Petrol consumption has drastically reduced in Nigeria with filling stations recording sharp drop in patronage as reports from across the country indicate.

This is largely connected to the high cost of premium motor spirit (PMS), also known as petrol, with a litre selling as much as N1,200 in some parts of the country.

The outright removal of fuel subsidy from PMS by President Bola Ahmed Tinubu’s administration on May 29, 2023, has triggered an increase in pump price, rising from N198 first to N580, and ultinately to between N998 and N1,200.

This represents an increase of about 600 per cent from N198, when it was sold pre-May 29, 2023.

With the high cost of the product, it has become virtually unaffordable to many Nigerians with citizens parking their vehicles at home, and filling stations recording low sales, as confirmed by stakeholders in interviews with our reporters.

There are conflicting reports on the daily petroleum consumption. While some reports said it has dropped by over 50 per cent, another report suggested it has dropped by 92 per cent from what it was in 2023.

But reports from across the states indicated a drastic drop with some filling stations complaining of very low patronage while many state that they are at the brink of shutdown.

Kano

Rising fuel cost has forced many car owners in Kano to park their vehicles and use alternative means of transportation.

While some use commercial tricycles to commute, others resort to trekking to reach their destinations.

A staff of Aminu Kano Teaching Hospital, Tijjani Muhammad, told Daily Trust that he has parked his car and is now using public transport to go to work.

The staff said he stopped conveying his children to school and asked them to use commercial tricycles. They too, he said, sometimes trek to school.

“I cannot afford to buy fuel at its current price. For me, driving my car is now a luxury because fuel price is prohibitive, and also same with food stuff. So, I have to choose which one is necessary.

“I decided to park my car and now trek to my workplace, which is even a daily exercise after all”, he said.

Aminu Dan Malam, a businessman at Kaloma area of Kano, said he has two cars but the high cost of petrol has forced him to park one.

“I now use motorcycle to go round for my business. And considering that we have to be taking the children to school, my wife is using the smaller car for that purpose.

“We hope the federal government will fast track the CNG initiative which they said will bring down the cost of transportation.

“What we are witnessing now in the country is not really good. The fact that petrol stations are recording low sales and people are parking their cars means low productivity. It is really not good because it also means consumption is not increasing. No economy can grow without production,” he said.

Abubakar Sadiq, a manager at an Aliko Oil petrol station, said sales have dropped to 10,000 litres a day compared to 15,000 litres daily in the past two months.

Sadiq, however, explained that though sales in terms of volume have dropped, sales in terms of cash collection remain unchanged because of the difference between the current price and the previous one.

“Car owners no longer fill their tanks like before because you need at least N55,000 now to have your tank filled. Many people just buy N20,000 or N25,000 worth of fuel and then plan their movements,” the station manager told one of our correspondents.

Unlike Danzaria, Hamza Adamu, an accountant in a private firm, said he has parked his car now because his monthly pay is not enough to buy fuel at its current price.

Kaduna

Alhaji Tajudeen Ajigbade, a resident of Kaduna said majority of people have now left their cars at home due to the present harsh realities.

“I know someone who has a car but rides a motorcycle instead because he has parked the car due to the cost of fuel. Let the government look at the situation with a human face because it is affecting many people,” he said.

He added that he does not drive around “carelessly” with his vehicle.

A manager at a filling station in Mando, Kaduna, Alhaji Balarabe Salis, said business is no longer what it used to be because their daily sales has dropped by almost 50 per cent.

According to him, prior to the fuel price increase, his filling station usually sells 5,000 litres of PMS daily, but now it finds it difficult to sell 2,000 litres in a day.

Borno

As the fuel price continues to rise, parents in Maiduguri said they grapple with the surging cost of transporting their children to school.

Most parents interviewed said they now close from work between 1pm to 2pm to pick their children home, while others parked their vehicles at the school to wait for the closing hours.

Abdulkareem Lawan, a parent residing in Bulumkutu bypass, explained how he made some adjustments to cope with the situation.

“As a father, I am groaning within myself because the situation has turned ugly. I spend N70, 000 on fuel monthly just to take my four children to school. So, I was forced to cut down on my movements.

“What I now do is to park my vehicle close to my children’s school and hops Keke Napep to my work place, and return after the school hours. It is more economical,” he said.

Gombe

In Gombe, managers of private fuel stations have also complained about low sales as a result of poor patronage by motorists amid the incessant hikes in petrol price.

Some station managers who spoke with Daily Trust, said that they are recording low sales currently, compared to a few months ago when the price was below N1,000 per litre.

Malam Shamsudeen, who is the manager of Dan Marna Filling Station, located along Biu Road,  said two months ago they used to sell between 18,000 and 20,000 litres daily, which is about two trucks of 45,000 litres every week. “But it is no longer the same,” he said.

Also, a staff of AYM Shafa Filling Station, located along Dukku Road, said before the recent increase, they sold a truck of 45,000 litres within three days.

“However, it is now taking us almost two weeks before we can sell the same 45,000 litres truck. This is when the neighbouring filling station adjacent to us is not selling. If they have fuel, it takes much longer to sell that quantity,” he said.

A public servant, Najib Sani said he only uses his car twice a month since the removal of the fuel subsidy over a year ago.

Benue

In Benue State, many petrol stations have closed down business while others continued to record low sales occasioned by the steady rise of fuel price.

Our correspondent reports that the situation has forced many car owners to also abandon their vehicles.

A manager of a private petrol station, Iorlumum Tyokyer, said they are recording low sales not just because people have parked their cars at home but that purchasing the product from major marketers also drives up the cost.

He said: “This situation is hurting us financially, and we are operating at a loss. We are deeply concerned about the fuel situation in the country. The government promised relief once the fuel subsidy was removed, but that hasn’t been our experience.

“The poor are struggling more, with transport and food prices skyrocketing, making survival challenging. I urge the federal government to take immediate action to lower fuel prices from what it is currently”, he said.

Tyokyer worried that only two months ago, fuel price skyrocketed to N950, which was beyond the reach of many Nigerians, but now selling at least N1,250 in private stations, causing them to continue recording lower sales.

Kwara

In Kwara State, a filling station owner at Offa Garage, who did not want his name in print, said sales have dropped compared to before the latest fuel hike.

“We used to sell 11,000 litres daily before the latest increment by NNPCL. But now, we hardly sell 8,000 litres a day, which is about a 25 per cent drop.

“And this is because fuel is a perfectly elastic product that has no alternative for now. If there is an alternative that is much available, it will reduce to 50 per cent”, he said.

On his part, the manager of a station at Oko-Olowo said the issue depends on the location of the filling station.

A lecturer at one of the polytechnics in Kwara State, who simply identified himself as Mr. AbdulSalam, told Daily Trust that he has since parked his car because of the hike.

Lagos

In Lagos, Daily Trust findings showed that some filling stations have stopped dispensing while those selling are recording low turnover.

A manager at one of the NNPCL outlets in Ikeja, expressed concern over the level of patronage, saying it has declined since the hike in the price of fuel.

