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Nigeria @60: Building Trust to Trade Better with Post-Brexit Britain
By Joel Popoola
As Nigeria celebrates the sixtieth anniversary of independence from Britain, there’s never been a better time for us to strengthen the ties between our two nations – this time as equal trading partners.
British MP Helen Grant has this week been appointed Prime Minister Boris Johnson’s Trade Envoy to Nigeria.
Trade Envoys are personally appointed by British Prime Ministers to engage with countries where their government has identified “substantial trade and investment opportunities”. As Mrs Grant, whose father is Nigerian, has said: “We are entering a new and exciting age for British trade around the world and the opportunities for increased trade and investment are enormous”.
The new and exciting age she refers to is Britain’s departure from the European Union. For generations Britain’s continental trading relationships have been focused on continental Europe. Having formally left the European Union, from January 2021, Britain will have the opportunity to look again towards her commonwealth colleagues for strategic partnerships with the potential to deliver mutual prosperity.
We have to make sure they like what they see when they do.
Nigeria-British relationships are already strong, with British businesses having already invested £5bn in Nigeria. The two countries share £4bn of trade a year.
These ties have already endured the toughest of times – not least the last few months! – and Brexit opens the door for even better relations and the promise of a richer, more productive and more developed Nigeria.
Sadly, the World Bank ranks us 131st out of 190 countries for doing business with. We’re only slightly ahead of our neighbours in Mali and they’ve just had a coup!
Then there’s corruption. The British government’s official advice on doing business in Nigeria states “unfortunately fraud is prevalent in Nigeria, and UK businesses should carry out due diligence before embarking on any deals”.
The most recent Global Corruption Index reported that 43% of those surveyed thought corruption in Nigeria has increased in the past 12 months. A shocking 44% of public service users reported paying a bribe that year.
Perhaps the symbolic underscoring of Nigeria’s corruption dealings commences with first point of entry at our Airports. With begging gestures and faces railroading you into parting with subtle and brazen bribe demands, and unnecessary conundrums laid on your path of entry, combined with gun-toting police stops with menacing looks, the welcoming impression on visitors leave a lot to be desired. The government’s Ease of doing business strategy has up till now served little purpose for a paradigm shift. How can investors feel comfortable to bring in funding when our points of entry into the nation lack a welcoming feel-good flair.
A lot is required to achieve FDI and national branding starts from exemplary conduct, not cosmetic happenstance rhetoric.
With a shared language and history and complementary legal and business practices post-Brexit trade with Nigeria should be as obvious to Britain as an Eagle in a Firefinch nest, and there are huge opportunities to British businesses in improving our transport and energy infrastructure, urban development, creative industries, financial services, agriculture and technology.
The news is not all bad. Just this week Britain’s top trade official in Africa told CNBC “Nigerian is a very exciting proposition for the UK, really helped by some of the progress we seeing being driven by the government of Nigeria, particularly in the ease of doing business” Next month the governor of Lagos, Babajide Sanwo-Olu will become the first Africa’s elected leader to address the Institute of Directors, the UK’s most prestigious business leader group, since inception in 1903
But until we take steps to improve our international reputation for corruption too many nations will continue to think twice when it comes to trading with Nigeria.
The way I see it, you wouldn’t go on your first date with someone without smartening yourself up. And the same is true if Nigeria wants to fully realise vast potential in a globalised world. That’s why making the Nigerian political system look its best is the concept behind my digital democracy project. Before our nations believe in our leaders, we have to believe in them ourselves.
We have created a free smartphone app called Rate Your Leader which gives our political leaders a vital platform to showcase their openness, responsiveness and transparency. The app allows direct person-to-person contact with the people they serve, maximising their openness and accessibility, as well as allowing them to respond instantaneously to local issues as they emerge.
Not only does the app made leader more visible in their communities – at a time when Covid-19 related social distancing make this even more difficult than usual – it also allows politicians to explain the decisions they have made directly to the people they serve, free from spin or social media distortion. Voters can then rate the answers they receive, showing their peers and neighbours which politicians are the most transparent and accountable.
We all know we have a mountain the size of Chappel Waddi to climb when it comes to defeating corruption in Nigeria. But small steps like using Rate Your Leader are an important first step, proving that individual politicians are worthy of people putting their trust in them.
And only when we trust ourselves will future trading partners feel comfortable doing the same.
Joel Popoola is a Nigerian tech entrepreneur, digital democracy campaigner and creator of the Rate Your Leader app. You can reach Joel on Twitter @JOPopoola
News
2027: Lagos APC Guber Aspirant Rejects Hamzat As Consensus Candidate
All Progressives Congress (APC) governorship aspirant in Lagos State, Samuel Ajose, has declared that the endorsement of Deputy Governor Obafemi Hamzat as the next governor by Governor Babajide Sanwo-Olu and the Governance Advisory Council (GAC) will not stand.
