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Why I demanded return of tithe from my former church – Abuja man

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Abuja-based furniture maker, Chukwudiaso Onyema, who went viral after demanding a refund of the tithe paid to a church, speaks to VICTORIA EDEME on his transition from Christianity to traditional religion

What kind of background do you have?

I am Mazi Chukwudiaso Onyema from the Oru East Local Government Area of Imo State. I am based in Abuja. I am a furniture maker, and I am 39 years old. I have five brothers and two sisters. I grew up in Imo State. My uncle took me to Abuja in 2000. I attended Junior Secondary School, Karo, but I later had an issue with my uncle, and I returned to Imo State to complete my secondary school education. I took the Senior School Certificate Examination at Mgbidi Secondary School, Imo State, after which I returned to Abuja to learn furniture making.

Are you married?

I got married in 2019 and I have two kids.

Were you born into a Christian family?

Yes, I was.

What was your experience growing up in a Christian home?

It was okay. I had no problems with my parents. They trained us well. The only issue I have is that there are things that my parents were not telling us. Even when I decided toq pull out from Christianity, some of my elders supported me.

What church were your parents attending?

My parents attended the Catholic Church.

Your video, in which you demanded a refund of your tithe and offerings from Dunamis Church, went viral last year. At what point did you move from the Catholic Church to Dunamis?

I first moved from the Catholic Church to Living Faith Church in 2004. In 2008, I moved to Dunamis Church.

Why did you move from the Catholic Church to the Living Faith Church?

The reason I moved from the Catholic Church to the Living Faith Church was because I frequently saw the miracles being performed in Living Faith. I pulled out of the Catholic Church to go and confirm if those miracles were real.

How did you go about confirming the authenticity of the miracles?

I wanted to be in their midst so that I would be seeing things live and direct, and not on the television. I later found out that they were not real. They were all packaged.

How did you know that the miracles were not real?

I was in Living Faith for about four to five years before leaving for Dunamis. then I moved to Dunamis because I used to see some drastic miracles on Dunamis Television. So I decided to move to Dunamis.

Why were you interested in miracles and not other aspects of Christianity?

I was not so concerned about the miracles. If I were so concerned about the miracle, I wouldn’t go into Bible training to know more about God. I was not moving around because of the miracles per se. I wanted to confirm if there was power in the name of Jesus. That’s what they show on TV; miracles about Jesus, and what Jesus did. So I wanted to know if it was true. That was why I switched churches.

Did you attend any Bible training session at Living Faith?

I didn’t attend any Bible training sessions and I was not a worker. I was just a normal church member.

How was your membership in Dunamis?

At Dunamis, I joined several training sessions and got certificates. I paid my tithes, offerings, vows, and others. What I was concerned about was the tithe because I had evidence. I was not concerned about the vows and offerings.

When did you start paying tithe?

I started paying tithe in 2008 when I joined Dunamis because of what was preached there. You cannot go to Pentecostal church without following their instructions or what the man of God is preaching.

You stated that you were once a preacher. When did you start preaching?

I started preaching when I was at Living Faith. I preached during morning cry and on the streets. I started preaching inside the bus, inside the market, and other places, even inside the church while at Dunamis.

What was the turning point for you that led to your viral video?

It was when I sowed a seed and in the end, I didn’t see the result. They kept on pushing me to continue sowing and I just realised that it was a scam. They preached that when I give to God, he would open the windows of heaven for me. I tried this from 2008 till my eyes opened. I realised that the owner of the whole universe didn’t need anything. He has everything so I don’t know the reason why they are giving to God to succeed and it’s not working. When I realised this, I wasn’t concerned about getting my money back. I wanted to open the eyes of many who still believed that they were giving to God. That was why I made the video.

When did you come to this realisation?

My eyes opened in 2018. I made the video on February 7, 2023.

What did you do after the realisation?

I decided not to follow any religion. I embraced humanity. When religion and spirituality are destroyed, we have humanity. So I embraced humanity to love my neighbour as myself so that the world would be better. For me, I believe in traditional religion because it was practised by my forefathers. Instead of me following foreign religions, I should follow traditional religions. If there is anything that is not good in traditional religion, we make it good rather than follow foreign religions. Foreign religions are not adding anything to Nigeria and that is why I quit. I’m not practicing traditional religion fully but I would rather claim it because it is better.

How do you practice your traditional religion?

It is a way of life for Africans. There is a way we marry and pray to the Almighty. The Almighty we are worshipping does not have any child but the foreign religion said that God has a son who came to wipe away the sins of the world. But today, sin continues. I’m not fully into traditional religion because some things are not right.

How do you pray?

I pray to the Almighty, the Creator. We call him ‘Chukwuokike’. We don’t communicate with our God through anybody. We communicate with Him directly, unlike other religions which say that we have to communicate with God through His son.

Did Dunamis respond to the viral video you made?

The secretary of the church called me from the headquarters. He said I should gather all my evidence because I had my tithe booklet, which they called the kingdom investment booklet. Whenever I paid my tithe, I used to write the amount and date. I told him that I was not coming to honour their invitation. I snapped the tithe booklets and forwarded them to him, with the total amount, which I don’t want to disclose as it’s between me and the church. Till now, he hasn’t responded to it.

How did the video impact you?

What I was fighting for was not money, because I’m blessed today. I have a car, company, house, and everything a man is supposed to have. I only made the video to open the eyes of many who are giving their hard-earned money to their fellow men, thinking that they are giving it to God. When I made the video, many people called me and said they wanted to help me or give me money but I refused.

Did you face any online criticism because of the video?

Yes, I did. When I first made that video, my Facebook followers were dropping me as a friend and speaking against me. But today, 90 per cent of those who spoke against me are now speaking in my favour. That’s why I didn’t retaliate. I just laughed off all the criticism. The video gave me more popularity.

How did your family react to it?

They were not expecting it. My mum called me and started crying. She said I abandoned my creator and was fighting God. I told her the reason for my action. In the end, she understood me; it was the same for my siblings.

What was your wife’s reaction to your realisation?

I came to this realisation even before getting married to her. I told her that I was not going to do any foreign wedding but would only do the traditional marriage. She disagreed because she wanted to wear a white wedding gown like other women. I begged her and talked sense to her and she understood me. When I made the video, she was angry. She called me from school as she was schooling at a university then. In the end, she also realised what I was saying.

Does your wife have a Christian background?

She was born into a Catholic family but we both met in Dunamis. When I left the church, she refused to leave the church but after we got married, she eventually left the church.

When did you become open to traditional religion?

That was in 2018 because I believe that there is nothing like spirituality.

Do you mean that traditional religion is not spiritual?

It is spiritual and that is why I have not embraced it fully. As I am, I don’t understand anything about spirituality and it is not working.

What is holding you back from embracing traditional religion fully?

There are some things they believe in that are not working. For example, people consult traditionalists to find out the culprit when there’s a case of stealing but it doesn’t work. There are instances where such traditionalists lose the items they use. If their divinations were working, they would have also used it to identify who stole their items.

What challenges did you face when you were transiting from Christianity?

It was not easy at all, as there were challenges from friends and family. They tried to change my mission but I held on to my conviction. There are many people with the same conviction as mine but they don’t want to come out now because of their families and friends.

So far, have you seen any specific change in your life?

I have seen so many changes. Now I sleep in peace. I don’t sleep with the mindset that somebody is after me or people want to kill me from the village. I now reason with my senses. The money I’m supposed to give to my fellow man as tithe, I am also investing it and it is yielding income to me. I’m enjoying my wealth here on earth. I’m not waiting for life after death. I’m benefitting a lot from embracing humanity.

How has your new lifestyle influenced your daily life?