He added that many customers rarely fill up their tanks while those that filled their tanks rarely return to refill until the end of the month.

“It is a shame that that Nigeria which has a large deposit of oil is facing energy crisis. It is a reflection of the kind of people we are,” he said.

The manager said that they organised training for fuel attendants on how to manage customers’ temperaments, stating that many customers are prone to aggression due to the cost of living.

Edo

In Edo State too, petrol stations are grappling with low patronage following the increase in the pump price of petrol.

In the state, most of the fuel stations sell a litre for N1,250, N1,200, N1,195, while the cheapest, which is the NNPC, sells a N1,100.

Pump attendants and managers of some of the filling stations, who spoke on the development, said the number of litres sold daily has drastically reduced.

One of the station managers, Cyril Irafidon, who works with Conoil Filling Station in Benin City, noted that many people have parked their cars while others have converted theirs to CNG.

On his part, a manager at one of the Total filling stations, Collins Eghe, said the business is no longer what it used to be as vehicle patronage has really gone down.

Anambra

The latest fuel price hike is affecting both dealers and buyers in Awka, the Anambra State capital.

Mr. Stanley Onyejikwe, manager at the Silluch filling station in Amaenyi, Awka South Local Government Area, stated that the fuel price hike has significantly impacted buyers’ purchasing power.

Concerns over declining productivity

While Nigerians are facing the reality of a deregulated petrol regime, there are concerns over its effect on the economy and the productivity of Nigerians.

Dr. Garuba Dauda, an oil and gas expert and development policy analyst, said the drop in sales will inevitably affect the economic performance because energy, which is one of the biggest drivers of any economy must be accessible and affordable.

“To realise a functional economy, its availability, accessibility and affordability must be guaranteed. At the moment, the purchasing power of citizens is very low due to its unaffordability. Amidst present economic hardship precipitated by the hike in the prices of petroleum products, it is only expected that only survival needs would pre-occupy the attention of many happy people. Hence, driving cars is not on the physiological needs of many people”, he said.

Another energy expert, Ma’aruf  Isma’il, advised the federal, state and local governments to fast track the energy transition programme.

“The implication of not having affordable fuel is much. A situation where civil servants cannot go to work because they cannot afford the transportation cost, and business people are also cutting their movements is a recipe for chaos. Productivity will be grounded.

“My advice to the governments at all levels is that they should subsidise the CNG conversion process. They should also provide the infrastructure. We cannot afford the snail speed at which some of these things are being handled. The economy will be grounded if nothing is done,” he said.

But an industry player, Tunji Oyebanji in a chat with one of our correspondents, assured that the situation would normalise. “People are adjusting, smuggling is reducing. Things will take time to settle down,” he said.

On Monday, (today) the winner of the 2024 Ballon d’Or award, will finally be announced.

For the first time in its history, neither Lionel Messi or Cristiano Ronaldo were included in the 30-man shortlist.

Messi (eight) and Ronaldo (five) both won the award 13 times in 16 years.

Instead, this time around, there will be new contenders. Vinicius Junior (Real Madrid), Rodri (Manchester City), Kylian Mbappe (PSG/Real Madrid) and Erling Halaand (Manchester City) fight for the prize.

Ahead of the ceremony at the Théâtre du Châtelet in Paris tonight, DAILY POST takes a look at the players that are likely to make the top three.

Vinicius Junior: The 24-year-old, who inherited Ronaldo’s no.7 shirt at Real Madrid, is the hot favourite to succeed Messi. This follows an impressive season where he won the LaLiga and Champions League titles with Los Blancos. Vinicius scored 24 goals and provided 11 assists and will become the next Brazilian to win the prize since Kaka.

Rodri: There have been a lot of calls for the Manchester City midfielder to win the Ballon d’Or this year. But the Spaniard, who won the Premier League title and Euro 2024, is likely to finish second behind Vinicius Jr. It would be a tough one for Rodri, who is considered the best in his position and has become an influential member of Pep Guardiola’s squad.

Bellingham: The England midfielder looks like the player that will make up the top three, ahead of Real team-mates Dani Carvajal and Kylian Mbappe. Bellingham enjoyed a fruitful debut season with the LaLiga champions and played in the Euro 2024 final with the Three Lions. Although he is yet to score a single goal this season, the 21-year-old has done enough to be a finalist for this award.

Lawyer and politician, Oba Mekunu Owolabi Salis, has urged President Bola Tinubu, institutions and individuals to make a representation for Nobel Peace Award to be conferred on former Head of State, Gen Yakubu Gowon.

 In a tribute to Gowon on his  90th birthday, he described him as one of the most effective leaders on the continent.

 He said the sense of unity with which he executed the civil war and reintegrated Igbo into Nigeria, stand him out as a great leader.

 “It is for this reason that this illustrious leader stands out as the most deserving beneficiary of the Nobel Peace Award” said the polar tourist, who made a record as the first black African to have travelled to North and South Pole.

 He described Gowon as an astute leader, who assembled a most efficient team in Tony Enahoros, Obafemi Awolowos, Aminu Kanos, among others, who were celebrated for their patriotism, efficiency and devotion to Nigeria’s greatness.

 He recalled that the tribulation and vicissitudes, which Awo encountered during the Coker Commission and the Treason trial, whether wrongly or rightly, were seen by the Yoruba stock as a persecution.

But the release of Awo from prison and opportunity given him to serve, on Gowon’s assumption of office, appeased the Yoruba and gave them a sense of national belonging.

 “This succeeded in enabling him to mobilise the Yoruba in the drive towards actualisation of the greater Nigerian dream.And when you consider this with his integration of the Igbo, you cannot but salute his acumen in political engineering and state craft, ” said the Ikorodu-born Lagosian, who, in 2019, contested for governor on the platform of AD.

 “If we also consider that Awolowo never made it as president despite his vast talent … then the opportunity offered him to serve in the Gowon administration… could be seen as a most soothing balm in compensatory atonement for whatever deprivation Awolowo, and his supporters might have suffered…’’

“In another breadth,the fore-going would undoubtedly be seen as an epic opportunity for self-fulfillment, just as it also stands as a redeeming feature in Awolowo’s trajectory of public service, because Awo would have died a completely dissatisfied man,and Nigerians would not have been availed of the opportunity of his excellent stewardship,especially his remarkable ability to manage the war-time economy effectively without Nigeria borrowing a single penny from extraneous sources”,said the Ikorodu-born High Chief.

 Narrating in the context of the Nobel laureate Wole Soyinka,Salis remarked:”Quite in keeping with his abiding conviction that a man must not offend fellow man to the extent that he departs the earth with the burden of grief of that offence carried to his grave, we would remember how Gowon caught the whole world in pleasant disbelief when he dramatically appeared at a birthday anniversary of the Ishara-born Professor of Dramatic Arts to apologize for his action in ordering his arrest and detention for close to two years on the allegation of espionage committed by him in complicity with Ojukwu during the Nigeria- Biafra civil war.

