key issues that directly impact the lives of Nigerians, and it is crucial that we all support its timely consideration and passage,” he stated.

The budget emphasises defence, infrastructure, and human capital development, with a projected deficit of N13.39 trillion, which will be financed through borrowing.

In his contribution to the ongoing budget debate, Abdussamad Dasuki, the member representing Keb­be/Tambuwal Constituency of Sokoto State, commended President Bola Tinubu for his leadership since assuming of­fice in 2023.

However, he called for an upward review of the pro­posed estimates to better ad­dress the country’s pressing challenges.

Dasuki, a member of the Peoples Democratic Party (PDP), remarked that while the budget appears substantial on paper, its actual value is insufficient when convert­ed to foreign exchange terms.

“The budget may seem robust on paper, but if you convert it to dollars, you’ll realise it falls short of what is needed. Considering the challenges we face, the nation is inadequately provided for,” he said.

He urged the relevant committees, particularly the Committee on Finance, to critically review the budget and propose adjustments to meet the country’s financial demands effectively.

He questioned the parame­ters adopted in arriving at the allocation to the North-West Development Commission.

“More allocation is need­ed for the North-West De­velopment Commission. We should ask ourselves the pa­rameters used in arriving at this allocation,” he said.

On his part, a PDP lawmaker from Bauchi State, Is­maila Dabo, urged the House to ensure that the agricultur­al sector receives a befitting allocation in the 2025 budget given the inflationary pres­sure on food items in the past few years.

“Inflation is on food items and Nigerians are finding it difficult to cope. I urge the House to do everything possible to ensure enough allocation is reserved for ag­riculture,” he said.

He, however, called on the Federal Government to prioritise revenue generation to fund the budget rather than resorting to loans as has been the practice in the past few months.

Similarly, Ahmad Jaha, representing Damboa/Gwo­za/Chibok Federal Constit­uency, Borno State, echoed the need to get the security budget right.

He noted that the N4.91 trillion allocated to securi­ty in the 2025 budget is not enough, saying, “All the bud­get elements are achievable if we are secured as a nation. The budget proposals are am­bitious and in order, particu­larly the focus on agriculture and infrastructure.”

Taking a slightly different position on the budget esti­mates is an All Progressives Congress lawmaker from Nasarawa State, Jeremiah Umaru, who questioned the rationale for making al­location to the South West Development Commission in the 2025 budget proposal even though the board of the commission is yet to be con­stituted.

In his contribution, the Deputy Chief Whip of the House, George Ozodinobi, called for adequate budget­ary provision for the SEDC.

“The money allocated to the SEDC is not enough. We need more money for the take-off of such a commis­sion but I want to say that if implemented, the budget has what it takes to make Nigeri­ans proud,” he said.

Meanwhile, the House has adjourned plenary sessions until Tuesday, January 14, 2024, when lawmakers are expected to resume legisla­tive duties. (Source: Independent.ng)

The announcement, which revealed the financial impact of the subsidy removal, was made by Sunday Dare, the Special Adviser on Media and Public Communications to the President.

In a detailed bulletin outlining Tinubu’s achievements in the oil and gas sector, Dare also revealed that the president had signed five new executive orders aimed at boosting investments in the sector. 

These orders are expected to bring about $2.5 billion in new investments, enhancing the country’s energy policy framework.

Dual Pricing Mechanism Introduced

Among the reforms introduced is a dual pricing structure for petroleum products, allowing differentiation between transportation by trucks and by sea. 

This pricing model is expected to enhance logistics efficiency in the oil and gas supply chain while addressing regional price disparities.

The subsidy removal, announced in Tinubu’s inaugural speech, immediately resulted in a dramatic increase in fuel prices, with petrol prices jumping from ₦180 to approximately ₦620 per litre. 

By 2024, the price at retail filling stations had surged to between ₦1,200 and ₦1,400 per litre, depending on the region.

Economic Impact and Reallocation of Resources

The removal of the subsidy has freed up funds, which the government says can now be redirected toward critical sectors such as education, healthcare, and infrastructure development. However, questions about the effective utilisation of these savings are unanswered.

Finance Minister Wale Edun recently stated that the country has saved up to ₦20 trillion since the deregulation of the downstream sector, although this figure has been met with scepticism. 

