Editorial
Lessons From Okonjo-Iweala’s Appointment
South African President, Cyril Ramaphosa, early this month announced the appointment of Dr Ngozi Okonjo-Iweala as a member of the expanded Presidential Economic Advisory Council (PEAC) put together by his government to rescue the country from its third recession since 2008. The country relapsed into recession at the end of December, 2019.
The council, chaired by Ramaphosa himself, and comprising local and international economic experts, was initially constituted on September 27, 2019, to “ensure greater coherence and consistency in the implementation of economic policy and ensure that government and society in general is better equipped to respond to changing economic circumstances”. It is also expected to advise the president and government more broadly, facilitating the development and implementation of economic policies that spur inclusive growth.
South Africa, the second largest economy on the continent has, in recent years, been rattled by a plethora of challenges, driven by lull in investor sentiment and lingering policy uncertainty, weak power, telecom and transportation sectors, and worsened by crisis in mining and manufacturing sectors. The problem is exacerbated by rising rate of official corruption, divisions in the ruling African National Congress (ANC), xenophobia nurtured by heightened unemployment and increasing insecurity.
Indeed, South Africa’s perilous public finance crisis has been engineered by four forces: stagnant economic growth; consistent tax revenue collection below forecasts; rising debt burden – the highest levels in post-apartheid era; and poor performance of state-owned enterprises, necessitating large-scale bailouts from lean government funds.
These have been triggered by three dynamics: slow recovery from shock of the 2008 global financial crisis; poor economic and public finance performance negatively affected by entrenched institutional destabilisation of Jacob Zuma’s presidency; and continued deterioration of economic indicators (growth and employment) along with further underperformance of revenue collection and public finances under the Ramaphosa government even with expansionary fiscal spending far above revenue generation. It is to address these challenges that Ramaphosa tapped Okonjo-Iweala to help rescue the country from economic doldrums.
The Tide joins millions of Nigerians and leaders across all continents in congratulating one of the world’s best economists and development experts on her meritorious appointment by Ramaphosa. We are proud to commend Okonjo-Iweala not just because she is a Nigerian and brilliant, but because her appointment represents a testament to her competence and experience. We say so because we are convinced that her pedigree and impeccable footprints in monetary and economic administration in Nigeria, many developing countries and at the World Bank stood her out for this sublime assignment.
The 1981 PhD graduate in Regional Economics and Development from Massachusetts Institute of Technology (MIT) spent 25 years of her career at the World Bank as a development economist, scaling the ranks to Number 2 position of managing director, Operations (2007-2011), with oversight responsibility for the bank’s $81 billion operational portfolio in Africa, South Asia, Europe and Central Asia. She spearheaded several World Bank initiatives to assist low-income countries during the 2008 – 2009 food crises and later during the financial crisis, and helped many recover from slow growth to robust economic state.
In 2010, she was Chair of the IDA replenishment, the World Bank’s successful drive to raise $49.3 billion in grants and low interest credit for the poorest countries in the world, and was also member of the Commission on Effective Development Cooperation with Africa. In the last two decades, she has served as senior adviser, executive director, director, chair or co-chair of more than 30 boards of world-class banks, academic and research institutions, development-driven organizations across all continents, including Harvard, Oxford, the Brookings Institution, African Union, World Economic Forum, United Nations, Rockefeller Foundation, Mercy Corps International; and in 2012, ran as the first-ever female candidate for president of the World Bank.
Okonjo-Iweala was a two-time minister of finance, serving under Olusegun Obasanjo (2003-2006), and Goodluck Jonathan (2011-2015). She was the first female to hold that position in Nigeria and her performance speaks for her.
During her first term, she spearheaded negotiations with the Paris Club of Creditors that led to the wiping out of $30 billion of Nigeria’s debt, including the outright cancellation of $18 billion. In 2003, she led efforts to improve Nigeria’s macroeconomic management, including implementation of an oil-price based fiscal rule where revenues accruing above benchmark oil price were saved in special “Excess Crude Account” which helped reduce macroeconomic volatility.
She also introduced the practice of publishing each state’s monthly financial allocation from the Federation Accounts in the newspapers, which increased transparency in governance. With support of the World Bank and IMF, she helped build an electronic financial management platform – the Government Integrated Financial Management and Information System (GIFMIS), including the Treasury Single Account (TSA) and the Integrated Payroll and Personnel Information System (IPPIS), helping to curtail corruption in the process.
As at December 31, 2014, the IPPIS platform had eliminated 62,893 ghost workers from the system and saved government about $1.25 billion in the process. Under the present administration, more than 70,000 ghost workers have been eliminated from the payroll system, and billions of Naira saved for investment in development initiatives. She was also instrumental in helping Nigeria obtain its first-ever sovereign credit rating (BB minus) from Fitch Ratings and Standard & Poor’s in 2006.
