Opinion
Increase in Minimum Capital Requirements for Nigerian Banks (Pt. II)

By Bashorun J. K. Randle
It is self-evident that whatever the Governor of the Central Bank is doing (or not doing), the backing (and banking!!) of the President is critical. On that score, President Bola Ahmed Tinubu did not pull any punches when he spoke at the Hague, Netherlands during the business session of the bilateral meeting with the Dutch team, led by Prime Minister Mark Dutte.
“I am ever ready to take tough decisions in the best interest of the people, even if with initial pains. I am a determined leader; I will continue to take the difficult decisions that will benefit our people, even if there is a short-term pain. I am unafraid of the consequences once I know that my actions are in the best long-term interests of all Nigerians.”
Hence, we must recognize the over arching influence of Mr. President in economic, financial and political matters. When he was sworn in on 29th May 2023, he released an unscripted bombshell while delivering his inaugural address at Eagle Square, Abuja: Shortly afterwards, he spilled the beans in Paris while addressing Nigerians. According to AFP [Agence Francais-Presse]
“When I got to the podium, I was possessed with courage and I said fuel subsidy is gone. Also, no more parallel (black market) for dollars.”
On November 22, 2023, when President Tinubu addressed German-Nigerian Business Forum again he did not pull any punches:
“Nigeria voted for me for reforms, and from day one of my inauguration, I started the reforms. To me if you didn’t mention me in the Guinness Book of Records, I’d strive to find a way to insert myself because I did it without expectation.”
The endorsement of the IMF [International Monetary Fund] followed on February 14, 2024.
“The new Tinubu Administration has made a strong start, tackling deep-rooted structural issues in challenging circumstances. Immediately it adopted two policy reforms that its predecessors had shield away from: fuel subsidy removal and the unification of the official (dollar/naira) exchange rates.”
Front page editorial of “Nigerian Tribune” newspaper.
Headline: “BRIBES : TINUBU’s CHARGE TO INVESTORS”
“President Bola Tinubu recently set tongues wagging when, during his just concluded trip to Doha, the Qatari capital, he told the country’s captains of industry to report directly to him if any Nigerian official demanded a bribe from them in order to facilitate a business transaction. Revealed in a signed statement by Special Adviser to the President on Media and Publicity, Ajuri Ngelale, the president’s message to Qatari investors at the Nigeria-Qatar Business and Investment Forum could not have been clearer: “Do not offer a bribe to any of our people, and if it is requested or taken from you, report to us. You will have access to me.”
Eager to drive home the point that the country is open to business and will adopt a business-friendly approach on his watch, he added: “Whatever is the obstacle or problem that some of you might have experienced; it is in the past because there is no obstacle in the future. We are removing obstacles today, and we are going to continue to remove all obstacles. We have done so much within nine months. And I assure you, it is free entry, and free exit. Your funds will flow smoothly into and out of our country. Bring your investments.” Finally, he urged Qatari investors not to allow “perceptions” about the country to “become a hindrance to [their] will to invest,” since “Nigeria is serious about revolutionizing investment promotion.”
We could not be more delighted to read this promise of radical transparency from the president since, at the very least, it shows that he is not unaware of the tremendous odds typically faced by any entity- individual or corporate- seeking to do business in Nigeria. While, as the president mentioned, corruption is the most significant among these challenges, it goes without saying that it is just one of many tangible and intangible obstacles to investment.
Accordingly, not only do we welcome the president’s statement, for nothing could be more timely, we urge him to do everything within his capacity to ensure that the book is thrown at whoever flouts it, no matter how highly placed such a person is in the current administration. In other words, nothing is more important than the president backing his rhetoric with action, for understandably, many Nigerians are bound to sneer, saying that they have heard such soaring rhetoric before and that when the time came for egregious misdemeanors to be punished, the government lost its nerve. Since such skeptics have a point, the task before the president is to show that their skepticism has no basis, and that he will let the hammer fall on whichever official demands inducement to do their job.
Until then, he can, as a matter of fact, do something about the current situation in the upper legislative house, where rumours of budget-padding and dubious awards to senators have cast a shadow upon the integrity of the lawmakers. If the government is truly interested in fighting corruption, it can do no better right now than to act on the many cases of corruption dotting the landscape, including those affecting and relating to those within the inner circle of government. This would send the right and correct signals that Nigeria is ready for positive change and a new approach to public life rather than following the usual ineffective and tawdry public assertions that mean nothing in reality.”
