If you’ve been following Nigeria’s financial news, you may have heard about another loan request that was recently approved. Understandably, given the country’s history with debt, this has generated some noise, so we decided to get into the gist of what it’s all about.
On June 22, 2023, the World Bank approved a new $500 million loan for the Nigerian government. The loan is for the Nigeria for Women Program Scale Up (NFWP-SU). According to Punch, this is the second loan the World Bank has approved under President Bola Tinubu’s administration. The loan initially got approval on June 27, 2018, with part financing to the tune of $100 million.
[Nigeria for Women Project / World Bank]
So what’s the loan for?
The receiving agency for this loan is the Federal Ministry of Women Affairs and Social Development. According to the World Bank, the NFWP-SU programme will help ensure better economic opportunities for women, address gender inequality, guarantee better education, health, and nutrition outcomes for families, and build women’s and communities’ resilience to climate change.
This programme builds on the Nigeria for Women Project (NFWP). Based on the initial $100 million tranche the FG received in 2018, the World Bank says it shows promising signs, which have led it to approve this $500 million loan.
According to the World Bank Country Director for Nigeria, Shubham Chaudhuri, “NFWP’s model is helping to improve women’s livelihood opportunities, enhancing their capacity to adapt to climate change, and participating in local administrations for policymaking related to community empowerment.”
He added, “Closing the gender gap in key economic sectors could yield between $9.3 billion and $22.9 billion,” and that the World Bank is optimistic that this scale-up will help Nigeria move closer to bridging this gap.
What else should you know?
In a recent press release, the World Bank disclosed that the beneficiaries of this programme are economically disadvantaged and vulnerable women in “Women Affinity Groups” (WAG). It says that since 2018, it has been implemented in six states across Nigeria. The World Bank supports over 427,887 WAG members by forming and strengthening 20,506 of these groups.
In approximately two years, the World Bank says these WAGs have saved about ₦4 billion ($8.9 million equivalent). It disclosed that a significant percentage of these funds are utilised as loans at any given time. So far, 835,573 community members have benefited from the NFWP through various interventions.
The loan was provided with support from the International Development Association (IDA).
However, a few things remain unclear, like the payback period and the loan terms. It’s also unclear who will head the new ministry to disburse the funds. So far, there isn’t a ministerial cabinet. Whoever that person is, all eyes will be on them.
In Nigeria, the agency tasked with combating the use and sale of hard drugs is the National Drug Law Enforcement Agency (NDLEA). It recently intercepted loads of “Colos”, a psychotropic drug rapidly gaining popularity among young people.
The United Nations marks today, June 26, as the International Day against Drug Abuse and Illicit Trafficking. The NDLEA is also on a national campaign to stop drug abuse, especially as it has become increasingly common to see videos of Nigerians, specifically young people, exhibiting erratic behaviour and losing control of their actions due to the influence of the drug known as Colorado.
Colorado has swept across the country with a street lingo known as Colos. We’ve explored a worrying trend with cocaine trafficking. In this article, we’ll look at Colos and what science says about it.
What is Colos?
Colos is a drug that comes from a synthetic mixture. It contains heavy metals laced with chemicals, with weed as a mixture. Colos is unsafe for human consumption.
Colos has other names like “Black Mamba”, “Potpourri”, “Arizona”, “Lamba” (when mixed with “Loud”), and “Scooby Snax”.
What are the health hazards of using Colos?
Colos is ingested to mimic the effect of tetrahydrocannabinol (THC) found in marijuana, which gives off the feeling of being high. However, it does more than that; it often sends users into a frenzy. The chemicals used in making Colos are banned substances smuggled into Nigeria.
Olabintan Odunola, a medical doctor and Team Lead at The Health City shared her insights on the drug:
“Using drugs, including the widely acclaimed Colorado, has been made to look cool, and therefore many young people are attracted to using them, consequences be damned. Health risks involved in using synthetic cannabinoids like Colorado include feelings of lightheadedness, dizziness, confusion, and tiredness; feeling excited, agitated, and aggressive mood swings; anxiety and paranoia; suicidal thoughts; memory problems and amnesia; nausea and vomiting; hot flushes; increased heart rate and blood pressure, which may cause chest pains, damage your heart, and even cause a heart attack; excessive sweating fingers, toes, or muscles; feeling numb and tingly tremors; seizures; and even death.
Today, on International Day of Drug Abuse and Illicit Trafficking, the onus is on us to continue educating young people that drug abuse always comes with a price and is not worth the hype.”
On social media, there are several videos of Nigerian youths reacting violently after using the drug. In 2022, a special report by Punchrevealed a drug user going berserk by uncontrollably slamming his head against a plank. In 2020, Guardianreported that a teenager died after smoking the drug.
The potency of the drug is well-known and has entered street slang. The phrase “On Colos” means a person acting under the influence of drugs.
What else should you know?
