Tag:

Loan

Bolaji Adewunmi
The Editor's Pick

30 minutes with Bolaji Adewunmi

by Joseph Edgar
written by Joseph Edgar 10mins read

They used to call it the Abbey Building Society, and it is one of the oldest mortgage institutions in the country.

As a young stockbroker, it was a target but I never got their business simply because they were already embedded within the BGL/Standard Trust Bank enclave. 

Then when STB acquired UBA, they also moved into UBA, so they were a sealed deal and I left them alone.

But their staying power continued to intrigue me. It survived the upheavals of the recession, economic downturn, regulatory incompetence, and the rest.

Then I resumed at Investment One Financial Services. I-one was next door, and although they had a captive treasury, my hunt for blood still took me to Abbey.

I finally struck gold. I got some good placements from them and sighed with relief at my breaking the jinx.

My joy was short-lived as I was asked to leave Investment One. They asked for me not to take the account and I left it for them, dusting my feet and hands like Jesus had asked his disciples to do at rejection.

So it was a funny kind of homecoming last Friday when Bolaji asked me to meet up with him at Abbey, where he is the Managing Director. 

Bolaji, with Nonso and one other guy who dresses like Winston Churchil, have formed a partnership that has thrown up a mercurial player in the space.

Their VFD Group is one of the fastest growing institutions in the country. From the seed micro-finance play, they have expanded very aggressively into media, hospitality, real estate, and recently the arts with their mold-breaking digital platform-Artsplit.

Bolaji sits atop Abbey, which they have renamed Abbey Mortgage Bank. The building was neat and smelt like a well built hospital. The corridors are wide and inviting, with an all-white hue.

The staff were warm and greeted you with the visage of well trained warriors who were very happy to be part of the whole show.

Let me digress and tell you one small story about these boys. I was executing one of my biggest plays Awo and the Vice President, Prof. Yemi Osibnajo, with His Excellency Gov. Babajide Sanwo-Olu and Mr. Femi Gbajabimiala, had all confirmed attendance when suddenly Nonso called.

Edgar said, “I want 5 minutes in a room with the VP and the Governor.” This was a strange request from a sponsor. Usually they ask for VIP tickets, branding and all that, but VFD wanted a room set aside for them to be with His Excellencies.

This was a huge task if you consider the barrage of security, protocol, and all that madness that follows these people. But I, who have smelt money, say Oya.

Within seconds, Nonso had mandated Efe to turn a room in the old Glover Hall into a mini suite at the Marriott. 

The VFD team moved in very quickly, and within the twinkle of an eye, they had delivered a miracle.

The VFD Group spent quality time with the Governor and the Speaker. The VP, unfortunately, due to a small mix up, came in quite late and, as such, rushed to the show.

This issue delineated the kind of mindset these boys carry into business and it is no wonder that they have successfully completed rounds of fund raising in the markets, which has seen them take a very strategic stake in the NGX. The holding company that owns the Lagos Stock Exchange

So here I was with Bolaji wearing the same blue polo shirt with his lovely head of corporate communications, Koko, discussing Emir Sanusi and other transactions that were on the table.

Bolaji looks like one of those very brilliant boys in the class who still had a social life but would be top class.

He is warm, gentle, and very respectful. His understanding of the real estate market, which was what took me there, was quite astounding.

I kept quiet and humbled myself to be educated. He talked about the rates and the reasons for their double digit stance. He told me why he wouldn’t take a bank guarantee from a commercial bank, which was quite eye-opening and ended up saying, “Edgar, we will give you N500m, secure it with adequate collateral and we will outflow with a three-year tenor.”

Bazooka. That was sweet music to my ears. His confidence, clarity, and sure-footedness belied his age and sign posting a man poised for market greatness.

I shook his hands and stood up to leave, feeling very happy that this was one more example of the magic you could build in Nigeria where everybody wants to run away.

At night, Usman, another super powerful entrepreneur, reached out: “Edgar, did you know that Bolaji went to the Nigerian Military School?”

Wow. A man of contrasting parts? You will never know, but then again, you now see the focus and discipline he brings to his business and you will understand the military background.

We will not be waiting too long before Bolaji and his people at VFD Group stake a strong claim to market leadership positioning to take over from the Elumelus of this world, who pioneered the energy-driven entrepreneurial structures that give people like us some level of hope in this country. 

Abbey Mortgage Bank will be covering Emir Sanusi’s Command Performance on August 6th and 7th in Lagos and Abuja.

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Abdulrauf Aliyu
Economy

PUBLIC POLICY CHALLENGES FROM A NEW PERSPECTIVE

by Joseph Edgar
written by Joseph Edgar 10mins read

When I was in graduate school, I took a class on game theory. In our first lecture, the professor said that game theory gave him a powerful “lens” with which to view the world. When you put on the lens, you see a public policy challenge from a new perspective, which can be very powerful. This lens analogy stuck with me for many years to come, as I increasingly understood the importance of taking an interdisciplinary approach to policy problems.

There are three parts to this analogy that can be extended to the world of policy. The first is about the importance of using analytical frameworks, or “lenses,” to understand and diagnose problems. The real world is an inherently complex place. A policy or developmental challenge can be daunting at first glance because you might wonder: where do I even begin? Having an analytical lens helps simplify the policy problem by highlighting some important aspects that you might not have easily seen otherwise.

It may also provide policymakers with a completely new way of seeing the challenge. For instance, at the outset, civil service reform might seem like a daunting topic, but you can easily use game-theoretic models of moral hazard to analyze particular aspects of the civil service related to the performance of employees. You could, alternatively, use an analytical framework offering an optimal level of discretion to look at a completely different aspect of their performance. An analytical lens will facilitate a structured manner of approaching a policy challenge that is ideally backed by strong theory and evidence.

The second part pertains to the importance of interdisciplinary approaches in solving public policy challenges. You can see how having several lenses in your analytical armoury can be crucial to acquire a holistic understanding of the problem. For example, different disciplines (e.g., economics, political science, sociology, anthropology, moral philosophy, etc.) might have different things to highlight vis-à-vis the same policy challenge. If we rely only on our narrow area of expertise, we run the risk of having a myopic view of the challenge at hand.

To give an example, if you are a specialist in game theory, you might be tempted to see every policy challenge exclusively through that lens and not see the bigger picture. On the other hand, if you take an interdisciplinary approach, you are likely to understand the challenge better and, consequently, come up with viable solutions.

Another implication is that developing a holistic understanding of a complex policy problem requires narrow expertise as well as the integration of various findings from specialists—knit together with a coherent and broader narrative of the policy challenge. Narrow expertise without a broad coherent narrative would likely lead to a myopic view of the problem. A broader policy narrative without narrow expertise would likely lead to a misleading narrative.

The third is about recognising the strengths and limitations of each lens that we use. Naturally, some analytical approaches would be better suited to explaining particular types of policy problems than others. A simplified example could be that economics and political science are more likely to highlight the importance of incentives. If a policy challenge has multiple actors with misaligned incentives, then it might be worth considering an economic or political science lens to view it.

Similarly, moral philosophy might highlight a completely different element related to the ethical side of the policy debate. For instance, economics would have a lot more to say about distortions created by different forms of taxation than it would about their ethical implications. Hence, it is as important to know when to use what type of lens as it is to have many of them in your analytical armoury.

The lens analogy highlights the importance of a nuanced and holistic approach to policy challenges. To recap, the three extensions of the lens analogy which can be important for policymakers are: (i) analytical frameworks or “lenses” are very useful for analyzing problems as they help highlight key aspects of a complex policy challenge; (ii) having multiple lenses in your analytical armoury can help you see a policy challenge in a holistic manner and, consequently, help you see the big picture; and (iii) knowing the strengths and limitations of each lens is vital because it allows you to pick an appropriate lens for the problem while being conscious of caveats for each interpretation.