In ancient Igboland, we had four market days and there were no resting days. These days were Nkwo, Afor, Eke, and Orie, wherein people were productive, unlike these days where Sunday is for resting, Tuesday for healing and deliverance, Wednesday for Bible study, and Friday for welfare prayers. During those days, one is expected to close the shop and go and pray to God because they believe that He will supply their needs through His riches in glory. So my transition has changed my life in so many ways. On Sundays, if I am lucky, I take my family to Igbo traditional gatherings to learn more about my tradition. As time goes on, we are going to remove some things that are not working well in these traditions. In India and China, they follow their ancestral religions and things are working perfectly for them.

What are things that should be removed from traditional religion to make it right?

In so many villages today, they have polluted the rivers due to their sacrifices to ‘maami water’ and other gods. They leave those sacrifices in the rivers and the items get spoiled and start smelling. All in the name of giving to gods, they are just messing up our environment. These are some of the things to make right. If they want to sacrifice, they can do it at the side of their house and in the evening, gather the items and burn them, instead of polluting the air and the environment. Secondly, there are some marks given to people when they are sick. All of these do not work. Sick people should go to the hospital.

Do you think it is possible to change these beliefs that have shaped the traditions for ages?

It is possible. There is nothing impossible for man to do. If we are determined to change it, we will. The children we are giving birth to today are leaders of tomorrow. The right knowledge should be imparted to them. Let them know the right and the wrong. Don’t bring religion to them. When you have children today, you force religion on them and do not allow them to make their own decisions. Children are being forced into what they don’t understand.

What steps are you taking to ensure the change?

I am trying my best. I have started it in my house, in my workplace, and in my neighbourhood. Anywhere I go, I let them know that man is god and we are gods to our fellow men. The reason why we are still suffering is because we embrace religion and lack humanity. I will not force my belief on people but I will tell them where I stand.

From your experience, are there any similarities between Christianity and humanity?

There are no similarities at all. Humanity is based on reality, but spirituality and Christianity are based on illusions and stories that we are not sure of.

NLC interference in LP affairs worrisome, says party

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The leadership crisis rocking the Labour Party took a different dimension on Saturday after the National Working Committee of the opposition party accused the National President of Nigeria Labour Congress, Joe Ajaero, of desperately seeking to replace its National Chairman, Julius Abure.

The allegation was a response to an open letter written on Friday night by the political wing of the NLC called the Nigeria Labour Congress Political Commission.

In the letter signed by the Chairman and Secretary of the commission, Titus Amba, and Chris Uyot, Abure and the NWC were accused of proposing a ‘secret’ national convention in Umuahia, Abia State capital on March 27 that will re-elect Abure to continue running the Labour Party as a ‘sole administrator.’

While stating that the circular was passed without the input of stakeholders, especially the NLC, the letter also alleged that Abure had in April 2023 tried to extend his tenure in office by two years unilaterally but was stopped at the instance of the party’s presidential candidate, Peter Obi, who insisted that the right thing be done.

Describing the planned convention as illegal, the political wing of the NLC called for the immediate resignation of Abure as the party chairman and the constitution of a caretaker transition committee to organise a legitimate and all-inclusive national convention for the party.

But the leadership of LP kicked against the directive, which it claimed was being orchestrated by Ajaero over his alleged ambition to become the next national chairman of the party.

Reacting in a statement titled ‘Resign as NLC President to Contest LP Chairmanship, Labour Party advises Joe Ajero,’ the National Publicity Secretary of LP, Obiora Ifoh, said the leadership of the party will not take orders from the unionists who are not even card-carrying members of their party.

Ifoh also stated that the said national convention planned to be held in Umuahia on March 27 will go on as planned.

He said, “The attention of the leadership of the Labour Party has been drawn to a Press Release titled ‘A misadventure in political mischief, mismanagement and misdemeanour gone too far’ written by the NLC’s Political Commission as an agent of the Nigeria Labour Congress. The NLC letter did not come to us as a surprise or a shock. It was long expected before now, having known that the NLC was going to engage itself in this misadventure.

“Nigerians will recall that in 2014, NLC has been involved in a war of blackmail and attrition against the Labour Party and its leadership. It was only recently, following the civil and diplomatic approach adopted by Barrister Julius Abure when he assumed leadership that he was able to get the then President of the NLC, Ayuba Waba, and the then President of the Trade Union Congress, Olaleye Quadri to a truce where the NLC, TUC and Labour Party agreed to work together in harmony.

“Unfortunately, the rascality of the current president of the NLC, Joe Ajero has destroyed the successes already recorded. It must be noted that the NLC and its political commission have become a bundle of contradiction and paradox. The Nigeria Labour Congress has written several letters to the Independent National Electoral Commission and to the party on the need to conduct a national convention.”

Continuing, the LP spokesman stated that the leadership of the party eventually yielded to the agitation for the national convention, which was fully backed by Article 14:4b of the party constitution.

Ifoh added that if the NLC president and his loyalists are not contented with the provision, Ajaero should be advised to quit his position and officially join the race to wrest power from Abure.

He however urged the unionists to consider becoming members of the party at ward level as genuine politicking starts from the grassroots.

“At this point, the leadership of the party wants to ask the NLC, what exactly do they want? If Joe Ajero is interested in the leadership of the party, he is therefore advised to resign as the President of the NLC and join in the contest for the National Chairmanship of the party that is scheduled for the convention on the 27th of March, 2024.

“We have advised the NLC before now that party politics is played at the ward level and not at the national level. If NLC is interested in taking the leadership of the party, it should go and engage in the mass mobilisation of its members to join the party at the grassroots.

“It will shock Nigerians to know that members and officials of the NLC are not even card-carrying members of the Labour Party. All over the country, NLC members are supporting either the APC or the PDP.

I started footwear business with no money — Lady cobbler

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Azeezah Salaudeen, the Chief Executive Officer of ZÍZÀ Footies, shares insights into her journey as an entrepreneur with MOTUNRAYO AKINRUN

What is your educational background?

I have a Higher National Diploma in Estate Management and Valuation from The Polytechnic Ibadan, Oyo State.

What inspired you to start making footwear?

I decided to learn a male-dominated craft out of divine direction, a friend’s idea and my love for footwear. Also, my mother is my source of inspiration.

How much was your initial capital, and how did you raise it?

I started with no money. When I started the journey, I had no money. I don’t have any business background, and this is my first entrepreneurial endeavour. I really wanted it to work out, and I put in the work. After four years of craftsmanship, it takes a lot of hard work, consistency, patience and resilience to get to this stage. I am also enjoying the supernatural backing of God.

How do you handle competition and maintain a unique identity for your brand?

First, I see my inner self and strength as my competitors. In a nutshell, I compete with myself to get better than who I was yesterday, creating and recreating ‘magic’. I just want to get better in my craft.

What kind of support did you get from your family and friends when you started the business?

I received support from friends and family, because I cannot do it all by myself. Support could be in any form, including an idea or words of motivation.

What challenges have you faced as a young female entrepreneur, and how have you overcome them?

I have encountered countless obstacles that were enough to discourage me, but I persisted with the right attitude. One of them was being called an independent lady, because people believed I did not need help, whereas I am always in my corner, calling for help. Being a female shoemaker is another challenge, because many people think I cannot make them the best shoes, unlike a male shoemaker will. However, I always prove the adage that, ‘What a man can do, a woman can do better’. The future is definitely female.

How do you stay updated with the latest trends and consumer preferences in the footwear market?

I believe that whatever any renowned designer can do can also be achieved by me; even better. I study shoemaking trends I see from international brands, and try to do better, because my inner strength makes me believe my brand will be an international one as well.

What are the highlights of the business?