Under her leadership, the National Bureau of Statistics carried out a re-basing exercise of the Gross Domestic Product (GDP), the first in 24 years, which saw Nigeria emerge as the largest economy in Africa.
With her record, we think that Ramaphosa made the right decision by appointing Okonjo-Iweala as a member of the country’s PEAC, to help fix its economy and inspire growth and development by advising stable policies that encourage investment.
We, therefore, urge her to pragmatically bring her wealth of experience to bear in helping the South African Government make history by reviving an economy that has been in limbo for about 12 years. She had done it for Nigeria before; she can as well do it for South Africa.
On the other hand, we challenge all tiers of government in Nigeria to emulate the South African Government in placing merit and competence far and above nepotism and tribalism in recruitment and appointment into various offices in order to fast-track development of the country.
We think that the nation’s economy can do better if governments eschew parochial sentiments and implement inclusive policies that recognise hardwork and excellence.
President Bola Ahmed Tinubu has made history by signing into law a bill that establishes the Federal Univer-
sity of Environment and Technology in Ogoni, Rivers State. This significant occasion marks a bold step forward not only for the Ogoni people but also for the Niger Delta region and Nigeria as a whole. It signifies a commitment to education, environmental sustainability, and technological advancement.
For the Ogonis, who have long been impacted by environmental challenges, the university represents a beacon of hope. It is more than just bricks and mortar; it is a symbol of empowerment and a pathway to a brighter future. This development is akin to a seed, planted with the promise of a flourishing harvest of skilled professionals.
The university’s emphasis on environmental technology is extremely important, especially given Nigeria’s climate crisis. Education plays a crucial role in developing sustainable solutions. The institution will provide students with the necessary skills and knowledge to address the environmental challenges affecting the Niger Delta region and beyond. This will have a momentous impact.
Signing the bill, the President praised the Ogoni people’s resilience and unity. He stressed that the institution would mark a “significant milestone in our national journey towards environment justice, education and sustainable development”. Tinubu said the university is a reaffirmation of his administration’s “unwavering commitment to the people of Ogoni, the Niger Delta and the nation as a whole. For decades, the Ogoni people have been at the forefront of fight for environmental restoration and sustainable development, shaping both national and global conversation of these critical issues.
“By signing this bill into law, we are taking a decisive step towards addressing historical grievances and creating new opportunities for learning, growth and prosperity. The university will serve as a centre of excellence, equipping young Nigerians with the knowledge and skill to tackle present environmental challenges, drive clean energy solutions and contribute to our national sustainable economic development.”
We commend President Tinubu for his visionary decision to establish the much-needed institution aimed at fostering development and progress. This initiative is a testament to his commitment to addressing critical social and economic knots and creating opportunities that will benefit the people. The President has laid a solid foundation for sustainable growth while demonstrating a genuine desire to empower and advance the nation’s collective interests.
In addition to his commendable action, we applaud Tinubu for initiating peace talks to bring stability and reconciliation to the troubled area. The decision to engage in constructive dialogue demonstrates a deep understanding of the relevance of inclusive governance and the role of peace in fostering meaningful development. For decades, Ogoni has endured turmoil and neglect, impeding its potential and the return of oil exploration activities.
By opening the door to peaceful negotiations, the President has made a bold and necessary move towards healing fractured relationships and fostering trust among stakeholders. This initiative holds the promise of ensuring that the voices and needs of the Ogonis are heard and respected. We urge all parties involved to seize this golden opportunity for lasting peace and progress. It is only through unity and mutual respect that the full potential of Ogoni, and by extension the nation, can be realised.
As steps are taken to acknowledge and remediate the damage caused by years of oil exploration and production, the Ogonis must reciprocate Mr. President’s gesture by fostering a climate of equanimity and stability. This will ultimately pave the way for the resumption of oil exploration and production. This is not a call to forget the past, but a pragmatic recognition that meaningful change and sustainable development require a collaborative approach.
The Federal Government has a responsibility to ensure that all academic disciplines offered by the new university are fully accredited to maintain the integrity and quality of the school. Without proper accreditation, the institution risks producing graduates who are ill-equipped to compete in the global workforce or contribute substantially to national development. Accreditation serves as a benchmark that ensures programmes meet academic standards and adhere to best practices across various fields of study.
Staff recruitment should be conducted carefully, as the individuals brought into a team can greatly influence an organisation’s performance, culture, and long-term success. The primary focus of recruitment efforts at the university should be on attracting the best candidates who possess the necessary skills, qualifications, experience, and values. Merit should be the guiding principle in decision-making throughout the hiring process, rather than favouritism or personal bias.
For a nation to thrive in the 21st century, a strong higher education system is not only desirable, but essential. Universities serve as the catalysts for innovation, the breeding grounds for future leaders, and the foundations of a knowledge-based economy. The Federal Government must acknowledge this vital role and take intentional actions to properly fund the university in Ogoni and develop infrastructure to ensure it meets international standards. Neglecting this responsibility would put its future prosperity and global competitiveness at risk.