The appropriate use of analytical frameworks can hence be vital in improving decision-making in the policy world.

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ajao Emmanuel
Economy

Strategic Session on Leadership Economy and the Polity with President Olusegun Obasanjo GCFR

by Ajao Emmanuel
written by Ajao Emmanuel 10mins read

NIGERIA HIDDEN TREASURE

Most times we don’t value what we have until we lose it…
My visit has opened my eyes to understanding just a few hours inside the OOPL meaning if I stayed longer I would have been able to unlock the problem of Nigeria from the record-keeping of Baba Obasanjo. From his birth to family background, education with records of school results and pictures, occupation as a soldier and a farmer, daddy to his children with letters to back it up to the husband to his beloved late wife Stella where I could not hold back my tears as a special section of the library showcased her, his Network of friends while he served the country and out of the office and one caption I cannot easily erase from the tour was on his travels around the world which was equated to be more than a distance from the earth to the moon five times wao this man is an Ajala travel all over the world.
Baba Obasanjo kept records of Nigeria before independence the Biafra war his role which he wrote books on his sojourn to the prison and a model of the prison how the interior looked like and it was a shocking revelation of how if God was not on his side he would have been wasted and all this we are talking would have been another forgotten story of a legend alive, Baba is indeed a historian.
As if all this we saw was put up by best mind yet Baba proved himself the evening we had discussions with him his articulation and conjunction to response to questions thrown at him he responded with all wisdom and to crown it all he was sensitive and observant to his environment he was quick to spot the entry of the Olu of Ibara amidst us and deviated to telling a story of himself and the Olu of Ibara during there secondary school days to easy the discussion and returned back to the question he was responding to then I said this man at 84 clocking 85 march really deserved a third time if there is one but to my surprise he proved himself a global statesman the way he responded to all questions thrown at him
This made me to conclude Baba is a man who saw Nigeria yesterday today and the tomorrow of Nigeria
We are calling for lies in his hand he is indeed Aremu-Okin, Erinlakatabu, Ebora of owu, Africa’s Ambassador the HIDDEN TREASURE of Nigeria

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SUPO JAGUN
Economy

Strategic Session on Leadership Economy and the Polity with President Olusegun Obasanjo GCFR

by SUPO JAGUN
written by SUPO JAGUN 10mins read

OBJ walked into the hall…brisk and smart. The slight stoop when he stood for the Anthem was the only betrayal of age.

He talked on issues – he was expansive but choose his words.

He talked about Nigeria – yesterday, today, and tomorrow. He was clear on his conviction that we are a stronger nation as one- He would rather be a citizen of a ‘big Nigeria’ than a citizen of a small Egba nation – he said.

Nigeria’s strength lay in its diversity – he said

Baba’s mind is still as sharp as ever. He wowed us with the clear strategies taken when he came back in ’99 to collect the things he forgot in ’79. He mentioned 2 intentional ‘nation-building steps’ taken in his first term

  1. He convinced his party (PDP) to allow him appoint ministers from the opposition. For him, it was critical for everyone to be part of the new democratic Nigeria.
  2. The Military needed to be reoriented and checkmated – to avoid the chance of a future coup. He took out senior military officers -who had benefitted from coups in the past – single stroke move on a Friday. Machiavelli.

After seeing his life through the well-organized and presented presidential library, right from his very poor beginnings to the various pictures with other world leaders -both in khaki and in Agbada, you could not help but reminisce on – “where Nigeria should have been. I felt proud – This na States-man.

Baba then mentioned Lin Kwan Yun and talked about how their generation was filled with hope for the Nigerian Nation – hope which drove their actions….

That is when ‘Sister Ife’ asked about his successor and if he had any regrets on that- bubble burster ni Sister mi meeen.

He had no regrets ke? …Na political answer be that?
I struggled to contain the sudden heat, my chest dey burn as I begin vex. I dey vex. As a business leader, would I not ‘break my back and move mountains to ensure a reliable successor?

As a father of the nation – this successor matter would forever be the yard-stick that a lot of Nigerians would continue to measure BABA by. How could he have left Nigeria in the hands of an unhealthy man and a clueless VP? He was responsible o – its either that he pushed the party machinery to get Yar’adua the ticket OR he did not do enough to push the party in a different direction for the Candidate.

Na OBJ cause am.

HE HAD SPOKEN about hope. ..mmh. Hope begets belief, which reinforces the hope – then begets more belief and so on and so on….until the hope is suddenly palpable and a huge indestructible force- go ask them for Yankee.

me sha, I wanted to scream at him – what did your generation do with the next set of Statesmen? … Stateman no dey again – and why could you guys not do what was necessary to bequeath us with strong and visionary leaders. OR at least the strongest of National institutions that would hold firm in adversity.

I wanted to shout at him – the younger people DO NOT BELIEVE IN NIGERIA. WHERE IS THE HOPE? HOW CAN THEY BELIEF.? If they DON’T believe, they CANNOT be patriotic.

Nigeria is losing its most brilliant and its best – you don see the train to CANADA? Filled with all our junior managers and brilliant trainee. Before they would wait a few years to test the waters, now nko? JAPAAAAA!

We are losing our human capital – and the replacements are subpar.

But I didn’t get to say all this to BABA, Nonny no pick me to ask question. Na wa.

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Joseph-Edgar
Business & Finance

I want to resign

by Joseph Edgar
written by Joseph Edgar 10mins read

Two influential but mid-level bankers reached out last night. They wanted to resign and change careers. They were frustrated and just tired of the system.

I tried to calm them and ask what was the problem. They were just tired. The monotony, the bully, the abuse, and the boredom of pushing the same routine day in and day out.

I once was privileged to attend an MPR session of one of the top five banks by proxy.

I so happened to be with the banker when she was logged in by zoom during the MPR

Words like,’ idiot, you fool, you are telling me rubbish and don’t try this stupidity next time’ were freely used by the divisional head who bereft of any leadership skill resorted to just primitive abuse and threat.

My friend was in trepidation as the swivel was getting to her. I could see that she was physically apprehensive as her voice began to quake. She said,’ Edgar, this woman does not like me, she will kill me.

Truly when it got to her turn, the woman screamed,’ you, you lie a lot. I don’t even know why I should waste my time to listen to you’

My friend greeted her and got a loud hiss. Pls, how much did you bring last week? She barked.

My friend who is a branch head on the mainland of a high profile bank muttered N20m and almost got her head yanked off.

Next was a threat, ‘ pls if you don’t bring in N150m by weekend don’t bother, I am tired’ ‘

After the meeting, my friend burst into tears. She cried like a baby and I began to wonder how she would bring in the N150m in this state.

She had come to me to assist and made me listen to the MPR so that I can be moved to ‘help’

A married woman with kids. Her husband was a fashion designer, she was literally the breadwinner. At this state, she was vulnerable and open to abuse and I must say this is the lot of most bankers worse off the female ones

My other friend is faring better. She is also in a top 5 bank and works out of the head office. Her woe is the series of long, seemingly headless meetings that lead to nowhere.

She is in a ferment and is just looking at a once shining career get rusty. She is middle-aged and with a once in a 5-year promotion circle has come to the realization that it’s over.

My other banker friend Charles once told me that most bankers suffer from high blood pressure and its other brother diabetes as a result of the pressure, unhealthy work hours leading to dietary inefficiencies

Our banks today suffer from a debilitating leadership comprising of hedonistic and opportunistic visionless driven moguls who are in a very unhealthy competition to show leadership without necessarily instilling a robust strategy for growth.

They resort to roadside tactics that deliver really nothing to the table as 80% of the huge incomes delivered are from forex transactions, patronage and other wholesale practices that has nothing to do with the branch manager at Isale Eko

My big aunty who is retiring from a top 2 position in one of the bigger banks had nothing but gratitude to God.