 “The philosophical attitude and exemplary equanimity with which he contended with the buffetings of fate in his private personal capacity as demonstrated in the unaffected calmness with which he received the news of the military coup against him while attending the O.A.U. summit in Uganda and the swiftness with which he was able to adjust to student life as shown in the newspapers in those days,in lavish scornful expose at an occasion when he was sighted on a queue among much younger students taking his turn for his own ration of food, in his early days as an undergraduate at the University of Warwick,coupled with the resilience with which he coped with the severe trauma arising from the jeers and stigma issuing from the spurious allegation of complicity in the infamous Dimka coup,levelled against him,will go down in history as a most inspiring demonstration of moral courage and an unshaken faith that truth shall always prevail over falsehood,just as light will always prevail over darkness at end,no matter how rough it may appear in the beginning”said the acclaimed social critic, activist and politician.

[TheNation]

The Federal Government is pressing ahead with critical tax reforms not just to boost tax revenue and efficiency but also to meet the requirements for a $750m loan from the World Bank.

This loan project is a part of the broader $2.25bn approved by the World Bank for Nigeria on June 13, 2024, to bolster Nigeria’s economic stability and support its vulnerable populations.

The other second part of the loan package was for the Nigeria Reforms for Economic Stabilisation to Enable Transformation, Development Policy Financing Programme project.

For the second loan, The PUNCH earlier reported that the Federal Government had obtained $751.88m out of the approved $1.5bn so far.

However, there has yet to be a disbursement for the first loan of $750m.

PUNCH Online observed that disbursement for the first loan is tied to specific fiscal and governance conditions under the Accelerating Resource Mobilisation Reforms programme.

The ARMOR programme includes three main result areas: implementing tax and excise reforms to increase Value-Added Tax collections and excise rates on health and environmentally friendly products; strengthening tax and customs administrations to enhance VAT compliance and audit effectiveness; and safeguarding oil and gas revenues by increasing transparency and net revenue contributions.

PUNCH Online obtained a copy of the signed loan agreement between Nigeria (through the Ministry of Finance) and the World Bank on Sunday.

The agreement document read in part, “The bank agrees to lend to the borrower the amount of $750,000,000 as such amount may be converted from time to time through a currency conversion (“Loan”), to assist in financing the programme described in Part 1 of Schedule 1 to this Agreement (“Programme”) and the project described in Part 2 of Schedule 1 to this Agreement (“Project”, and together with the Programme, hereinafter jointly referred to as the “Operation”).

“The borrower may withdraw the proceeds of the loan in accordance with Section IV of Schedule 2 to this Agreement. All withdrawals from the loan account shall be deposited by the Bank into an account specified by the Borrower and acceptable to the bank.”

According to the Disbursement Linked Indicators set out in the loan agreement, the loan will only be released upon achieving measurable progress in key areas.

These include raising VAT collection through improved regulations, increasing excise taxes on health and environmental products, and boosting corporate tax compliance through enhanced digital infrastructure.

Central to the ARMOR programme is the government’s plan to increase VAT rates and expand taxpayer compliance.

Some of the loan targets include increasing VAT collections to 1.8 per cent of non-oil Gross Domestic Product, unlocking $105m of the loan.

Also, there is a target to register 660,000 VAT filers, which will release $30m from the loan.

An e-invoicing system for VAT traders, once launched, will trigger $20m, with an additional $45m upon 30 per cent trader adoption.

In an effort to boost VAT revenue, the Federal Government is considering a bill proposing an increase in the VAT from 7.5 per cent to 10 per cent by 2025.

VAT refers to a consumption tax on goods and services levied at each stage of the supply chain where value is added.

In the executive bill seen by PUNCH Online, the legislature also intends to increase the VAT to 12.5 per cent by 2026 through 2029.

“VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10 per cent; (b) 2026, 2027 2028, and 2029 years of assessment 12.5 per cent (c) 2030 year of assessment and thereafter 15 per cent,” the document reads.

Also, a copy of the Stakeholder Engagement Plan for Nigeria – Accelerating Resource Mobilisation Reforms programme dated March 2024 showed that the government is required to reintroduce the excises on telecom services, EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.

Further findings by PUNCH Online also showed that one of the tax bills at the National Assembly included this excise tax.

The Federal Government has proposed a five per cent excise duty on telecommunications services, gaming, and betting activities as part of a new bill to overhaul Nigeria’s tax framework.

The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” was dated October 4, 2024.

An analysis of the proposed legislation showed that it seeks to introduce excise duties on services such as telecoms, gaming, gambling, lotteries, and betting provided in Nigeria.

Also, the program outlines specific allocations for technical assistance, with $5m each going to the Federal Inland Revenue Service and the Nigeria Customs Service to support their capacity to implement these new measures effectively.

This includes the development of systems for better data sharing, risk-based audits, and compliance processes, as well as substantial investments in program management and capacity building.

There will also be $10m for project management, tax policy capacity-building and other expenses.

In total, the amount makes the $20m investment financing before the release of $730m in line with fiscal targets met.

The FIRS will receive $5m to develop and implement critical initiatives aimed at enhancing its operations and revenue collection capabilities.

This funding will support the development and implementation of a robust third-party data sharing platform, along with administrative control programs to streamline operations and enhance efficiency.

Also, the FIRS will develop a VAT lottery system and an e-invoicing system, both of which rely heavily on advanced software and extensive communication planning. These systems are designed to boost VAT collections and improve compliance among taxpayers.

The funding will facilitate the creation of a risk-based audit assessment program for VAT and Corporate Income Tax, aimed at enhancing the effectiveness and efficiency of audit processes within the agency.

Similarly, the NCS will receive $5m to enhance its administrative processes and improve compliance.

This funding will be used to design and implement new administrative processes, including the establishment of sanctions for non-compliance with excise rules.

The NCS will also develop centralised control room systems equipped with backup and disaster recovery capabilities, ensuring operational continuity and resilience in case of emergencies.

Moreover, the funding will support capacity-building initiatives, enabling the NCS to effectively manage and implement these new systems and processes, ultimately leading to improved compliance and operational efficiency.

The loan also focuses on customs reforms to improve trade compliance and increase revenue.

Directing 15 per cent of cargo through the Green Channel will unlock $35m, while a compliant trader programme under the Authorized Economic Operator framework is linked to $15m.

Other loan-linked targets include reducing tax expenditures by eliminating corporate bond interest exemptions and rationalising the Pioneer Status Industry Tax Incentive scheme by the end of 2024, each unlocking $10m.

Also, excise taxes on health-related products and environmentally harmful goods will increase. A presidential order to introduce these excises will trigger $10m, with an additional $30m if revenue from green taxes reaches 0.2 per cent of non-oil GDP.

The Federal Government recently inaugurated a Joint Committee of staff of the Nigerian Investment Promotion Commission and FIRS to review the current guidelines for the administration of the PSI, validate the cost of the incentive to Nigeria, and recommend changes to the qualification and administration.

The Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms plans to replace the abused pioneer status with priority sector incentives, rewarding companies based on their investments in the economy.

