Nigeria: The Tragic Truth Hidden In Plain Sight

 By Kanu Obioha

As of 2014 Nigeria was classified as Africa’s largest economy after it rebased its gross domestic product, GDP; Africa’s most populous country, Africa’s largest democracy, and a major exporter of oil and gas. But Nigeria is currently facing development challenges, which it must overcome to fulfil its significant potentials. The statistics are however not very encouraging and it has become imperative that the people in control of the government and economy be told the truth.

Today at least 33 per cent of Nigerians live in extreme poverty. Between 2018 and March 2022 Nigeria led the rest of the world, surpassing China and India with much higher populations, as the country with the highest number of people living in extreme poverty. Already, Nigeria has the highest number of out-of-school children and those Nigerian children who do attend school have learning outcomes that are among the worst in the world (ten and a half million Nigerian youngsters, mostly girls, are not in school; 98 percent of those out of school are in Nigeria’s poorer North region).

Foreign Portfolio Investors Are Plundering Africa

                                                                                                           (pix: mgafrica)

By Farouk Martins Aresa
If you have your own resources like gold, diamond or oil that brings steady income, why gamble for leverage? Businesses have a good reason for using Other People’s Money OPM to establish and split the profit with risk takers on the long run. If the business fails, owner of the business is protected from personal liability and shareholders also absorbed a loss. In case of governments, Africa’s liability multiplies since countries do not fold, even when they defaults on odious loans.

It is well known that the advantage of stocks and bonds as part of financial portfolio has its gain in long-term profits. This is where capitals are raised for most projects with the hope that the project would produce gain for the investors on the long run. The only beneficiaries of short-term trade, acquisition and corporate raiders are funds managers and black knights in hostile take-over. They now descend on African countries, to make quick cash or profit in Nigeria.

Politicians send loot out while our domiciliary foreign cash account gamble in devalued naira. Dollar account and loot cannot enhance local development. Instead of relying on whatever we have by making sure our foreign reserve is not drained by foreign portfolio investors, we place faith on FPI intention. It’s pennywise pound-foolish to stake foreign income as collateral loan.

Unfortunately, each time these foreign portfolio investment fund managers pull their money out of stocks and bonds at a convenient and opportune time, the government of the day is blamed for bad economic policy driving foreign investors away. In the first place, they are not in our countries for local interest and their local partners furnish them inside information on our policies. Foreign ratting agencies look after the interest of their partners, not local beneficiaries.

Foreign portfolio investors have gravitated towards funds manager seeking their interest for maximum profits around the world. While this is a legitimate pursuit to increase shareholders’ return on investment, it devastates poor African countries trying to get on their feet by seeking long-term investments for infrastructures and capital projects. It could be a win-win situation if the foreign investors do not seek short-term gain at the expense of their hosts.

Cameroon: The Threat of Religious Radicalism

The full report is available in: French.

EXECUTIVE SUMMARY AND RECOMMENDATIONS

In Cameroon, the rise of Christian revivalist (born again) and Muslim fundamentalist movements is rapidly changing the religious landscape and paving the way for religious intolerance. Fundamentalist groups’ emergence, combined with communal tensions, creates a specific risk in the North and increases competition for leadership of the Muslim community: such competition has already led to local conflicts. 

*President Paul Biya of Cameroon 

Moreover, the various religious groups have negative perceptions of each other. The state and the mainstream religious organisations’ response to the emerging radicalism is limited to the Boko Haram threat and therefore inadequate, and in some cases carries risk. A coherent and comprehensive response has to be implemented by the government and religious organisations to preserve religious tolerance and to avoid the kind of religious violence seen in neighbouring Nigeria and the Central African Republic.

Unlike these two countries, Cameroon has never experienced significant sectarian violence. However, the emergence of radical religious groups risks destabilising its climate of religious tolerance. Traditional Sufi Islam is increasingly challenged by the rise of more rigorist Islamic ideology, mostly Wahhabism. The current transformation is mainly promoted by young Cameroonian Muslims from the South, whereas the Sufi Islam of the North, dominated by the Fulani, seems on the decline. These southern youths speak Arabic, are often educated in Sudan and the Gulf countries, and are opposed both to Fulani control of the Muslim community and to the ageing religious establishment. Disagreements between Sufi leaders, traditional spiritual leaders and these newcomers are not only theological: the conflict between “ancients” and “moderns” is also a matter of economic and political influence within the Muslim community.

These changes have divided Muslim communities and already degenerated into localised clashes between Islamic groups. Fundamentalist groups’ growth in the North, combined with local communal tensions, is a potential source of conflict. In the South, the competition between Sufi members and Wahhabi-inspired groups over leadership of the Muslim community will increase and could lead to localised violence.