Nigerian laws frown upon illicit drug use. Beyond that, however, it’s clear that Colos contains chemicals that can have long-term damaging effects. The safest recourse is to avoid it and other related banned substances entirely.
This year’s World Drug Day theme is “People First: Stop Stigma and Discrimination, Strengthen Prevention.” If you or anyone you know is struggling with substance abuse, the NDLEA has provided an extensive list of NGOs focused on rehabilitation that you can contact. Avail yourself of this opportunity today, and let’s bring the Colos pandemic to a halt.
Two stories about Nigeria caught my eye this week. They fascinate me because their disparity best captures the peculiarity of being Nigerian. Let’s start with the good stuff.
In what has been viral news during the week, a Nigerian, Ifeoma Amuche, studying at a Chinese university, went on to finish as the school’s best-graduating student. As the valedictorian, she delivered a speech over four minutes long in fluent Chinese. If it isn’t apparent, that’s a pretty impressive feat.
Another way to think of it is if a Chinese studied at a Nigerian university and finished as the best-graduating student—while learning in Yoruba, Hausa, Igbo or any of the hundreds of languages spoken in Nigeria. Ifeoma’s feat typifies Nigerian excellence, setting an incredibly high bar.
And now, to the other story. People’s Gazette exclusively reported that two federal civil servants conducted a $76 million heist, the proceeds of which were kept in cold storage at the height of the COVID-19 pandemic. The story’s lede reads like vivid imagination—the kind one only daydreams about when struck by severe hunger pangs. Here’s a screenshot below:
The story has several interesting subplots, including the alleged involvement of the disgraced police officer, Abba Kyari, who was alleged to have received kickbacks. You can read the full gist at your own time.
When the story broke, it triggered several reactions, like this one:
Having read through the story, here are a few thoughts:
Buhari’s anti-corruption crusade was a farce
Muhammadu Buhari may be away from power for good, but his terrible legacy remains. He had the option of strengthening our institutions but chose to hinge his initial anti-corruption crusade around the force of his personality. The result? Public officers carted away millions of dollars from government coffers wantonly.
Stealing huge sums is easy. Spending it is hard
It’s one thing to hatch a plan to steal plenty of money. As the last administration showed, that happened a lot. But spending it without leaving a paper trail while still serving in government is very hard. White-collar criminals usually find their way around that by laundering money. We explained here why that’s bad.
They might have gotten away with it
The reason we know about the story goes like this, in summary. Some government workers allegedly stashed $76 million. A driver for one of them thought COVID-19 palliatives were locked up in storage and told his friends, who were scrap metal collectors. These guys came around hoping to get their share of Indomie—recall that this period was when government officials were hoarding palliatives. To their surprise, they broke in successfully and found that what they thought were packs of noodles were stacks of dollar notes. They managed to cart away $4 million, leaving $72 million behind, while the driver himself was unaware. As they say, there’s no honour among thieves.
The government officials found out. They could have chosen to forgo the $4 million but decided to involve the police to recover it. Maybe they feared that they could return to cart more loot. Police managed to recover around $2 million, but long and short, a paper trail had emerged. Would their heist have remained a secret if they’d chosen to count their losses instead? We’d never know.
Something has got to give
If you recall that Nigeria suffered a severe dollar shortage, you’d understand why having $76 million in cash is mind-blowing. But an even bigger question is how these government officials got their hands on it in the first place. This represents the first major corruption case that the current administration has on its hands.
How the investigation will proceed from here on is anyone’s guess. But it would also indicate whether this administration is serious about reforms or if things will remain business as usual.
The use of social media has come with benefits and challenges. Combined with the explosive rise of Artificial Intelligence (AI) over the last few years, it’s getting increasingly difficult to tell what is real from what is fake. The phrase “seeing is believing” is being tested now more than ever. The things we see and hear can now be digitally altered, thanks to technologies like Midjourney and Deep Fakes.
For instance, there’s a YouTube channel dedicated to telling jokes using AI-generated voices and the visuals of former US presidents. For the uninitiated, it looks genuine. See this short clip, for example.
In another one, a photo of the Pope in a white hoodie took Twitter by storm. It was later found to be AI-generated.
While it may seem harmless fun to some, fake images can have grave consequences. In May, a falsified photo of an explosion near the US Pentagon spooked financial markets and caused US stocks to drop in what some consider the first instance of an AI-generated image moving the market.
In Nigeria, leading up to the elections, fake images of presidential candidates and their allies made the rounds. Many of these made their way to WhatsApp groups and stoked ethnic sentiments that influenced how people voted.
For this week’s episode of Wait First, we look at ways to identify fake photos and how to protect yourself from sharing fake news.
How to spot fake photos online
Fact-checkers, Dubawa made a video identifying five ways to spot fake images. In summary:
Check the source. Look for the source of the photo. If it’s from a reputable organisation or a known photographer, it’s more likely to be authentic.
Look for inconsistencies. Check for photo inconsistencies, such as mismatched shadows, unnatural lighting, or distorted proportions.
