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OPINION: THE CONCEPT OF CONSTITUENCY PROJECTS: WHO BEWITCHED NIGERIA WITH IT?
By: A G Abubakar
Of all the attractive virtues of Western liberal democracy, the aspect that appears to appeal most to Nigerian legislators is the concept of Constituency Projects (CPs). Known in the United States as the pork-barrel system—where Nigeria borrowed the idea—it refers to the practice of lawmakers inserting funding for localised projects into larger national budgets, often bypassing rigorous congressional scrutiny and oversight. These projects typically serve limited populations or special interests, and critics have long likened the scheme to a slush fund because of its opaque nature. The concept originated from 19th century USA, where slaves were gifted salted pork as a reward.
In adapting the system, Nigerian legislators did not merely copy it; they expanded and distorted it, adding another costly layer with severe economic and political consequences. Beyond budget padding and insertions, legislators are now granted periodic direct allocations in the name of constituency projects. Unsurprisingly, the scheme has become a major conduit for self-enrichment. And, for development pundits, a barometer of a ridiculous understanding of the concept of empowerment by some elected officials in parts of the country. For instance, it is a common happening in parts of the North to see the concept of CPs reduced to public gifting where wheelbarrows, prayer mats/plastic kettles, bales of sugarcane, burial items, mass weddings, etc, are paraded as CPs.
When this is combined with the exorbitant cost of running the National Assembly, the grim picture becomes unmistakable: Nigeria can hardly afford the legislature in its present form. For instance, in the 2025 budget, BudgIT, a civic-tech organisation promoting transparency in public finance, uncovered 11,122 projects valued at ₦6.93 trillion inserted by the National Assembly into a ₦54.99 trillion federal budget—representing roughly 12.6 per cent of total expenditure. The trend may continue in 2026, unless otherwise.
In the same fiscal year, members of the House of Representatives and the Senate were reportedly allocated ₦1 billion and ₦2 billion respectively each to directly execute constituency projects—separate from what had already been inserted into the budget. This is in addition to reported monthly total perks of about ₦19 million for Representatives and ₦21 million for senators. These three streams of resources have turned politics into not just a lucrative enterprise but a do-or-die affair and a major driver of systemic corruption.
Until the advent of President Olusegun Obasanjo in the Fourth Republic—and particularly his controversial third-term agenda in 2006—the Nigerian democratic lexicon scarcely featureterm constituency project. If it existed at all, it was never central. The three arms of government—the executive, legislature, and judiciary—largely confined themselves to their constitutional mandates. The legislature made laws and conducted oversight; the executive formulated and implemented policies; and the judiciary adjudicated disputes. Each arm guarded its territory jealously.
Today, those lines have blurred. The legislature has melted into the executive, while the judiciary increasingly appears entangled with both. The system now operates like an unholy trinity—father, son, and holy spirit in one—with checks and balances effectively neutralised.
The journey toward this distortion began with the adoption of the American pork-barrel system and its deployment as a tool of lobbying—or more bluntly, executive corruption—to curry legislative favour. In the United States, pork-barrel spending was originally justified as a means for lawmakers to address isolated and critical local needs. Even there, it has faced intense criticism and restrictions.
In Nigeria, however, the Obasanjo administration amplified the scheme, elevating it into a prominent budget line and weaponising it during the infamous third-term project. Through generous constituency allocations and other unorthodox inducements—popularly dubbed “Ghana-must-go”—the administration nearly succeeded in extending presidential tenure beyond constitutional limits.
Subsequent administrations did not only retain the scheme; they entrenched it as one of the largest cost centres in government spending. What began as quid-pro-quo politics soon degenerated into brazen abuse of public resources. Budget padding, insertions, and manipulations became the defining features of appropriation processes, as legislators competed to corner the largest possible allocations under the guise of constituency projects.
Because the legislature lacks implementing institutions, most CPs are grafted onto executive agencies—ministries, departments, and agencies (MDAs). Tracking these funds has now become a full-time preoccupation for many lawmakers, accompanied by relentless wheeling and dealing. Chief executives of MDAs have been reduced to errand boys, often coerced under threats of budgetary retaliation. In many cases, funds are simply siphoned through proxy contractors and vanish without trace. Thus, a class of “politipreneur billionaires” has emerged almost overnight.