I am a natural dreamer. However, I am willing to always put in the work required to achieve my dreams. When it comes to my business highlights, I think I am not doing enough for myself yet, but I use social media, including Instagram, Facebook, Twitter and WhatsApp. I have made myself a promise that with the help of God, I would establish a shoemaking factory soon. That will help me to empower other youths (both male and female), and train them how to make shoes skillfully.

Is your company registered with the appropriate authorities?

Yes, the business is registered, and I have the certificate of incorporation.

How do you source materials for your products, and what criteria do you consider when selecting them?

Sourcing for materials is the hardest part of shoemaking. It has never been an easy task. I can go through the market for a whole day, and still not see materials that satisfy me, talk more of my clients. Some of the criteria I consider when sourcing for materials are durability, accessibility and weather-friendliness.

What strategies do you employ for marketing and promoting your brand?

My favourite aspect of running this business is the creative and marketing angle. I employ lot of strategies to promote my footwear by drawing comparisons between my products and some other well-known international products. And, most times, I am of the opinion that my products are better. The only strategy I use to promote my products is good packaging and branding. What’s ‘gbajumo onibata’ (society shoemaker) without packaging and branding?

How do you envision the future of your business in terms of growth and expansion?

In some years to come, I see myself sitting with the likes of Estée Lauder Companies (Tomford) to discuss the future of leg/foot fashion or fashion generally.

What advice do you have for aspiring female entrepreneurs looking to start a similar business?

A quote by G.D. Anderson says, ‘Feminism isn’t about making women strong. Women are already strong. It’s about changing the way the world perceives that strength’.

Being a female in a male-dominated industry, I understand the challenges that come with perspectives, and I often tell other women that they can do it too.

How do you handle stress?

I handle stress by knowing my limits. When I am tired, I rest; then start again when I can. I spend my money wisely, not extravagantly, by going to somewhere nice to ease tension. All work and no play makes Jane a dull girl.

Nigeria is experiencing huge brain drain, with many professionals travelling out of the country to seek greener pastures. What do you think about that, vis-a-vis staying in the country and running a business?

It is normal to believe that the grass is greener on the other side. So, I won’t judge anyone based on their decision, because we all are facing the consequences of being Nigerian. If I have the opportunity to travel out of the country to learn more about shoemaking, I will surely go. But, I will still serve my country with all my strength too, because I believe Nigeria will be great.

Suspected cultist kills Rivers man, police begin probe

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The police in Rivers State on Saturday said they had begun an investigation into the killing of a yet-to-be-identified man by a suspected cultist in Port Harcourt, the state capital.

It was learnt that the man was shot dead on Thursday night along the Nanka/Lumumba Diobu axis, between Mile 2 and Mile 3 in the state capital.

It was gathered that about three gunmen had trailed the deceased to a location where he went to buy noodles and shot him in the head immediately after he left the shop.

The incident caused pandemonium as residents scampered to safety on hearing the sound of the gunshot and the discovery of a dead man, even as the corpse was later evacuated by the police.

A source who pleaded anonymity in order not to be identified stated, “It was around past 8 pm; some people were still outside receiving fresh air because of the heat wave when this happened.

“So some group of boys, I believe they are cult members, followed this man and as soon as he bought noodles and was returning home, they shot him at close range.

“The boys disappeared immediately and people living within the area started running for their lives. Many people ran into their houses and some shop owners closed and hid themselves until it was safe to leave the area. It was later that we saw the police come to remove the man’s corpse; there was blood all over the floor because he was shot in the head.”

However, another source linked the shooting to an intra-cult war between two factions of the Deygbam gang for territorial control of an illegal business site in the area, but the police dismissed the claim of cult war.

The spokesperson of the police command, Grace Iringe-Koko, confirmed the incident, saying investigation has commenced to ensure the culprits are arrested and prosecuted.

Iringe-Koko, a Superintendent of Police stated, “I can confirm the incident, but it was not a cult war. Some cult members actually attacked and shot the man dead.

“Investigation is ongoing to arrest the perpetrators and make them face the law.”

Ekiti indigenes abroad donate beds, others to hospital

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A diaspora group, Egbe Omo Otun Abroad, has said its intervention in the General Hospital, Otun Ekiti in the Moba Local Government area of Ekiti State, would tackle equipment deficit so that their people at home can enjoy good healthcare services.

The group’s President, Alhaji Tiamiyu Salau, who was represented by the immediate past president, Dr Abiodun Orisasona, at the presentation of items to the hospital on Friday, said the intervention followed a critical shortage of basic amenities at the general hospital.

He said, “Considering the impact of such on members of the community seeking medical care, we knew immediate action was necessary.

“The items included 20 ultra-modern single crank beds, designed for optimal patients’ comfort and ease of care, 20 matching bedside cabinets providing essential storage and convenience and 20 high-quality mattresses and pillows, ensuring proper support and rest for patients.

“Others are 105 sets of crisp bed sheets, fostering an environment of dignity and care, two units of Sphygmomanometers for blood pressure monitoring, two units of baby weight machines for accurate weight measurement and five units of baby cribs with 20 sets of bed sheets, providing a safe and comfortable space for our children.”

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Driver dies while conveying UNILORIN students

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A commercial bus driver plying the University of Ilorin route identified as Lukman has died while conveying some students to the school.

The incident which occurred on Friday, it was gathered, left occupants of the vehicle in shock.

A passenger who witnessed the incident had narrated in a viral WhatsApp message that he took control of the bus in motion after the development to save other students and avert further tragedy.

“Our bus driver just died on the road while taking us from Sanrab Petrol Station area, Tanke, Ilorin, to the university campus. I was sitting in the front but I wasn’t looking up because I was reading the Qur’an on my phone.

“The other person beside me just called my attention shouting Baba multiple times. By the time I looked up, he was already gasping and the bus was drifting away from the road.

“I had to press the brake, take control, and bring it to a halt. He was pronounced dead at the school clinic. Everything happened within 30 minutes,” he said.

A colleague of the deceased, Sulyman Malik, said he was surprised to hear about the incident as Lukman had chatted with him the previous day about a recent accident he (Malik) was involved in.

“This just shows that this life is vanity. He has since been buried according to Islamic rites. He was a very handsome man and you would not think of his death even in the next 30 years,” he added.

The Director of Information, University of Ilorin, Kunle Akogun, who also confirmed the incident described it as very unfortunate.

Akogun said, “The incident is very unfortunate and it reminds us of the vanity of life.”

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North has nothing to fear about restructuring – NEF spokesman

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Director of Publicity and Advocacy for the Northern Elders Forum, Abdul-Azeez Suleiman, shares his thoughts with DANIEL AYANTOYE on the increasing rate of insecurity and economic hardship in the country, among other issues

It has been difficult to end insecurity in Nigeria, particularly in the northern area of the country where the level of killings and kidnappings has increased. Why has the security challenge continued to linger?

The issue of insecurity in Nigeria, particularly in the northern region, has proven to be a persistent and challenging problem to address. Despite various efforts by the government and security forces, the level of killings and kidnappings continues to increase, leaving many wondering why the security challenge has continued to linger. With the current situation in the North, anxiety is mounting as to whether the region has been abandoned to a rampaging insurgency and banditry that understands that weak political will and corruption have weakened the government’s resolve to fight it.

About three million of our fellow citizens are internally displaced and hundreds of thousands are orphaned; hunger, and malnourishment, previously unknown in our land are now becoming alarming features of existence. One of the main reasons for the worsening level of insecurity in Nigeria is the lack of effective coordination and cooperation among security agencies. There is often a lack of synergy between the police, military, and other security forces, which hampers their ability to effectively tackle security threats. This lack of coordination allows criminals and insurgents to operate with impunity, further exacerbating the problem.