Check the metadata. Most digital photos contain metadata that includes information such as the date, time, and location of the photo. Check this information to see if it matches the context of the photo.
Use Reverse Image Search. Use a reverse image search engine like Google Images, Tineye, or Yandex to see if the photo has been used elsewhere on the internet. If it has been used in multiple contexts, it may be fake.
Consult experts. Consult with forensic analysts, photojournalists, or digital forensic experts if you’re still unsure about the image’s authenticity.
What else should you know?
Besides the above points, Deutsche Welle (DW), the news agency, has also provided some tips to help shield you from falling victim to fake images.
Zoom in and look carefully.
Watch out for typical AI errors. AI-generated images tend to have one too many fingers. In the example of the Pope above, did you notice that his left fingers were unusually long and that there were only four of them? Also, look out for too many teeth or weird glass frames. The Random Face Generator is an AI tool that generates photos of people who don’t exist.
Check for unusual smoothing. If the hair or skin looks exceptionally flawless, there’s a good chance it’s fake.
Examine the background. Sometimes, the backgrounds of AI images tend to be blurred or have distorted objects.
If you encounter an image on Twitter whose authenticity you’re unsure of, you can tag the handle @hoaxeye. It does reverse image searches and can check if an image is real or AI-generated.
[Midjourney image of Will Smith. Note the blurry background]
Despite these tips, technology is constantly advancing, and AI is adapting to overcome its flaws. Ultimately, the best bet is to remain sceptical and apply common sense. Don’t be too eager to share a photo if it’s not verified. When in doubt, leave it out.
On January 2023, Nigerian comedian, Helen Paul, took to Google to ask, “Who is the owner of Nigeria?” Google’s response was to bring up Aliko Dangote, the billionaire businessman. Soon enough, it became a trending issue as other people confirmed the same result from the search engine.
Although it’s considered a Google algorithm error, it has brought up random answers to queries it has no specific answers to, like claiming Jack Ma was the owner of China or Agbani Darego being Nigeria’s ugliest woman.
Google may not always be your friend, but we won’t disappoint you like that. That’s why we want to give a definitive answer to the question: Who owns Nigeria?
Who Owns Nigeria?
No one person “owns” Nigeria, not even the President. Nigeria is a sovereign state whose ownership is vested in the Nigerian people. As we’ve explained in a separate article, Nigeria is both a federal republic and a democracy. By federal, we mean that Nigeria is a federation of states—36 in all (excluding the Federal Capital Territory).
By republic, we mean a system of government where people choose representatives through elections to represent them in the public interest. In this sense, it differs from military rule or a monarchy. But it does sound very similar to a democracy, which also elects leaders. Like Nigeria, most democracies are also republics. Examples include the US and France.
A slight difference is that democracy is the government of the majority, which allows the majority to impose its will on the minority. On the other hand, a republic allows everyone—whether the majority or the minority—to have inalienable rights. The Constitution protects these rights in Nigeria.
This national identity is also reflected in our symbols — like the flag, the coat of arms, and most recently, Nigeria’s new national anthem, which was reintroduced in 2024 after replacing the previous one that had been in use since 1978. The change stirred debate, but it’s a reminder that a nation’s identity is constantly evolving, shaped by both its history and its people.
Nigeria gained independence on October 1, 1960, but only became a republic on October 1, 1963. Since then, we’ve alternated between Republican and military rule. Nigeria is in its Fourth Republic, which began on May 29, 1999.
What Else Should You Know About Nigeria?
Nigeria is an ethnically diverse country comprising over 250 ethnic groups. Its largest ethnic groups are the Hausa, Igbo, and Yoruba. We already wrote about other ethnic groups you should know about.
Nigeria is also unique in its composition, being perhaps the only country with a roughly even split of Christians and Muslims.
Nigeria is an oil-rich nation plagued with many issues like poor leadership, insecurity, economic mismanagement, and corruption. However, Nigeria has historically excelled in sports and the arts and is a prominent force in the African tech scene. Below are five interesting facts to know about Nigeria.
Five Fun Facts About Nigeria
Nigeria is the originator of the team sport Loofball, which combines features of handball and volleyball. It began in 2017.
[Loofball / Wikipedia]
Nigeria is home to Igbo-Ora, situated in Oyo state. With 158 twin births per thousand, it has been described as the Twin Capital of the World.
[Nigerian Twins / Reuters]
Nigeria’s Nollywood is the second-largest film industry in the world. Nigeria is also the home of Afrobeats, championed by stars like Wizkid, Burna Boy, Davido, and Tiwa Savage.
[Davido, Wizkid, Tiwa, Burnaboy / Intel Region]
Nigeria remains the only African country to have medalled in all categories in Olympic football, winning gold in Atlanta 1996, silver in Beijing 2008, and bronze in Rio 2016.