She said,’ Joe, I am going for a long cruise. I am going to Morocco. I will fly by helicopter to the cruise ship and just waste my money

That is the joy she got from getting out of the hell hole. She had given the industry over 35years and although the industry has done well for her, she still would not look back.

Joe, I almost went into a fisticuff with a fellow director. Joe, I can’t do it anymore. It’s abusive and tiring she said.

I am organizing a big party for her.

The banks are wallowing on an inept positioning following their inability to compete favorably with the dynamism of the changing marketplace.

Fintech and technology have brought inefficiencies that the huge banking franchises can not keep up with their ballooning costs.

The almost none existent regulation by the CBN of Finetech allows for easy entry and quick market capture without the red tape of regulatory-led account opening and monitoring activities that the banks have to meet daily.

This has led to a Naira for Naira defeat of the banks in the marketplace by very serious fintech operations.

So firms like Vbank, Piggyvest, and Kuda are taking the banks to the cleaners in the very lucrative and huge millennial marketplace.

The volumes there are massive and although the margins are little, the volumes allow for quick turnover which is the mainstay of the very low-cost feature of their business

The big banks on the other hand carry a huge cost profile esp with the top 5% of their human capital earning almost 80% of their income thus cannot play in that space efficiently

Bogged down by regulatory red tape, critical decision making is lethargic and painfully slow, led by human capital that was trained in the old markets of the 90’s and coming of age in the dizzying age of technology, you begin to understand their penchant for old school banking of ‘go and bring the money instead of a constructive engagement of the evolving market place

So what do you get, a huge catchment of frustrated ‘used to be brilliant people who no longer have the energy to move being led by oligarchs who will now resort to bullying and abuse to coax performance.

Franchises like Wema, GTB, Zenith, and Access have built competing platforms that are taking the fight to the millennial fintech moguls.

They have restructured their human capacity in that space, acquired technology, and have adequate branding that has made them play right in that space

And brilliantly have also positioned themselves as the funnel inflow channel for all the massive retail collections by the Fintech giving them the last laugh positioning on the new market

But that said, banking as we used to know is ‘dead’. Our major banking franchises would have to embark on a serious soul searching and professional didactic engagement if they are to survive the next ten years.

Let me boldly state that any major bank today that does not evolve very strategically according to the dictates of what the market is saying will be dead in 10years no matter the size.

We can see that Titan a small franchise of just 150 people just swallowed a giant Union Bank with over 3,000 staff.

This I will boldly say is as a result of Union Bank not being able to achieve a war boat turnaround in market positioning and I dare say, the prognosis for the new bank as a result of this merger is not bright.

I give it five years at the max. If not well-curated and trimmed and repositioned, it will die. Simple.

My advise, is for the industry to evolve and very quickly so. It’s training, its a strategy for market penetration and acquisition, it’s leadership and ethos must immediately reflect the engagements of the new markets.

Pushing 90s strategy of expansionist banking isn’t working today.

Let’s not see how huge franchises die In our very eyes.

Joseph Edgar
Editor in Chief
Thealvinreport.com

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Sobowale Temiloluwa
Economy

The #ENDSARS BRAND; To Support or Fight, you Choose!!.

by Temi sobowale
written by Temi sobowale 10mins read

The last 1 year in Nigeria has been one of the longest in time past, it’s been a case of a Yoruba adage “ E diye ba lokun, Ara o rokun, Ara o to adiye”. Meaning the bird lands on the rope, the Bird is not comfortable, the Rope is also not comfortable, in business terms a loss/loss scenario as nobody wins.

I was opportune to have a strategy session and discussion a few days before   20/10/2020 with a top government functionary, discussing the best way to dowse the tension already being generated by the EDNSARS Issue, but unfortunately, things went out of hand on 20th and the mediation strategy proposed never saw the light of day.

I highlighted the need to understand who this group of youths are, their motivation, their temperament, and what they intend to achieve and based on this proposed solution.

For clarity I will go over the analytics of this segment, the ENDSARS generation is made up of 70% generation y ( ages 9-25) 23% of Millennials ages (25 and 40 years), and 7% Gen X ages(41-56 years old).

With these stats, you will know that the power range of this group falls between 18-30.

If anything you need to understand that this generation is a different one, driven by purpose or goal more than money or financial rewards, support each other regardless of social status, fight and protect the vulnerable amongst each other, hold temporary leaders accountable as any iota of doubt you lose your influence with them they easily the next “sense-making” individual who understands their values and is pursuing that purpose without any “personal interest” becomes the next “temporary leader” and why during the challenging times, they were asked to present a leader and they chorused “ we have no leaders”, meaning we are led by purpose and vision and anyone regardless of who you are, who can genuinely lead us towards our purpose takes the “ temporary leadership” seat until someone better comes along and we move to the next “ temporary leader”.

The Endsars brand movement Personality.

They can’t be lied to; they will dig your file out in 20 minutes and you will end your career before it even started, can’t be deceived as they are highly educated and can read between the lines, can’t be bought as they are not a self-centered generation, but a generation that is collaborative in nature looking to help others up.

Their mission is simple “they want a child of nobody to become somebody without knowing anybody” and this means let the competent do the job regardless of race, color, tribe, party, religious lines, or age.

The tag line above is very evident in the Start-up ecosystem in Nigeria today as many top tech talents and leaders of teams building Unicorn companies “were not born with silver spoons” and many don’t even know anybody, but are succeeding very well regardless of oppositions.

Looking closely at issues that the ENDSARS brand ran into, a lot of the time the issues are caused by the Millenia+ Gen x  members in the movement, looking to get a seat at the table of government or business but using the ENDSARS movement as the tool to get the attention. As soon as the “ personal agenda” of such individuals get noticed, their influence in relation to the movement gets deflated immediately by the group and all of a sudden their words and followership hold no bite again and they suddenly fizzled- out, no once, not twice not three times has this happened.

Unfortunately, the movement was against the brutality from Men of SARS, but the force approach used in dealing with the issue escalated if from fight against a single law enforcement agency to a fight against government and oppression, and since 20/10/2020, the government has been utilizing force and the more force applied the more rage It generates from the youth. The more force applied the more the #ENDSARS Brand gain more global recognition at the expense of the “ Brand Nigeria” gaining a not too good reputation globally. Like I said earlier no matter how we look at this, it is a loss/loss for us all, regardless of the side, you are on.

In time past the Government made individuals wealthy due to contracts and monopoly licenses and the beneficiary have no choice but obey the government’s orders even if the customers and users of their products are not happy. But that power has since reduced as the new generation makes wealth from technology Value creation, talent utilization via online platforms, and various ways globally with the government not having much control. The level of technology savviness is at par with global peers, thanks to the web access and various online training and this has been displayed times without number. From account getting locked to switching to Bitcoin in hours, from Ban on Twitter to VPN, and many more.

Truth is, the loyalty of this segment is first to the general purpose of growth and progress for all before other things, you will be shocked that  Gen Z has resigned their appointment in organizations siting the fact that their organization is Anti-ENDSARS, Many fathers are defending policies outside, whereas in their homes a major war is being fought as their children are at loggerheads with them on these issues and are ready to leave- home if that is what will drive home the message for the parents.

All this said what is the way forward, another Yoruba adage says” AGBA GBON, OMODE GBON, LAFI DA ILE –IFE, Meaning, it’s the wisdom of the elderly and the Wisdom of the youths that build a Town. But as it stands right now the Wisdom of the elderly is “cunning “ and the Strength and Wisdom of the youth becomes “rage” at every opportunity, either way, nobody wins.

2023 is around the corner and everyone wants to show relevance; The youth trying to show “strength” and the elderly trying to show “ Wisdom”, May I appeal to us to please not take “no corruption personality” as a leadership skill or competence, or being an “Aluta leader” as a leadership skill; Being an influential member of the ENDSARS MOVEMENT alone is also not enough competence for a great leadership choice!.  All I know is that is it easier to lead when there are enough resources to execute agendas, but when the resource is scarce, and things are bad the responsibility falls on the shoulder of leadership to use skill, competence, and all it has to make the best out of a terrible situation.