Also, in one of the executive bills, the Federal Government plans to introduce an Economic Development Incentive Certificate as a tax incentive for companies investing in capital projects.

As outlined in the bill, firms seeking the certificate must submit their applications through the Nigerian Investment Promotion Commission, accompanied by a non-refundable fee of 0.1 per cent of the capital expenditure, capped at N5m.

The NIPC will review and recommend the applications to the Minister for approval, after which the Minister may forward the recommendation to the President.

A part of the bill read, “The application shall be accompanied by a non-refundable fee of 0.1% of the qualifying capital expenditure incurred or to be incurred, subject to a maximum of N5,000,000.00 and no further fee shall be payable in respect of such application.

“The NIPC shall recommend the application to the Minister, for approval or otherwise, including the projected tax expenditure impact report in its recommendation.”

The tax bill noted that approval from the President is mandatory before the certificate is issued.

Once granted, the NIPC is required to submit an annual report detailing the sectors and companies that benefited from the scheme to the Minister, who must present the report to the President and the National Economic Council within 30 days.

[Punch]

There are indications that the local currency is set to fully reverse its gains as the depreciation trend enters a new height, hitting N1,740/$1 in the parallel market at the close of trading last weekend.

However, the Naira remained stable with minor appreciation in the Nigerian Autonomous Foreign Exchange Market, NAFEM, as dealers speculate that the Central Bank of Nigeria, CBN, would likely intervene any moment from now to curtail the pressure on the exchange rate.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,600 per dollar from N1,601.2 per dollar on Thursday, indicating N1.2 appreciation for the naira.

Dealers who spoke to Financial Vanguard at the weekend said they expect the exchange rate to close this month around N1,750/$1 while 2024 may end at over N1,800/$1.

If this trend continues, by the end of the year, the local currency will have wiped out the gains it made in March this year when it suddenly appreciated massively, climbing down from an all-time high rate of N1,820/ $1 in February 2024 to N1,310/ $1 and further down to N1,240/ $1.

However, the appreciation was halted in April; subsequently, depreciation began and sustained until last week.

Year-on-year, YoY, Naira depreciated in the parallel market by 70.5 per cent to N1,705 per dollar at the close of the third quarter trading on September 30, 2024, from an average of N1,000/ $1 in September 2023.

Year-to-Date, YtD, depreciated by 16.7 per cent from N1,490/ $1 in January 2024.

The Naira recorded a massive 104% YoY depreciation in the official segment, NAFEM, to N1540.78 per dollar in September 2024 from N755.27 in September 2023. However, YoY NAFEM has recorded just 9.9 per cent depreciation to N1600/ $1 last weekend from N1,455.9/ $1 in January 2024.

Analysts and dealers have blamed the sustained depreciation of the local currency on supply shortages.

Fiscal, and monetary authorities in divergent tunes.

The monetary and fiscal policy authorities appear to be seeing the problem differently. At the last Monetary Policy Committee (MPC) meeting, the Governor of the CBN, Mr. Yemi Cardoso, who doubles as the MPC Chairman stated that members of the MPC had noticed a correlation between the period of FAAC disbursement and demand pressures in the foreign exchange market.

According to him, the apex bank will monitor future FAAC allocation disbursement to determine the impact on the FX market.

Cardoso stated: “Furthermore, members observed a strong correlation between FAAC releases and liquidity levels in the banking system as well as its impacts on the exchange rates.”

“The committee therefore agreed to increase monitoring of future releases to address its effects on price development.”

This position creates the impression that fiscal actions have been undermining the exchange rate stability with demand pressures.

However, last week in Washington DC, on the sidelines of the just concluded World Bank Group annual meetings, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the problem with Nigeria’s foreign exchange market is supply and as an oil-producing nation, Nigeria could address that by significantly increasing her oil production output.

He stated: “The key about the foreign exchange market really is supply and as you know we are an oil-producing country, we just need to get our oil production up and that will deal with that issue of foreign exchange supply and pressure on foreign exchange anytime there are large flows.”

This implied that rather than demand pressure from whichever quarters, the problem is inadequate supply.

Meanwhile, forex dealers have said the acute shortage amidst demand pressures has shifted the exchange rate near the Central Bank of Nigeria’s (CBN) “fear index”, a development which they believe would compel the apex bank to launch emergency defensive measures including raising the volume of supply intervention involving all dealers to boost FX liquidity.

They also believe such a reaction from the apex bank would prevent the exchange rate from further deterioration and possibly pull it back from the fear zone.

Since August 8, the CBN has not conducted retail Dutch FX auctions it resumed in 2024 as the apex bank tinkers with a ‘minimal intervention’ approach, a behaviour some dealers believe was not unconnected with the challenges of limited forex resources available to it.

Some of the dealers told Financial Vanguard that the expected intervention from the apex bank would be complemented by a plan by the CBN to test-run its new Automated FX Trading model next month.

The model which is designed to enhance transparency and controls in the market, is planned to go live from December, ditching a nearly decade-old over-the-counter trading system in a bid to enhance transparency and remove market distortions.

According to the apex bank, the new system would “facilitate a market-driven exchange rate accessible to the public”.

In a circular released on October 02, 2024 which provided the guidelines for the new system, the CBN stated: “This development is expected to reduce speculative activities, eliminate market distortions and give the CBN improved oversight.”

The CBN said a two-week test run would be carried out in November, without specifying the exact dates.

Naira may rank worst globally
The current rate of depreciation would likely present Naira as the worst-performing currency worldwide in 2024.

The Federal Government had celebrated the sharp appreciation of the Naira in March 2024, noting that the development ranked it as one of the best-performing currencies then.

However, with the renewed depreciation trend, the World Bank, last week ranked the Naira amongst the worst-performing in sub-Sahara Africa.

Dealers comment

Commenting on the state of the parallel market, some of the dealers told Financial Vanguard about their supply and demand situation in the official market.

According to them, when big buyers fail to get supply from the official market they resort to the black market.

They also said the supply they get from some people connected in the official market may be difficult to get, a situation which makes the USDollar to be very scarce and forces the exchange rate to go up.

Mr. Liasu Moshood, a black market trader said: “The depreciation of Naira in the market is due to the rush for dollars by importers who don’t have access to the official foreign exchange market. “There is less dollar supply everywhere and not all of us come to the market now because you can hardly get dollars you want to trade.

“These importers are sourcing large amounts of dollars from our market because those Bureau De Changes cannot meet their demands. Even the banks.

On his part, Mr. Idris Daud, a trader projected the dollar to close the month at N1,750 per dollar and end the year at N1,800 threshold. “Today, the dollar is sold between N1,730 and N1,740, especially by top foreign exchange black market dealers.

“The demand pressure now is high as more organizations are trying to import goods for the festive season in December and at the same time some are trying to restock before year-end as they are not certain what the foreign exchange rate might be before the end of the year. This is another reason for the pressure.