[Nigeria’s male football team at the 2018 World Cup / Sportskeeda]
Nigeria has one of the youngest populations in the world. About 50.4% of its population is under 18 years old. Its commercial capital, Lagos, is projected to become the world’s most populous city by 2100.
[Lagos / The Washington Post]
Frequently Asked Questions About Nigeria
Q: Who did Nigeria belong to? A: Before gaining independence in 1960, Nigeria was a British colony. Control was passed to the Nigerian people after independence.
Q: Who runs Nigeria now? A: Nigeria is currently governed by President Bola Ahmed Tinubu, elected in 2023. Nigeria operates as a federal republic and democratic state.
Q: How is Dangote related to Dantata? A: Aliko Dangote is the great-grandson of Alhassan Dantata, a wealthy Northern merchant and one of Africa’s richest men in the early 1900s.
Q: Who purchased Nigeria? A: No individual purchased Nigeria. However, in 1900, the British government took over the Royal Niger Company’s territories, forming the colony of Nigeria.
Q: Who owned Nigeria before the British? A: Before colonial rule, Nigeria was made up of various kingdoms and empires such as the Oyo Empire, Benin Kingdom, and Sokoto Caliphate, each with its own rulers.
Conclusion: Nigeria Belongs to Its People
No single person owns Nigeria. Despite what Google might say, Nigeria is owned by its citizens, governed by a constitution, and shaped by its history and diversity. It’s easy to misunderstand ownership in a country as complex as Nigeria. But one thing’s clear, our national identity is something we all co-create.
It’s been three weeks since President Bola Tinubu assumed office, and Nigerians are getting a clearer picture of his economic plans for the country.
In May 2023, Tinubu’s Policy Advisory Council developed a report that wants to double Nigeria’s economy to become a trillion-dollar one by 2031. The 50-page report only became publicly available last week. We went through it to highlight some key findings.
Senator Tokunbo Abiru chaired the economic sub-committee that drafted this report. The committee also comprised Yemi Cardoso, Samaila Zubairu, and Doris Anite. The audit and advisory firm KPMG contributed to this report.
[Source: Policy Advisory Council Report, May 2023]
What are the highlights of the report?
The report identified five areas of focus that it wants to pursue to hit its big targets.
[Source: Policy Advisory Council Report, May 2023]
On the fiscal side, the government says it wants to boost revenue, lower expenditure, and refinance debt. It has moved to lower expenditure by removing the fuel subsidy, shifting the burden from the government to the people. To generate revenue, this government will aggressively focus on deepening tax collection. It will also “rationalise select government assets.” (A finance term that means reorganising assets to make them more efficient to boost a company’s bottom line.) This can be achieved by either divesting the assets or selling them off.
[Source: Policy Advisory Council Report, May 2023]
The government is also looking to address oil theft. It wants to achieve this by expanding security contracts in the Niger Delta. Taken at face value, this might explain Asari Dokubo’s visit to the villa last week, which in all likelihood, wasn’t just a courtesy visit but at the invitation of the President.
The report also speaks on boosting Nigeria’s oil production and making Ministries, Departments & Agencies (MDA) more efficient by implementing the Oronsaye report to remove duplicity.
The monetary policy goal is to keep the exchange rate within ₦550-600 to the dollar and to bring inflation and interest rates to 13% and nine per cent, respectively. Currently, inflation is at 22.41%, and the interest rate is at 18.5%. We explained here why that’s bad.
[Source: Policy Advisory Council Report, May 2023]
There are also suggestions to extend the deadline for turning in old notes to December 31, 2024.
Under industry and trade, plans are to boost the manufacturing sector’s output to $50 billion annually. The agenda includes training 100,000 artisans annually, subsidising interest rates for manufacturers, creating a five per cent tax incentive, leveraging on a ₦9 trillion pension fund and passing a foreclosure law to “deepen credit penetration.”
The highlight for the capital market is to make data more accurate and eliminate multiple taxes that can put off investors.
There are also doubts about how workable these plans are. First, consider the growth numbers. Let’s look at Buhari’s numbers:
Tinubu is saying he’ll rebound the economy to grow at an average of seven per cent. Frankly speaking, pulling that off would be nothing short of a miracle. The plan to double our economy into a trillion-dollar one in eight years is just as incredible. It might be best to file that under wishful thinking.
For one, mathematics doesn’t support it. In finance, there’s a rule of thumb known as the Rule of 72. It’s a shortcut to calculate the time it takes for anything to double, be it an investment, the GDP, or the population. All you need to do is divide 72 by the rate of return.
That means that even if seven per cent were to happen, GDP wouldn’t double for at least another eleven years. KPMG, which consulted on the report, seems to agree, which is why it said earlier in June that Tinubu’s plan to grow the economy at six per cent on average in his first four years isn’t feasible. They said the best-case scenario is hitting 4-4.5%. Factoring in the devaluation of the naira, this revised estimate means it may take Nigeria even longer to hit the trillion-dollar mark.