It’s been argued that the government’s continued reliance on borrowing—such as a proposed $2.2 billion loan to address the 2024 budget deficit—raises doubts about how effectively the savings are being deployed.

Challenges and Full Deregulation

The transition to a fully deregulated petroleum market came with challenges as petrol prices were initially pegged at ₦620 per litre, with the Nigerian National Petroleum Corporation (NNPC) absorbing the implicit subsidy despite rising crude oil prices and the naira’s devaluation. 

However, mounting debts of approximately $6 billion owed to oil traders forced the NNPC to halt its subsidy mechanism, ensuring full deregulation.

This move has been met with mixed reactions from Nigerians, who face increasing economic stress due to inflation and rising living costs. 

While the government touts the benefits of subsidy removal, including the attraction of foreign direct investments and the stabilisation of the oil and gas sector, many citizens are continuously hit with its immediate economic repercussions.

When the government fails to effectively communicate its policies, programs, and initiatives to the citizens, it only deepens the distrust and disconnect between them.

Studies have shown that most African citizens don’t trust their leaders as the news of corruption allegations and other vices seem to be the order of the day.

This is not different in Nigeria, a country regarded as the giant of Africa. The lack of trust in leadership can have far-reaching consequences, affecting the country’s socio-economic development and political stability.

Addressing corruption and restoring faith in government institutions is crucial to building a better future for all Nigerians. Leaders need to demonstrate transparency, accountability, and integrity to regain the trust of their people and work towards a more prosperous and equitable society.

The lack of strategic communication in government activities across all levels in the country is a concerning issue. While funds are being released by ministries and agencies to support businesses and citizens, the intended beneficiaries are not effectively reached due to inadequate messaging.

This communication gap creates opportunities for corrupt individuals and officials to exploit the situation for personal gain.

Addressing this communication inefficiency is crucial to ensuring the effective and transparent distribution of resources to those in need, ultimately preventing misuse and corruption.

A more coordinated and targeted approach to communication can help bridge this gap and ensure that government support reaches its intended recipients efficiently and fairly.

Unfortunately, due to economic challenges, some businesses have been forced to shut down, leading to a mass exodus of citizens, especially the youth, who are seeking better opportunities abroad. This phenomenon has been termed the ‘Japa syndrome‘, as individuals are opting to leave their homeland in search of greener pastures.

The increasing trend of young people leaving the country in pursuit of better prospects reflects the struggles and limitations faced by businesses and individuals within the local economy. It highlights the need for reforms and support to retain talent and foster growth within the community.

At every stage, Nigerian political leaders must take a cue from developed countries that many young individuals aspire to live in.

By examining what sets these countries apart and makes them attractive to their citizens, Nigerian leaders can gain valuable insights. While direct comparisons may not always be relevant due to differing contexts, conducting a thorough study of successful practices in developed nations can serve as a guide for the Nigerian government in making informed decisions.

Looking at what these countries have done right can provide a yardstick for measuring progress and implementing positive changes for the benefit of Nigerian society.

To renew the hope of the citizens and business community in line with President Bola Ahmed Tinubu’s ‘Renewed Hope’ mantra, strategic communication plays a pivotal role.

It is crucial to bear in mind that the hallmark of good governance lies in maintaining an accountable, transparent, fair, and efficient system. B

y effectively communicating government initiatives, policies, and progress, trust and confidence can be fostered among the people and businesses. This transparent and open dialogue ensures that stakeholders are well-informed and engaged, promoting a sense of inclusivity and collaboration.

Ultimately, strategic communication is instrumental in building a stronger foundation for a prosperous and sustainable future for all.

Fundamentally, strategic communication plays a crucial role in averting crises like riots or protests that may arise when new policies are introduced. Take, for instance, the tragic outcome of the #EndBadGovernance protest in some regions – it could have been prevented with effective communication strategies.

Through strategic communication, governments can sway citizen opinions towards endorsing national objectives, fostering a closer relationship between the government and its people. In this way, a symbiotic connection is established, benefitting both parties involved.

Emphasizing the importance of strategic communication is essential, as the failure to do so has been a contributing factor to the rise of fake news and misinformation.