Another factor contributing to insecurity in Nigeria is widespread poverty and unemployment in the country. Many young people, especially in the northern region, are unemployed and lack opportunities for economic advancement. This makes them vulnerable to recruitment by criminal and insurgent groups who promise financial rewards in exchange for their cooperation. Addressing the root causes of poverty and unemployment is crucial in tackling insecurity in the country.

Additionally, the porous borders in the northern region make it easy for criminals and insurgents to enter and exit the country, evading capture by security forces. Strengthening border security and cooperation with neighbouring countries is essential in addressing this issue. Corruption and lack of accountability within the security forces have also hampered efforts to end insecurity in Nigeria. Some security personnel have been accused of colluding with criminal elements, further undermining government’s efforts to maintain law and order.

President Bola Tinubu has insisted that no ransom should be paid to criminals who see kidnapping as a form of business. While the government may see the non-payment of ransom to kidnappers as a solution to end kidnapping, some say stopping the criminals remains the best option. What is your response to this argument?

President Bola Tinubu’s stance on refusing to pay ransom to kidnappers who see kidnapping as a business is a strong and bold position. It sends a clear message that the government will not negotiate with criminals or reward their illegal activities. However, while this approach may be effective in dissuading future kidnappings, some argue that simply stopping the criminals themselves is the best solution to end the crime of kidnapping. It is crucial to recognise the complexities of addressing kidnapping as a form of criminal activity. While cutting off the source of income for kidnappers by refusing ransom payments may lead to a decrease in the number of kidnappings, it is also important to address the root causes that drive individuals to engage in such criminal behaviour.

Poverty, lack of opportunities, and social inequalities are often cited as factors that contribute to the rise in kidnapping incidents. The government needs to invest in law enforcement and security measures to apprehend and prosecute those responsible for kidnapping. By strengthening the judicial system and increasing the capacity of law enforcement agencies, the government can effectively deter criminals from engaging in kidnapping activities. The escalating banditry in northern Nigeria has reached a critical point, serving as a stark reminder of the urgent need for intervention.

The terror that struck Buda on Monday night has left families in anguish and uncertainty. The abduction in Buda serves as a reminder of the recent kidnapping of over 200 students in Kuriga village, Chikun Local Government Area, underscoring the need for swift action and a safer future for children. The abduction of the children in Buda and the students in Kuriga village are not isolated incidents – they are part of a pattern of violence and lawlessness that is spreading across the country.

The government must take decisive action to address the root causes of the crisis, including poverty, unemployment, and ethnic and religious tensions. The state and federal governments must heed the calls for intervention and take decisive steps to address the escalating crisis of insecurity before more lives are lost and families are torn apart. It is time for action to ensure the safety and security of all Nigerians.

Also, the Minister of the Federal Capital Territory, Nyesom Wike, said most cases of kidnapping in the FCT in recent times were stage-managed. Don’t you think this is worrisome?

His (Wike) remarks on the prevalence of stage-managed kidnappings in the FCT are not to be taken lightly. The act of staging a kidnap for personal gain or attention is not only unethical but also dangerous. It not only wastes valuable law enforcement resources but also creates unnecessary fear and panic in the community. In a society where kidnapping is a real and serious crime that affects the lives of countless individuals, the notion of individuals fabricating such incidents for their purposes is deeply troubling.

One of the main reasons why individuals may choose to stage a kidnapping is for financial gain. With the high ransom amounts that are often demanded in real kidnapping cases, some individuals may see an opportunity to exploit the situation for their benefit. By pretending to be a victim of a kidnap, they may believe that they can extort money from their family, friends, or even the government. Another reason why individuals may choose to stage a kidnap is for attention.

In today’s world, where social media plays such a prominent role in our lives, some individuals may see fabricating a kidnapping as a way to garner sympathy and support from their peers. By creating a dramatic and sensational story of being kidnapped, they may believe that they can become the centre of attention and receive validation. The consequences of staging a kidnap are far-reaching and can have serious implications. Not only does it undermine the efforts of law enforcement to combat real kidnappings, but it also causes unnecessary fear and panic in the community. The resources that are diverted to investigate these fabricated incidents could have been better utilised to address real crimes and keep the community safe.

What can be done to keep the youth busy and take their minds off criminality?

There are various approaches that can be taken to keep the youth busy and away from criminal behaviour. One effective approach is to provide young people with opportunities for education and skill-building. By offering vocational training programmes, job placement services, and career guidance, we can help the youth to develop the necessary skills and knowledge to pursue meaningful and fulfilling careers. Education is a powerful tool for empowering young people and steering them away from criminal behaviour.

Another important strategy is to encourage the youth to participate in recreational activities and sports. By providing safe and structured outlets for socialising and physical activity, we can help young people stay active and healthy while also fostering positive peer relationships. Engaging in sports or other recreational activities can boost self-esteem, enhance problem-solving skills, and promote teamwork – all of which contribute to a sense of purpose and belonging. Community involvement and mentorship programs can play a crucial role in guiding young people toward positive and productive behaviour.

It is essential that we invest in our youth and provide them with the support they need to thrive and succeed. No nation can aspire to greatness or seek to remain secure and safe when its youth and the productive segments of society are left to indulge in self-destructive practices like drug and substance abuse. I can unhesitatingly assert that the drug situation in the North is one of the most serious social and security challenges facing Nigeria today.

Not a few believe that Gumi’s decision to negotiate on behalf of the government with terrorists may be counterproductive as the hoodlums or the government may turn against him. What is your thought about this?

We hear and understand the widespread debate concerning Sheikh Ahmad Gumi’s decision to negotiate on behalf of the government with terrorists. Some individuals believe that this approach may be counterproductive, as it could potentially lead to the hoodlums or the government turning against him. While this concern is valid, it is essential to consider the bigger picture and the potential benefits of engaging in dialogue with these groups. Negotiating with terrorists is a delicate and complex process that requires careful consideration of various factors.

While there is a risk that the terrorists may use the negotiations as a platform to further their agenda, there is also the possibility of achieving a peaceful resolution and putting an end to the cycle of violence. Sheikh Gumi’s efforts to engage with these groups should be commended, as they demonstrate a willingness to explore all avenues for peace. It is important to note that dialogue does not equate to appeasement. Negotiations should be conducted with clear objectives and boundaries, ensuring that the interests of the government and the safety of its citizens are protected. Additionally, it is crucial to maintain transparency and accountability throughout the negotiation process to prevent any misunderstanding or breach of trust. Ultimately, Sheikh Gumi’s decision to negotiate with terrorists may be risky, but it is a necessary step towards finding a lasting solution to the ongoing conflict.

Some have said the security situation in the country has a political undertone. What do you make of this?

While it is true that politics can sometimes influence the security landscape, it is important to approach this issue with caution and careful analysis. It is undeniable that politics and security are interconnected in many ways. The decisions made by political leaders can have a direct impact on the security of a nation, whether it is through policies, resource allocation, or diplomatic relations. Additionally, political actors may also seek to exploit security concerns for their gain, using fear and insecurity to further their agendas.

The economic hardship in the country affects almost all Nigerians. What is your assessment of the situation?

The situation is particularly dire for those living below the poverty line, as they are hit the hardest by the economic challenges facing the country. High prices of essential goods and services, coupled with low wages, have made it difficult for many Nigerians to afford basic necessities such as food, housing, and healthcare.

The lack of job opportunities has left many Nigerians without a stable source of income, further exacerbating the economic hardship they face. This has led to increased levels of poverty, crime, and social unrest in the country. To address the economic hardship facing Nigeria, the government must take urgent action to improve the economy, create job opportunities, and provide support to those most affected by the current economic situation. Only through proactive and effective measures can Nigeria begin to alleviate the economic hardship experienced by its citizens.