The goal to create 50 million jobs is also questionable in light of Nigeria’s high unemployment rate. One observation about the government so far is that it asks for concessions from Nigerians without making any itself. Its palliative goals are, in its words, “non-cash”, like public transport vouchers, education, and healthcare support. But it’s silent on how it wants to do it, just as it’s silent on what the new minimum wage will be.
The plan to outsource the security of pipelines to “contractors” signals that it’s business as usual. We wish the government good luck in this venture.
The foreclosure law, which it plans to pass to deepen credit financing, needs clarity. This is vital. The government wants to encourage mortgaging as a means to access loans, following which, in the case of a default, the government seizes control of the property.
Final words
So far, Tinubu has hit the ground running as promised. Yet, in the face of growing pains coming from the subsidy removal and the high cost of living, the patience of Nigerians may quickly grow thin.
As political commentator Feyi Fawehinmi puts it in the Financial Times, “Tinubu’s early moves have all been plucking low-hanging fruits. But you still have to credit him for bothering to pluck them.
“The bar is incredibly low. Buhari did not bother to pluck any fruits, low hanging or not. Tinubu will eventually run out of easy wins; the test starts then.”
There’s a common saying that “tough times don’t last.” Nigerians from all walks of life will hope this saying manifests quickly, and why wouldn’t they? The new administration, led by President Tinubu, heralded its dispensation by removing the fuel subsidy.
The effect has been a marked increase in fuel costs, which has had ripple effects on the cost of living. On Thursday, June 15, the National Bureau of Statistics (NBS) announced that inflation in May rose to 22.41%. The subsidy removal and the subsequent announcement of a unified exchange rate have led experts to suggest that inflation will rise even higher in June.
To gauge the current adaptation of Nigerians to the prevailing circumstances, Citizen interviewed some of them for this week’s episode of Navigating Nigeria. Here are their thoughts:
Ola, Analyst at a VC firm
I’m a naturally frugal person who works on a budget. Because I follow the news, I saw the fuel subsidy removal coming, and I understood its implications. I got a solar inverter in May, which powers electronics like my TV, refrigerator, and laptop. I charge the inverter with PHCN’s power supply and switch to it when the power goes off. I did this because I didn’t want to find myself in a situation where I’d have to queue to get fuel for my generator. I’m also a remote worker who has to be online almost 24/7.
Getting a solar inverter has been one of the best cost-saving measures I’ve done this year. I don’t have a car, so I don’t have to worry about getting fuel for that because I rarely ever go out except for groceries. Speaking of that, I do my shopping in bulk, so there’s no need to visit the mall frequently. My data subscription plan is also in bulk; I pay a yearly data subscription of ₦100k on MTN that gives me one terabyte covering my internet needs.
I don’t eat out either; I make my meals. This one isn’t because of the subsidy removal. I’ve always been like that. It saves cost.
Another way I’ve adapted is to reduce my propensity to order stuff from online vendors. The other day I wanted to get stuff from Instagram, and the vendor told me it cost ₦2800, which was fine. Then I asked for the delivery cost, and she told me it was ₦2200. She told me the high delivery cost was because of the subsidy. I backed out because it made no sense to me. So yeah, these are the measures I’ve taken to readjust to life after the government removed the subsidy.
Itome, Business Analyst
For me, there are some essentials I can’t do without. Data is one of them, and that’s a non-negotiable, and I always make provision for that
Because my cost of living has increased, I go out only when necessary. I only use Bolt for significant outings. I take public transport most of the time.
To manage fuel, I turn on my generator when I need to charge my laptop and turn it off once my gadgets are fully charged. That’s how I’ve been managing.
Juliet, Banker
Cooking your food saves a lot. It’s much cheaper to cook at home and take your food to work than to buy food regularly. Imagine if my hubby and I buy food at work every day, plus our children. It would be very expensive. I also buy non-perishable food items in bulk.
Ilamosi, Sales Manager
Going out is the only thing I’ve cut down on. I barely go out now. Before the fuel subsidy removal, I’d be outside and come to work frequently. But now, with the hike in cab prices, it’s hard to leave my house. I’m now an introvert.
The cost of living has turned me into a home buddy. I’ve even reduced the way I order food. Usually, you’d find me on Chowdeck. Now? I cook. Dem no dey tell person twice.
Eloho, General Contractor
Regarding data, I use Fibre One wifi. It’s still cheap at the moment. For food, I made some bulk purchases before the inflation kicked in. I’ve not made any significant purchases afterwards.
Transportation is one area I’ve felt the pinch. Prices just dey surprise me every time. I use buses more than before to cope and only use Uber when necessary. I’m no longer shy of asking for Uber fare if my stepping out is doing someone a favour. I calculate in advance to reduce unnecessary trips
Regarding electricity, yesterday was the longest we ever ran my generator, which was babe-motivated. (Not my babe o, my brother’s babe). So far, our devices are charged, and we don’t run the generator like before. Before now, we’d put on the generator at the slightest inconvenience of heat. I go to places with better electricity to work instead of burning fuel.