Constituency projects have therefore evolved into a fast-growing corruption industry and one of the principal engines of Nigeria’s destructive, zero-sum politics. Literally, chasing and following up on “proxy contractors” of CPs by elected members have become a full-time job. They have little time to spare on burning national issues like the ubiquitous insecurity across the land, systemic corruption, nepotism, and cronyism in governance, poverty, and massive youth joblessness These issues require appropriate legislation and/or oversight and should ordinarily be a major concern for the honourable men and women in the legislature. So far, this doesn’t seem to be the case; as the issues have invariably been pushed to the back burner.
Two disturbing outcomes stand out among legislators who attempt to show goodwill by “doing something” with CP funds. First, CPs have effectively dwarfed Nigeria’s local government system—a constitutionally recognised tier that has been suffocated by state governments, aided by a complicit federal system that pays lip service to autonomy.
This remains a grave constitutional breach, even after the Supreme Court’s 2024 ruling affirming local government autonomy—financially, administratively, and electorally. Today, very few local governments can afford to build classrooms, health centres, motor parks, drainage systems, or small dams because they are starved of funds. The joint-account system has crippled grassroots governance in an unprecedented manner.
Ironically, even the Native Authorities of the colonial era and First Republic performed better than today’s emasculated local councils. In this context, any legislator who executes what should ordinarily be a local government project instantly assumes the status of a one-man government. Public loyalty shifts from institutions to individuals—an aberration that deepens corruption, impunity, and bad governance.
The second concern is definitional, particularly in Northern Nigeria. Constituency projects were never intended to be routine programmes or substitutes for government. They were meant to be one-off, strategic interventions addressing critical and catalytic needs. Where CPs dominate service delivery, it is a loud indictment of governance failure.
Add to this the phenomenon of governors’ wives’ projects, and the misapplication of scarce resources becomes even clearer. The poverty of ideas—and the embarrassing extent to which public officials play to the gallery—betrays a shallow understanding of development. While participatory approaches such as bottom-up planning have merit, prioritisation and strategic vision remain indispensable. It is the duty of enlightened leadership to chart a roadmap to the future, not to be imprisoned by local, short-term horizons.
Sadly, this dwarf vision has characterised many Northern politicians. In Kebbi, bundles of sugarcane were distributed to unemployed youths amid fanfare. Somewhere in Kano or Jigawa, a legislator procured burial materials for constituents. Another supplied plastic kettles and prayer mats. In Maiduguri, wheelbarrows were handed out as economic “empowerment” starter packs. Others sponsored mass weddings and also pilgrimages to either Makka or Jerusalem.
One is forced to ask: were people unable to pray before these interventions? Were burials impossible without legislative charity? What becomes of scale-up and sustainability in wheelbarrow empowerment? As for mass weddings, common sense dictates that sustaining a family is far more challenging than organising a ceremony. Of the 3Ps in marriage – provision, protection, and reprocration – mass weddings can only basically guarantee the reprocration aspect successfully. And, the North, knows the danger of producing kids without requisite care.
Even if these initiatives were effective, where are their multiplier effects? This is occurring in a country with over 16 million out-of-school children and millions of unemployed youths. Ironically, we live in an age where ICT, agriculture, livestock management, environmental remediation, carpentry, metalwork, and electrical repairs offer scalable empowerment opportunities requiring little formal education.
Some legislators do execute capital projects—schools, clinics, roads, water, and power facilities—using CP funds, often branding them as legacy projects. While commendable on the surface, such interventions frequently foster unhealthy rivalries. In a fragile democracy like Nigeria’s, constituency projects remain a budgetary distortion and a serious threat to the principle of separation of powers.
The practice must be reviewed. Ending or radically reforming constituency projects will reduce leakages, de-monetise politics, and restore public service as the essence of governance. Democracy in Nigeria has been so bastardised that instead of catalysing development, it now undermines it. Even the US had cause to abolish the practice.
The Supreme Court nullified Congregational Pork Barrel laws, including the 2013 PDAF, the 1990 Countrywide Development Fund (CDF), and the various Congregational Insertions that let lawmakers to take part in execution of projects, because of transparency challenges. Congressmen can only lobby for critical and strategic projects that have both local and general essence. If the US, where accountability and due process are professed hallmarks of governance, could discard CP, then Nigeria, should have no business embracing it.
