Tag Archives: nigeria

Carrying Crude Oil to Newcastle: The Resource Curse Strikes Again in Nigeria

Source: Newswire NGR

Source: Newswire NGR

By Otito Greg-Obi

On May 20th, 2015 the lights went out in Nigeria, Africa’s biggest oil producer. Nigeria suffers from a phenomenon known as the curse of oil which is a subset of a larger issue known as the resource curse. The idea behind the curse of oil is that countries with large oil reserves cannot seem to manage revenues in a way that benefits the majority of the population economically and socially. Some of the symptoms of the curse of oil include lack of economic diversification, revenue volatility, inability to provide public goods and services, corruption, government inefficiency and the Dutch Disease.

As soon as the massive fuel shortage in Nigeria struck, numerous businesses and banks shut down. Power outages also affected common households because neighborhoods are typically powered by individually owned generators due to inconsistent provision of public utilities. As soon as licensed gas stations closed down, black market vendors looking to make a quick Naira (Nigeria’s currency) began selling low quality oil at exorbitant prices. The shortage exemplifies the curse of oil by revealing an inability to provide a crucial public good. Furthermore, the shortage unveils the existence of corruption in black market practices.

Oil importers shut down operations claiming that the government owed them $2 billion. Nigeria’s Minister of Finance Okonjo-Iweala countered that importers misrepresented the debt in an attempt to recover lost revenue from the recent decrease in value of the Naira due to global declining oil prices. The global decrease of oil prices is a perfect example of the volatility that comes with the curse of oil and how it can complicate economic transactions between the governments and oil corporations.

Fortunately, oil suppliers and distributors eventually met with the government for negotiations that put an end to the crisis. The specifics of the negotiations have not been revealed but it appears that the crisis has been averted for now. But as global oil prices continue to decline, economic shocks are imminent. What will the government do to thwart the curse of oil?

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Trade Capacity Building and Private Sector Engagement

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By Kirby Bryan

For sustainable economic growth, developing countries must have the capacity to functionally interact with the global market. Much of the onus for building that capacity rests on a domestic commitment to reforms compatible with global trade. Many emerging markets have lofty aspirations that are unachievable given the current state of affairs, but are determined to rectify the situation. Access to foreign markets can cement reform efforts aimed at improving the local economy and sustaining economic growth.

In late February, the Center for Strategic International Studies (CSIS) released a report from their Congressional Task Force on Trade Capacity Building (TCB) on “Opportunities in Strengthening Trade Assistance.” While the report focuses primarily on US efforts to improve the effectiveness and relevance of its TCB programs, it signals a shift in international engagement and understanding of the role trade plays on the growth of a developing economy.

The shift is also indicative of a growing global development trend toward incorporating the voice of the recipient country from the beginning stages of negotiations through agreement ratification. What is interesting about the current TCB discussions is the recognition by major players in the development world of including the knowledge and expertise of the private sector. Ultimately, it is the private sector in the developing and developed countries that will bear the fruits of economic growth and trade.

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Nigeria’s 2015 Elections: The Debates Must Go On

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Just over two weeks ago, Nigeria’s Independent National Electoral Commission (INEC) made the shocking (but not entirely surprising) decision to delay the country’s elections by six weeks. Citing ongoing instability caused by Boko Haram in the country’s Northeast and INEC’s own uncertainty about its ability to deliver outstanding voter cards to nearly 40 percent of the country’s 70 million registered voters, the decision to delay has divided opinions.

On one hand, there is doubt that Nigeria’s woefully inept security forces could provide the kind of protection voters need, and the potential disenfranchisement of hundreds of thousands of voters due to violence would not bode well for a country making efforts to become a more genuine democracy.  On the other hand, there is little reason to believe the military will be ready to both take out Boko Haram and create a secure voting environment in just six weeks. Furthermore, given the high stakes in the race between current President Goodluck Jonathan and General Muhammadu Buhari – in the closest and most hotly contested since the end of military rule in 1999 – many are interpreting the election delay as politically motivated.

What is interesting about most of the dialogue currently surrounding the elections, however, is that it is largely focused at the center. Indeed, think tanks and election-oversight bodies have released study after study with polling data and predictions for presidential electoral outcomes, as well as scenarios for how the elections will impact an already delicate security situation across the country.

Though much of the international community is focused on the preparations for and outcome of the presidential contest now scheduled for March 28 , there is very little conversation about the state level elections taking place two weeks later on April 11.

While the national level race is certainly interesting and important, the top issues facing Nigerian voters must ultimately be dealt with locally. Economic empowerment through job creation is a prime example. Despite Nigeria’s substantial oil revenues, the country nonetheless suffers from massive unemployment and income inequality – the primary factors contributing to endemic poverty, low quality of life, and the growth of insecurity.