Generally, I now think more business-wise, figuring out how every relationship can become financially beneficial to everyone. I make myself more available and render help to anyone
On a personal note, knowing the principle of giving makes giving more conscious. I budget a little daily, as much as possible, and look for the needy. It’s not just because of love but as part of my financial strategy because by giving, you receive more (not from the person you gave to, lol).
Shola, Oil and Gas Worker
I didn’t care about the fuel price until the subsidy removal. Now, I don’t buy full-tank like before. I only buy enough for the week. It cost about ₦32k to fill my car’s tank. So, these days, I just buy half, roughly ₦15k.
I don’t do long-distance drives, only making exceptions like going to my friend’s wedding or linking up with my babe. I had a chef that came in once a week but stopped her for a while. But eating out is biting, so I had to bring her back again at a higher rate. I’m now in between a rock and a hard place. I increased my housekeeper’s pay and slightly increased transfer payments to dependents.
My last movie dates were on the mainland, compared to my usual Ebony and IMAX at Lekki on the island. It’s cheaper, but my babe isn’t feeling this mainland level. It’s still the same film they’ll show us on the island or on the mainland.
Niyi, Corporate Trainer
I’ve stopped going anywhere. Fuel to fill my car’s tank is now about ₦37,000, up from ₦14,000. So I only go out when I absolutely have to go out.
I’m also investing in more solar generation. The inverter I own relies on fuel and electricity to charge the batteries. More investment has gone towards increasing the number of solar panels to avoid relying on generators. It’s become unsustainable to use generators.
I also had to bring forward some purchases before the prices inevitably go up.
Essentially, I’ve done a lot to reduce reliance on fuel because it’s become too expensive to maintain the lifestyle I was living in, pre-subsidy removal.
William, Lawyer
I’ve been in Abuja for the last few months, and it’s considerably different from living in Lagos. In Lagos, you at least have alternate transport like bikes. Here, outings are either via Bolt or a cab. Their cabs are arranged in a way that five people can sit in them. There are no bikes or buses here.
For the cabs, the price of transport has doubled. What cost about ₦1000 before now goes for ₦1800. I now go to court less than before. I also cut costs by moving in groups so that my colleagues and I can split the bill.
Personally, food prices haven’t increased. I still buy things at relatively the same price as before the subsidy removal. In Abuja, we don’t worry much about electricity. I think ours is way better than Lagos’s. On average, we get around 18 hours of consecutive power supply daily. On some days, it could be as high as 23 hours. That means you don’t have to worry much about fuel for your generator. You also don’t need to worry about wasting electricity to pump water, as ours is pipe-borne. The government supplies water, which is fascinating and different from Lagos, where everyone drills boreholes to get water. Abuja is giving American vibes.
Prices of other things may still go up over time, but for now, transport is the only area where I’m feeling the pinch.
On June 14, 2023, the Central Bank of Nigeria (CBN) issued a press release announcing new operational changes to the foreign exchange (forex) market. These changes, in summary, mean the CBN wants a unified exchange rate policy.
Most of the press release is filled with jargon that might be difficult to understand. We went through it to explain the parts that matter to you. We’ve also looked at the winners and losers of this new policy.
What are the highlights of this new policy?
The CBN is abolishing segmentation. As financial commentator Shuyi Olutimi explains, we operated in multiple market segments, including the interbank market, where commercial banks trade forex. The CBN, being the regulator of the banks, fixed the price daily.
There’s also the Bureau De Change (BDC) which comprises institutions recognised by the CBN to trade currency. These guys typically profit by selling on the parallel market, commonly known as the black market. Then we have the Investors & Exporters (I&E) window, a market established by the CBN in 2017 that allows more liquidity (cash) in the forex market to settle more significant transactions quickly.
The CBN is collapsing all these markets into the I&E window under a model called “willing buyer, willing seller.” This means the CBN no longer sets an official rate—everyone trades freely on an open market. Business Travel Allowance or Personal Travel Allowance (BTA/PTA) applicants will no longer get special subsidies on the dollar, the same as foreign students. Oil marketers will also have to get their FX via this window.
One significant implication is that arbitrage—taking advantage of price differences in currencies to make fast money—will no longer be attractive. Financial institutions are not allowed to have a spread, or profit, of more than ₦1 in this market.
At the I&E window, the naira ended at ₦664.04 per dollar yesterday, according to the FMDQ Securities Exchange. This marks a significant 29% depreciation compared to Tuesday’s rate of ₦471.67 per dollar.
Who are the losers?
Not everyone is excited by this news. Beyond some mentioned earlier, here are a few people who would feel the pinch.
Aliko Dangote
Africa’s and Nigeria’s richest man, Aliko Dangote, is by far the runaway loser here. The announcement of the exchange rate unification caused the naira to lose value and Dangote’s wealth to tank considerably. Nairametric reports that the billionaire’s wealth fell by $3.12 billion to $17.8 billion in one day. You see? The rich also cry.