Research shows that there is a lack of public knowledge about the government’s continuous endeavours, as they usually only announce their projects, plans, and achievements during specific occasions. President Tinubu’s speech at the 64th Independence Day festivities exemplifies this ongoing problem.

Citizens feel the government doesn’t value or see them as key stakeholders aside from election time. They feel that news disseminated is not completely true or has hidden facts.

The Case of Dangote Refinery and Nigerian National Petroleum Company (NNPC) Limited is an example. Aliko Dangote, Chief Executive Officer of Dangote Refinery, had to address the media before his concerns were addressed.  It also shows that the government often waits for citizens’ outbursts before responding to critical issues.

Another issue is the lack of transparent communication regarding developments in the oil and gas sector, leaving citizens uninformed. An example of this is the Port Harcourt refinery in Rivers State, which has yet to start operations despite assurances from the Federal Ministry of Petroleum Resources and NNPC.

This lack of clarity raises concerns about the government’s ability to deliver on its promises and effectively manage the oil and gas industry. Citizens deserve more transparency and accountability to understand the status of crucial projects like the Port Harcourt refinery and the overall state of the sector.

In another vein, citizens are always told to be patient by the government but are not told what to do to complement the government’s effort through effective communication campaigns.

So, communicating ways citizens can mitigate the effects of climate change and natural disasters; and ways to support security agencies in reducing terrorism, kidnapping; and others could boost citizens’ engagement in contributing to nation-building. This includes the government being transparent in communicating its plans and programmes.

I am very certain that the governments of developed nations prioritize proactive communication with their citizens rather than waiting for crises to unfold. By fostering transparency and open dialogue, they have successfully garnered the trust of their people.

This approach has cultivated a generation of patriotic individuals who are committed to safeguarding the integrity and stability of their nations at all costs. This proactive communication strategy not only ensures a sense of unity and shared responsibility but also lays the foundation for a strong bond between the government and its citizens, ultimately contributing to the overall well-being and prosperity of the country.

The key to success for government at all levels lies in prioritizing strategic communication. It is essential for them to take a proactive approach to communication rather than simply reacting to problems.

It is time to shift focus away from propaganda and instead concentrate on transparent communication methods that encourage citizen participation.

By collaborating closely with the citizens, Nigeria can reach its true potential and flourish. The political leaders must accentuate open, honest communication to establish trust and encourage collaboration between the government and the people in order to make Nigeria great.

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*Dr. Omolaraeni Olaosebikan is a strategic communications expert and the CEO of McEnies Global Communications, a leading strategic integrated marketing communications agency in Nigeria.

The buzz is everywhere and many are wondering why the naira is even being compared to the dollar since federal workers who initially earned the previous minimum wage of ₦30,000 are seemingly overjoyed.

But before you query further, look at today’s Nigeria, where the dollar plays an outsized role, affecting everything from the price of bread to rent. 

In 2014, Nigeria was Africa’s largest economy with a GDP of $568.5 billion. South Africa followed with $381.2 billion, Egypt with $321.6 billion, Algeria with $238.9 billion, and Angola with $145.7 billion. 

By 2023, Egypt rose to the top with $393.9 billion, South Africa maintained a close second with $377.7 billion, and Nigeria dropped to third with $374.9 billion. Algeria and Ethiopia followed with $244.7 billion and $159.7 billion, respectively. 

For 2024 estimates, South Africa’s economy became number one with $373.2 billion, Egypt at $347.6 billion, Algeria at $266.8 billion, Nigeria at $252.7 billion, and Ethiopia at $205.1 billion. This is according to data from StatiSense.

Also, the purchasing power of Nigeria’s minimum wage in terms of petrol (PMS) has seen a severe decline over the years. In 1999, a minimum wage of ₦3,000 could buy 150 litres of petrol. By 2000, an increased wage of ₦7,500 could purchase 341 litres. In 2011, with a wage of ₦18,000, workers could afford 277 litres. 

However, in 2019, despite a wage rise to ₦30,000, the purchasing capacity fell to 206 litres. In 2024, the new minimum wage of ₦70,000 only buys 93 litres of petrol, reflecting the huge impact of inflation and rising fuel prices on the real value of wages. What’s really happening?

The answer isn’t so simple. This new wage stacks up against the ever-rising cost of living, impacting businesses and the economy at large, and how Nigeria compares with other African countries.