“There is also less inflows of foreign exchange getting to our end and we end up with little supply.
“I foresee the naira closing this month at N1,750 against the dollar and in the next three months at N1,800 per dollar on the back of continued pressure on demand and supply factor.”

[Vanguard]

‘ARCON Act Section 54: A new threat to business growth in Nigeria’ in The Nation of Wednesday 23, October by one Saheed Akinola caught my attention and I immediately developed an urge to respond to some of the issues raised by the author.

To start with, I think it will be necessary to state that I’m not an advertising practitioner but a lawyer and a sociologist. Strangely, it wasn’t the legal interpretation of the referenced section of the ARCON Act that provoked my curiosity but my knowledge and experience as sociology lecturer for many years before veering into law. And as a Nigerian consumer, I’m equally affected by issues related to advertising and marketing. Many times, I or members of my family have fallen victims to deceitful campaigns.

One of the questions Sociology scholars battle to answer is question appurtenant to social order, and in this context is the regulation of advertisement and the protection of the consuming public from the vicious consequences of the Macdonaldization of our society through a microcosm beaming of searchlight on the nexus between advertising and individual well-being as it affects the collective conscience of the society. Can advertisers be blamed for the negative perception of consumers? What is the place of regulation in promoting sanity in the marketing communication? Who bears the burden of deceitful campaign; the advertiser, the regulator or the consumer. The questions are endless but the last question gives a straight forward answer; the advertiser sells and smiles to the bank, the regulator faces criticism while the consumer looses money or suffers serious health challenges due to consumption of substandard products.

To this end, I see the need for stakeholders to lay to bear the issues around Section 54 of the ARCON Act once and for all, because it speaks to the core of advertising regulation. Unfortunately, like Akinola’s article in The Nation on Saturday, many of such articles have been sponsored by some individuals within the corporate Nigeria because they feel the section is hampering their unbridled use as advertisers to lure in consumers.

As rightly pointed out by the writer of the misleading article, Section 54 of the Advertising Regulatory Council of Nigeria (ARCON) mandates that no person, corporate entity, or agency can advertise products or services without obtaining prior approval from the Standards Panel.

Though Akinola admitted that the law intends to regulate advertising practices and ensure standards, he yielded to emotion when he concluded that the far-reaching scope and the heavy penalties attached raise several concerns about its impact on business operations, especially for small and medium enterprises (SMEs).

Perhaps a second look at the section may be necessarily recommended to the gentleman for him to properly deeply decipher the message therein; “Any person including sponsor or beneficiary of an advertisement, body corporate, organization or agency which creates or places for publication or exposure of an advertisement in any medium directed at or targeting the Nigerian market without the prior approval of Standards Panel commits an offence and is liable to such fine as stated in the Nigerian Code of Advertising Practice.”

Looking at the argument of Mr. Akinola, perhaps a legal practitioner, and his concern about the penalties attached to breaking advertising law makes me sick because an elementary student of Jurisprudence is knowledgeable enough to know that there will be no enforcement without sanction.

The legal term “sanction” had come into existence after Austin’s ‘theory of sovereignty’ where he described “sanction” as one of the important elements of the law. According to this theory, any force that is applied by the State in order to administer justice could be termed as a sanction. They are blunt diplomatic tools that have been measured into the guidelines we know of today. The term “sanctions” in the field of law and legal theory, are deemed to be penalties or any other means of law enforcement tool that is used to provide an incentive to the obedience of the law, or any regulation or any other set of management or rules as provided by the State. A sanction may be defined as an element that is associated with accountability that corresponds to the consequences which result from the justification of the realization of such accountability.

In the current scenario, it’s obvious that the writer of the article under review knows but little about advertising and its regulation. Rather than dismissing ARCON Act section 54 as nothing but a distraction to businesses, he should have availed himself with literature about advertising ethics as well as report on campaign vetting and approval in different markets of the world.

In Nigeria and all over the world, communication materials are daily being subjected to legal scrutiny to be sure they don’t run against the principle of natural justice and public interest. In other words, the principle of nemo judex incausa sua & Audi alterem pattem must not be overlooked.

It is on this note that the issue of false or misleading representations and deceptive marketing practices under the Competition Act becomes necessary for healthy advertising practice. The Competition Act contains provisions addressing false or misleading representations and deceptive marketing practices in promoting the supply or use of a product or any business interest. All representations, in any form whatsoever, that are false or misleading in a material respect are subject to the Act. If a representation could influence a consumer to buy or use the product or service advertised, it is material. To determine whether a representation is false or misleading, the courts consider the “general impression” it conveys, as well as its literal meaning.
The Act provides two adjudicative regimes to address false or misleading representations and deceptive marketing practices. Under the criminal regime, thea,,, general provision prohibits all materially false or misleading representations made knowingly or recklessly. Other provisions specifically forbid deceptive telemarketing, deceptive notices of winning a prize, double ticketing, and schemes of pyramid selling. The multi level marketing provisions prohibit certain types of representations relating to compensation.

The classic case of Kim Kardashian scenario in the United States in 2022 is a good example of how sanctions are used to put advertisers on their toes. After all said and done and Kim Kardashian was found guilty of unhealthy practice, she agreed to pay a US$1.26 million (NZ$2.2m) fine for advertising EthereumMax on her Instagram page.

The US Securities and Exchange Commission (SEC) said the reality TV star had received US$250,000 for advertising the cryptocurrency, without disclosing she had been paid to do so. She also agreed not to promote crypto asset securities for three years.

A similar case in Nigeria was the MMM and other Ponzi schemes which Nigeria’s Securities and Exchange Commission (SEC), also overruled in 2022. The SEC DG, Lamido Yuguda had stated that the Commission would continuously collaborate and engage relevant agencies to eliminate completely all Ponzi schemes operations in the capital market. He said the SEC has been fighting a serious war against Ponzi schemes, and has been engaging and alerting Nigerians on the need to only deal with operators that are registered with the Commission.

Then last year, Nollywood Actress, Olutoyin Abraham, had no choice but to terminate her contract with RevolutionPlus Property Development Company Limited as a brand ambassador when she started receiving a lot of allegations and complaints from investors who claimed that the company had not allocated lands nor refunded them their monies.

Coming to ARCON, many controversial campaigns would have resulted in anarchy and unrest in the society if the regulatory body had not acted fast and nipped the crisis in the bud.

Last year, FrieslandCampina Wamco, owners of the Peak Milk brand, was marked out for sanction by the apex advertising regulatory body for releasing to the public a creative material that was not vetted by it. The Christian Association of Nigeria (CAN) had condemned the makers of Peak Milk, over an offensive Easter advert that was said to have sparked outrage among Christians in the country

Closely related was the furore generated by the Easter day advert of Sterling Bank which also brought to the fore the banana peel that often confronts the business of creatives anywhere in the world. In the said copy, which was published in major dailies on Sunday April 17, 2022, the bank had likened the resurrection of the Lord Jesus Christ to ‘Agege Bread’, a popular brand of bread that is very common in Agege, a suburb of Lagos.