The FG and, ultimately, you
Remember how we all wailed that Buhari and his cohorts threw Nigeria into debt? Well, that debt just got even bigger. Before the reunification, the public debt stood at around ₦73 trillion. The CBN’s announcement and subsequent naira devaluation have shot the debt up to ₦82 trillion. And you know what happens when debt goes up? The government passes the cost down to you in various ways, including, you know, taxes.
Fuel price and you, again
Don’t kill the messenger; I’m just doing my job. According to Taiwo Oyedele, the Fiscal Policy Partner and Africa Tax Leader at PwC, the unification would lead to a “possible impact on the pump price of petrol which could inch closer to the current pump price of diesel.” I know you think petrol is expensive, but have you seen the diesel price? Hmm.
Who are the winners?
The CBN’s announcement is excellent news for some people. Let’s run through a few of them.
Foreign investors
Following the campaign mantra of President Tinubu, foreign investors will have renewed hope in Nigeria. Knowing there’s a uniform exchange rate means investors don’t have to worry about repatriating their funds at a loss due to the disparity in exchange rates. Credit rating agencies may review our ratings positively. Foreign portfolio investment in Nigeria’s capital market will also rise.
The FG
Financial experts project that revenues to the federal government from government-owned enterprises will shoot up significantly with this news, rising by as high as 39%.
You—in the long run
The most crucial signal this policy sends out is stability. The average Nigerian will bear hardship in the short term, but in the long term, the Nigerian economy should become robust. That is, provided the FG follows through with implementing secondary policies that ease the burden passed on to ordinary Nigerians, such as unbanning the list of items prohibited for FX and an upward review of the minimum wage.
What else should you know?
The CBN set up the Naira4Dollar scheme in 2021. It was an incentive that gave ₦5 for every dollar you received to increase dollar inflow into the Nigerian economy. The CBN now says the “Father Xmas” promo will end on June 30. Do with that information whatever you will.
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On June 2, 2023, President Bola Tinubu appointed Femi Gbajabiamila, the 9th House of Representatives (HOR) Speaker, as his Chief of Staff (COS).
A more pertinent issue to ponder is: having been reelected to the HOR by his Surulere constituents, what happens to his seat now that he’s taken up the COS role? And what are his new responsibilities?
Promotion or Demotion?
Gbajabiamila’s foray into Nigerian politics follows a similar pattern to that of other establishment politicians. Despite having a legal background, the lawmaker’s history of fraud is well known; a US court indicted him for fraud in February 2007. He has served in the HOR for 20 years and rose to his highest position when he contested for Speaker in 2019 and won. Gbajabiamila notably sponsored the Student Loan Act, which Tinubu recently signed into law. He ran again for office in the 2023 general elections and won a sixth term in the green chambers by polling 19,717 votes.
However, the 9th assembly dissolved on June 11. With his appointment as COS, opinions differ on whether it signifies a promotion to the President’s trusted confidante or a step down from being the fifth-ranking official in Nigeria. Regardless, zoning requirements for reconstituting the 10th assembly meant it was always unlikely he’d remain the speaker.
So what happens to Gbajabiamila’s seat?
[Femi Gbajabiamila / Punch]
Gbajabiamila can serve as both the speaker and the COS to the president without legal hindrance until he leaves his current position. However, it’s worth noting that the office of COS is not officially part of any constitutional body. Still, potential conflicts of interest could emerge.
Gbajabiamila will ultimately resign his position in the HOR. This would make his seat as Surulere 1 constituency representative vacant, which the yet-to-be-elected Speaker of the HOR will announce. Once that happens, the Independent National Electoral Commission (INEC) will organise a bye-election for his constituency. The All Progressives Congress (APC), to which Gbajabiamila belongs, would have to nominate another candidate. It also means the candidates from opposition parties who initially lost out can reclaim the seat.
What does the Chief of Staff do?
Former President Olusegun Obasanjo created the COS position in 1999. It’s a high-ranking office whose occupant is selected at the discretion of the President.
The Chief of Staff is the President’s buddy (sorry, Mr VP), overseeing the executive office and coordinating important programmes and agencies. The COS is the primary liaison between the President and key officials, including the Federal Executive Council. The COS manages the flow of information to the President and acts as an adviser. Additionally, they ensure seamless operations for the President’s engagements, including the presidential fleet.
The COS has to be a highly skilled technocrat able to open their ears to happenings within the villa and without. They must also learn to be tough but diplomatic around the clock while looking out for political sharks. As the late political critic Obadiah Mailafia describes it, it’s not a job for the fainthearted.
Gbajabiamila will be the 7th COS in Nigeria’s Fourth Republic. Time will tell how well he can transition into his new role. While congratulations are in order for him, he, more than anyone else, knows he has to hit the ground running.
