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Consumer Credit Scheme: How Desirable?

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On Thursday  May 2, 2024 , an analyst on national radio programme lambasted some Nigerians who did not buy the idea of the consumer credit scheme that was recently approved by the Federal Executive Council and launched by President Bola Tinubu.
A statement from the presidential media office, had indicated that the scheme which will be run by the Nigerian Consumer Credit Corporation (CREDICORP), will offer credit facilities to working citizens in the country and will be implemented in stages, starting with public or civil servants and later extend to the general public.
The analyst did not see the reason why some people should kick against the initiative which in his view offers several advantages of Increased Purchasing Power including:  providing individuals with the ability to purchase goods and services even if they do not have the full amount required at the point of sale;  offering a convenient way to manage cash flow, allowing consumers to spread the cost of a purchase over a period that suits their financial situation; helping people acquire essential items—like refrigerator or car—that they might not be able to afford upfront, thereby improving their quality of life; providing a critical resource in emergency situations, allowing consumers to afford necessary services or repairs that they might not have the immediate funds to cover, among others.
Definitely, advantages of consumer credit schemes abound.
The scheme can greatly enhance purchasing power and provide financial flexibility but we must also admit that it is a double-edged sword and can lead to debt accumulation and financial hardship if not used wisely.
Consumer credit schemes can carry high interest rates and fees, particularly if the balance is not paid off during any interest-free period offered. This can significantly increase the overall cost of the purchased goods or services.
Easy access to credit can lead to overspending and the accumulation of debt, particularly if consumers use credit impulsively or fail to manage their repayments effectively. Missing payments or defaulting on a credit agreement can negatively impact a consumer’s credit score. Poor credit scores can restrict access to future credit and result in higher interest rates on loans.
Again, relying too heavily on credit for regular purchases can lead to financial dependency, reducing a consumer’s ability to save and prepare for future financial needs. It is also a known fact that some credit agreements come with complex terms that can be difficult to understand. This can lead to unexpected charges or conditions that a consumer may not be fully aware of, when entering into the credit agreement.
While this write-up is not aimed at an in-depth focus on the merits and demerits of consumer credit schemes, it is aimed at looking at the suitability of the scheme in present day Nigeria. The nation’s economy is in comatose. Poor electricity supply, high electricity tariff, high cost of petrol and diesel and other economic variables are forcing a lot of companies to pack up.
For some unclear reasons, there has been fuel scarcity in the nation’s capital, Abuja and other cities across the country for over two weeks. While NNPC claims it is due to logistic and vessel problems, the Independent Petroleum Marketers Association of Nigeria (IPMAN), through its Public Relation Officer, Chinedu Ukadike stated categorically that the current fuel scarcity is because “most of the refineries in Europe are undergoing turnaround maintenance.”
Nigeria catches fever whenever Europe and other continents that refine our crude oil cough because we have failed to make the nation’s refineries work. Deadline upon deadline had been given by the federal government on when Port Harcourt and other refineries in the country would commence operation, all to no avail.
One will want to believe that a government that loves its citizens would address the pressing economic challenges before embarking on a consumer credit scheme. Let power supply be made stable and affordable, the refineries be brought back to life to guarantee steady supply of petrol at an affordable price and the value of the nation’s currency be improved so that the salaries of civil servants and other workers will be more meaningful. It is not a question of a new “living wage” or “minimum wage”. It is rather a question of healing the economy and strengthening the Naira so that the workers’ salaries will be more valuable.
What is the essence of encouraging workers to partake in a consumer credit scheme when they are likely to miss payments or default on credit agreement due to numerous financial pressures on them? Is that not capable of increasing their financial stress and anxiety and thereby impact other areas of their lives?
In the past, many civil servants in the country augmented their salaries through agriculture. I remember my uncle, a civil servant working in Enugu, coming to the village almost every weekend to carry out some work on his farms in Uzo-Uwani Local Government Area of the State and when going back to Enugu on Sunday, he goes with jerry cans of palm oil and different kinds of food items from his farms. Today, due to the lingering insecurity in communities across the country, many civil servants hardly visit their villages not to talk of going to farms. So they depend solely on their salaries.
Of course, the launched consumer credit scheme is optional but necessary steps must be taken to improve the economy, security and the living standard of the citizens so that anyone who opts to obtain a loan through the scheme will not have a nightmare servicing the loan. CREDICORP and other relevant authorities also owe the citizens the duty of explaining the nitty gritty of the scheme to the citizens. Let the consumers know that what they are taking is a loan that must be paid within a specified duration with an interest – not a grant.
It is important that consumers, that is, federal and state civil servants and others included in the first phase of the scheme , are advised to carefully consider their financial situation and the terms of credit agreement before committing to the consumer credit scheme so as to minimise risks and enable consumers to maximise the benefits of the scheme.
It is hoped that the experience of previous federal government loans like the CBN’s Anchor Borrowers Programme, the Targeted Credit Facility (TCF), introduced by the CBN to support households and SMEs affected by the Covid-19 pandemic does not repeat itself. We saw some beneficiaries of the TCF protesting when commercial banks began the loan recovery, claiming that what they received was Covid-19 grants not loans and it should not be repaid. The would-be beneficiaries of the Consumer Credit Scheme must be properly educated. Adequate mechanisms must be put in place to ensure recovery of the loan from defaulters.
CREDICORP must also ensure that only the eligible citizens who have applied for the loan got it. It should not be a way of empowering some political party members or people that are highly connected.  According to the special adviser to the president on media and publicity, Ajure Ngalale, “The scheme will be rolled out in phases, starting with members of the civil service and cascading to members of the public.” The president believes every hardworking Nigerian should have access to social mobility, with consumer credit playing a pivotal role in achieving this vision.” Nigerians await the materialisation of this.