As expected, many adherents of the Christian faith saw the copy as not just being offensive and insensitive; they also felt it was a denigration of the status of Jesus Christ, the symbol of the Christian faith all over the world. Again, ARCON rose to the occasion and saved the country from unnecessary religious unrest.

Going back to the Section 54 of the ARCON act which Akinola views as placing undue burdens on smaller enterprises that may lack the resources to navigate complex regulatory processes is an illogical conclusion. In a sane environment, the government regulates advertising materials, not only to promote healthy living but to protect businesses. By allowing advertisers to operate unrestrained, caution is most times thrown into the air as business owners would churn out deceptive materials to deceive the public. Under such circumstances, responsible businesses that play by the rule may be at a disadvantage while those with deceiving campaigns will be smiling to the bank at the expense of innocent consumers.

On the argument that subjecting businesses that rely on frequent advertising updates, such as those in the tech and retail sectors into missing marketing opportunities and hinder their ability to compete effectively, this is a baseless argument considering the framework of the current advertising regulatory system, which has put in place a measure that would fast track vetting and approval. Besides, APCON has decentralized its operations to address issues related to vetting as quickly as possible.

Finally, rather than criminalising ARCON on regulation and presenting the regulatory body as the enemy of businesses, stakeholders should rather come together and abide by global best practice. To me the ongoing campaign of calumny is nothing but emotional blackmail to set the body against the government and those who know but little about its operations. To build Nigeria, we need to promote the Rule of Law.

Atata, a lawyer, lives in Lagos.

Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, says his principal has never called himself the minister of petroleum.

In 2023, Tinubu appointed Ekperipe Ekpo as minister of state for petroleum resources (gas), and Heineken Lokpobiri as minister of state, petroleum resources (oil).

Speaking on the president’s recent cabinet reshuffle, on Sunday, when he featured in a Channels Television programme, Onanuga said the president never saw himself as the substantive petroleum minister.

”You people in the media gave him that position. There are two ministers of petroleum. As far as the president is concerned, there are two ministers there and one of them focuses on gas,“ he said.

”This present government found that in the past, Nigeria neglected that gas sector. Nigeria is more of a gas country than an oil country.

”Former president Obasanjo recently said he made a mistake by not focusing on gas and Tinubu is rectifying that.”

In the last administration, former President Muhammadu Buhari had appointed himself the minister of petroleum resources.

In his first term, Buhari appointed Ibe Kachikwu as minister of state for petroleum resources. Kachikwu was replaced by Timipre Sylva in the second term.

[TheCable]

Let us begin from the most obvious: no minister wants to be dropped from the President’s cabinet, if he or she can help it. Reports in some newspapers said as the ministers sat in the Council Chambers last Wednesday waiting for a meeting of the Federal Executive Council [FEC] to begin, five of them were told that the President wanted to see them. You can imagine how their stomachs churned, their heads were spinning, their heart beats increased, their vision became blurred, their hearing was impaired and their legs wobbled as they walked across to the President’s office. They must have looked like cows being led to the slaughter house.

The remaining 40 plus ministers who were not among the five called to the President’s office were not at ease either. How would they know if those called in were only the first batch, and that a second, possible even a third or fourth batch would later be called in for a routine “thank you for your service, I wish you success in your future endeavours” meeting? Being called to the President’s office is often unpleasant for a minister. A minister in President Obasanjo’s government told me a story of how, after a nasty exchange with a cabinet colleague at a FEC meeting that required the president’s intervention to calm matters down, the President asked him to follow him to his office. He fully expected to be sacked and regretted that he had not resigned after the hot exchange at the FEC meeting. But when he got into the President’s office, old man Obasanjo brought up something else!

Presidents, too, do not like to sack ministers. A loyal and friendly minister, once sacked, could go straight into the ranks of the president’s political enemies. Still, the clamour had been on for months, in political circles and in the news media, for President Tinubu to rejig the Federal cabinet. For different reasons. While the mass media, which claims to reflect the public mood, was demanding for changes because citizens are highly dissatisfied with the Federal Government’s current trajectory, politicians want a change so that some of the people standing outside and looking inside will get a chance to come in and be looking outside from the inside. The clamour soon graduated into a rumour that a reshuffle was impending, which the President’s spokesman later confirmed was afoot. To boot, when the President took off on a two-week break, it was said it was to afford him an opportunity to reflect on his government. Nigerians interpreted that to mean to mull on the changes he was about to make. Besides, the Presidency had sensationally said last year that Hadiza Bala Usman, the President’s Adviser on Policy Coordination, will keep a score card of ministerial performance and Tinubu himself publicly pledged to sack any minister who did not perform to expectation.

Was it wise for the Presidency to confirm late last month that a reshuffle was imminent? One can imagine that from that point, there was unease in ministerial tummies and many of them will be unable to concentrate on their duties. There will be a scramble to the houses of godfathers, party bigwigs, presidential family members, traditional rulers, clerics and even babalawos to put in a word or to throw in some incantations in order to save a job.

And why not? It was not easy to get into the cabinet in the first place. Thousands, if not tens of thousands of people all over the country were angling for the slots when the cabinet was being constituted last year. Politicians who worked hard in successful election campaigns believe they should be rewarded with ministerial posts. Some people wanted to be ministers because they were ministers before and they believe they should be ministers again. Some other people thought they should be ministers because they had never been ministers before. Still other people thought they had attained high positions in other areas of the public service or in the professions and they therefore deserve to be appointed as ministers. This last group of aspirants remind me of what Professor Godwin Soglo said at a NIPPS seminar in 1980, that acquiring education in a society where millions of others were denied the chance, or even attaining high positions in areas of public life, is a privilege and one privilege does not entitle anyone to another privilege!

The cabinet reshuffle cat was finally let out of the bag last Wednesday when five ministers were discharged, ten ministers were reassigned and seven new ones were appointed. That phrase “discharged,” which the Presidency said was the appropriate one to use instead of the “sacked” that the media was fond of, was it at all appropriate? It is given to misunderstanding. In one episode of the 1970s British sitcom Mind Your Language, the Indian Sikh student Ranjit did not come to class one day and he explained to the teacher that he had to stay at home with his brother who had just been discharged. The teacher Mr. Brown said, “Oh, from hospital.” And Ranjit said, “No, from prison.” The ministers who were discharged from the cabinet, was it from a hospital or a prison?

Was the reshuffle well worth it? Almost no one stood up in Nigeria and granted it a standing ovation. One intellectual said “it was underwhelming.” Even though the Presidency statement said it was designed to improve efficiency and performance, historically, cabinet reshuffles are used in Nigeria mostly to satisfy the public lust for blood, especially when things are not going on well. In the long years when this country was ruled by a string of Army Generals, newspapers had a habit to spreading rumours of an impending reshuffle ahead of each anniversary of the regime. This is often accompanied by suggestions of which ministers would get the sack, attributed to anonymous “informed sources close to the government” when in truth it is the wish of the reporters.