There are complexities of wages and the never-ending issue of a better life in Nigeria, still, the dollar feels like gold. 

In the midst of all this, Aliko Dangote has halted his steel production plans following monopoly accusations from President Tinubu. We’ll get to that later. 

Striking a Balance: Navigating Nigeria’s Minimum Wage Debate for Economic Prosperity, Social Equity

Looking at Nigeria’s previous minimum wage, set at ₦30,000 per month, was established in 2019. At that time, the economy was facing low growth rates, high unemployment, and inflation, but not at a level as high as today. Inflation then was 11.40%, but today, it stands at 34.19%. 

The primary objective of the wage increase was to enhance the purchasing power of workers, reduce poverty, and stimulate economic activity, but things have gotten worse ever since.

The current agreement, according to the Nigeria Labour Congress (NLC), comprises a commitment to review the minimum wage every three years rather than every five years. 

This means the President will now adjust wages more frequently to keep up with inflation and economic conditions.

Cost of Living Analysis

To understand the impact of the new minimum wage, it’s essential to analyse the cost of essential goods and services before and after its implementation:

The price of foods such as rice, beans, and bread has greatly increased. For instance, as of July 18, 2024, a 50kg bag of high-quality rice costs ₦87,000 in Abuja, while it ranged between ₦78,000 to ₦85,000 in Lagos, Jos, Ilorin, Ibadan and Port Harcourt, among other states. 

This is a huge difference to earlier prices in 2019 where a 50kg bag of rice cost around ₦21,000. Even a loaf of bread is now as high as ₦2,000.

Rent prices have surged, particularly in urban areas. A one-bedroom apartment that rented for ₦200,000 annually in 2019 now ranges between about ₦500,000 to ₦1.5 million in Lagos State depending on the location.

Public transportation fares have doubled due to higher fuel costs. A bus ride that used to cost ₦100 now demands ₦300 and above.

The cost of healthcare services and medications has also risen sharply, making it more challenging for low-income earners to afford necessary treatments.

These increases show a big gap between wage growth and the rising cost of living, leading us to wonder about the real value of the new minimum wage.

Purchasing Power Comparison

Adjusting for inflation and the devaluation of the naira, the real value of the new minimum wage reveals its purchasing power. 

In 2011, the minimum wage was ₦18,000, equivalent to $117. By 2019, the wage had increased to ₦30,000, but due to currency devaluation, it was worth $98. Currently, the ₦70,000 wage, using the Central Bank of Nigeria’s exchange rate of ₦1,584 per US dollar, amounts to approximately $44.2. This figure is lower than expected, particularly considering the high cost of living in Nigeria.

For context, the price of a tuber of yam in the South East ranges from ₦7,000 to ₦12,000, depending on its size. The devaluation of the naira has unfortunately diminished the purchasing power of the new minimum wage. 

An analysis of the Nigeria Foreign Exchange Market (NFEM) reveals a decline in the naira’s value, making it difficult for workers to afford basic necessities despite the increased minimum wage.

Seeking individuals’ views, Lade, a single mother of two, works as a cleaner in Lagos. Despite the wage increase, she finds it hard to cover basic expenses. “The rent alone takes up more than half of my salary. After paying for food and school fees, there’s nothing left for emergencies. The new wage will help, but just a little, because everything has tripled currently.”

Emeka, a factory worker also says the new wage helps a bit, “but with the cost of everything going up, it feels like I’m running in place. It’s hard to save or plan for the future.”

Despite the wage hike, the price hike is unchanging. 

Nigeria’s Inflation Rate Up 34.19 % Amid Rising Cost of Living

International Comparison

Comparing Nigeria’s new minimum wage with those of similar countries gives us more insights. For instance, in South Africa, the minimum wage is about $248 per month, adjusted for purchasing power parity. In Ivory Coast, the wage is $125, in Togo it is $87, in Benin Republic, it stands at $86, Senegal at $75, Kenya at $116, Cameroon at $70, Morocco at $286, and in Seychelles, the highest, at $464.

Can you see that the purchasing power in Nigeria remains insufficient? 

For businesses, higher wages mean increased operating costs, which could lead to higher prices for goods and services. This, in turn, might contribute to inflationary pressures.