This institution must not suffer the same fate as other federally-owned universities that have been left to decay. That will be a disservice to its purpose and potential. Many government-owned universities in the country have struggled with dilapidated infrastructure, underfunding, insufficient staffing, and interruptions caused by industrial actions due to unpaid wages or poor working conditions. These challenges have led to declining standards in education, putting both students and staff at a disadvantage. The Ogoni University must not be another victim of this worrying trend.
The initial announcement by United States President, Donald Trump, to cut funding for international
HIV/AIDS initiatives sent shockwaves through the global health community. In Nigeria, a country facing a significant HIV/AIDS burden, the potential consequences were dire. However, the subsequent waiver granted by the administration has provided a lifeline for the millions of Nigerians who rely on the President’s Emergency Plan for AIDS Relief (PEPFAR) for their treatment and support.
PEPFAR has been an important partner in Nigeria’s fight against HIV/AIDS. Since its inception in 2003, PEPFAR has committed more than $7.8 billion to the country, catering to approximately 90 per cent of HIV treatment requirements. With this funding, Nigeria has been able to enhance its HIV prevention, treatment and support services and has witnessed a reduction in HIV/AIDS deaths.
The waiver granted by the Trump administration guarantees that PEPFAR’s life-saving medicines and medical services will continue to reach the needy. Antiretrovirals (ARVs) are the most common type of medicine used to treat HIV and reduce the virus’ spread. Through the provision of ARVs, PEPFAR helps prevent the spread of HIV and enhances the quality of life of those with the condition.
Although Nigeria was recently exempted from the requirement, the signs are evident: the country has to graduate from dependence on donor funds for its HIV/AIDS control programmes. Over the years, partners including the U.S. government have been central to the provision of treatment to people living with the virus. However, it is time for Nigeria to own its national response to HIV/AIDS.
Nigeria’s HIV/AIDS burden remains critical, accounting for 10 per cent of the global total. In 2023 alone, there were 75,000 new infections and 45,000 HIV-related deaths. The battle against Mother-to-Child Transmission remains challenging, with only 35 per cent of the target 75 per cent being met. Nearly 1.7 million Nigerian children have been orphaned due to HIV. Vulnerable populations, especially women and children, continue to disproportionately suffer.
To transition away from donor dependence, a multifaceted approach is necessary. Firstly, the country must increase its domestic financing for HIV/AIDS programmes. This can be accomplished through innovative funding mechanisms, such as leveraging public-private partnerships and exploring local revenue sources. Secondly, the government needs to strengthen its healthcare system to ensure equitable access to testing, treatment, and care. This involves expanding access to antiretroviral drugs, investing in community-based models, and addressing the stigma associated with HIV.
Thirdly, Nigeria must prioritise prevention efforts. This entails promoting condom use, providing comprehensive sexual education, and increasing awareness about the risks and modes of transmission. By focusing on prevention, the country can decrease the incidence of HIV infections and ultimately lessen the burden on its healthcare system.
Finally, Nigeria should develop a sustainable human resource strategy for its HIV/AIDS response. This involves training and equipping healthcare workers, engaging community volunteers, and empowering people living with HIV to advocate for their rights. A well-trained workforce is essential for delivering high-quality services and ensuring the long-term success of the response.
The transition beyond donor dependence is a complex but necessary journey for the country. By increasing domestic financing, strengthening healthcare systems, prioritising prevention, and investing in its human resources, the country can create a sustainable and effective response to HIV/AIDS. Also, the government should consider alternative funding mechanisms, such as increased domestic funding, public-private partnerships, and philanthropic initiatives. The time to act is now, for the well-being of present and future generations.
Nigeria’s National Agency for the Control of AIDS (NACA) has made momentous strides in combating HIV/AIDS, including expanding access to testing, treatment, and education. However, challenges persist, hindering the effectiveness of these efforts.
One major obstacle is limited access to healthcare facilities, particularly in rural areas. This impedes timely diagnosis and treatment, reducing the likelihood of optimal outcomes for those living with HIV. Additionally, stigma surrounding the disease remains a formidable barrier, preventing individuals from seeking testing and care. Inadequate awareness campaigns further contribute to low testing rates and delayed diagnosis.
Addressing these challenges requires concerted action by the government and stakeholders. Allocation of adequate funding is crucial to expand healthcare infrastructure and ensure the availability of essential services. Moreover, targeted interventions to reduce stigma and promote awareness are vital for increasing testing and early detection.
Collaboration between civil society organisations and grassroots movements is also essential for advocating for protection of HIV funding. Advocacy campaigns can mobilise public support and pressure lawmakers to prioritise the fight against HIV/AIDS. By addressing these challenges and ensuring sustainable funding, Nigeria can depend less on donor countries, drastically reduce HIV transmission, and provide the necessary care to those affected by the disease.
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