How will you describe President Tinubu’s approach towards tackling the economic challenges in the country?

The Northern Elders Forum is known for its commitment to upholding a standard of judgment that is fair and just, regardless of the administration in power. As a forum, we have set a precedence of being respectful and responsible in our relationships with leaders at all levels and have made it our mission to speak truth to power, even when it may be uncomfortable or unpopular. It is with this same commitment to integrity and honesty that we approach the current administration of President Tinubu.

While we do not seek to whitewash or smear his leadership, we also cannot ignore the stark realities facing our nation under his watch. The economic policies implemented by his administration, particularly the decision to float the naira, have led to widespread hardship and suffering for millions of Nigerians. Hunger, inflation, job losses, business closures, decaying infrastructure, and a lack of hope for the future are just some of the challenges facing our country today. It is our duty as concerned citizens and members of the Northern Elders Forum to hold President Tinubu accountable for these consequences and to urge him to take swift and decisive action to address the pressing needs of our people.

We acknowledge that the road to recovery will be long and difficult, but we believe that with patience and determination, it is possible to steer our nation in the right direction. President Tinubu must understand that his legacy and vision are at stake and that the quality and competence of those he chooses to surround himself with will play a crucial role in determining the success of his administration. We are concerned citizens who want to see our country thrive and prosper. We insist that his administration must do better in managing the economy, fighting corruption, and rebuilding a nation united by justice and honest enterprise. We will continue to advocate the interests of the North, the unity and security of Nigeria, and the welfare of all citizens.

Given the economic hardship, Labour recently engaged the Federal Government in a tripartite meeting held in various geopolitical zones demanding an increase in its minimum wage. There were demands that the new minimum wage should be N500,000. What do you think should currently be the minimum wage?

As economic pressures continue to weigh heavily on the Nigerian workforce, the tripartite meeting between Labour and the Federal Government regarding a potential increase in the minimum wage has sparked demands for a minimum wage of N500,000 being put forward by Labour. The question of what the new minimum wage should be requires careful consideration. While it is understandable that Labour is advocating a significant increase in the minimum wage to alleviate the financial strain faced by many workers, it is important to strike a balance that is both fair to employees and sustainable for businesses.

A minimum wage of N500,000 may be unrealistic and could potentially have adverse effects on the economy as a whole. Instead, a more moderate increase in the minimum wage, taking into account factors such as inflation and the cost of living would be a more reasonable approach. A gradual increase that reflects the economic realities of the country and ensures that workers can meet their basic needs without placing undue burden on employers will be more appropriate. While the demands for a minimum wage of N500,000 are understandable in the face of economic hardship, a more measured approach to wage increases should be adopted. It is important to find a balance that is fair to workers and businesses alike, to ensure a sustainable and equitable economic system.

There have been calls for the restructuring of Nigeria to true federalism. What is your take on this?

We are quite aware that the call for a re-evaluation of the philosophy, structures, and operations of the Nigerian state is growing louder by the day. The NEF is also on record as having expressed its discontent with the current state of affairs and demanding a change that will improve all Nigerians’ security and quality of life. As part of this desire for transformation, the North stands ready to participate in any restructuring process that is aimed at creating a more inclusive and equitable society. It is important to note that the North has nothing to fear from any restructuring process, as long as it (the North) is treated as a partner and not as a problem to be solved.

The North is willing to engage in open and honest discussions on constitutional reforms, the federal structure, the national economy, and any other issues that are hindering progress and development in the country. It is time for all Nigerians to come together and ask the tough questions about how our nation is being governed. Why are we paying our legislators exorbitant salaries? Do we need all those in power who are draining our resources?

As the North looks towards a restructuring process that will involve its assets and interests, the President and governors must pay close attention to the hardships and stresses that will inevitably arise during this transition period. The North must be involved as equal partners in the process, not as passive recipients of policies and programmes that are devised without their input. Leaders and policymakers must take into account the limitations and disadvantages faced by the region, so as not to exacerbate existing challenges with poorly designed policies.

The North is ready and willing to participate in a restructuring process that will benefit all Nigerians. It is time for the country to come together and forge a new path towards a more inclusive and equitable society. While some have made a career out of demonising and insulting the North, the region remains steadfast in its commitment to justice for all. The North is not interested in engaging with those who seek to divide and sow discord. Instead, it stands firm in its belief that fairness and equality should be the guiding principles of any restructuring process.

Former Secretary of the National Democratic Coalition, Ayo Opadodun, agrees that the current system of government practised in Nigeria cannot get the country the development it desires. Do you think a parliamentary system is good for the political and economic survival of the country?

The NEF has been vocal in its criticism of the presidential system of government in Nigeria, with Professor Ango Abdullahi, the convener of the forum, recently highlighting the benefits of the parliamentary system that was once in place. Elder statesmen like Prof. Abdullahi, who witnessed the First Republic legislature, believe that the parliamentary system worked for the country and has not been given sufficient time to truly succeed.

Our position is that the presidential system of government has failed to move Nigeria forward over the past 23 years. This system is unsuitable not only for Nigeria but for any country that is part of the Western world. The NEF believes that the democracy being forced on nations by the Western world serves their interests rather than the interests of the countries themselves.

The President has initiated the processes for the implementation of the Oransaye report. What is your take on it?

The decision to initiate the processes for the implementation of the Oransaye report is a positive development that has the potential to bring about much-needed reforms in the Federal Government. The report identified that there were over 500 Federal Government agencies, parastatals, and commissions, many of which were either redundant, performing overlapping functions, or were no longer relevant in the current socio-economic context of the country. The President’s decision to act on the recommendations of the report is a step in the right direction towards reducing the size of the government and making it more cost-effective and efficient.

The National Assembly is currently enmeshed in a controversy about budget padding and sharing of money. To what extent do you think this can adversely affect the image of the legislature as an arm of government?

The NEF, like all responsible organisations, stands behind the suspended Senator Abdul Ningi regarding the N3.7tn gap in the 2024 budget presented to the National Assembly. Senator Ningi was right to point out the lack of detailed allocation for the substantial sum in question. His claim that two versions of the 2024 budget were passed at the National Assembly remains uncontroverted by the Senate or the Federal Government. The allocations for institutions such as the National Assembly, National Judicial Council, Independent National Electoral Commission, and Tertiary Education Trust Fund lack transparency in terms of detailed breakdowns.

The public has every right to question how the funds allocated to these agencies are being utilised. It is disturbing that about N2tn of the budget pertains to government-owned enterprises, separate from the MDA’s budget. The lack of transparency in the utilisation of these funds is alarming, especially considering the significant allocations to agencies like INEC, NJC, and the National Assembly. Senator Ningi’s concerns regarding budget padding and lack of detailed breakdowns for statutory transfers and government-owned enterprises are valid. The addition of 7,474 projects worth N2.2tn to the budget further highlights the issue of transparency and accountability in budget allocation. Senator Ningi’s advocacy for accountability in budgeting processes is commendable, and the National Assembly must address these concerns to uphold good governance practices.

The take-off of the student loan scheme promised by the Federal Government has been postponed indefinitely. Many believe this will affect students from poor backgrounds who may not be able to pay the tuition fees that most tertiary institutions have hiked. What is your advice to the Federal Government on this issue?

As far as the NEF is concerned, the postponement of the student loan scheme by the Federal Government is a setback for the education sector and a disservice to students from disadvantaged backgrounds who may struggle to pay the hiked tuition fees in most tertiary institutions. This move will further widen the gap between the rich and the poor when it comes to accessing quality education. As a concerned body of elders, the NEF believes that education is a fundamental right that should be accessible to all, regardless of socio-economic background.