Victor is a Nigerian police inspector who’s been in the force for 16 years. For this week’s Navigating Nigeria, he spoke to Citizen about his reasons for joining the police, why he thinks the Nigerian people get the police they deserve, and other policing matters ranging from Seun Kuti to the Police Pension Bill.
Editorial Note: Navigating Nigeria is a platform for Nigerians to passionately discuss the Nigerian experience with little interference from individual opinions. While our editorial standards emphasise the truth and endeavour to fact-check claims and allegations, we are not responsible for allegations made about other people based on half-truths.
What were your motivations for joining the Nigerian police?
I didn’t sit down and decide to join the police. It wasn’t out of free will. I joined out of anxiety for myself and my siblings. It’s needful to add that my father was a police officer. He was retiring from the force, so I had to take up the job to cater for myself because it’d have been difficult for him to provide for my younger siblings and me as a retiree.
I lived a quiet and principled life, thanks to my parents’ upbringing. This has helped me to stay sane in the force.
The truth is that many conditions have pressured some of us into doing not-so-nice things that aren’t worth mentioning. Ultimately, policemen aren’t drafted from space or a foreign country. We’re all a product of Nigerian society, for better or worse.
Care to shed light on this?
The police aren’t the most corrupt institution there is in Nigeria. We’re just closer to the people than other institutions, reinforcing the perception that we’re the worst, and I’d like to clarify this.
If you’re crude to them, don’t take care of them or see to their basic remuneration needs, or if working conditions are not good, they’ll do whatever they can to make things conducive for themselves. The risk involved in policing is high, and we’re endangering ourselves daily without adequate insurance. You meet all of these needs, and you’ll get a civil police. If you don’t, you’ll have a disgruntled and unsatisfied police force that can’t attract the best minds.
I hope Nigerians’ defensive nature can be worked on as we assert our authority when we feel undermined. Things could improve if Nigerians don’t always see us as the enemy.
Addressing these issues will attract people with principles to the force and help sanitise it.
What has your experience with the police force been like so far?
I’m a police inspector and have been in the police force for 16 years. A police officer is a member of society vested with the authority to keep society sane by a set of prescribed rules and regulations put in place by society. A police officer makes sure no one contravenes these laws. If these laws are contravened, the erring person faces the consequences.
Society has to consent to your authority as a police officer before you can police them. Other than that, it’s sheer slavery.
That said, my experience hasn’t been so bad. Besides the impediments I raised earlier, I’ve consistently tried to improve myself. I see some of the pitfalls police officers face when policing the community and learn from them not to replicate them in my life. I want to leave lasting impressions in the minds of the people I meet daily. I’m courteous with people, keeping an open mind, and empathetic in my interactions. This has made me stand out, and overall, the testimonies I’ve received make the experience worthwhile.
This would be a good time to hear your thoughts on the Seun Kuti matter
I think Seun’s reaction was malicious and premeditated. It was a calculated attempt at humiliating the entire Nigeria Police Force. He went on Instagram (IG) to brag that he isn’t like other celebrities who would come on IG to explain being slapped or confronted by the police. He even asked if we knew how many police he’d slapped in the past without consequence.
Overall, the police handled the situation well, as due process was followed after he turned himself in, and eventually, he was bailed. He would have been sorry he slapped an officer in uniform in other, more advanced countries. Somebody got 70 years imprisonment for spitting on a police officer in the USA.
In conclusion, men of the junior ranks, like the policeman involved with Seun, should exercise more restraint, and civilians should loosen up a little more and show some respect for our police force. It’s the only way the experiences between the two can get better.
The passage of the Bill for the Nigeria Police Pension Board is a very laudable and long due. I’m hopeful for the gracious endorsement of the President, and that implementation will be expedited.
I like this development because, consequently, police officers, upon retirement, can access a chunk of, if not all, of their retirement benefit and not the meagre amounts handed to them, which is almost inadequate to do anything meaningful with.
As with the other sister agencies, like the DSS and the military, which were since exempted from the contributory pension scheme, retired police officers would be able to maintain a decent livelihood and also cater for their essential needs, especially their health, as their take-home would remain their basic salaries while they were still serving.
That said, I’d like the government to look at upscaling the remuneration of police officers. As it stands, the risk involved in policing far outweighs the monetary compensation. I’m not implying that there’s a momentary equivalent of staking one’s life daily but as a moral booster. The Nigeria Police has one of the poorest remunerations compared to other African Countries.
There are also other welfare-related matters, such as comprehensive insurance packages for every police officer. The present Inspector General of Police hinted at it, but I’m not sure of the state of the proposal at this time. Housing is another crucial necessity. Most police officers live outside the barracks, largely in shabby and dilapidated states. The aforementioned facilities are the basic requirements that are supposed to be in place for a functional and confident police force and officers, as it were. Again, I’d say that every society gets the police force it deserves. If you compromise their welfare and working conditions, you’ll have a dissatisfied police force.