May I ask a rhetorical question above again? The ENDSARS BRAND; to support or fight, you choose

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Joseph Edgar
The Editor's Pick

Where are the Bank MD’s

by Joseph Edgar
written by Joseph Edgar 10mins read

It just dawned on me that I do not know the MD of GTB and that Kennedy Uzoaka who is the MD of UBA is all but invincible.

This seems to be the trend in the system as it looks like we have been saddled with a different class of MDs. A class I will want to call the Intern MD.

Who is the intern MD? The Intern MD is a long-suffering albeit very loyal and brilliant banker who has over the years shown very clearly a powerful skill set which really has nothing to do with his technical capacity but points at a very essential value- loyalty and willingness to serve

80% of our giant financial institutions can be said to be run by Intern MDs.

How did we get here? In political science, we were thought about manifest destiny. This is the unintended consequence of policy action.

So in trying to strengthen Corporate Governance in the system on the back of the distress that hit the system, authorities ended the situation where one man was Chairman and MD at the same time.

The position was divided and made for different people. The manifest destiny of this threw up the father/son combo or the Husband/wife combo and in some cases the sugar Daddy/girlfriend combo

The banks were firmly held by dynastic families and they ran the institutions with the verve and favor that comes with that drama

Then policy changed. Seeming democratization of the environment was thrown up and this brought the age of the owner-managed and mercurial bankers

It was in this era, the megastars emerged. Elumelu, Ovia, Akingbola, Ibru and the rest

They moved like pop stars. They had the vision, youth, energy, and passion to drive these institutions from mere backwater players to major international concerns.

Daily we could feel their movements. The increase in share capitalization was a joke to them as they raised the capital almost effortlessly driving the financial system into advanced markets.

Then another policy came. Tenure limits. And immediately the megastars had to leave the stage.

However the difference between these ones and the Balogun’s is that they were still on top of their games, they still had age on their side and the push to conquer was still flowing in their blood

So within 24hours, almost all of them named successors and the dawn of the Intern MD hit us.

Apart from Herbert at Access and maybe Ebenezer at Zenith the rest fall very perfectly into this mold.

So how does this work? The Intern MD sees his appointment solely as luck and his closeness to the source of power. Hence his actions and movements are a direct reflection of the whims of the source.

I even hear that some sources attend bankers committee meetings and come back to brief the Intern MD. So the Intern MD is still in a subservient and docile position

The immediate effects of this situation, are a dearth of vision since it’s not yours, more red tape, sluggish decision making, a dearth of innovative ideas, and a zombified management.

I was with a huge entrepreneur who is embarking on a $35m expansion project which would employ 250 workers and deepen engagements in a critical sector and his lament was palpable.

He was talking to a management team that didn’t seem to understand the transaction dynamics and as such couldn’t even relay very clearly his prayers to the source thereby almost killing the relationship.

This is the stark immediate consequence of this manifest policy that has thrown up the Intern MD.

One would want to ask what role the Board plays in this. Same you would say. All you have to do is take a cursory look at the Board composition of some of these Banks and you will find a complete village meeting, secondary School alumni, inlaws, and lovers.

There you see your answer. It’s not all that dark though as the system seems to be working especially if we are to believe the figures that are churned out as Profits regularly.

But it’s like driving a car with a misfiring plug, you will get to your destination but would it be a smooth ride?

I keep quiet.

Edgar Joseph
Editor in Chief
Thealvinreport.com

Ps go to Thealvinreport.com to see some of the best-written articles on the economy and business

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Magnus Onyibe
Economy

Nigerian Presidency, 2023: Where Are The Igbo Candidates?

