Business
Dangote Raid: Is this an end to sacred cows in the Nigerian business community?* – Dumebi Ifeanyi
*Dangote Raid: Is this an end to sacred cows in the Nigerian business community?*
– Dumebi Ifeanyi
DANGOTE – When the Nigerian President, Bola Ahmed Tinubu, was sworn in on May 29, 2023, his first policy intervention in Nigeria’s opaque, corruption-laden oil sector surprised everyone. “Subsidy is gone!” Tinubu exclaimed during his inaugural address at the Eagles Square, Abuja, shortly after he was sworn in as the 16th President of Nigeria. He added that there was no provision for subsidy in the national budget from June 2023 and, therefore, it stood removed.
If international investors had any doubt about Tinubu’s commitment to combat Nigeria’s hydra-headed corruption and sanitise the nation’s economic policy space, the declaration indeed put paid to it, and signalled his intent from the start.
Not relenting in its reform drive, barely a month after the subsidy removal declaration, the Tinubu government through the Central Bank of Nigeria (CBN) announced the unification of all segments of the forex market collapsing all windows into one. The bank said it was part of a series of immediate changes to operations in the Nigerian Foreign Exchange (FX) Market, in a bid to improve liquidity and Naira stability.
In its reaction to the raft of policy reforms, the International Monetary Fund (IMF) applauded the economic reforms, noting that the measures were a pathway towards stronger and inclusive growth.
A former President of the World Bank, David Malpass, also lauded the economic strategies employed by Tinubu since assuming office. In a tweet, Malpass declared: “Glad to see @officialABAT taking concrete steps to scrap Nigeria’s harmful government subsidies and multiple exchange rates. These are important steps toward currency stability, lower inflation, and reduced corruption in Africa’s most populous country.”
As in all reforms, the ripple effects of the policies are being felt across boardrooms and on the streets, even as government remains optimistic about the long-term benefits.
While the reforms have shown the direction of the Tinubu government’s economic policy, they have also shown how audacious the president can be in driving reforms in the interest of Nigerian poor masses, without giving undue advantage to businesses considered “sacred cows”.
Tinubu himself made this known at a civic reception organised in his honour by the Lagos State Government at Lagos House, Marina, last October.
“I could afford to share the benefit by participating in the arbitrage, but God forbid! That’s not why you voted for me,” Tinubu said at the reception, defying the possible impact of the audacious moves on public sentiment.
“We have no choice,” he added, noting that it’s important to ensure the good use of available resources to unable government “re-engineer the effectiveness of the control and management of our resources in order to meet the obligations to Nigerians by political officeholders.”
*The Price of Audacity*
Last week, officials of the Economic and Financial Crimes Commission (EFCC) visited the office of Dangote Group headquarters as part of an investigation into forex allocation in the past years. Dangote Group is one of Africa’s largest companies headquartered in Nigeria’s economic capital, Lagos
The move was part of the ongoing investigation into the abuse of the foreign exchange allocations by former CBN governor, Godwin Emefiele, under whom reports said there were preferential foreign exchange allocations made in defiance of extant financial rules and regulations, and the CBN Act.
Already, Emefiele is being charged for gross violation of extant laws and abuse of office, according to a report by Jim Obazee, a Special Investigator appointed by President Bola Tinubu to scrutinise the activities of the CBN under the former CBN Governor. The Obazee report, as seen in national dailies, alleges that Emefiele employed surrogates to obtain shares in a new-generation bank during his tenure at the helm of the Central Bank of Nigeria (CBN). Other accusations in the alleged report against Emefiele encompass a spectrum of financial misdeeds, including unauthorised funding of 593 offshore bank accounts, fraudulent cash withdrawals from the CBN vault, gross financial misconduct involving the former governor and his Deputy Governors, and substantial fixed deposit holdings amounting to £543.4 million.