Calista Ezeaku

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IWD: Accelerating  Action To End Women Harassment 

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March 8, every year is International Women’s Day. Recall that in 1922, Wedmir Lenin declared March 8 as International Women’s Day to honour women’s roles in the 1917 Russian Revolution. Subsequently, it was celebrated on that date by the Socialist Movement and Communist countries.However, the United Nations officially endorsed that date in 1977, establishing it as a global observance for women’s rights and gender equality. The 2025’s theme is “Accelerating Action” to advance gender equality by highlighting strategies, resources and initiatives that drive progress. Unfortunately, while many countries in the world accelerate action to foster inclusivity of women in mainstream policymaking and decision taking; recognise and celebrate the meritorious and creditable roles of women as primary agents of socialisation, sustainable growth and influencers, in other countries, in the Sub-Saharan Africa some women are being victimised, intimidated, and repressed for not giving in to pernicious sexual advances of some men in power.
Some women are being ridiculed and lampooned for cultivating the effeontery to resist the inordinate sexual harassment of base men. However I  do not lose sight of the obvious reality that some women have played the porn as a result of lacking the strong will to say “no” to men who see women as opportunity to express their inordinate sexual urge even outside the bond of matrimony. Yes, the likes of Joi Nunieh and Senator Natasha who can cry out or call the shots and “slap” men who harass women are few among women. This makes women the architect of their reproach and disdain. When women go for the carrot, pottage, flashy cars, at the expense of morality, they lose their maiden dignity in civilised climes where moral values are savoured. Nothing in the world or comprehensively put, the whole world put together is not worth a woman’s worth, so no reason can best lend support to the situation where a woman offers her body as an opportunity to access pecuniary  mundane, temporary benefits that have no eternal value and translates to a reproach.
Most societies have intentionally created a poverty-ridden situation where women are worst hit so the base fellows can use women weakness and lack as a smokescreen to get more than a pound of flesh for their paltry gifts. This is why in my considered view, the agitation for the acceleration of action to foster gender equality is imperative. Enough to women exploitation in political institutions, offices, religious organisations, families and educational institutions. Women’s fundamental rights should be recognised and accelerated to achieve the more than 35 percent affirmative action of the Geneva Convention. However, freedom is not without a price. Women must prove to men that the female gender does not suggest inferiority and cannot be exploited, or used as sex machine by men who lacked  or have regard for moral values.
The White House sex scandal should inspire the Nigerian women to resist being abused and exchanged for worthless gifts. Women should rather choose to suffer marginalisation, and victimisation or possibly die for what they conscientiously believe is right than living in shadow of real life. Methinks men who have mother and realise that they are the gateway to physical should not fail to treat women with dignity. Paul said, “…. Treat the old women as your mother and the young women as your sisters with all purity and respect”. (1 Timothy 5: I). The time for women movements to rise to defend their fellow women from sexual harassment is now. It is only in a morally-decadent society that a man who has  subsisting cases of sexual accusations, is treated as lord, instead of making him step aside for proper investigations. However, my heart goes out for men, organizations and institutions who in recognition of the critical and invaluable roles of women in Nigeria, rolled out drums to give them a pat at the back.
Consequently, I celebrate the Managing Director of the Rivers State Signage and Advertisement Agency (RISAA), Aye Pepple, who according to reports has urged individuals, organisations, and the government to celebrate women and actively encourage their growth in all spheres of life. Speaking in commemoration of International Women’s Day (IWD), Pepple emphasised the importance of recognising women’s contributions and ensuring they are empowered to achieve their full potential. According to him, “Women play an essential role in shaping our society, and their efforts must never go unnoticed. “This year’s International Women’s Day serves as a reminder that we must do more than just celebrate them”. He highlighted the significance of gender inclusion in leadership, entrepreneurship, and governance, stressing that societies that empower women tend to experience sustainable growth, adding that “at RISAA, we believe in amplifying women’s voices, whether in the workplace, in business, or in the creative industry. “We must all do our part to provide opportunities, mentorship, and support that help women succeed.” Kudos to institutions and organisations who understand the roles of women as agents of shaping society.