Different rulers of Nigeria handled their cabinets differently. General Babangida had some of the most accomplished technocrats as ministers but he routinely changed his cabinet, courageously so because he often changed military Service Chiefs and on one occasion, he even dissolved the Armed Forces Ruling Council. It was a complete departure from General Yakubu Gowon, who retained the same military governors [with only one change] for nine years and only changed some ministers in 1974, after seven years. General Sani Abacha, whose cabinet met once in a blue moon, sacked the first one after 15 months and made sweeping changes. President Obasanjo also made regular changes to his cabinet. The most sweeping change I remember was however made by the taciturn President Yar’adua who, after 15 months in office, sacked 20 ministers in one fell swoop. Both Presidents Jonathan and Buhari made only few and far between cabinet changes while they were at the helm.

The reasons why Presidents sack ministers are often not the ones that the public or the mass media imagine. It could be due to failure to get on well with the First Lady, or annoying a party godfather, or a protocol snafu, or rumours of going out with the wrong person. Ok, President Tinubu pledged that who stays or who goes in his cabinet was going to be based on Madam Hadiza Bala Usman’s assessment report. How did she do this assessment? As a former teacher myself, I would like to see the Marking Scheme that she used. How can you mark an exam answer sheet without a marking scheme?

When we were freshly recruited as Graduate Assistants, our wise old Head of Department Professor S.H.Z. Naqvi told us that, “A student who attends his lectures regularly, listens attentively, takes lecture notes, reads them carefully and is able to reproduce them in the exam, deserves only a C.” B, he said, is the student who goes beyond the lecture notes and reads textbooks, whereas “an A is the outstanding student,” apparently one who marshals his points in the exam better than even the lecturer could do!

Can we kindly see the score sheet of Mrs. Usman’s recorded marks? Please let is not be like the recent Local Government election in some states, where election materials arrived at the polling stations without the Result Sheets. If at all those scores were the basis for the cabinet changes, Nigerians want to see the scores of the persons in charge of fuel prices, fuel supply, food prices, transport fares, naira value, power supply, Band A power rates, ASUU and medical workers’ strikes, protracted minimum wage negotiations and its delayed implementation, as well as physical defence of communities from kidnappers and terrorists.

Pray, what was the JAMB-style Cut-Off Point for admission into the federal cabinet? Was it an A, a B, a tolerable C, or even some D scorers squeaked through? Considering that the former Minister of Education disallowed anyone under 18 from entering a higher institution, is there an age below which one cannot enter the Federal Executive Council?

What is the value of scandal in the ministerial assessment? Does it, for example, earn a minister a  Libya-style CAF punishment, a fine and deduction of points and goals scored? Ok, one minister who threatened to sue the United Nations and one minister who caused a national uproar by prioritizing entry age into higher institutions were discharged, but what was the score of the minister who completed many city infrastructure road projects but bogged down a state government and caused chaos in a Local Government election, including the burning of LGA offices? Was the assessment something like how they mark objective tests in a medical school, where for every wrong answer a student ticks, one correct answer that he ticked is subtracted?  That way, a 50% score could translate into a 0% score!

Cabinet reshuffle is a tricky art. It often buys precious political time for the Presidency, but only for a short while. The next clamour for cabinet changes will start early in May next year, because it is the Administration’s half-way mark.

The challenges in Nigeria’s educational sector are complex and pressing, encompassing poor quality, inadequate funding, limited access, and an outdated curriculum. The World Bank reports that Nigeria’s education sector is severely underfunded, with only about 7% of the federal budget allocated to education in 2024, well below the UNESCO-recommended 15-20% needed to make a meaningful impact. These systemic issues significantly impact Nigeria’s economy and social fabric, contributing to unemployment, poverty, and inequality. The need for reform is clear and urgent: transforming education is critical to Nigeria’s global growth and competitiveness.

The recent appointment of Dr. Tunji Alausa as the Minister of Education in Nigeria is a crucial and hopeful step in the nation’s urgent mission to revitalise its educational system. This change in the leadership of the education ministry underscores the president’s commitment to prioritising education reform as a cornerstone of Nigeria’s socio-economic development. Dr Alausa’s posting to the Ministry reflects a desire for credible leadership prioritising competence, experience, and integrity over political motivations. Having worked in the university system on three continents, Dr Alausa brings new hope for reform in the education sector. His appointment signals a commitment to impactful policies focusing on transparency and accountability. With a robust background in education and administration, he is expected to bring experience and knowledge to the Ministry, helping to break from the ineffective policies and practices of the past. 

For decades, Nigeria’s education sector has grappled with systemic failures that affect all levels of schooling. In primary education, over 10.5 million Nigerian children are out of school, representing the highest rate globally for out-of-school children. The majority are in the northern regions affected by poverty and conflict. Many primary schools lack basic amenities such as clean water, functional classrooms, and teaching materials, resulting in an environment that discourages learning and growth.

At the secondary level, transition rates are low, with many children who complete primary school not enrolling in secondary education. This gap is influenced by factors such as poverty, child labour, and insufficient infrastructure, leading to significant dropout rates and educational gaps. Additionally, with few secondary schools in Nigeria providing science laboratories, students are often unprepared for careers in science, technology, engineering, and mathematics (STEM), fields that are critical to Nigeria’s future competitiveness.

The challenges extend to the tertiary level, where Nigerian universities struggle with overcrowded classrooms, limited research funding, and chronic staff strikes. We have suboptimal teaching staff capacity and little research output. With approximately 2 million applicants vying for less than 600,000 spots each year, Nigeria’s tertiary education sector falls drastically short of meeting the demand for higher education. Moreover, Nigeria’s graduate unemployment rate is 33%, highlighting a mismatch between university training and the skills needed in the job market. Some argue that some of our graduates are unemployable. This situation demonstrates the urgent need for curriculum reform, stronger links between academia and industry, and a comprehensive strategy to address the skills gap.

The brand-new minister should call for immediate reforms in six critical areas that could lay the groundwork for long-term success and transformation in Nigeria’s education sector.

First, extensive policy changes and secure funding for primary education are essential. However, it’s crucial to ensure that local government autonomy does not endanger consistent support for primary schools. Whereas LGAs are responsible for funding primary education, we know this is not feasible in practice. The Federal Ministry of Education should propose a policy that sees all three tiers of government funding primary education. Again, federal and state governments need to revive school inspectorate.

Second, addressing the out-of-school children crisis requires targeted solutions, especially in marginalised and rural communities where the need is most acute. For example, programmes like the Better Education Service Delivery for All (BESDA), which focuses on re-enrolling children in schools, have shown promise in states like Kano and Katsina. However, more significant investment and expansion of such programmes will be needed to make a substantial dent in the out-of-school population. Specific initiatives targeting girls, who make up over 60% of the out-of-school children in Nigeria, will be essential to ensure gender parity in education and reduce the barriers that prevent young girls from completing their schooling.