By delaying the implementation of the student loan scheme, the government is effectively denying many deserving students the chance to pursue higher education and improve their lives. This not only hinders social mobility but also perpetuates the cycle of poverty and inequality in our society. Our advice to the Federal Government on this issue is to prioritise the implementation of the student loan scheme without further delay.

Inflation, soaring prices of materials leave developers in battle for survival

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As property developers grapple with the effects of inflation, they find themselves locked in a fierce struggle against the soaring cost of building material which have surged by 700 per cent over the past five years, JOSEPHINE OGUNDEJI writes

In recent years, developers have found themselves in a fierce battle against inflation as the prices of building materials have skyrocketed by 700 per cent over five years.

The sharp rise in material expenses has also caused widespread disruption in the construction industry, posing significant challenges for both large-scale developers and homeowners.

This surge, Sunday According learnt, can be attributed to a combination of factors, including disruptions in the supply chain, increased demand, escalating labour costs, and wholesalers raising prices compared to ex-factory rates.

Consequently, projects that were once financially viable now grapple with considerable budget constraints, prompting developers to seek alternative strategies to mitigate the impact of inflation.

As a result of this inflationary pressure, there has been a slowdown in construction activity as developers struggle with the financial implications of soaring material costs. Many projects have been delayed or put on hold indefinitely as developers reassess their budgets and financing options in light of the unprecedented circumstances.

The affordability of housing, already a pressing issue in many regions, has been further exacerbated by the rising costs of construction materials, making it increasingly challenging for individuals and families to access adequate housing options.

To ascertain the cumulative surge of 700 per cent across three key building materials which engineers confirm are granite, iron rods, and cement over five years, Sunday According analysed the percentage increase for each material separately.

The price of granite rose remarkably from N2,700 to N11,000 per tonne, marking a 307 per cent increase.

Iron rods, ranging from 10mm to 16mm and averaging at N180,000 per ton in 2019, have skyrocketed to N1,450,000 per tonne, indicating a 706 per cent increase.

Cement prices surged from N2,400 to N13,000 per bag over the same period, representing a 442 per cent increase.

In 2019, the total sales price for the products was N185,100. In 2024, the total sales price was N1,474,000. The total increase in sales price over the five years was about N1,288,900.

To find the average increase over the five years as a percentage, the total increase (1,288,900) was divided by the total sales price in 2019 (185,100) and then multiplied by 100. This gives an average increase of approximately 696.29 per cent for the combined sales prices of the products from 2019 to 2024.

The cumulative average increase for all three products from 2019 to 2024 is approximately 696.29 per cent, which can be rounded to 700 per cent. This means that over the five years, the total price of the three products combined increased by about 700 per cent compared to the sales in 2019.

In simpler terms, the price nearly multiplied by eightfold from their initial level in 2019 to their level in 2024.

This significant increase reflects substantial growth and success in the sales of the products over the specified timeframe.

A retailer, Olaniyan Bashiru-Kola, while lamenting the situation, told our correspondent that the continuous price increase jolted him.

Bashiru-Kola appealed to the government to cushion the effect of the inflation as retailers were already bearing the brunt.

“Just February 21, I purchased iron rods (12mm per tonne) in the morning when I wanted to book again by evening, the wholesalers said they were no longer selling, hence I bought it the next morning for N1,450,000.

“Most of us retailers are borrowing money to eat, we know once God brings a purchaser our way, we will reimburse those we owe. I wish I could see and talk to the government myself, let them help us reduce this increase in iron rods to N300,000 at most; this would encourage customers.

“Presently, my customers are reaching out mainly to inquire about pricing rather than making immediate purchases. They’re also in a state of anticipation, waiting for materials to decrease in cost before proceeding with their building projects,” he added.

Also lamenting the increase, the Chief Executive Officer of Magnificent Choice Services Project and Engineering Limited, Jeremiah Akinsele, said his firm had to stop all the projects it was working on presently, renegotiating terms with the clients involved.

“It has been difficult as we had to stop all works for renegotiation purposes, and all building materials went up, we bought cement at N7,300 on Wednesday, February 7, 2024, in Sagamu, Ogun State. The confusing part is that most of the components of cement are sourced locally, I do not know why the impact of the dollar is so huge on the increase.

“As the prices of construction materials soar, exemplified by the surge in iron prices from N500,000 to N1,450,000, there is a looming risk of projects being abandoned. This is especially troubling as we continue striving to bridge the housing deficit gap,” the developer said.

Inflation

In 2019, Nigeria underwent fluctuations in its inflationary trajectory, deviating from prior trends. During the period, the inflation rate experienced a slight decrease to 11.40 per cent, reflecting a 0.7 per cent drop compared to 2018.

Nevertheless, the economy remained exposed to price volatility due to underlying structural and policy challenges. Subsequent years witnessed a reversal of this pattern, with inflationary pressures escalating, signalling potential strains on consumers’ purchasing power and overall economic stability.

In 2020, Nigeria experienced a noticeable increase in inflation, reaching 13.25 per cent, up by 1.85 per cent from the previous year. This escalation highlighted growing cost pressures across various sectors, posing challenges for households and businesses.

The trend continued into 2021, with inflation surging to 16.95 per cent, marking a substantial 3.71 per cent leap from 2020. This significant rise emphasised the need for effective economic management and policy interventions to mitigate adverse impacts on living standards and promote sustainable development.

According to the Nigerian Bureau of Statistics, in November 2023, the headline inflation rate increased to 28.20 per cent from 27.33 per cent in October 2023, indicating a rise of 0.87 per cent.

“On a year-on-year basis, the inflation rate was 6.73 per cent higher compared to November 2022. Furthermore, on a month-on-month basis, the inflation rate in November 2023 was 2.09 per cent, higher than the rate recorded in October 2023.

Like every other sector, the building and construction industry may be witnessing one of its worst moments.

Nigeria’s inflation rate as of December 2023 climbed to 28.9 per cent. The recent upsurge in inflation is primarily linked to the effects of petrol subsidy removal and the devaluation of the official exchange rate, both exerting substantial impacts on consumer prices.

In January 2024, the headline inflation rate increased to 29.90 per cent from 28.92 per cent in December 2023, showing an increase of 0.98 per cent. On a year-on-year basis, the inflation rate was 8.08 per cent higher compared to January 2023.

Additionally, on a month-on-month basis, the inflation rate in January 2024 was 2.64 per cent, higher than the rate recorded in December 2023.

The exchange rate crisis has worsened the woes of the building sector., and the direct effect is being felt more on imported materials like cement, reinforcements, granite windows, doors, ceramics, tiles, plumbing appliances, and sanitary wares, among others.

The prices of the local materials have also been affected by an increase in the cost of production and transportation to the end-users.

Overall, both the year-on-year and month-on-month inflation rates increased in November 2023 and January 2024 compared to their respective preceding periods, indicating a continued upward trend in inflationary pressures. Therefore, inflation has increased rather than declined in these periods.

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Oye, blamed the lingering forex crisis for the jump in the price of cement.

 “While local production capacity is a critical factor, we cannot overlook the significant impact of the depreciating value of the naira. The current exchange rate exerts inflationary pressure on input costs, thereby affecting overall food prices.

 “To counter this, a robust economic policy aimed at defending the naira to reach an acceptable exchange rate of N750 to one US dollar is essential. Hence, the government has to fix the naira to fix everything,” he told Sunday According.

The comments by the organised private sector came amid a dramatic increase in the price of cement in 2024.

 Findings by our correspondent indicated that the price hike was attributed to wholesalers reselling to retailers at higher prices.