From an employment perspective, some businesses may struggle to absorb the increased labour costs, potentially leading to layoffs or reduced hiring. 

On the positive side, higher wages could boost consumer spending, driving economic growth and potentially creating more jobs in the long run.

But without corresponding productivity gains and economic reforms, the benefits may be short-lived.

For How Long Shall This Continue?

Robert Nesta Marley, the Jamaican social-political prophet, in his evergreen album “Redemption Song” released in 1980, must have thought about the prevailing ills of his time when he released a strong lyric that goes, “How long shall we kill our prophets while we stand aside and look?” With the accuracy of a Jewish prophet, Marley advanced the cause for redemption as indicated by the song’s title.

In the context of religion, a prophet sees ahead, predicts, and prescribes solutions. In business and entrepreneurial parlance, we believe “prophets” find solutions to pending situations, create opportunities when there are none, and subsequently ameliorate challenges for the people. 

Africa and Nigeria have been blessed with many such individuals, and it would be right to assert that Alhaji Aliko Dangote falls within this class by virtue of his investments and entrepreneurial wizardry.

The controversies that have surrounded the Dangote refinery, from scepticism and impossibilities envisioned by some armchair theorists and self-acclaimed social analysts, reflect this. 

Dubbed the eighth wonder of the world, with a production capacity of 650,000 barrels per day, the Dangote Refinery should prompt every serious person of African descent to interrogate what exactly our problems are and what we want as a people, despite campaigns of calumny from certain quarters.

Before the Dangote Refinery began operations, the Dangote Group was the highest employer of labour in Nigeria outside the federal government. It is a conglomerate with diverse interests in sectors such as cement, petrochemicals, sugar, flour, and salt production. 

The company employs over 50,000 workers across its different subsidiaries, and this is expected to increase with the Dangote Refinery, the largest in sub-Saharan Africa. 

According to information released six days ago, the $19 billion Dangote Refinery, reputed to be the largest in Africa and Europe, employs over 3,000 people. The fertilizer plant alone employs close to 1,500 directly and another 5,000 indirectly. 

While the politics surrounding the Dangote Refinery remain unclear, what is crystal clear is that it has generated employment opportunities and put food on the table for many, despite Nigeria’s hostile operating environment.

In the same vein, it is my firm belief that the proposed steel production, which was called off on the grounds of monopolising every aspect of the economy, after expressing readiness about a month ago, calls for serious soul-searching questions. 

There is no doubt that steel plays a vital role in the modern world. It is one of the most important materials for building and infrastructure, enabling a wide range of manufacturing activities and creating opportunities for innovative solutions in other sectors. It is also indispensable in research and development projects worldwide. 

Furthermore, a functional steel industry will serve as the backbone of Nigeria’s industrialisation if all the necessary parameters are put in place. The benefits of having a functional steel industry will translate to a functional country. 

The steel industry will contribute to all facets of the economy, including the important role it plays in economic development and growth, its multiplier effects in the development and sustenance of agriculture, healthcare, and virtually every other sector.

Dangote Halts Investment Plans in Nigeria’s Steel Industry

Are there records of remarkable breakthroughs in Nigeria’s steel industry yet? 

About eight months ago, the Federal Government of Nigeria allocated N4.45 billion to the moribund Ajaokuta Steel Company in the 2024 budget, seeking N35 billion from funding institutions to revive the light steel mill in the Ajaokuta Steel Plant, which has been dormant for over 42 years. 

It is significant to note that N4.45 billion for 2024 is higher than the N3.71 billion allocated to the company in 2023. However, juxtaposing the expenditure wasted by the federal government over the years with the trivial gains accrued from the industry, one could have envisioned that proposed steel production by Africa’s richest man would have brought succour or engineered a good start for private investors and entrepreneurs alike. But alas, the African billionaire has called off the initiative on the basis of being called a monopolist.

Much More than the Monopolist Claim

According to the Indian Economic Times, a monopoly market structure is characterised by a single seller selling a unique product in the market. 

In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. Factors like government licenses, ownership of resources, copyrights and patents, and high starting costs make an entity a single seller of goods. 

All these factors restrict the entry of other sellers into the market. Monopolies also possess some information that is not known to other sellers.