by Magnus Onyibe
written by Magnus Onyibe 10mins read

In the People Democratic Party, PDP whose convention comes up 30-31st October which is a few days’ time, the front runners for the presidential tickets are already very well known.
Ex-Vice President Atiku Abubakar who had faced- off with the incumbent president Mohammadu Buhari in the 2019 presidential contest with significant impact, is on top of the pecking order. This has been confirmed by Oyo state governor and secretary of the PDP convention committee, Seyi Makinde who revealed the identity of the other presidential candidates during a recent Channels television interview.
“…PDP has eminently qualified personalities that can lead this country successfully. Some have indicated interest, like former Vice-President Atiku Abubakar, like Governor (Aminu) Tambuwal, like Governor Bala Mohammed.”
Curiously, former senate president, and ex Kwara state governor, Bukola Saraki who was a serious contender for the presidency in 1999 was not mentioned. Just as no Igbo man/woman whose region is supposed to present the next president in 2023 is featured in governor Makinde’s list of PDP presidential candidates that would slug it out in presidential primaries.
With respect to the ruling party, All Progressives Party, APC, the man with the appellation, National Leader, also known as both the Jagaban of Borgu and Asiwaju of Lagos, Bola Ahmed Tinubu who served as governor of Lagos 1999-2007 is clearly the leader of the pack.
So it is almost like an entitlement for the man also nicknamed the Lion Of Bourdilon to become the president of Nigeria in 2023. That is simply because he played a pivotal role in the emergence of President Buhari as president in 2015 via his ability to swing the very critical south-west or Yoruba votes in favor of a then-presidential candidate, Buhari. Since it is the nature of politicians to give and later demand a return on lOUs, it appears to me that it is now payback time between Buhari and Tinubu. To actualize the presumed presidential ambition of Tinubu, South West Agenda For Asiwaju, SWAGA, a well-oiled campaign organization that has been founded by Tinubu’s ardent supporters has been making waves.
The criticality of Tinubu’s role in making Buhari president is accentuated by the fact it happened after Buhari’s three previous failed attempts (in 2003, 2007, and 2011) to win the presidency.
As someone contended elsewhere, it would not be far-fetched for observers of Nigerian political developments to come to the conclusion that Tinubu has been waiting for seven years to gain a foothold in the presidency of Nigeria. That is after the Action Congress of Nigeria, ACN that Tinubu leads, struck the deal with then-candidate Buhari’s, Congress for Progressive Change, CPC between 2013/14 to harness Yoruba votes for Buhari’s victory in 2015.
Considering that the Asiwaju had to give up his initial ambition to serve as Vice Presidential candidate to Buhari in 2015, which is owed to the fact that the concept of a Muslim president and Vice President is a sort of anathema in Nigeria, his burning ambition to succeed Buhari as president must have remained aglow.
But how the burning desire can be converted into reality is a lump currently lodged in the throats of both the Asiwaju who is yet to verbalize his apparently lifelong quest, and his political godson, Yemi Osinbajo, that is being coy about his interest in the plump job of being president of the republic.
Be that as it may, a presidential campaign organization, ostensibly without Osinbajo’s public endorsement known as ‘Osinbajo Support Movement’ (OSM) has
created a website as far back as May to chronicle the achievements of the Vice-President and public garner support for him. Without being told, the emergence of OSM is in pursuit of the cause of elevating the current Vice President to the next level-the presidency.
To consolidate the publicity that had been achieved with the website, in the course of president Buhari daughter’s high octane wedding ceremonies recently held in Kano, the streets of the ancient city were adorned with posters pitching Osinbajo for president and incumbent Kano state governor, Abdullahi Ganduje for vice president with the carefully crafted message:
“If power rotates to the South, Osinbajo is best placed to unite, heal and inspire our great nation. We also firmly believe that Ganduje’s antecedents as Governor of Kano make him the perfect Northern vice presidential candidate to Osinbajo; one who will advance and protect the interests of a Northern Nigeria plagued by poverty and insecurity.”
By and large, it can be stated without equivocation that the presidency of Nigeria in 2023 from the ruling party prism appears to be beaconing on the current Vice President, who is a prodigy of the Jagaban, Bola Tinubu.
Keeping in mind that it was Tinubu that conceded the role of Vice President to Osinbajo by virtue of the fact that he was his trusted ally, would he be willing to concede the presidency to him this time?
Osinbajo, who is a high-ranking Pentecostal pastor of the Redeemed Christian Church of God and an astute legal scholar has been on the saddle as Vice President since 2015 and Tinubu his erstwhile boss has been on the sideline.
If the feelers in the political space are anything to go by, Osinbajo is not resisting the allure of change of nomenclature from Vice President to President-a natural progression that very few mortals can resist. But would his mentor, and if you like, an earthly master concede the presidency to him? That is the elephant in the room.
In my calculations, although Osinbajo may be able to garner the votes of a vast number of Christians nationwide by virtue of his being a member of the Redeem Church (believed to be the largest Pentecostal church denomination) he does not appear to possess what it takes to take on his former boss in political warfare and win in the main political battleground, south-west. It is perhaps why the Vice President has been demurring from advancing his purported presidential dream from the subliminal level to the realms of reality.
Even when the block votes in north-west are mobilized by Ganduje backed by Buhari for Osinbajo/Ganduje presidency, the nature of politics in Nigeria is that the block votes of the southwest are also required to secure the presidency which only Tinubu appears to have the capacity and ability to procure.
So, once again, the man often referred to as pastor/professor may have to predicate his presidential ambition on the will of God.
The third personality from Yoruba land that may be nursing presidential ambition in 2023 is the present Ekiti state governor, Kayode Fayemi who is also an ex-minister of solid minerals development.
As the chairman of the Nigerian Governors Forum, NGF, he has chalked up some national influence enough to earn himself national name recognition. Again, like Osinbajo, he is one of Tinubu’s surrogates who honed his political skills in the days of NADECO-the Yoruba political pressure movement that is one of the forces that pushed for the exit of Sani Abacha as Nigeria’s military head of state(1994-8).
So, Fayemi’s reported ambition may also be in abeyance, which is in line with the wisdom to engage in dalliance with Tinubu political family as a political tactic, so as not to cross paths with the APC national leader, who is apparently believed to hold the ace in Yoruba politics.
Now, our country, Nigeria is anchored, metaphorically, on a tripod formed by Hausa/Fulani, Yoruba, and Igbo nationalities, with each representing one of the three legs on which Nigeria stands.
They jostle for the presidency by the Yoruba and Hausa/Fulani nationalities gleaned from mainstream and online media sources has been cataloged in the preceding paragraphs.
But shockingly, alarmingly, and embarrassingly absent in the milieu are activities or information about the potential presidential or even vice-presidential candidates of Igbo origin from the ruling or main opposition parties jostling for the presidency in 2023.
So, where are the Igbo candidates?
Yes, Kingsley Moghalu, ex Central Bank of Nigeria, CBN deputy governor, and presidential candidate of one of the small political parties in 2019 may be angling for the presidency again in 2023. But, for the obvious reasons of lack of nationwide political structures, and inability to raise the humongous financial resources which by some estimates can be as high as one hundred billion nairas required to execute a presidential campaign, Moghalu has zero chance. The underlying reason for that assertion is that he is not vying for the presidency on the platform of the ruling APC or main opposition, PDP whose affluent members-governors, legislators, and ministers could have provided the financial resources and political structures once a candidate is adopted by the party. Basically if becoming the president of Nigeria in 2023 is in Moghalu’s gaze, it would have done his political career greater good, if he had joined the ruling or main opposition parties.
The other Igbo politicians of notable national status weighty enough to contemplate contesting for the presidency of Nigeria are Orji Uzo Kalu, ex Abia state governor, currently a senator; Ken Nnamani and Anyim Pius Anyim, both of whom are former senate Presidents at different times. To further give him more heft, Pius Anyim also served as Secretary to the government of the Federation under Goodluck Jonathan’s presidency.
But the aforementioned Igbo politicians who were on track to entrench themselves politically at the national level, have recently been literarily ‘damaged’ and have thus become political liabilities via their indictments by the EFCC for financial malfeasance. That is the case with Orji Kalu who was jailed under curious circumstances for corruption. But he escaped a long jail term by the whiskers when he was soon after discharged and acquitted. Pius Anyim has also been recently grilled by the anti-corruption agency, EFCC for alleged involvement of a company where he has a beneficial interest in an aviation ministry contract.
Regarding, Ken Nnamani, he has been in the cold politically for nearly fifteen years since he was compelled by his political leader( Chimaroke Nnamani, then governor of his state, currently a senator ) from seeking re-election to the senate after he played a prominent role in scuttling president Obasanjo’s presumed third term agenda in 2007. That much was revealed in Nnamani’s recently published memoir.
In a piece titled: How To Become President Of Nigeria which l wrote and published on the back page of Thisday newspaper on Monday, September 20, 2021, and on numerous online newspapers, l had made a case that the Igbo nation may be suffering from a dearth of ‘presidential materials’.
ln, the piece, l listed elder statesman, Emmanuel lwuanyanwu, the
owner of defunct Champion newspaper and lwuanyanwu Babes-football club (socioeconomic endeavors which gave him national name recognition) as a potential presidential candidate of Igbo extraction. But he is currently past his prime in terms of age and political relevance.
Another Igbo personality that l had also beamed the light on is Peter Obi, who is the 2019 vice presidential candidate of the PDP and former governor of Anambra state. He too is currently under the yoke of the recently leaked Pandora papers(a catalog of illicit financial flows into a tax haven in Monaco) which has put him under the scrutiny of Nigerian anti-fraud agencies which are getting under his skin in a bid to ferret out information to determine if the former state governor breached the code of conduct rules in public service by not disclosing some of his wealth tucked away in secret foreign jurisdictions.
In my interactions with multiple members of the Igbo ethnic stock, l get the sense that they desire, as desperately as can be imagined, to be the tribe calling the shots in the presidency from2023.
This was affirmed by the president-general of Ohaneze Indigbo, the region sociocultural organization, George
Obiozor had passionately made a case for the Igbo presidency of Nigeria after president Buhari exits the Aso Rock villa in 2023. Here is how he put it: “We support the Igbo president with open arms. It is the most important thing that will happen to Igbos. Finally, it is our turn. And we are going to work it so hard,” Obiozor further made the following emphasis:
“We will talk to other parts of Nigeria to give us a chance. Because it is right, reasonable, deserving, and timely. It is wonderful to consider it done by this time. Igbo presidency is our agenda.”
Another Igbo elder statesman and former Anambra state governor (1992-3) Chukwuemeka Ezeife had also lent his voice to the call for the next president to be Igbo.