Let each arm of government return to its constitutional role: the executive to govern, the legislature to legislate and oversee, and the judiciary to dispense justice. Constituency projects—and their attendant corruption—must not be allowed to define liberal democracy, an otherwise noble system of governance.
In the final analysis, constituency projects have become the clearest symbol of how Nigeria’s democracy was hijacked and hollowed out from within: a system designed for representation has been converted into an auction house of public funds, where oversight is traded for patronage and governance is replaced by personal charity. By collapsing the boundaries between lawmaking, execution, and adjudication, the scheme has destroyed the logic of separation of powers, weakened institutions, corrupted incentives, and turned politics into a violent scramble for access to state resources.
What parades as empowerment is often nothing more than organised waste, short-term appeasement, and the recycling of poverty in ceremonial form. Until Nigeria dismantles this distortion and forces each arm of government back into its constitutional lane, democracy will remain expensive, performative, and fundamentally hostile to development—an elaborate ritual of elections masking a system that eats the future to feed the present. Nigerian politics shall be saner, and less cut-throat without the concept of Constituency Projects (CPs).
A.G.Abubakar agbarewa@gmail.com
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Scholars Hail Late Sheik Kamalu-deen’s Legacies iN Education, Leadership
Stephen Olufemi Oni, Ilorin
Nigeria, and the world at large, are in dire need of exemplary leaders like the late Founder of the Ansarul Islam Society of Nigeria, Sheik Muhammad Kamalu-deen al- Adabbiy.
This was the submission of various scholars at a media briefing in ilorin, the Kwara State capital, to usher in the Society’s week-long activities to commemorate the 100 years of the establishment of the Az-Zumratul Adabiyatul Kamaliyyah School of Arabic and Islamic Studies, in Okekere, Ilorin.
The school was fouded by the late Sheik Kamalu-deen in 1942.
Born in 1905, the late Sheik Kamalu-deen was one of Nigeria’s foremost Islamic scholars and educational piooneers who transformed deep Islamic religoius learning into education and also advocated the acquisition of western education .
He also served as a Councillor and Member of the Ilorin Native Authority Transition Committee between 1958 and 1961and was appointed as the first grand mufti of Ilorin by the Emir of Ilorin.
The late Kamalu-deen al- Adabbiy died in 2005 at the aged of 100 years, leaving behind impactful legacies in the propagation of Islamic religion, scholarship, education and leadership.
Addressing journalists at the ancient hall of the Az-Zumratul Adabiyatul Kamaliyyah School of Arabic and Islamic Studies in Okekere, Ilorin, the spokesperson, Prof Kamil Kamaldeen, said the late sheikh was “non discriminatory” in all his policies, a virtue he said was lacking in most leaders today.
“We are here to celebrate the legacies of the late Sheikh Muhammad Kamalu-deen al-Adabbiy not to tell his history, at a time when the world continues to need what he stood for. We are in a world today that we are looking for leaders who will serve without puting themselves first, no matter where we come from,” he said
The Registrar was flanked by the Vice Chancellor of the Muhammad Kamalu-deen University, Prof AbdulRasheed Jimoh, General Overseer of the Az-Zumratul school, Sheik Mustapha Kamalu-deen al- Adabby, Grand Khadi of the Kwara State Sharia Court of Appeal, Justice Abdulateef Kamaldeen, National Missioner of Ansarul Islam Society of Nigeria, Sheik Abdulmumini Ayara, retired Grand Khadi of the Kwara state Sharia Court of Appeal, Justice Idris Haroon and a foremost islamic Scholar, Sheik Sharafadeen Ajara .
Others included the President of Az-Zumratul alumni association, Ustaz Abdullahi Oni-Tolotolo, and the Principal of the School.
They noted that the late Sheikh Kamalu-deen had through his preachings, established educational structures and selfless leadership qualities, produced worthy ambassadors in all spheres of disciplines, urging leaders at all levels to invest heavily in education .
“No society loses from investing in education, it can only gain, no society loses when you build skills, you can only gain,” they added.
The Scholars also charged leaders to take a cue from the late Sheikh Kamalu-deen whom they said was always willing to collaborate with scholars and leaders of like minds in a bid to bring advancement and progress to his community, citing his link with Al-Ahhar University, Cairo, as beneficial in advancement of higher Islamic studies in Ilorin.