GAC, regarded as the highest decision-making body of the All Progressives Congress in Lagos State, endorsed Hamzat, as its consensus candidate for the 2027 governorship election.
The decision was reached during a closed-door meeting held at Lagos House, Marina, indicating an early alignment within the ruling party ahead of the next electoral cycle.
Speaking after the session, GAC leader, Tajudeen Olusi, said members unanimously agreed on Hamzat, expressing confidence in his ability to sustain and build on the state’s developmental progress.
Olusi explained that the meeting was convened to deliberate on the party’s forthcoming primaries and assess the governorship position ahead of the 2027 elections.
Speaking about the GAC adoption of Hamzat as Lagos APC consensus 2027 governorship candidate on Arise News on Tuesday, Ajose said that Sanwo-Olu and others are trying to force President Tinubu into making a decision.
“I don’t think our president, Asiwaju Bola Ahmed Tinubu, is giving in to what they are doing.
“What they are just trying to do is to coerce him into taking a decision, and I don’t think that decision will stand.”
News
Reps Approve Tinubu’s Fresh $516.3m Loan Request
The House of Representatives has approved President Bola Tinubu’s request to borrow Five Hundred and Sixteen Million, Three Hundred and Thirty-three Thousand, seven ($516,333,007) US dollars in syndicated financing from Deutsche Bank AG.
The House approved it during the plenary on Tuesday in Abuja after the presentation of a report by the deputy chairman of the House Committee on Aids, Loans, and Debts Management, Abdullahi Rasheed.
The money is expected to fund the construction of sections of the Sokoto–Badagry Super Highway.
President Tinubu wrote to the lawmakers, seeking a $516.3 million loan from Deutsche Bank to support the construction of the road.
The president said the loan, to be sourced from a syndicated financing facility by Deutsche Bank, will fund sections 1, 1A, and 1B of the project, which covers about 120 kilometres.
Tinubu requested a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the federal government to secure the financing for Sections 1, Phase 1A, and Phase 1B of the project.
The project is a flagship initiative of Tinubu’s Renewed Hope Agenda and is targeted at enhancing national connectivity, improving the movement of goods across key economic corridors, and drastically shrinking travel time.
The 1,000-kilometre project will link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
According to him, the financing arrangement will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
He said the Federal government will provide counterpart funding of over N265 billion for land acquisition, compensation, and related infrastructure.
The former Lagos governor said the loan is structured for nine years and includes a three-year grace period.
It has an interest rate pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.
Already, the Federal Executive Council has approved the financing plan.
News
EFCC Arrests Ex-Skye Bank Chair, Tunde Ayeni over Nbillions Fraud Allegations
Operatives of the Economic and Financial Crimes Commission have arrested a former chairman of defunct Skye Bank Plc, Tunde Ayeni, over alleged money laundering, misappropriation and diversion of funds amounting to N36.54bn and $30m.
Ayeni, a businessman, was arrested in Abuja on Thursday, and is currently being held at the commission’s facility.
The arrest followed an EFCC probe into alleged misappropriation and diversion of funds said to have been obtained from Polaris Bank through multiple entities linked to him.
“Operatives of the Economic and Financial Crimes Commission, EFCC, have arrested a former board chairman of defunct Skye Bank Plc and businessman, Tunde Ayeni, in connection with alleged money laundering, misappropriation and diversion of funds to the tune of N36,540,058,400.00 and $30m.
“Ayeni was arrested sequel to the investigation of the EFCC into alleged misappropriation and diversion of funds to the tune of N36,540,058,400.00 and $30m obtained from Polaris Bank Plc by different entities linked to him.
“The funds were loans obtained allegedly for specific investment projects but subsequently transferred to other entities’ accounts. Investigations showed that, though the loans were obtained for purposes such as finance of marine security activities, electricity distribution contract, estate development, they were diverted to the NITEL/MTEL asset acquisition through NATCOM account,” one of the sources said.
Another source said the commission is currently probing 12 companies allegedly linked to Ayeni, which it said were used to obtain the loans from Polaris Bank.
“Twelve different companies linked to Ayeni are being investigated by the EFCC. They are entities he allegedly used to obtain loans from Polaris Bank for his shady activities. The loans are depositors’ funds fraudulently obtained and frittered into diverse wasteful purposes. Ayeni will be arraigned in due course upon conclusion of investigations,” the source said.
When contacted, EFCC spokesman Dele Oyewale confirmed the arrest but declined to give further details.
The Punch