Igbiki Benibo

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Opinion

Drunken Captains Of A Sinking Ship

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Ronald Reagan,  former President of the US, once said that “African leaders spend like drunken sailors; only that drunken sailors spend their own money while African leaders spend public money”. This opinion decries endemic corruption and the resultant underdevelopment in Africa; it reflects strongly on Nigeria, which is prodigiously endowed with human and natural resources yet flags the ignominious moniker of “poverty capital of Planet Earth”. Following the 2023 presidential election, an author referred to Nigerian leaders as “the scoundrels that are systematically sinking the ship of the Nigerian State”. In same vein, Majeed Dahiru held, on  Kakaki TV, that Nigeria’s “political leaders act like drunken sailors aboard a sinking ship”. The thematic string that ties the above averments are the metaphors of “Drunken captains” and a  “sinking ship” hence they informed the title and essence of this piece.
Currently, Nigeria strains from the senseless squandering of the nation’s resources by bleeders who masquerade as leaders while a mammoth majority of citizens wallows in abject poverty. The heartless display of affluence by authority figures belie the economic strangulation of the masses. Besides the brazen abuse of public office, political office holders in Nigeria recklessly display such personal wealth that cannot, by any stretch of the most liberal imagination, be justified within the limits of their legitimate income. From building trophy houses that only massage their bloated ego to acquiring outrageously expensive personal effects and holding lavish parties, Nigerian public officers constitute the worst role models. Patrice Ukposi, an attorney, thinks the phenomenon bothers on neurosis.   The Nigerian President lives in the multi-mansion maximum security exclusivity of Aso Rock, far away from the reach of everyday Nigerians.
He rides in a 36-car motorcade, has a double digit jetliner presidential fleet and has two stretch limousines, SUVs and six outriders at his service during overseas trips .  The abnormality of this is made profound when compared with his British counterpart who works in a modestly furnished office, lives in an equally modestly furnished apartment at No. 10 Downing Street, which  is open 24/7 to everyday traffic and flies British Airways. The current Senate President who, Dahiru holds, “appointed thirty-three aides, for starters” competes rather favourably in this irresponsible display of opulence.  In a video clip, a former senator  displayed an array of expensive watches, a wardrobe stock to the brim with designer clothes, shoes, diamond-studded gold rings and chains, suitcases of vintage leather, perfumes and the luxurious interior of his expansive bedroom.
Also,  numerous expensive cars and power bikes adorn his sprawling garage. Ukposi is right;  this brazen display of obviously ill-gotten wealth indicates neurosis and calls for urgent psychiatric attention. Ironically, this recklessness is taking place in a country with high unemployment rate, approximately 30 million out of school (OOS) population and an economy that applies 97per cent of its revenue to service a debt burden (Q3, 2024) of $43.0 billion. By their docility, Nigerians have promoted evil to the highest positions in the land. Resultantly, Dele Farotimi and other crusaders who are courageous enough to still call evil by its name are being hounded and persecuted by evil doers in authority. The Nigerian Ivory Tower has been discolored by umpires turned electoral auctioneers. The hitherto rugged legs of the Bench have been broken and the wig smeared.
The clergies, the supposed keepers of the nation’s morality, have been drawn into the rot of crass materialism. Obviously, the Nigerian ship is sinking and the captains are stupefied by their neurotic quest for materialism oblivious of the fact that everyone will go down below if and when the ship sinks.  Legislators approve for themselves monthly allowances that economically set them apart from the rest of the society thereby creating a social disconnect. Billions of Naira are spent on a presidential yacht and an additional jet to the double-digit presidential fleet; billions of Naira are allocation to nonexistent offices and more than eight billion Naira spent by the presidency on travels in the first quarter of 2024. Within the same period, State Governors collectively spent more than N968billion on refreshments. In less than three days, a loan request by the Presidency for more than N1trillion was approved by a complacent and compliant legislature.
Certainly, the captains of the Nigerian ship are drunken and the ship is lurching towards an economic abyss that might precipitate social upheaval of an unimaginable magnitude. At the state level, a drunken legislature of twenty-four whimsically increased the State budget by “more than N70billion”; this translates to N2.9billion per member. Talk of drunkenness. The height of the drunkenness of Nigeria’s captains is the current contemplation to create additional thirty-one States to make for sixty-seven States in a federation where not more than three of the existing thirty-six States are solvent. The simple supposition is that the legislators are striving to create more points of looting to serve their selfish interest. Like iguanas deaf to advice, the drunken captains of our sinking ship are lost in vice. Intoxicated by their ill-gotten loot, they are suffering from impaired decision-making while tightly clutching the helms of governance with incapable hands.
Therefore, Nigerians, especially the youth, must brace up for the generational struggle for political and economic emancipation from the stranglehold of swashbuckling psychopathic scoundrels who obviously are bent on sinking the ship of the Nigerian State.