Improving quality standards across all educational levels is also critical. Setting rigorous benchmarks for institutions and implementing accountability systems will help drive consistency and excellence. For example, programmes like the Quality Assurance Initiative introduced by the Universal Basic Education Commission (UBEC) aim to monitor and evaluate primary school performance, but similar initiatives must be scaled and extended to secondary and tertiary levels. The evaluation method of individual students needs to be reviewed. 

Furthermore, enhancing teacher training and certification processes is fundamental to improving quality. Over 50% of Nigerian teachers lack the qualifications to teach effectively. Nigeria can ensure educators have the skills and knowledge to deliver high-quality education by focusing on recruitment, certification, and ongoing professional development.

Ensuring access and equity is another vital focus area. Gaps in urban and rural access to quality education remain a significant challenge, with rural children being disproportionately impacted. Infrastructure and policy support for underserved areas can help bridge these divides. Initiatives such as the school-Based Management Committees (SBMCs), which involve community members in managing schools, have successfully improved local accountability and increased school enrolment in rural regions. Expanding these community-driven approaches will be instrumental in achieving equitable education for all Nigerian children.

The curriculum itself requires a comprehensive overhaul. In a world driven by technology and innovation, Nigerian students need an education emphasising critical thinking, creativity, and adaptability, aligning them with global standards and preparing them for competitive careers. Programmes like the National Policy on Science and Technology Education aim to revamp the curriculum to foster critical skills, but implementation has been inconsistent. We must make a nationwide effort to introduce STEM subjects early.

In terms of infrastructure, investment in physical and technological resources will enhance the learning environment. Data from the Federal Ministry of Education shows that only 30% of secondary schools have access to functional libraries, and even fewer have the necessary digital resources to support modern education. Upgrading facilities, establishing sustainable maintenance plans, and introducing digital learning resources in schools will be essential for creating a conducive learning environment.

To address these challenges, Dr. Alausa could consider implementing several innovative strategies. First, a National Education Technology (EdTech) Programme could be introduced to leverage digital solutions and bridge access gaps. Providing affordable tablets preloaded with interactive curricula to students in rural areas could improve access to learning resources and enhance the overall learning experience. This programme could be developed in partnership with EdTech companies, enabling students to access digital resources, interactive lessons, and adaptive learning tools tailored to their progress.

Establishing a National STEM Initiative would address Nigeria’s science and technology skills shortage. Creating specialised STEM-focused schools equipped with advanced laboratories and trained teachers would help students develop competencies in critical areas. The initiative could also promote a “STEM for Girls” programme, providing mentorship and scholarship opportunities to encourage young girls’ participation in STEM fields.

To tackle the high unemployment rates and skills mismatch among graduates, Dr Alausa could introduce vocational pathways within secondary education. A “dual education model,” similar to Germany’s, would combine academic learning with hands-on industry training. Offering vocational tracks in carpentry, digital literacy, and agriculture could provide students with practical skills, increasing their employability upon graduation. To support this model, public-private partnerships could help create a seamless connection between schools and industries.

Dr. Alausa could also launch a Teacher Training and Empowerment Academy to improve the quality of teaching nationwide. This academy would focus on modern pedagogy, digital literacy, and STEM teaching methods, ensuring teachers are well-equipped to meet the demands of today’s educational landscape. Accessible as both an online resource and through in-person sessions, the academy would provide ongoing professional development for teachers, leading to certifications and career advancement opportunities.

Regional Curriculum Innovation Centres could be established to ensure Nigeria’s curriculum remains relevant. These centres would work with industry experts, universities, and educators to continuously update the curriculum, integrating critical thinking, creativity, and industry-aligned skills. Such centres could help keep the curriculum adaptable to changing job market demands and regional educational needs, ensuring students are prepared for future challenges.

Finally, establishing Education Savings Accounts (ESAs) could provide financial assistance to low-income families, enabling them to save specifically for their children’s education. Such accounts, supported by government contributions or matching savings, could be used for education-related expenses, making education more affordable and accessible to low-income families. The current funds from the Education tax must be utilised appropriately to optimise the system. By allowing companies to “Adopt a School” and invest in facilities, technology, or libraries, PPPs would alleviate some of the financial pressures on the government and improve the learning experience across Nigeria.

Nigeria’s education sector requires a cohesive, long-term strategy to ensure sustained improvement. A comprehensive plan should involve collaboration among policymakers, educators, “industry”, “stakeholders”, and communities, creating a unified vision for the future of education. This grand strategy must include mechanisms for accountability, transparency, and sustained investment. While the road to meaningful reform is challenging, transformative change in Nigeria’s educational system is possible. Dr Tunji Alausa’s appointment signals a renewed focus on making Nigeria’s education system a powerful driver of progress, pivoting the transition from a resource-based to a knowledge-based economy, and providing young Nigerians with the skills and knowledge necessary to contribute to the nation’s growth and prosperity. With commitment, innovation, and perseverance, Nigeria’s education sector can be revitalised to meet the needs of future generations.

Amid the hum of cooling fans and squelch of vacuum pumps, a new home for 12 quantum computers has opened in Oxfordshire, as part of a bid to put the UK ahead in a global race to harness the technology.

Quantum computers promise to solve problems too hard for even the most powerful supercomputers - like those requiring vast numbers of parallel computations like complex weather simulations, the binding of drugs to their targets, or the vagaries of financial markets.

 

 

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While prototypes have proven that the weird world of quantum matter can be used to perform calculations - none are yet large or stable enough to be of much use.

"With its focus on making quantum computers practically useable at scale, this centre will help them solve some of the biggest challenges we face," said science minister Lord Vallance.

Quantum computers exploit the strangeness of quantum physics to replace the "bits" - zeros and ones - that encode information in classical computers with something fundamentally different.

If manipulated in the right way, matter can be coaxed into quantum bits - or qubits - that can be both a zero and a one at the same time.

This power, and the fact qubits can become "entangled," or interact with each other means a relatively small number of qubits can perform more calculations in parallel than a classical computer chip ever could.

However, even the slightest interference from the outside world can destroy a fragile qubit, so building groups of them large enough that last long enough to make a reliable computer is a major challenge.

The new National Quantum Computing Centre at the Rutherford Appleton Laboratory in Harwell is designed to accelerate that research.

The 4,000-square-metre facility is designed to host multiple competing designs of quantum computer and around a hundred scientists working on them.

Some commercial, others developed by university teams - to try to solve hardware and software problems in parallel.

"The UK National Quantum Computing Centre is central to this critical work, bringing together internationally leading researchers and technologists from across academia and industry to ensure that the UK's quantum computing ecosystem thrives," said Prof Dame Ottoline Leyser, chief executive of UK Research and Innovation that is funding the centre.

Competition is fierce. Big tech firms like Google, Microsoft, IBM and Amazon are all investing in quantum technology. So too are other states, led by China, which directs more government funding into the field than anyone else.

The potential for quantum computers to crack the encryption tools used to keep most online traffic secure gave rise to the term "Q-day" - when the first machine emerges with the capability to decrypt the internet.

It's still some way off, but helps explain why governments are interested in betting big on a technology that promises much, but has so far delivered little.

[SkyNews]