He is also accused of manipulations of the Naira exchange rate, irregularities in the e-Naira project, unauthorised printing of new currency denominations, and substantial expenditures on dubious legal fees, fraudulent interventions, COVID-19-related irregularities, and misrepresentation of presidential approvals on various financial strategies.
Since the recent EFCC investigations began, there have been concerns on how the optics of such investigations could affect the business environment and possibly scare investors away.
But could a move to sanitise the system, curb corruption, instill discipline and provide level-playing fields for all businesses indeed jeopardize investment and scare away investors?
*Like BAT, Like MBS*
The fears around President Bola Ahmed Tinubu’s reforms are reminiscent of similar fears around a sweeping crackdown on corruption ordered by Crown Prince Mohammed bin Salman, also known as MBS, in Saudi Arabia.
When the reforms began, reports premised on scaremongering dominated media headlines as many wondered what the ripple effect of the reforms could mean for the Saudi economy.
But against the background of the reforms, outlined in the Kingdom’s Vision 2030 blueprint, Saudi Arabia is all set to become one of the most sought-after destinations for businesses in the Middle East and North Africa region.
44 international companies have already moved their regional headquarters to Saudi Arabia, according to official figures, with the prospects improving by the day. At least 80 firms have been issued regulatory clearances to establish their offices in the Kingdom, too.
In recent months, several noted firms, including PwC Middle East and Egypt’s Intella, inaugurated their regional headquarters in Saudi Arabia, indicating Saudi Arabia’s investment-friendly evolution.
In Nigeria, a PwC report on the impact of corruption shows that corruption in Nigeria could cost up to 37% of Gross Domestic Products (GDP) by 2030 if it is not dealt with immediately. This cost is equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030.
What can be deduced from the report is that Nigeria cannot attain economic development and inclusive growth that will lift millions of Nigerians out of poverty until corruption, especially in business environment, is fought head-on.
So far, with the probe of the CBN, cancellation of round-tripping through the abolition of multiple exchange windows, and removal of opaque, unsustainable fuel subsidies, the Tinubu government has shown a rare commitment to fighting corruption and ensuring a fair investment ecosystem—one that gives investors equal access and opportunities irrespective of where they come from. Without doubt, this has sent positive signals to investors and businesses (local and foreign) worried about Nigeria’s sometimes opaque systems.
To quote a Bloomberg publication on corruption, “Graft may always be with us, but governments can choose either to tolerate and even assist it, or to confront it vigorously.” Will the Tinubu government continue on this pathway of sanitising endemic corruption or will it bow to scaremongering by vested interests?
— Dumebi Ifeanyi is a senior public affairs analyst for Communications and Digital Engagement Nigeria
*Renewed Hope Agenda and Impacts in Aviation*
By Mary Odoma
President Bola Tinubu’s knack for selecting top talent is unparalleled. In his quest to build a prosperous Nigeria, he’s assembled an exceptional team. By leveraging their expertise, experience, and strategic insight, he’s fostering national stability, economic growth, and a sustainable future.
His latest win is in Aviation and Aerospace Development, where he’s appointed a fearless and straightforward leader, Festus Keyamo, SAN. Keyamo’s commitment to excellence makes him an ideal fit. President Tinubu’s vision for Nigeria is taking shape, and his leadership choices are truly commendable.
A dedicated, charismatic and impactful lawyer, the dynamic and astute developer is a terror to mischief makers and enemies of progress. A tough and forceful personality who is determined with an ultimate goal to change Nigeria.
Appointed on 21st August 2023 as the helmsman of the Ministry, Keyamo has been unwavering in his drive for positive transformation, reforming the sector and bringing about enduring positive impact in a transparent manner.
His Ministry has the core mandate of regulating air travel and aviation services in the country. It is also responsible for overseeing air transportation, air development, maintenance, provision of aviation infrastructural services and other needs.
A very patriotic Nigerian, Chief Festus has several achievements, in line with the Renewed Hope Aviation Roadmap approved by President Tinubu to his credit.