Jason Osai
Osai lectures in Rivers State University.

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Opinion

NDDC, A Regional Commission?

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The Niger Delta Development Commission was established by the Federal Government of Nigeria to mitigate the effects of oil exploration and exploitation activities on the oil bearing communities or States. It is worthy to clarify that some of the  NDDC states are not from South-South geographical zone. NDDC is about oil producing States, irrespective of the geographical location. South – South geographical zone is made up of six states namely; Akwa-Ibom, Bayelsa, Cross River, Delta, Edo and Rivers State. As it is today, there is no regional commission called South-South Commission. Rather, what is well-known, is Niger Delta Development Commission to aid development in the oil-bearing States. NDDC is a distinct interventionist agency of the Federal Government of Nigeria to douse down tension or agitation of the people of Niger Delta region.
Agitation by the bearing community led to the establishment of the Ministry of Niger Delta Affairs, despite being scrapped by the present administration of President Ahmed Bola Tinubu. For instance, Abia State is in South-East region and it is part of NDDC, and it will benefit from South-East Commission established by the present Federal Government of Nigeria, to fast track development of South-East Zone. So, Abia State would benefit from NDDC and South-East Commission. Abia is an oil producing state in Nigeria. In the same position, Imo State is a South-East State and also an oil producing state; which automatically makes it a member of NDDC State.  And would benefit from both commissions; and no doubt, because of being an oil producing State and by location, South-East State. Automatically, by virtue of oil activities going on in the two Eastern States, they are members of Niger Delta Development Commission.
In the line of operation, Ondo State is in South-West region and by virtue of being an oil producing State, is a member of NDDC. This no doubt, makes Ondo State a beneficiary of NDDC creation. There is no question to ask why Ondo should be member of NDDC? And Ondo State is a member of South-West Development Commission, because of its geographical location as a State in that region. So, the argument that NDDC is a regional commission is out of place. Thus, NDDC is not only for States in the Niger Delta. Another question is: is there an established commission known as South-South Development Commission, that Rivers State, Akwa Ibom, Edo, Delta, Bayelsa and Cross River should benefit from? The answer is capital No! So NDDC is not a regional commission because it is not only for the six states that make up the South- South. Hence, there is need for the present Federal Government of Nigeria, to urgently address the inequality and disparity created already.
This is because the six geographical zones have zonal commissions. The Federal Government should correct the equation. The misconception that NDDC is regional is not in order and is not correct. As it is today, there is no South-South Commission to help fast track development in the region. The political representatives from the South-South zone, should unite themselves and demand for South-South Development Commission as other zones have theirs. The Federal Government should put modalities in place to establish South-South Development Commission. The status quo should not be allowed to remain as it is now. Thank God, the daily quota of oil production has increased to about 2.5m barrel per day. And that is the reason why South-South should also benefit from the increase of oil activities in Nigeria.
Observationally, every region is bracing up to gain from the oil revenue of the country. And South South Zone which seems to be the hub of oil and gas is lagging behind in terms of purposeful development. NDDC should embark on an aggressive development of the member states. The Federal Government of Nigeria, should correct the negative believe that NDDC is a regional commission. Politicians of the zone should sheathe their swords of discrepancies and work together for the development of the zone. There should be a united front to convince the Federal Government to create or establish South-South Development Commission. Therefore State of the South-South zone in the Niger Delta Development Commission should be made to benefit like their counter parts from South- East and South- West in the NDDC. Thus, NDDC goes beyond regional vision. And that is why the Federal Government should establish South- South Development Commission to balance the equation of regional commission springing up in the country.

Frank Ogwuonuonu
Ogwuonuonu  is a free lancer in PortHarcourt.

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