But the last time we checked, the government has not given anyone an exclusive right to venture into the steel industry. It seems to be like the Yoruba saying, “eni to ba la ya ko wa wo,” translated to English: “If you have the grit and expertise, you can venture.” 

Could it be that the constant frustration meted out by international oil companies and the supposed internal conspiracies experienced at the Dangote Refinery were covered up with something else?

Minus investment in the steel industry, plus the ₦70,000 new minimum wage, all you have is suffering and smiling.

Let’s say the monopoly justification adduced by Alhaji Dangote is something to go by. We are convinced that investment in the sector would have boosted employment opportunities for the teeming unemployed citizens in Nigeria. 

The question is, having witnessed the mass exodus of multinationals—up to the tune of 800 companies, with several others without clear records—are we supposed to have frustrated the good gesture of the entrepreneur? 

Like Microsoft, Apple, and Nvidia of this world, ours can start by providing a soft landing for the takeoff of conglomerates, not discouraging them in any way.

As a matter of fact, entrepreneurs in Nigeria are the real VIPs and should be treated as such. While we may be tempted to toe the line of the African billionaire on the basis of the monopoly alibi, we are sure that the birth of a steel industry would have at least paid more than the much-celebrated increase to N70,000 minimum wage. 

Whether the recipients of the minimum wage can lead a good life is still a long discussion, and we may need to wait and see how it pans out. 

If you can’t eat rice alone, the Iyaloja market already indicates that a big basket of tomatoes goes for ₦120,000. I will leave you with the prices of meat, fish, red oil, and a standard apartment in Nigeria. Then the question arises: how far can the minimum wage go?

Therefore, in line with the thought of Alhaji Aliko Dangote, we wish other daring African entrepreneurs who wish to venture into the steel industry the very best. 

Rounding off this piece, news just came in indicating Dangote’s interest in selling off the refinery, still on the basis of being dubbed a monopolist. We wait earnestly as events begin to unfold in the forthcoming days.

The announcement was made during the inauguration of the Presidential Committee on Livestock Reforms at the Presidential Villa.

“The solution is here. Many of you have the experience and desire to see Nigeria prosper.” President Tinubu said.

“To enable Nigeria to finally take advantage of livestock farming, we have seen the solution and opportunity for this adversity that has plagued us over the years and I believe the prosperity is here in our hands.”

The creation of this ministry is part of the Renewed Hope livestock reform initiative, which aims to comprehensively address the ongoing farmers-herders crisis. 

It also follows the establishment of a presidential committee ten months ago to deal with the herders-farmers conflicts and support the livestock and dairy industries. 

The committee, chaired by APC National Chairman Abdullahi Ganduje, had made several recommendations, including the creation of the Ministry of Livestock Resources.

Again, increasing pressure from the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN), which had been advocating for a ministry to oversee livestock matters, was one of the influences leading to the development.

Alhaji Baba Usman Ngelzarma, President of MACBAN, had previously called for the establishment of such a ministry, arguing that the entire livestock value chain requires a holistic approach. 

“Instead of focusing solely on ranching through legislative measures, a full-fledged ministry could handle all aspects related to livestock, from production and processing to marketing, transportation, and security,” Ngelzarma stated last month.

During the announcement, President Tinubu noted that Nigeria can better ensure the quality and safety of livestock products, reduce food waste, and maintain a stable supply chain with this ministry.

The Federal Government will support the acquisition of lands to promote peaceful coexistence between pastoralists and farmers, while the committee on livestock reforms will be chaired by President Tinubu, with former INEC chairman Attahiru Jega as the deputy chairman. 

The committee is tasked with developing recommendations to facilitate harmony between herders and farmers and to enhance the security and economic well-being of the nation.

With the new ministry, the Nigerian government seeks to resolve the long-standing conflicts over land, pasture, and water between herders and farmers. 

Previous measures, such as the Rural Grazing Area (RUGA) scheme, have not been successful. The conflict has led to loss of lives, with recent violence in Plateau State highlighting the urgent need for effective solutions. 

While the violence is often framed as an ethno-religious issue, factors like climate change and agricultural expansion also play key roles.

The government’s oversight on issues such as human rights abuses, economic growth, national security, and infrastructural enhancements is no longer tenable. Addressing these issues is imperative for ensuring the nation’s enduring stability and continued prosperity.