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The changing face of Nasarawa at 30
BY VICTORIA NGOZI IKEANO
victoriangozii@gmail.com 08033077519
Some 26 years after Nigeria’s Independence, a state named Nasarawa in the old northern region now in north central zone of Nigeria was established by then Head of state, General Sani Abacha. Nasarawa thus, shares same birth day as Nigeria, October 1. While Nigeria at 66 is a full, grown-up adult that is heading towards being an elder, Nasarawa state is now a young adult, well past adolescent age. The state itself is maturing gradually. Recall that time was when Lafia its state capital used to be referred to as a ‘one street capital’, defined by the very long stretch of Jos/Makurdi road. Before the state came into being, Lafia, was a sleepy city renowned more as a transit stop for long distance travelers and as a food market (melon, rice, yam, etc.) for big-time traders from especially the eastern part of our country. Then on October 1, 1996 it suddenly found itself bestowed with the status of a state capital; the responsibility seemingly heavy for it’s apparently naïve shoulders then. Findings showed that Akwanga which was considered more cosmopolitan at the time, was to be named the state capital but that General Sani Abacha brought his primordial links to bear in selecting Lafia for the prized crown. Whatever it is, I think the choice of Lafia is not misplaced because there is more value-added when a virgin or semi virgin land is developed than one that is already on the development highway.
Nasarawa state shares boundary with the Federal capital territory (FCT), Plateau, Benue, Kogi and Taraba states. It was carved out of Plateau state. Before then it was part of Benue-Plateau state. It was one of the six states established by late General San Abacha from Nigeria’s six zones on that fateful day of October 1 ,1996 while delivering his 36th Independence Anniversary speech. Others are, Ekiti (South West), Ebonyi (South East), Bayelsa (South South), Gombe (North East) and Zamfara (North West). Wing Commander Abdullahi Ibrahim superintended over the new state in its early years. On May29, 1999 Nasarawa got its first democratically elected governor in person of Alhaji Abdullahi Adamu, Turakin Keffi. The sole administrator’s main task was setting up administrative machinery for the new state. Notable is his construction of the Government House on Shendam road. This was later completed by then Governor Adamu enabling him to depart the two bedrooms flat at the presidential lodge that had served as his office. Over the years Nasarawa’s Government House which serves as both residence and office of the governor has undergone some touches and additions by the various administrations on its expansive land. It now accommodates a 1000-capacity banquet hall named after its second civilian governor, late Aliyu Akwe Doma. There is also now a Press Centre mainly for correspondents covering Government House activities, guest rooms, etc.
Each of the succeeding governments after the military administrator did the best as they could, adding their own unique building blocks to the now 30 year-old edifice called Nasarawa. Abdullahi Adamu laid the foundation stone. His efforts are most noticeable in construction of rural roads and education sector. Some 30 years ago, Nasarawa state had no institution of higher learning save the College of Education, Akwanga, inherited from old Plateau state. Alhaji Adamu (later Senator) established the Nasarawa state Polytechnic (now Mustapha Agwai Polytechnic) College of Health Technology, School of Nursing and of course, Nasarawa state University. There have been additional tertiary schools since then. Among them, the Federal Polytechnic (to be converted to Federal Institute of Mining Technology), Federal University, Lafia (FULAFIA). Federal University Teaching Hospital. Unlike all other governors that completed two terms, late Alhaji Aliyu Akwe Doma who took over from Adamu spent only one term. Nevertheless, he made a mark with especially his Badakoshi programme in which Nasarawa state was exporting yams to foreign lands, notably United Kingdom, thereby boosting the state’s agricultural sector.
Enter Governor Tanko Al-makura (later Senator) after Doma’s time. Alhaji Al-makura opened up the state’s capital with infrastructure, especially roads, giving Lafia a semblance of a capital city. The modernization of Lafia started with him. Current governor, Engineer Abdullahi Sule, a former managing director of Dangote Sugar company is taking Nasarawa state to the next level which is industrialization. In this connection he has attracted some industries to Nasarawa state, particularly in areas where the state has comparative advantage, namely agriculture. As a state that is endowed also with solid minerals (from where it derives the name, ‘Home of Solid Minerals’) Governor Sule is now turning attention to this sector. His legacy project here is the lithium factory built by investor. It is said to be the biggest in Africa and is yielding the government humongous amount of money in revenue. Indeed solid minerals a.k.a. rare minerals, is the future ‘black gold’ that would replace oil which is now gradually losing its importance as nations seek for cleaner energy. Lithium is used for the new technology of the 21st century as for example, chips of smart phones that are constantly evolving. Thus, states that are rich in various mineral deposits shall rank amongst the richest in future. Quite a number of states in northern Nigeria are so blessed. But the challenge is getting capable investors that would exploit these rare minerals for commercialization. And Governor Sule has set a precedent in this direction with establishment of the first and biggest lithium factory in Africa. Nasarawa’s landscape is changing from a mainly civil service state to one that is becoming an industrial hub with accompanying hustle and bustle of a thriving state.