Said he ” power comes from God but we (Ndigbo) have been doing our homework, reaching out to our brothers from the Northern, Western, and South-South part of Nigeria to support us in 2023. Ordinary Nigerians from the other geopolitical zones want an Igbo to be the next President for equity, justice, and fair play”.
Although, there has been a deluge of rhetorical statements that can be likened to the roars of lions from Igbos at home and in the diaspora about 2023 being a watershed year for a member of their ethnic group to be the president of Nigeria on the premise of the fact that both the Yoruba and Hausa/Fulani nations have had their turns in the presidential power rotation arrangement introduced since 1999: in terms of the physical mobilization of Igbo voters and the actual preparation of Igbo candidates, there has not been any significant evidence to match the vigor displayed in the media. Rather the hoopla in the mainstream and social media without commensurate practical action on the ground makes the Igbo appear like whimpering kittens as far as the struggle for the presidency of Nigeria in 2023 is concerned.
The clearly un-Igbo tame and timid attitude has been in part attributed to the resistance being put up by the proscribed Indigenous People of Biafra, IPOB, separatist movement via their seat-at-home order in Igbo land; and their disruption of political activities in the South-East through other civil disobedience actions which are having crippling effects on the socio-economic and political activities in the region.
The political inactivity in Igbo land with respect to the presidency of Nigeria in 2023 is quite the opposite of the preparatory activities towards the forthcoming November 6, governorship election in which both president Buhari and NEC chairman, Mahmood Yakubu have vowed must hold on schedule, despite the IPOB threat.
Somehow, the quartet of Andy Uba of APC, Val Ozigbo of PDP, Chukwuma Soludo of APGA, and Ifeanyi Uba of YPP representing the main political parties have been ramping up their campaigns.
Given the scenario above, and if the Igbos are really not politicking for the presidency like their Yoruba and Hausa/Fulani counterparts, (which is evident by the reality on the ground) the prospect of an Igbo presidency in 2023 that may already be in peril, can be given a shot-in-the-arm through a strategic partnership that would provide political structures and financial muscle.
That is what informed my proposal in the earlier referenced article: “How To Become The President Of Nigeria” that the Igbo should align with Atiku Abubakar as PDP presidential candidate in 2023 to achieve the dream of Igbo presidency in 2027.
My proposal is underscored by the belief that it would be unlikely that the former Vice President Atiku Abubakar who has become a veteran in presidential contests since 2003 with enormous practical experience, would seek his re-election in 2027 if elected president in 2023 via an Igbo alliance and PDP support.
Unless, other northern contenders like Aminu Tambuwal or Bala Mohammed are willing to serve only one term and hand over to an Igbo Vice President, which is a highly unlikely scenario simply because of their relatively young age compared to the former Vice President who would be 75 years next month, Igbo quest for the presidency of Nigeria may remain a mirage.
In my view, a partnership with Atiku Abubakar as a pathway to Aso Rock Villa remains the most viable trajectory for an Igbo man/woman to become president of Nigeria in 2027 on the PDP platform. That is because, Atiku Abubakar is liberal, broad-minded, business savvy, and has links by marriage to all the three major ethnic groups-Hausa/Fulani, Yoruba, and Igbo in Nigeria. It implies that Atiku Abubakar’s presidency would likely be more inclusive than the nepotistic-a trademark of the current government in power that is fueling the current gale of separatism.
The point being made here is that under Atiku Abubakar’s watch as president, separatism would be consigned to the dustbin as inclusiveness becomes a major plank in government policy. With inclusiveness becoming a center point of public policy in Nigeria, secessionist tendencies would die a natural death in the manner that Niger delta militancy ceased after the late president Umaru Yar’adua took strategic steps to stabilize the volatile region via his offer of Amnesty to former militants after meeting some of their demands.
The existential reality in Nigeria’s current political equation is that the Igbos need help to actualize their quest for the presidency of Nigeria. As Atilla, the Hun advised, “choose your enemies wisely and your friends carefully.”
It should be obvious to the average Igbo that they can not ascend the throne in Aso Rock Villa by themself. And they must accept that their mastery of business can not overnight translate into the political savviness that is required for someone of Igbo extraction to become the number 1 citizen presiding over our country in Aso Rock Villa seat of power from 2023.
So an alliance with the former Vice President, Atiku Abubakar whose political fortune has been built since the time that he first contested against former the late MKO Abiola in Social Democratic Party, SDP primaries held in 1992, remains the most viable political catapult that can propel the Igbo nation into Aso Rock Villa, after Alex Ekwueme’s partnership with Shehu Shagari for the presidency of Nigeria (1979-1983). It is disappointing that it is the last time the Igbo enjoyed worthy political significance in a country that they have indisputable ancestry.
Without adopting or resorting to the application of such cold calculations, the Igbo’s demand to have someone from their ethnic stock as number occupant in
Aso Rock Villa would very likely remain a mission impossible as the demand would continue to be elusive beyond 2023 and even 2027.
As a follow-up article to How To Become President Of Nigeria, l wrote another piece titled: “A Citizen’s Guide on How To Become President of Nigeria” also published on the back page of Thisday newspaper on October 22, 2021, and other mainstream newspapers, including Daily independence, Vanguard as well as online platforms, the following points were brought to the attention of readers:
“Although presidential power play is largely about popularity, it also significantly utilizes conspiracies and alliances as the oxygen and blood for positioning popular candidates for victory in presidential polls.”
In light of the above reality, which ethnic nationality or nationalities in the Nigerian Union is the Igbo building alliance or conspiring with, overtly or covertly? None in my opinion. But l stand to be corrected.
Now, I have read some news items indicating that some ethnic nationalities in the middle belt have been co-opted into the agitation for the Igbo presidency in 2023. The pertinent question is: does the north-central political zone hold significant votes compared to southwest or northwest that are the most prolific sources of votes in our present political configuration? Again, the response is a negative affirmation.
Even as the political link-ups being weaved like spider webs between the Yoruba and the Hausa/Fulani politicians as reflected by the subterranean alliances are being tagged conspiracy theories since they are yet to be acknowledged by the key actors, there are practically neither conspiracy theories nor alliances between the Igbos or any other major tribes for the presidency of Nigeria in 2023.
It is disappointing that while the eastern region is prevaricating or pussyfooting on the strategy to adopt in order to achieve her over 50 years aspiration for self-rule, or at least get critically involved in running the affairs of the only country that can call their own, the southwest and more appropriately, the Yoruba nation, leveraging the ruling party, APC platform is at the cusp of taking the slot of the south for the second time in the presidency rotation calculus which commenced with president Olusegun Obasanjo in 1999. And I get the uncanny sense that the APC is more oriented towards rotating the presidency to the southeast in 2023 than the PDP, as such it may end up specifically zoning the presidency to the Igbos even as the PDP by all intents and purposes are likely to throw it open. But the easterners may not be able to positively convert the opportunity if offered by the APC because their house has not been literarily put in order.
Perhaps, the Igbo nation would be jolted from its reverie if it is reminded of how one time Vice President of Nigeria, Alex Ekwueme of blessed memory suffered the negative effect of Igbo republicanism when multiple fellow Igbos contested against him and split the votes in the PDP primaries held in Jos, Plateau state in 1998.
Although the election of Goodluck Jonathan to serve as Vice President under Umaru Yar’adua’s presidency (2007-10) and his subsequent elevation to the position of president (2010-2015) in the aftermath of Yar’adua’s sudden death offered a window of opportunity for the Igbos to have a say in the country, 2023 represents an epoch for them to be on top of the pecking order in Aso Rock Villa. Beyond the feeling of accomplishment amongst the Igbos that may be elicited by an Igbo presidency, it is even being canvassed in some quarters that it would also moderate their separatist tendencies that have severely damaged the fabric of the unity of our beloved country in the manner that the concession of the presidency to the Yorubas in 1999 via the fielding of both Olusegun Obasanjo and Olu Falae as the presidential candidates of the two major political parties, healed the wound inflicted on the collective psyche of the Yoruba nation by the annulment of June 12, 1993, presidential election; presumably won by their son, MKO Abiola; the assassination of his delightful and heroic wife, Kudirat and his subsequent passage while in the custody of government in the course of his struggle to claim his presidential mandate.
In the likely event that the Igbos have forgotten.
It would interest them to know that of the five presidents that have led Nigeria -Shehu Shagari, Olusegun Obasanjo, Umaru Yar’adua Adua, Goodluck Jonathan, and Mohammadu Buhari currently in the saddle, only two have been from the south. Both of them- Obasanjo and Jonathan made it to the presidency directly or indirectly following the sudden death of their principals- either via assassination or natural causes.
In other words, they rode on the apron strings of northern Political leaders who got selected after a military putsch, as is the case with Murtala Muhamed and Obasanjo (1976-9) or got elected president via a general election following the death of an elected sitting president, which is what happened with the Umaru Yar’adua and Goodluck Jonathan presidency(2007-15).
It is also pertinent to bear in mind that Obasanjo did not get elected president in 1999 on the voting strength of the Yoruba nation. Rather, he became president despite being rejected by his Yoruba kith and kin that preferred his opponent, Olu Falae.
So he only became no 1 citizen through the political engineering reportedly driven by the duo of former military head of state Ibrahim Babangida and ex-chief of army staff, TY Danjuma. The pair of whom are leading members of the northern intelligentsia or the so-called Kaduna mafia.
It is the foregoing political developments that have informed my unique perspective that it would be more pragmatic for the Igbo nation to be fully conscious of the dynamics of politics in our country in order to be guided and thus be appreciative of the propriety of weaning itself off the utopian idea of winning the presidency without the type of strategic alliances espoused in my earlier proposition.
Allow me to indulge you by being a bit prescient as l reference an AriseTv interview with late northern political power broker and bridge builder, late Isa Funtua in January 2020 where he made a prediction that the Igbo can not be given the presidency on a platter of gold:
“They want to do things on their own and because they are Igbo, we should dash them the presidency?”
The straight-talking lsa Funtua further made the following declarative statement about the Igbos :
“Nobody will carry you like a newly born baby.
With due respect to the Igbo, they fail to understand that when the South-West chose to remain on their own as opposition, they did not go near (national) power”
With the benefit of hindsight, my candid advice to the Igbo nation is that it is time for them to collectively pull themselves out of their current state of lethargy and do their spadework if they truly want to be the ethnic nationality calling the shots in Aso Rock Villa in 2023.
Need l say more?
ONYIBE, an entrepreneur, public policy analyst, author, development strategist, an alumnus of Fletcher School of Law and Diplomacy, Tufts University, Massachusetts, USA, and a former commissioner in Delta state government, sent this piece from Lagos.
The conversation continues on: www.magnum.ng