1. Human Rights Violations: The Nigerian government has failed to ensure respect for human rights and the rule of law. Amnesty International has documented numerous human rights violations, including extrajudicial executions, enforced disappearances, arbitrary arrests, and incommunicado detention. The government must investigate these violations and bring suspected perpetrators to justice.
2. Fuel Subsidy Removal: The removal of fuel subsidies has led to increased fuel costs, causing economic hardship for millions of Nigerians. The government must implement transparent and well-structured reforms to ensure that the funds from the fuel subsidy program are used effectively.
3. Local Governance: Local governments in Nigeria have financial autonomy but are severely disempowered due to corruption, weak institutions, and oversights. The government must ensure transparency and accountability in local governance to revive local governments and improve the delivery of social services.
4. Security and Insecurity: The Nigerian military has committed gross human rights violations in the northeast, and the government must investigate these violations and bring suspected perpetrators to justice. The government must also address rising insecurity in the southeast and other regions.
5. Economic Development: Nigeria has the largest economy in Africa, but the majority of its citizens live below the national poverty line. The government must implement reforms to ensure that the country’s mineral riches are utilized efficiently and that the economy is developed to improve the quality of life for its citizens.
6. Youth Empowerment: The upcoming elections are important for young people, who make up a large portion of the population. The government must address youth empowerment and ensure that young people are able to fully participate in the political process.
7. Displacement and Enfranchisement: The conflict in the northeast has led to the displacement of over 240,000 Nigerians, and many of them will not be able to vote in the upcoming elections. The government must address the issue of displacement and ensure that all citizens are able to exercise their right to vote.
8. Corruption: Corruption is a big challenge in Nigeria, and the government must address it to ensure good governance and transparency. The government must also ensure that the funds from the fuel subsidy program are not diverted to corrupt activities.
9. Education and Healthcare: The delivery of social services, including education and healthcare, is inadequate in Nigeria. The government must address these issues to improve the quality of life for its citizens.
10. Elections and Political Stability: The upcoming elections are essential for Nigeria’s political stability. The government must ensure that the elections are free and fair and that the results are accepted by all parties involved.
11. Infrastructure Development: Nigeria’s infrastructure is in a state of disrepair, with poor road conditions, inadequate power supply, and limited access to clean water. The government must invest in infrastructure development to improve the quality of life for its citizens.
12. Environmental Protection: Nigeria’s environment is under threat due to pollution, deforestation, and climate change. The government must take steps to protect the environment and ensure sustainable development.
13. Food Security: Nigeria is facing a food security crisis due to poor agricultural practices, climate change, and inadequate storage facilities. The government must invest in agriculture and ensure food security for its citizens.
14. Energy and Power: Nigeria has an energy crisis due to inadequate power supply and poor distribution. The government must invest in energy and power infrastructure to improve the quality of life for its citizens.
15. Transportation: Nigeria’s transportation system is inadequate, with poor road conditions, limited public transportation, and inadequate airport facilities. The government must invest in transportation infrastructure to improve the quality of life for its citizens.
16. Housing and Urban Development: Nigeria’s housing sector is in a state of crisis due to inadequate housing stock, poor living conditions, and limited access to affordable housing. The government must invest in housing and urban development to improve the quality of life for its citizens.
17. Disaster Management: Nigeria is prone to natural disasters such as floods, earthquakes, and hurricanes. The government must invest in disaster management and preparedness to minimize the impact of these disasters.
18. Social Welfare: Nigeria has a large population of vulnerable groups, including the elderly, children, and people with disabilities. The government must invest in social welfare programs to improve the quality of life for these groups.
19. Public Health: Nigeria is facing a public health crisis due to inadequate healthcare facilities, poor sanitation, and limited access to healthcare services. The government must invest in public health to improve the quality of life for its citizens.
20. Water and Sanitation: Nigeria has inadequate access to clean water and sanitation facilities, leading to water-borne diseases and poor hygiene. The government must invest in water and sanitation infrastructure to improve the quality of life for its citizens.
21. Waste Management: Nigeria is facing a waste management crisis due to inadequate waste disposal facilities and poor waste management practices. The government must invest in waste management infrastructure to improve the quality of life for its citizens.
22. Tourism and Cultural Heritage: Nigeria has a rich cultural heritage and tourism potential, but the government must invest in tourism infrastructure and cultural preservation to promote tourism and cultural exchange.
23. Research and Development: Nigeria must invest in research and development to improve its economic competitiveness and address its development challenges. The government must establish research institutions and provide funding for research projects.
24. Digital Economy: Nigeria must invest in the digital economy to improve its economic competitiveness and address its development challenges. The government must establish digital infrastructure and provide funding for digital projects.
25. Good Governance: Good governance is essential for Nigeria’s development and stability. The government must ensure transparency, accountability, and the rule of law to improve the quality of life for its citizens.