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OPINIONThe Disturbing Facts Behind the Economy’s Beautiful Statistics and the Path Forward.
By: A G Abubakar
“Subsidy is gone!” So thundered Alhaji Bola Ahmed Tinubu at Eagle Square immediately after being sworn in as President of the Federal Republic of Nigeria on 29th May 2023. The terse declaration was intended to bring an end to one of the nation’s major cesspools of corruption. Months later came the unification of the various windows of foreign-exchange administration, where impunity, arbitrage and political patronage had held sway for years. That unification, in practical terms, meant the devaluation of the naira. About a year later, a new tax regime was introduced, ostensibly to expand the government’s fiscal space and strengthen its revenue base.
Taken individually and in principle, the three reforms are difficult to fault. They address deep structural distortions that have weakened Nigeria’s economy for decades and created enormous opportunities for rent-seeking, arbitrage and systemic corruption. But economic reforms, however necessary, are not self-executing miracles. Even sound reforms can produce severe and unintended consequences, particularly hyperinflation, joblessness and mass disillusionment, when they are poorly sequenced, inadequately cushioned or implemented without sufficient regard for the productive capacity and welfare of the population.
A reform process is like agriculture. Practitioners know that it is not enough to plant early-maturing, high-yielding seeds and expect a bumper harvest. The whole exercise has to be preceded by land preparation, the acquisition of the right fertiliser and chemicals, and a modicum of good luck—weather and rainfall—from Mother Nature. Otherwise, a potentially high-yielding seed planted in an unprepared field can still produce a disappointing harvest. The same principle applies to economic reform.
Removing subsidies, unifying the foreign-exchange market and expanding the tax base may correct serious distortions, but they do not, by themselves, create food, jobs, productive industries, affordable energy, secure livelihoods or purchasing power. Those outcomes require the productive economy to be strengthened alongside the reforms. Otherwise, the immediate burden of adjustment, such as galloping inflation, can become much heavier than the economy’s capacity to absorb it. Containing inflation and the effects of devaluation in a low-productivity economic environment is one of the hardest policy-management challenges in an economy.
Inflation, in an economy already suffering from weak productive capacity, does not merely raise prices. It erodes purchasing power, destroys savings, increases the cost of survival and pushes millions of people closer to the economic precipice. The problem becomes even more severe when rising prices are accompanied by declining production, high energy costs, currency depreciation and weak household incomes.
The situation is then compounded when the authorities, in an attempt to contain inflation, tighten the money supply through higher interest rates. While such measures may be intended to moderate demand and stabilise prices, their immediate effect is to increase the cost of borrowing, making investment more expensive and, in some cases, virtually prohibitive. Businesses that would otherwise expand production are forced to scale back, postpone investment or close altogether. Productivity consequently suffers, employment opportunities shrink, and the economy becomes even less capable of producing the goods and services its growing population requires.
The usual temptation is to fill domestic production gaps through massive imports. But this, too, places even greater pressure on scarce foreign exchange while simultaneously making local production less competitive and less attractive. The vicious cycle is thereby reinforced: currency depreciation raises the cost of imported inputs and finished goods; high interest rates suppress investment; weak domestic production increases import dependence; import dependence intensifies demand for scarce foreign exchange; and the resulting pressure on the currency pushes prices even higher.
The economy consequently becomes trapped in a cycle in which the very measures intended to restore stability can, in the absence of corresponding increases in production, deepen the pressures facing households and businesses. When these forces are allowed to play out without restoring the critical balance, citizens’ well-being takes the greatest hit: food, transport, housing, healthcare and education become increasingly difficult to afford.