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robert opara
Economy

DIPLOMATIC DISCOURSE WITH ROBERT OPARA

by Robert Okpara
written by Robert Okpara 10mins read

The world’s nations have taken developmental strides a notch in ways that have gone beyond our usual pedestrian laid back “transfer technology” mantra of Africa’s sociopolitical class. While lots of African nations and leaders are presently assembled in Riyadh, Saudi Arabia lying through their teeth on ways to extract more funding commitments from the developed countries by presenting phantom development narratives that are absolutely nonexistent, the developed world has left African countries far behind in developing strategies to make life much more bearable and conducive to their citizens. Two decades into the 21st century and the science fiction dreams of the creators of The Jetsons are closer than ever to becoming a reality. With the likes of UBER and BOEING developing eVTOL (electric vertical take-off and landing) flying taxis, it’s a definitive surety that by 2040, there will be about 430,000 such vehicles in operation around the world. This comes as delivery drones are also being increasingly developed and tested with the global market for these tipped to be worth about $5.6bn by 2028. One can only begin to estimate the unprecedented job opportunities coming from this innovation alone. 


African countries are miserably lagging behind in developing strategies for agricultural bumper harvests in any given period because we hardly get our priorities right. Most simple things like toothpicks are imported from foreign lands. There’s hardly investments in other agricultural equipment to send the teeming jobless youths and women to subsistence farming opportunity. Incidentally, these are the 2 most vital demographics that need these nonexistent job opportunities because of their implosion tendencies during a crisis. Listen to Buhari’s sermon on the mount in Riyadh on Tuesday in an attempt to hoodwink his hapless and gullible Mumu audience: “Nigeria’s population today exceeds 200 million people. Some 70% are under 35 years old. When we came into government in 2015, we’re quick to realize long-term peace and stability of our country is dependent on having inclusive and humane policies” Really Mr. President? Which definitive policies are you referring to now? He further added: “We introduced policies that supported investments in Agriculture and food processing. We provided loans and technical support to smallholder farmers through the Anchor Borrowers Program”. Maybe we should enquire about the present unemployment rate in Nigeria. Or can we also ask Mr. President the success rate of his policies in dealing with kidnappings and banditry in Nigeria? Or put it mildly, is the country safer now than in 2015?


While our president is acting Prince Charming to his Riyadh audience and other African countries are neck-deep into coup de’tats and killing sprees, to handle the demands of a future in the Flying Taxi module, in which drones and flying taxis (think large, multi-propeller the drones) share airspace over busy conurbations, proponents of this unique technologies are already ahead of the competition in planning how to build lots of mini-airports dubbed skyports. They reckon that these mini airports will be needed to enable air taxis at the exact spots where the passengers want to go. Prospective companies keen on these unique ventures are in the forefront of strategic mappings, having carried out more than 1,000 test flights of its eVTOL crafts. The companies are already processing their approval documentation from the US regulator, the Federal Aviation Administration (FAA) to begin commercial operations in 2024. These air taxis can carry four passengers, travel at up to 200 mph (322 km/pH), and has a range of more than 150 miles (241km). These crazy and strategic investors envisage offering their aerial ride-sharing service from locations near to where people live, work and want to go. They’re also working closely with cities to ensure their services connect to other modes of transit, co-locating skyports with train stations, airports, and other hubs.

However, whether and when these investors reach a point reminiscent of the unique project will depend on how the industry handles a number of key hurdles. These will include public acceptance, high-volume manufacturing, digital, power, and physical infrastructure investment, and the development of a highly-automated air traffic management system.
The main challenges here are regulatory hurdles and air traffic control systems. I can actually envisage the extreme human factor challenges in the regulation of air traffic routes and multiply by a million. It’s likely to start by establishing standard drones or air taxi routes. Rules will be set, kinks worked out, and standards applied universally to minimize incidents. From my investigations in the US from regulatory authority sources, the biggest barrier is that Flying taxis are yet to be given the authorization to fly commercially by the relevant authorities such as the Federal Aviation Administration (FAA) in the US or the UK’S Civil Aviation Authority (CAA). I also understand that these hugely rich companies from both sides of the Atlantic are ready to deal with these treating issues.

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Tope Fasua edited
Business & Finance

FOR GOD’S SAKE WHO NEEDS eNAIRA?!

by Tope Fasua
written by Tope Fasua 10mins read

After all, the Naira as is, is already quite digital, isn’t it? Nigeria does have one of the most sophisticated financial systems in the world – especially in terms of payment systems. This is probably necessitated by the fact that because of our low per capita income and the informal structure of the economy, so many Nigerians altogether have to make millions of small transfers daily, especially to dependants. In developed countries, this is not the case. A typical worker abroad has all the debits – for rent or mortgage, insurance, taxes, tenement, loans, and so on, set up such that they hit their account by month-end and they get by on what is left. Our economy – perhaps like many other African economies – is structurally different from what obtains in those places. Therefore, we saw quite a bit of innovation in our financial sector that may not be deemed particularly necessary elsewhere. Some of us economists criticize the fact that the financial sector in Nigeria is running ahead of everyone else. We call it financialization, as different from what we actually need; industrialization. We also see that quirk manifest in the yearly declaration of superlative profits by our banks, even in a year like 2020 when half the time businesses were shut, and in the face of expanding poverty in the land.

So, who needs an e-Naira?  Why is it necessary?  Is it going to solve the problem of inflation, and corruption, and unemployment, and everything that ails the economy? Will it lead to a revaluation of the Naira which seems to be in a death spiral?  Is the idea just a further ‘financialization’ of the economy?  Or is this not just another gimmick to embezzle funds at the CBN? All these and more are the questions that Nigerians are asking.

I think the e-Naira is very useful, timely, and perhaps one of the smartest things that our central bank has been able to pull off in a while, even though it will certainly not solve every problem that ails our economy. I will therefore attempt to break down some of its likely uses below, even though I must admit that the whole idea of such hyper-digital currency, is still nouvelle to everyone in the world. In other words, a number of central banks around the world are taking the initiative, and 90% of them are thinking in this direction, but certain mistakes will be made, lessons will be learned before the concept stabilizes. The future of currency is digital. And the future is here. Let’s look at the critical questions:

What is the e-Naira?