In a steadfast commitment towards revitalizing the nation’s aviation sector, Mr Keyamo was able to ensure the approval of the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja and Mallam Aminu Kano International Airport (MAKIA), Kano Airports. This is in line with the initiation of the Nigerian Airport Concession Strategy.
Also, in line with the Federal Ministry of Aviation Roadmap, Chief Keyamo initiated the signing of an MoU with the Nile University for the take-off of African Aviation and Aerospace University (AU). This milestone achievement of the Minister aims to integrate and create an avenue for the training, research and development of ready middle-class manpower for the sector.
Equally, under his watch, the pragmatic leader led the Ministry into partnership with the ICRC and also a collaboration with the IFC on infrastructural development. This partnership is to both develop and implement a comprehensive and durable framework that will meet the infrastructural needs of the sector over a long period.
Through Keyamo’s congruence and dynamism, the BASA arrangement is another revolutionary innovation aimed at ensuring the operationalization of direct flights between Nigeria and Brazil.
Keyamo’s motivation and altruistic devotion to having a functional aviation and aerospace sector also moved him to upgrade the Muhammadu Buhari, Airport, Maiduguri to the standard of an international airport. This airport is ready to commence full operation on January 1, 2025
In the area of staff motivation, retirees of the Ministry now have no cause for alarm as their interest is covered. Recently, the Ministry honoured 24 retirees drawn from the lowest rung to the highest. It is in a bid to acknowledge those who have contributed immensely to the growth and development of the sector as Nation-builders.
His prompt response to issues including distress reveals an empathetic personality and someone who is very much alive to his responsibilities. Recently, while reacting to the accident involving a helicopter on the 24th October 2024, Mr Keyamo, immediately upon receiving the distress call, activated protocols aimed at search and rescue operations, mandating all relevant bodies to do everything humanly possible to ensure the safety of the passengers on board the ill-fated vehicle.
The Minister was also actively involved with all the relevant agencies towards ensuring a coordinated response. His active and physical involvement led to the minimization of casualties.
In a show of collaboration and solidarity, the Hon. Minister travelled to far away Marrakesh, Morrocco, to give support to the 2024 International Transport Workers’ Federation (ITF) congress. His presence was to underpin the importance the federal government attaches to the role of the transport workers in stabilizing the aviation sector.
Festus Keyamo as the Honourable Minister of Aviation and Aerospace Development is certainly the best thing that has happened to the industry. He has exhibited passion, dedication and selfless forthrightness in the discharge of his duties and a total comprehension of what it takes to carry out his roles. He is well-groomed for the job and his background has helped him greatly towards shaping the positive impact he is making on society.
Today, Festus has proved that a faithful, disciplined, and dedicated Nigerian can stand out of the crowd because he symbolizes what governance is all about. These feats can only be achieved by a man with the right comportment and conduct in the service of humanity and the fatherland.
Deserving of note is that Chief Keyamo, through the foresight of President Tinubu has well-prepared team leaders appointed as heads of the agencies of the Ministry.
The supportive and collaborative roles of the Nigeria College of Aviation Technology, Nigeria Metrological Agency, Nigeria Civil Aviation Authority, Nigeria Airspace Management, the Federal Airports Authority of Nigeria, and the Nigeria Safety Investigation Bureau (NSIB), have brought about those tangible and noticeable volte-face experienced today in the Aviation sector.
With Keyamo at the helm, Nigeria’s aviation sector is experiencing a transformative shift, thanks to President Tinubu’s foresight in appointing well-prepared team leaders. The Nigeria College of Aviation Technology, Nigeria Metrological Agency, and others are working together to bring about tangible change. Keyamo’s dedication, discipline, and commitment to service have improved Nigeria’s image and reformed the aviation and aerospace sectors.
Odoma is the President of New Nigeria Network [NNN[ writing from Abuja.
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