The Central Bank of Nigeria used to boast of an excellent Research Department with a world class library. The King’s College Old Boys Association [KCOBA] would not take matters for granted. Here is a list of books which are to be delivered to the Governor of the Central Bank, Mr. Yemi Cardoso and Deputy Governor, Mr. Phillip Ekeazor (who are both old boys of St. Gregory’s College, Lagos:
(i) “Curse of Cash” by Kenneth S. Rogoff
(Harvard University)
(ii) “The Origin And Prevention of Major Wars” by Professor Robert Rothberg
(Harvard University)
(iii) “The Bottom Billion” by Professor Paul Collier
(Oxford University)
(iv) “What Terrorists Want: Understanding the Enemy, Containing The Threat” by Professor Louise Richardson
(Oxford University)
(v) “The Elite Africa Project” by Professor Peter Lewis
(John Hopkins University)
(vi) “WONDER DRUG”
(7 Scientifically Proven Ways
That Serving Others Is The
Best Medicine for Yourself) by Stephen Trzeciak M.D.
and
Anthony Mazzarelli M.D
(vii) “THE ROAD TO FREEDOM, ECONOMICS
AND THE GOOD SOCIETY” by Joseph E. Stiglitz
(Winner of Nobel Prize)
Professor at Harvard; Yale;
Emerson College, University
Of California, Berkeley
From the archives we have the following vignettes:
(i) When the British Bank For West Africa
(now known as First Bank of Nigeria Plc)
was formed in 1894 among its founding
shareholders was Dr. J.K. Randle. The
inaugural meeting was held at the Colony
Hotel, in London.
(ii) When British Bank of West Africa launched a branch in Kano in 1929, Alhassan Dantata (Aliko Dangote’s grandfather) opened an account by depositing twenty camel-loads of silver coins.
(iii) “The Chairman of EFCC [Economic and Financial Crimes Commission] has announced that the embattled former Governor of Kogi State, Yahaya Bello withdrew funds from the government treasury and obtained U.S.$720,000 from a Bureau de Change to pay for his children’s school fees in advance at American International School, Abuja”
“Business Day” newspaper of May 8, 2024
Headline: “CHIKE-OBI CAUTIONS AGAINST POOR EXECUTION AMID BANKS’ RECAPITALISATION”
Mustapha Chike-Obi, chairman, Bank Directors’ Association of Nigeria, on Friday lauded the Central Bank’s latest bank recapitalisation policy but warned that poor execution could scuttle the gains.
Chike-Obi spoke at a roundtable assessing the bank recapitalisation policy organised by BusinessDay Media Limited in Lagos. He noted the 2004/2005 recapitalisation exercise was a good policy but was poorly implemented due to governance issues.
The CBN on March 28 announced new capital requirements for Nigerian lenders from commercial to merchant banks. The last such exercise was in 2004/2005, two decades ago.
During the recapitalisation of 2004/2005, a surge in liquidity occurred without adequate investment opportunities, leading to an asset bubble and subsequently the dismissal of several bank chiefs.
“A good policy that brings bad results means execution was problematic along the way. We are seeing bad results from good policies and nobody is taking responsibility for that. We should celebrate the policy and the results,” he said.
Speaking further, he said, “I encourage more engagement from the CBN, it’s better if they talk to the banks about why retained earnings are not considered at this point in time.
I think there should have been better engagement, some things need to be explained. Why does an international licence require more capital than a national licence? If you’re diversifying across nations, does that mean more risk? If I have one branch in London as Fidelity, am I in the same boat as a UBA who has many branches in many countries?” Chike-Obi, Chairman of Fidelity Bank Plc, said.
The CBN said all international banks should move their capital to a minimum of N500 billion; national banks up to a minimum of N200 billion; regional banks (N50 billion); merchant banks (N50 billion) and N20 billion for non-interest banks operating nationally and N10 billion for those operating regionally.
In his keynote address, Ike Chioke, Group Managing Director Afrinvest (West Africa) Limited, noted that “after the announcement of the last recapitalisation we had 89 banks operating with N311 billion total capital, which was equivalent to $2.4 billion at the time.
We ended up by December 31 2005 with 25 commercial banks each with a minimum of 25 billion and a total capital of N932.0 bn.
He said that commercial banks have a capital gap of N3.7 trillion to meet the capital requirements while the merchant banks have N200.6 billion.
There is some scepticism that banks will take on significantly more lending to the private sector once their minimum capital is raised given the risk in an economy battling with accelerating inflation and a severe cost-of-living crisis.
“We can still lend, but we’re limited in how much. As a banker, it’s more attractive to buy Treasury bills at 25 percent than to lend to people,” Chike-Obi said.
“There’s a reluctance by banks to lend. I would have reduced CRR, and told banks they can’t buy more than 10 percent of T-bills. This will force them to lend to people.”
He also said the notion that banks give people money to buy FX is not true.
“People only buy FX because it makes sense to them. It’s a rational economic decision. What we have to do is to make it more rational to hold assets in naira than in dollars. I’ll raise short term rates to 30%, and prevent banks from having more than 10 percent in T-bills.