The e-Naira is a Central Bank Digital Currency (CBDC). Though the Naira was fairly digital before (as you can transfer value from your phone or laptop once you are connected to the internet, and via USSD without internet), this is a digital currency on fire! However, unlike other digital currencies (cryptocurrencies), the CBDC is backed by the sovereign – Nigeria – and is tied to the Naira (fiat currency).  If we need to compare it to a cryptocurrency, we can compare it to say USDT (a stable currency tied to the US Dollar, called Tether).

What is this idea of being backed by the Naira?

Well, this means that the e-Naira and the fiat Naira will not diverge in value. The two types of currency will be the same value at all times. Also, that the currency is backed by the government through the CBN is comfort, because people know that the CBN cannot default on its obligations. Investments with the central bank of a country are deemed to be the safest kind that anyone could undertake.  Ordinarily, cryptocurrencies have some issues. People die, and if no one knows the key (their pin), their money is lost forever. People save their keys on devices. Devices get stolen or corrupted and their money is gone if they have no backups anywhere. Meanwhile, people are scared of backing up their keys anywhere because if anyone gets access to it, they can be wiped out. All sorts of issues occur because the idea is still developing. We have even heard of situations where crypto exchanges have collapsed (like Quadriga in Canada), and those who left money on the table for the exchange to help manage, were wiped out. And with cryptocurrencies, there is no arbiter; no one to run to; no one to guarantee the transactions; no deposit insurance. Nothing. It’s usually a case of ‘who sent you?

Where did the idea come from?

Whereas the central banks will hardly mention this, it is my strong belief that this is a reaction by central banks to the idea of cryptocurrencies. What started circa 2006/7 as a crazy idea by some crazy folks who were rather miffed by how central banks especially in developed countries bailed out investment and commercial bankers who had used people’s deposits to gamble on arcane derivative products like Credit Default Swaps, Collateralized Debt Obligations and such like, had become a major issue, with a market valuation of more than $1 trillion. There are suddenly more than 8,000 cryptocurrencies around the world. It has become a swarm and no one knew which crazy bee among the lot could sting the system in the eye at any point in time. The proponents of cryptocurrencies actually started out with the radical idea of taking down what we know as the financial system today, for past infractions – including for arbitrarily printing currencies or hiking interest rates thereby devaluing the money in people’s pockets and accounts, in the name of monetary policy management. They call their plan ‘decentralized’ banking or finance (Defi), which means ‘down with Central Banks!’. The only thing they didn’t reckon with was that they will need the central banks, investment, and commercial banks to achieve this laudable feat.  But will the traditional banks and central banks allow them?  The central banks then got wise and decided to piggyback on their idea, to save themselves, the banking sector, and the government. Why? The day you take down central banks, you will have taken down every bank because there’ll be nobody to manage currencies or maintain sanity or fidelity in the system. Then how do governments get their taxes? In what currency? Anarchy is the endpoint.  This move by the central banks around the world is to prevent themselves from becoming so weakened and made vulnerable by the crypto warriors.

In the case of e-Naira particularly, Nigeria showed up as the second-highest trading nation in cryptocurrency as at April 2021, allegedly. We are talking of a country with barely $2,000 in per capita income, and the lowest in the world in terms of economic complexity. In other words, the most unsophisticated nation in the world in terms of what we produce. Could it be corruption and crime money driving this… in the main? Therefore, it was important for the CBN to have a response. If the CBN was sitting on its hands and whining, that is when we should be concerned.

Which problem will it solve?

For one, the future of everything is digital. The future of man himself is digital. The world has stopped talking of the internet of things, now it is the internet of EVERYTHING. If the future of currency is digital – and indeed these young Generation Z kids (born between the year 2000 and today), and raised by their smartphones only understand digital things – then Nigeria had better get on board and fast. So, the earlier we get on this new reality, the better. But which other problem can it solve? Inflation? Ehmmmm, long shot. But e-Naira can help. How? For one, the more successful e-Naira becomes, the less money the CBN will spend printing new money. This should reduce the CBN’s budget. However, if the e-Naira is successful, then the world will have a little more respect for our currency, and the Naira may appreciate it a bit. If the Naira appreciates, then inflation will slow down, because a considerable part of the inflation we suffer today is as a result of imported goods, and the adjustments that local producers are making, in the fear of further devaluation. You see, devaluation of currency does not only mean that imported goods will cost more. In fact, in our economy, locally-produced goods prices leap much higher. Visit any local store or the market and see what has happened to prices in the last one or two years! Nigerians are really struggling to survive.

So, e-Naira can help us in getting a firmer naira. And there is one other reason for that. If it is what they say it will be, then the e-Naira wallet is sitting in CBN’s books. This means that the e-Naira can, subject to limits, allow Naira to be more convertible. What does this mean? You see, about 35 years ago, when you travel to London, you don’t need to be chasing pounds and dollars around before you go. You just go. When you get to London you change some naira directly into pounds right at the airport, or you go to Oxford Street and make the change. Then we started losing it. They kept devaluing. And no one was sure what the value of the naira will be the next day, so people stopped accepting the naira. But since e-Naira is a central bank currency, sitting right on CBN systems, we should be able to convert eNaira to any other currency in a jiffy and get transactions cleared without the rigmarole of going to a commercial bank. This is a great advantage, isn’t it?  Surely the CBN will set limits. Equally, the CBN hopes to use this platform to ease the inflow of foreign currency into the country, by enabling Nigerians to sidestep the usually punitive charges taken by money transfer organizations. Companies like Western Union and Moneygram have always taken delight in slamming transactions heading to Nigeria with high fees. Now remittances could be easier… but you will get official rates. The black market for foreign currency will still exist, but this kind of reform could be the shock treatment that reduces the spread to something negligible.

Which other problem will it solve?

So, it’s really looking like if some Nigerians and their collaborators don’t spoil this with the usual waywardness, cynicism, lack of patriotism, predilection to defraud, or deception from high places, we may be on to something great with this e-Naira. We may be buying a new lease of life for the currency and the economy. Already, as the CBN stopped selling millions of US Dollars to thousands of BDCs every week, our foreign reserves have leaped by about $4 billion in just a couple of months. We are talking of $40 billion now. That’s great news. Even on the streets, the dollar frenzy has tapered. Smart Alecs have probably found other vocations. We knew they were just bragging and trying to tip this country over so that they can pick up the pieces. When last I checked, the Mallams will not buy dollars at more than N550, with prospects of further strengthening.

The Central Bank of Nigeria also hopes to use this eNaira for better monetary policy management. For every eNaira created, that is one Naira more in the direct control of the CBN. There will therefore be better oversight over Money Supply. The CBN – like their brother central banks around the world – believes that this is a great tool to reach out to citizens in periods of crisis by being able to make direct transfers to citizens where necessary. Of course, the Bank has to mind operational risks lest some smart guys begin to play games with their system.  Citizens must also continue to alert the CBN to wherever lapses may occur. I have also heard it said that this is like the CBN taking on the functions of commercial banks. Well, it is the sign of the times. It is the evolution of banking and finance. The banks are smart enough to see, that the central banks are only trying to save the entire traditional banking system as we know it from cataclysm.

I will urge Nigerians to be less cynical but more circumspect. Let us see if this initiative will deliver. Let us do away with all that negative view of the country. Truly, leaders have failed us. But we need not fail ourselves and enter into a spiral of grief. Nothing is bad about this country. Billions of people around the world would wish they had what we have all year round.  We have a country to save. And a currency too. Let’s get on with it.

So, yes. We do need an eNaira.

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