As Nigeria marks a quarter-century of democracy day in governance, the nation is at a crossroads. The 25 important needs and areas outlined are not just policy points; they are urgent aspects that the Nigerian government must heed to safeguard the nation’s democratic principles and enhance a thriving, equitable society.

Being Africa’s most populous country and one of its largest economies, Nigeria has its democratic progress filled with a wide continental trend in governance.

From Military Rule to Democratic Governance. Nigeria’s change from military to civilian rule has been a good turning point in its political history. Democracy in Nigeria has brought about improvements over military rule, particularly in terms of freedom of expression and media.

Under civilian rule, Nigerians enjoy the liberty to speak out and engage in public discourse without fear of government retribution. This freedom is essential for accountability and an informed citizenry.

Nigeria officially embraced democracy in 1999, ending decades of military dictatorships that had suppressed political freedom and governance. This change opened the doors for a more inclusive and participatory political system, albeit with its own set of challenges.

When compared to other African nations, such as South Africa, Nigeria’s democratic journey has been different. South Africa’s transition from apartheid to a democratic regime in 1994 was a global event, showing the power of reconciliation and the establishment of a solid constitutional democracy.

In contrast, Nigeria has faced challenges in creating national unity within its complex social space, comprising over 200 ethnic groups.

Both Nigeria and South Africa have faced issues of electoral violence, one-party dominance, and voter dynamics. Nigeria’s elections have often been marred by violence, voter intimidation, and ballot rigging, raising concerns about the integrity of the electoral process.

South Africa, while not immune to these issues, has managed to maintain a relatively peaceful electoral environment.

Internationally, Nigeria’s democratic standing is mixed. The country performs in the mid-range regarding representation, rights, and participation, but falls in the low range for the rule of law. It ranks in the top 25% of countries globally in civic engagement but is in the bottom 25% for several factors related mainly to rights.

Important Benchmarks in Nigeria’s Democracy

• 1999: The election of Olusegun Obasanjo as president heralded the Fourth Republic, bringing an end to military rule and starting a new chapter of civilian governance.

• 2003: President Obasanjo’s re-election for a second term, reinforcing the democratic process.

• 2007: The election of Umaru Musa Yar’Adua, although his tenure was cut short by his untimely death in 2010.

• 2010: Goodluck Jonathan became president, emphasizing the constitutional provision for succession.

• 2015: The peaceful transfer of power to Muhammadu Buhari, pointing out the first time an incumbent president was defeated in an election.

• 2023: Bola Ahmed Tinubu assumed office as the 16th President of Nigeria, succeeding Muhammadu Buhari.

Despite the establishment of democratic institutions, Nigeria has faced issues such as electoral malpractices, corruption, and a lack of solid political inclusion.

However, there have been notable improvements in areas like economic growth, with Nigeria’s GDP growing six-fold since the return to democracy.

The country has also seen advancements in civil liberties, although challenges remain in regions affected by insurgency.

Voices of Political Analysts

Dr Leena Koni Hoffmann, an Associate Fellow at Chatham House, notes that while Nigeria has a democratic constitution and federal system modelled on the US, it still faces entrenched corruption and weak democratic institutions.

Similarly, the United States Institute of Peace highlights the need for a reset of Nigeria’s democracy, emphasizing the role of the youth and civil society in demanding change.

Nigeria’s democracy is at a crossroads. The need for political reforms, stronger institutions, and genuine political inclusion is highly necessary.

The Nigerian experience teaches that democracy is not just about holding elections but also about strengthening institutions, ensuring the rule of law, and enabling civic engagement.

The importance of addressing socio-economic disparities and corruption is also important, as these issues can undermine democratic values and citizen trust in the system.