Last five years

Findings also revealed that in 2019, the price range for a bag of cement was between N2,400 and N2,500, granite was priced at N2,700 per tonne (three-quarter measure), and iron rods (ranging from 10mm to 16mm) were priced at N180,000 per tonne.

The next year, the price of a 50kg bag of cement surged by one-third, reaching N3,200 within a month, granite increased from N2,700 to N3,200 per tonne, and iron rods were priced at N190,000 per tonne.

Dangote Cement’s Group Executive Director in charge of Strategy, Portfolio Development, and Capital Projects, Devakumar Edwin, had in 2021 attributed the high cost of cement in Nigeria to the global rise in demand for cement as a result of the COVID-19 crisis.

“Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity. To ensure that we meet local demands, we had to suspend exports from our recently inaugurated export terminals, thereby foregoing dollar earnings,” he said.

Moving to 2021, cement prices ranged between N2,450 and N2,510, while granite reached N4,200 per tonne in July, and iron rods soared to over N200,000 per tonne.

In 2022, cement prices further increased to between N3,400 and N3,800, granite reached N9,000 per tonne (three-quarter measure), and iron rods were priced at N220,000 per tonne.

The Block and Concrete Producers Association, Enugu State chapter, had decried the continuous increase in the prices of cement and other materials used for block production.

The President of Block and Concrete Producers Association, Enugu State, Igwe Ukaegbu, had lamented that the continuous rise in cement price was negatively affecting the production output of and income of members of the association, urging the Federal Government to intervene in the situation by granting more licences to industrialists to produce cement.

 “The challenge we have is the cost of cement and even sand. Everything is now costly. We are not making sales as we used to; so, we are suffering. We are praying for the government to help us by bringing down the price of cement and other materials.

“Before, one could sell 3,000 to 5,000 pieces of block in a month; but now, before you sell 1,000 pieces of block, it is very difficult. The cost of cement in Enugu now is N4,550 per bag. Some people are selling for N5,000.”

By 2023, cement prices had surged to N5,500, granite to N11,000, and iron rods to N520,000 per tonne. Worried by this, the Cement Producers Association of Nigeria warned that government plans for concrete roads could raise cement prices to N9,000 per bag.

It also called on the current administration, in a statement, to permanently address the perennial cement price hike problem by facilitating larger participation in the cement industry, noting that Nigerians had no business buying cement for more than N5,600 per bag.

In 2024, cement prices skyrocketed to N13,000, with granite remaining at N11,000 and iron rods soaring to N1,450,000 per tonne. This significant increase over the past five years has led to disruptions in the construction industry, prompting some developers to halt projects and individuals to seek contract variations. Operators within the CMAN have been reported to increase brand prices, resulting in retail prices escalating from N5,000 to over N13,000.

Meanwhile, the Manufacturers Association of Nigeria warned the Federal Government against a clampdown on manufacturers following a surge in the price of the product in recent weeks.

However, the Director-General of the association, Segun Ajayi-Kadir said manufacturers were battling unprecedented spikes in operating costs, warning that government plans to reduce prices, rather than reducing the cost of doing business would be an exercise in futility.

 “The escalating cost is not only visible in cement,  or other building materials so we are speaking with the government informing them that the cost of doing business in Nigeria is too high, except the government brings down these things, we would always have an escalating cost.

 “We have been constantly engaging the government in this regard and they are promising to address the issue. However, the increase in cement implies that it would badly affect the construction industry, it would also negatively impact the capacity of people to do business to build, which is not good for our national development unless the government takes immediate action,” Ajayi-Kadir said during an interview with The According.

 “I must warn that the approach is not to clamp down on wholesalers, and shops, asking them to reduce their prices; everybody is going to the same market, the government needs to reduce the ease and the cost of doing business, and stop the crazy imposition on wanting to bring down prices, it will not work, but only lead to scarcity,” he added.

 According to the MAN DG, the way forward is to reduce the input cost of production and engage with the stakeholders to understand their cost structure and the reason for the hike.

Housing deficit gap

The nation’s housing deficit was estimated at 28 million units as of 2023, while the population stands at 229.1 million this year, according to the Nigeria – Historical Population Data.

The amount required to fund the housing sector in Nigeria and bridge the estimated 28 million housing deficit across the country is N21tn, the Federal Government stated through the Bank of Industry.

In a 2022 report on Nigeria’s housing sector put together by the BoI, the bank explained that “with a growing urban population, increasing construction costs, and declining household income, access to affordable housing is becoming more difficult for millions of citizens.”

The report, titled, “Institutional turnaround for the next level,” obtained by The According from the Federal Mortgage Bank of Nigeria, stated that while N470bn was budgeted by the Federal Government for housing in 2022, the sector would require trillions of naira to close Nigeria’s housing gap.

It stated that of the estimated 206 million persons in Nigeria, about 95.1 million live below the poverty line, and as such it was difficult for them to have access to their own homes.

Under the section on Nigerian Housing Market in the report, the bank said, “N21trn (is the) amount required to fund the housing sector,” adding that “28 million units (is the estimated) housing deficit.”

Experts in Nigeria’s built industry have predicted an over 60 per cent rise in the housing deficit by 2050, on the back of rising population and urbanisation worsened by economic conditions.

Local production

In an exclusive interview with The According, the Executive Secretary of the Association of Housing Corporation in Nigeria, Toye Eniola, proffered the use of local building materials as a viable solution.

He noted, “The way forward is to go back to the basics; this is the time to embrace local building materials. For instance, we have interlocking blocks and we require about five per cent of cement for this which would save us a lot of money.

“Nigerian Building and Road Research Institute has done a lot of research on alternative building materials that can be used in Nigeria. For instance, they have researched the use of bamboo as an alternative to the iron rod.”

In a similar vein, the co-founder of Dukiya Investment, Lukman Sobowale, pointed out that the challenge was the country’s failure to achieve self-sufficiency in the local production of construction materials.

He said the weak value of the naira as against the dollar had therefore led to a disproportionate increase in the cost of construction and invariably, the unit value of houses in Nigeria.

“There is no doubt these realities do not bode well for the building and construction industry, especially for investors in the construction sector.

“I have interacted with some investors over the last week, and there is a consensus that the uncertainty and speculation will continue to slow down activities and generally hamper investment in the sector. Most of the investors have instead decided to halt their projects, to a later date in the future in a wait-and-see approach.

“This reality, I am afraid does not help our current situation, when you consider the fact that more than 28 million Nigerians lack access to decent and affordable housing and an average population growth of 2.6 per cent, making Nigeria one of the fastest growing populations globally, and also expected to double over the next 25 years to about 400 million. To close the housing gap, therefore, every day must count,“ he said.

In addressing the situation, Shobowale also noted that it must be considered from a short- and long-term perspective.

He advised, “In the short term, they should provide foreign exchange support for investors and lower import barriers to enable investors to bring in more construction materials at lower prices. This would no doubt lower the cost of construction.

“ In the long term, the government must bring down the high level of inflation, and address the liquidity challenge in the foreign exchange market, so that the naira can stabilise and find its true value.

“There is also a lot of work to do on the fiscal side to ensure that Nigeria can achieve self-sufficiency in local production of building materials, discourage imports, and also gradually drive down the cost of construction materials.”

Regulation of prices

The Managing Director, Shelter Initiatives Limited, Morenike Babalola, warned that by implication, the housing deficit would continue to climb and the low-income groups’ access to affordable quality housing would drastically nose dive.

She said, “Access to owner-occupier homes will empower the low-income (groups) and improve their standard of living. High costs of building materials imply that the poverty level will increase and many households will resort to living in slums, urban peripheries, and squatter settlements with degraded environmental conditions.