This calls for an elaborate blueprint for safety nets, which is literally the first law of reform. Metaphorically, tents are mounted before the rain starts falling. And the reasons are obvious: reforms usually throw up unintended consequences faster than the antidotes to contain them. On account of time lags, economies normally take time to absorb the shocks created by reforms.
The government has not acknowledged this reality sufficiently. Instead, it has developed a penchant for rolling out statistics to rebut any opinion to the contrary. Functionaries have been too eager to cite improved foreign reserves, rising GDP growth, falling food inflation, increased FAAC allocations to states and even access to NELFUND. And lately, the improved figure for Foreign Direct Investment (FDI) into the country. The truth is that these achievements have not been felt by ordinary citizens. And for some obvious reasons.
The increase in foreign reserves above $54 billion, the highest since 2008, has not been achieved through improved domestic productivity or exports. It has been driven largely by external borrowing and fortuitous developments in the oil market. Records from the DMO indicate that Nigeria’s external debt rose from $45.98 billion to $51.90 billion in 2026, a net increase of $5.92 billion. The war in Iran, too, has pushed oil prices above Nigeria’s budget benchmark of $64.85 per barrel to around $100. The positive difference represents a “windfall” that has improved Nigeria’s external reserves without a corresponding rise in non-oil production. It is like a lottery. Economies are never sustainably run on lotteries.
The GDP growth at 4.43% is equally impressive, but it could just be “paper growth” because it has not translated into a general improvement in citizens’ well-being. It is common to have “jobless growth”—a phenomenon in which growth is concentrated in high-tech sectors or services rather than in industrial production, manufacturing or agriculture. These productive sectors are the major drivers of sustainable economic growth. They provide job opportunities for millions, create wealth and boost exports. This has not been the case with Nigeria’s GDP growth.
Falling food inflation is a welcome development at any time. It becomes a challenge when it is driven by imports. It is on record (CBN, NBS) that between 2024 and 2025, the government imported N6.58 trillion and N6.65 trillion, respectively, worth of food items, particularly grains. While the importation has forced prices down, it has inadvertently discouraged local production, the level of which was already down because of insecurity in most farming communities. This has triggered a fear of hunger, which Mr President had cause to say has been with us since before he was born.
The NELFUND is a good initiative in unqualified terms. The figure being bandied about—that more than a million students have benefited from the scheme—is impressive. But the finer details may indicate a different story. For communities dealing with low school enrolment, such as in the North, where about 16 million are out of school, or poor communities having to deal with poor educational performance, the immediate challenge may not be student loans. It is about putting education on the right footing. NELFUND, for now, could largely benefit the privileged who ordinarily could afford tuition.
Then comes the issue of enhanced FAAC allocations to the states, which may have accrued from tax reforms, improved oil revenues, savings from subsidy removal and other measures. Great as these initiatives have been in improving the government’s fiscal health, the paradox is that inflation arising from currency devaluation has eaten away almost 70% of the value of what is being allocated.
To put it plainly, the naira has lost around 70% of its value against the dollar. State governments are, therefore, now paying multiple times what they used to pay for the same goods and services before the devaluation. The increased FAAC is like adding water to a soup to serve more guests, and still insisting that the taste has improved too.
As for FDI, Nigeria recorded an improved level in the first quarter of 2026, to the tune of $10.37 billion in capital importation. Unfortunately, more than 95%—over $9.85 billion—was portfolio investment. Records indicate that more than 98% of the said portfolio inflows went into money-market instruments, including Treasury bills and government bonds. While such inflows can provide foreign exchange and temporary liquidity, they are inherently more mobile than direct investment. Nigeria needs more foreign capital, but that which a greater proportion should be stable, and long-term to expand productive capacity, creates jobs and strengthens the real economy.
As things stand, the reforms actually call for further reforms to make their outcomes more impactful. The path forward should start by reviewing some of the prescriptions of the neoliberal Bretton Woods institutions (WB/IMF) that emphasise spreadsheet balance over public well-being. The next necessary actions include repossessing aspects of the energy sector, stepping up the war on corruption, optimising the reinvestment of subsidy savings into job creation, and providing sustainable support for the MSME sector.