The solutions for boosting employment and opportunities for Nigeria’s poor and disenfranchised will not come from the Presidency. State and local governments will need to work in coordination with local businesses to create an enabling environment for small, medium, and large enterprises to thrive.  Therefore, the outcome of state elections will have as much (if not more) impact on the daily lives of Nigerians than the contest for the presidency.

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Teach a (Wo)man How to Fish: The Changing World of International Development

Coalition members meet with political parties. (Photo: @sentellbarnes, IRI)

Members of CIPE-supported business coalitions in Nigeria meet with political parties. (Photo: @sentellbarnes, IRI)

By Laura Boyette and Teodora Mihaylova

It is only natural that the world of international development would itself develop and change over the years to adapt to the changing landscape of needs and local capacity.

At a panel discussion at Georgetown University entitled “The Changing World of International Development,” three development practitioners from leading organizations provided some insight into how their work has changed over the years. The speakers emphasized how local ownership has become central to the planning and implementation of their projects.

Traditionally, the development field was focused on delivery of goods and services, especially in regions suffering humanitarian crises due to natural disasters or conflict. Over the years as the importance of local ownership of development projects became evident, the development landscape shifted to focus more on the provision of supplies and money to local actors to deploy as they saw fit. Both approaches have limitations: a mismatch between resources available and local needs, limited local capacity, delays that significantly diminish chances of success, and often corrupt actors at various points of delivery.

These days, international development actors are focusing more on building local capacity and less on the delivery of goods and services. Building local capacity in service delivery, project management, governance, advocacy, and democratic institutions does not just meet the immediate needs of the community. It also increases the sustainability of development interventions beyond the life of a particular project. Increasing local capacity both ensures the success of the project and creates a multiplier effect as local organizations take over responsibility.

CIPE’s model is locally oriented and and locally driven. Building local capacity has been central to the CIPE strategy for 30 years. Whether it’s through our national business agenda process or through legislative outreach programs that help educate local members of parliament or assembly on the economic and democratic policies and their potential impact, CIPE’s international work focuses on empowering local partners to become agents of change in their communities.

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Nigeria Elections 2015: Building the Private Sector Voice through Coalitions

Coalition members meet with political parties. (Photo: @sentellbarnes, IRI)

Coalition members meet with political parties. (Photo: @sentellbarnes, IRI)

Nigeria’s upcoming elections have been attracting a lot of international attention because of the country’s population, economy, and political status, which are among the highest on the continent. Over the course of a few weeks in early 2015, Nigerians will elect state and national level leaders, including governors and the president.

While Nigerian civil society and the private sector have had difficulty in the past moving national political dialogue towards substance and policy, recent success has been seen at the state level. It is hoped that success will continue in the rhetoric surrounding the state elections, so much so that there can be spill-over into the national dialogue.

Over the past few years, the Center for International Private Enterprise (CIPE) has partnered with coalitions of business and professional associations in seven states across the North Central Zone and Enugu State. The partnerships have been centered on building the advocacy capacity of the various coalitions. Because Nigeria is has a federated system, civil society can attempt to effect change at the state level when it would prove too costly, inefficient, bureaucratic, or in a few cases too corrupt, at the national level.

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Youth and Development in Nigeria: Lessons from Abroad

Chinoso OnahBy Chinonso Onah, honorable mention in the CIPE 2013 Blog Competition. Read the rest of the winning entries here.

India, Singapore, Indonesia, and Korea were poor countries like Nigeria some decades ago. But today they are major players in world politics, economic heavyweights, technological hubs, and advanced countries while Nigeria is still dwindling deeper into collapse amidst plenty of resources. If these were our contemporaries, how did they move above board? And most importantly, what was the role of their youths in such a rapid democratic and economic metamorphosis?

This last question is very important as it forms the focus of our discussion henceforth.

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Voices in the Web – Creating E-Platforms for Socioeconomic Discourse

Dotun Olutoke's Photographby Dotun Olutoke, honorable mention in the CIPE 2013 Blog Competition. Read the rest of the winning entries here.

When I was younger, the riddles and jokes section of Kiddies magazine oozed out an aroma that satisfied my reading pleasure. Of all the riddles I read as a kid, one remains memorable to me. It goes thus:

I am something. I am a good servant but a dangerous master.

What am I?

Electricity – was the answer I got after moments of a brain-tussling exercise.

As I grow older in this information-driven age, the relevance of this riddle came to the fore when social networking platforms were used as a mobilization arena for people to  protest against the removal of fuel subsidy in the ‘wee-days’ of 2012, specifically January 2-3. What used to be a platform where people share pictures, post comments about events, and connect with friends metamorphosed into a potent tool for rallying Nigerians of different religious, political, and social inclinations.

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