“To ameliorate this situation, there is a need for government intervention through control and enforcement mechanisms to prevent arbitrary price increases and involvement in housing construction particularly at the local government level which has remained active in the housing sector.”

Meanwhile, the Managing Director, Fame Oyster & Co. Nigeria, Femi Oyedele, said enforcement of building regulations involved enforcement of rules like setbacks to ensure airspace was allowed, health and safety measures were observed, and houses have adequate space for rooms and toilets, and baths.

He said, “Enforcement of building regulations does not include price control. Price control by any authority will only lead to scarcity of materials, loss of jobs by those working in the company manufacturing or distributing the materials, and the black market. The best way for the government to control prices of building materials is to issue import licenses to importers so that the supply of the materials can bring down the price to an affordable level.”

Government intervention

The Federal Government, through the Minister of Works, David Umahi, in February 2024, summoned cement manufacturers in the country to a meeting, following the increase in the price of the commodity.

Thereafter, the manufacturers agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide. They, however, asked the government to address the challenges of gas shortage, import duty, smuggling, and road network.

Reading the communiqué after the three-hour meeting directed by President Bola Tinubu, the minister said certain issues, including smuggling, bad roads, high energy costs, and the foreign exchange crisis caused the high prices.

Umahi said, “Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today (February 19, 2024) and manufacturers have willingly accepted to do that and sanction any of their distributors or retailers found wanting.”

However, developers in the building industry rejected the agreement reached between the Federal Government and cement manufacturers.

In an interview with The According, the Executive Secretary of the Association of Housing Corporation in Nigeria, Toye Eniola, condemned the negotiation which he said would widen the deficit gap.

He said, “What is fair in N7,000 to N8,000 when BUA promised us a slash from over N5,500 to N3,500 and now they are negotiating N8,000? Where are we heading to?

“That negotiation is for the rich. What they are saying is with that price, housing is going not to be for the poor. With that price, there is no poor man that would be able to afford it and it would keep widening the deficit gap.”

Only seven banks can meet CBN recapitalisation requirements

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No fewer than 17 out of the existing 24 Deposit Money Banks may be unable to meet the Central Bank of Nigeria’s capital requirement if it is increased from its current N25bn, according to a report by Ernst and Young.

The new report, titled “Navigating the Horizon: Charting the Course for Banks amid Plans for Recapitalisation”, noted that if the apex bank raised the capital base of commercial banks in the country by 15-fold from the current N25bn, only seven banks may survive.

The CBN Governor, Olayemi Cardoso, had in several fora stated that the apex bank would consider an increase in the minimum capital base of banks in the country as part of its efforts to strengthen their capacity to support Nigeria’s drive to become a $1tn economy by 2026.

The current capital base is stratified based on the type of banking license – banks with regional, national and international licenses are currently expected to maintain a minimum capital base of N10bn, N25bn and N50bn, respectively.

The proposed increase in the capital base is coming nearly two decades after the CBN’s 2004 banking reform, which led to an increase of the then prevailing capital base from N2bn to N25bn.

The 2004 banking reform was characterised by massive mergers and acquisition activities, which ultimately resulted in the reduction of the number of banks in the country from 89 to 25 banks.

The According in an exclusive report last year, indicated that chief executive officers and other top executives of Deposit Money Banks had begun moves to raise fresh capital to bolster their respective institutions’ capital base through preliminary merger and acquisition talks.

In the last few months, FBN Holdings, Wema Bank and Jaiz Bank had proposed Rights Issues, while Fidelity Bank announced plans to raise additional capital via the issuance of 13,200 billion ordinary shares via public offer and rights issue.

Ernst and Young, a global financial services company, said in the report that some banks may depend on different recapitalisation options, which include mergers and acquisitions, initial public offerings, placements and/or right issues and undistributed profit (retained earnings) despite financial soundness indicators show that Nigerian banks were largely safe and resilient as of 2023.

According to the report, the recent plan by the CBN to increase the capital base of banks will lead to a series of mergers and acquisitions as witnessed during the last recapitalisation exercise in 2004/2005.

The report read partly, “The recent plan by the CBN to increase the capital base of banks could again lead to M&A activities but not as widespread as was the case in 2004/2005 given the relatively solid financial positions of the banks today as well as the occurrence of several M&A activities in the banking sector over the past 10 years.

“While the CBN governor did not indicate the magnitude of the proposed hike in the capital base, we have assumed what the proposed increment will be based on three different scenarios underpinned by current macroeconomic conditions. On the back of that, we were able to determine the number of banks (across the three licence types) that may fall below the new minimum capital thresholds.

“In a worst-case scenario, i.e., given a capital multiplier of 15, about 17 out of 24 banks would not meet the new minimum capital.”

The report noted that the plan to recapitalise banks was premised upon the recent devaluation of the naira in 2023.

It explained that the exchange rate as of 2005 during the last exercise in 2005 stood at N132.9/$ but the naira currently exchange for over N1400/$.

According to the firm, this implies that the recapitalisation may require a capital multiplier of 10 or more based on the exchange rate differentials.

“On this basis, a worst-case scenario given a 15x capital multiplier for 24 banks will be considered based on the type of banking licenses held. We have benchmarked the current capital of these banks against the current capital requirement and four recapitalization scenarios,” it noted.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, in an earlier interview with our correspondent, welcomed the move to increase banks’ capital base, adding that the current capital base was grossly inadequate.

He said, “The minimum capital requirements of the banking industry need to be reviewed in the light of the considerable loss of value amid depreciating domestic currency. During the banking consolidation of 2004, the minimum capital requirement for banks was raised from N2bn to N25bn. The revised capital requirement was an equivalent of $187m. Today, the same N25bn is the equivalent of just $32.5m.

Also, a Professor of Capital Market at the Nasarawa State University, Uche Uwaleke, urged the CBN not to coerce banks into increasing their capital base as was the case during the last recapitalisation drive; rather, they should be incentivised.

“The idea of recapitalisation of banks is a welcome one. Capital is needed to finance big-ticket projects, especially when the government is targeting a $1tn economy in a few years. But I think the strategy should be somewhat different from the approach adopted in 2005. It should be more about incentives than coercion,” he said.

Uwaleke, who is also the President of the Association of Capital Market Academics of Nigeria, added that several Deposit Money Banks were already making moves to increase their capital base.

Cable drum falls, kills man in Lagos

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A yet-to-be-identified man has been killed after an electric cable drum fell on him on Ojo-Igbede Road in the Ojo Local Government Area of Lagos State.

Our correspondent learnt that the incident occurred when a fork-lift operator was moving armoured cables from a container on Thursday.

Sunday Special gathered that the incident happened on Thursday.

A police source told our correspondent that the deceased was busy with his phone when the cable fell on him, adding that the man died on the way to a hospital.

“The manager of an electrical enterprise dealing in armoured electrical cables reported at Ilemba Hausa division that at about 8:30 am, a forklift was trans-loading their company’s armoured cables from a container into its body, along Ojo Igbede Road by St Andrew’s Catholic Church.

“Incidentally, one of the cable drums disconnected and fell on a passerby, who was said to be pressing his phone while walking and he gave up the ghost on the way to hospital,” the source said.

When contacted, the state Police Public Relations Officer, Benjamin Hundeyin, confirmed the incident to our correspondent.

He noted that the owner of the company was undergoing interrogation and an investigation was ongoing.

He said, “The scene was visited by detectives of the division and inquiries were made, and the investigation is ongoing. The owner of the said company is undergoing interrogation for reckless and negligent acts by refusing to place any sign signifying the inherent danger nor hiring a guard to direct other road users away from the scene.

“The corpse has been deposited in the mortuary for autopsy and preservation. An investigation is ongoing.”

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