The 2012 privatisation of aspects of Nigeria’s electricity sector has not worked well. Apart from its abysmally low transmission of about 5,000 MW for a population of over 230 million, the Nigerian power sector is structurally inefficient, operationally constrained and unnecessarily burdened by a maze of encumbering regulatory and institutional arrangements. The transmitted volume is actually less than that of some single cities, such as Beijing (China), Tokyo (Japan), Delhi (India) and the like.
First, the gap between the estimated 12,000 MW or more generation capacity and the roughly 5,000 MW wheeling volume means that more than half of the available generation capacity is either stranded, constrained or otherwise unavailable to consumers. Second, the TCN’s transmission loss factor (TLF), at 7.96%, exceeds NERC’s regulatory threshold of 7%. Third, and more troubling, is the DISCOs’ Aggregate Technical, Commercial and Collection (ATC&C) loss rate of 37.44%, more than twice the regulatory target of 16.92%.
These have inflicted enormous financial losses and severely diminished economic opportunities, with far-reaching consequences for the productive capacity of the economy and the acceleration of its deindustrialisation.
The institutional architecture itself adds another layer of complexity. The sector involves a cacophony of stakeholders and institutions—including the GenCos, TCN, NISO, DISCOs, NERC, NBET, NEMSA, the ECN, the Rural Electrification Agency (REA) and the Federal Ministry of Power (FMP). Their mandates tend to overlap. They should be streamlined to remove bottlenecks.
Energy is an indispensable factor in economic transformation. For instance, in the USA, only 13% of the economy can function without electricity. In general, it is believed that a 1% increase in electricity supply can stimulate between 1.5% and 3% growth in GDP. The government should, therefore, reclaim the distribution segment (DisCos) of the power ecosystem to fast-track national development, as the private-sector-led model has not delivered yet. This is without prejudice to the current Electricity Act, 2023, as amended.
Besides power, greater attention should be paid to agriculture through the provision of subsidies on inputs, chemicals and fertiliser. Agriculture remains a mainstay of the economy, contributing between 20% and 26% to national GDP and employing around 70% of the rural labour force (NBS, 2026). It has been a veritable source of agro-raw materials for both local and foreign industries. Agriculture should be made attractive.
Support for the MSME subsector should be a matter of urgency. It harbours over 40 million units and, according to NBS, constitutes over 90% of the nation’s enterprise stock. These enterprises play a huge role in wealth creation. Poor power supply and limited access to affordable credit have, however, not allowed the sector to thrive as it should.
Another critical priority area that deserves greater support is direct job creation. The concept has been a good complement to macroeconomic reforms the world over. It is an indispensable labour sponge for economies under serious stress, as pronounced by great scholars like Keynes and later modified by Friedman and others. The US government under Roosevelt used it to revive the economy during the Great Depression of the 1930s. Called the New Deal, it aimed to equip jobless youths with skills to undertake various types of economic activities outside government. A similar approach was adopted in the rebuilding of Europe under the Marshall Plan (1948–1951).
Successive governments in Nigeria appreciated this dictum during periods of economic challenges and established agencies such as the NDE, NAPEP, SMEDAN, etc. However, over the years, some of their operations have lost steam when they are needed most. It is believed that, with proper support, the agencies could address the annual rate of 3 million youths discharged by the education system into the labour market, where only 10% are estimated to get formal employment.
The call for rejigging the existing agencies is not to downplay what is on the ground, such as the N75 billion BOI fund, the CBN’s development fund, SMEDAN’s ICSS and GROW Fund, etc., but rather to engender greater impact and reach. This is also without prejudice to existing schemes and/or programmes of NBTE, ITF and others. They should be made to work collaboratively, statutorily, along a national empowerment value chain that links skills development, entrepreneurship, funding and mentoring.
The resources to fund interventions are on the ground. They include redirecting the subsidy savings, a sustained reduction in corruption that currently takes 40% of the nation’s annual budget, and conventional allocations.
In the final analysis, reforms cannot be judged by the comfort of government balance sheets while citizens struggle to put food on their tables. Nigerians do not live on GDP growth, foreign reserves or impressive FAAC figures; they live on wages, jobs, affordable food, electricity, healthcare and purchasing power. The real challenge, therefore, is to move the reforms from the spreadsheets of government into the productive economy and the homes of ordinary Nigerians.
Until that happens, the government may continue to celebrate its numbers, but the people will continue to measure the reforms by the hardship they feel.
A. G. Abubakar
agbarewa@gmail.com
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