What we have doesn’t allow growth and banks aren’t lending. I believe GDP growth will be lower in the fourth quarter than predictions. The raise in capital is necessary because the FX adjusted basis has gone down. So, the recapitalisation isn’t as massive as it looks from the outside,” he said.
Front page of “The Punch” newspaper of April 22, 2024
Headline: The Institute of Chartered Accountants of Nigeria
Recommendations made by the Institute of Chartered Accountants of Nigeria on the New Minimum Capital Requirements for Banks in Nigeria: Our Position.
“Given the above, the following recommendations are made to ensure a successful implementation of the programme:
1. The CBN may consider allowing the inclusion of retained earnings on the condition that they are not impaired by losses, to make it easier for the banks to comply with the new capitalization policy.
2. The two-year period allowed is considered sufficient to implement the programme. However, in view of the young age of non-interest banks in Nigeria, they should be allowed a longer period, probably three years, to meet the minimum capital requirements.
3. The Institute urges the CBN to extend the 30-day period it gave banks to come up with an implementation plan to 60 days given that it would take some time to obtain the consent of shareholders.
4. It is also important that the CBN provides some incentives to banks to facilitate the recapitalization exercise as was done in 2005. This can take the form of tax incentives and ensuring that the overall cost of recapitalization is low by seeking the cooperation of relevant stakeholder institutions such as the Federal Inland Revenue Service, the Securities and Exchange Commission, the Nigerian Exchange as well as the Federal Competition and Consumer Protection Commission given that banks have the option of raising funds through the Capital Market or Mergers and Acquisitions.
5. The CBN should adequately supervise the banks to ensure that the costs of recapitalization are not transferred to their customers by way of higher bank charges.
6. The CBN is advised to engage the Bankers Committee on measures to put in place to ensure adequate compensation to staff of banks that may be disengaged as a result of the recapitalization exercise.
7. Exercise due verification to ensure that corrupt and laundered money do not find their way int the capitalization.”
Frontpage of “ThisDay” newspaper of April 13, 2024
Headline: AUDIT REPORT: SENATE PROBING 774 FEDERAL AGENCIES OVER AUDITOR GENERAL’S QUERIES”
“The Senate is currently scrutinizing the financial records of 774 Federal Agencies based on the queries raised against them in the 2019 report of the Auditor General for the Federation.
The Chairman, Senate Public Accounts Committee (SPAC), Senator Aliyu Wadada, disclosed this yesterday in his Keffi, Nasarawa State, country home while speaking with journalists. He noted that his committee was not out to witch-hunt anyone but pledged that members of the panel would discharge their responsibilities diligently in the best interest of the country.
Wadada, also disclosed that the 10th National Assembly with the support of President Bola Tinubu and critical stakeholders in the nation’s economy would soon embark on the amendment to the 2007 Procurement Act so as to curb financial infractions before they take place.
He nevertheless appealed to leaders at all tiers and heads of government institutions at the Federal, State and Local government levels to embrace the spirit of self-discipline and fear of God in the discharge of their responsibilities.
The Senator, who is representing Nasarawa West Senatorial District on the platform of the Social Democratic Party (SDP), said no matter how beautiful a law is crafted, it needed godly people to implement it.
Wadada said, “When I became the Chairman, Senate Public Accounts Committee (SPAC), I was emphatic on the need for President Bola Tinubu to appoint the substantive Auditor General for the Federation (AuGF).
“I even wrote a letter to that effect to the President and he responded by appointing a substantive AuGF.
The AuGF report for the 2020, 2021, 2022 fiscal years were not all ready. It was only the 2019 Auditor General’s report that was then ready for us to take actions on.
The Auditor General’s report for 2020 was ready at the time I became the Senate Public Account Committee but it could not be signed by the acting Auditor General for the Federation.
As we talk, the 2020 Auditor General’s report is ready and the substantive AuGF has appended his signature to it. The development is a confirmation that the Presidency under the stewardship of President Bola Tinubu is available, is responsive and supportive of the Committee on Public Accounts in the two chambers of the National Assembly. We have since started work on the 2019 Auditor General’s report before us.
Under my chairmanship of this sensitive and strategic committee, I have repeatedly said that we are not out to witch-hunt or pull down anybody.
Our ultimate objective vis-à-vis the primary focus of the committee is to ensure transparency and accountability in the management of public funds.”
Front page of “The Punch” newspaper of April 12, 2024
Headline: VIETNAM TYCOON SENTENCED TO DEATH IN
$12BN FRAUD CASE”
“A court in Vietnam sentenced real estate tycoon Truong My Lan Thursday to death over her role in a 304 trillion dong ($12.46bn) financial fraud case, the country’s biggest on record, state media reported.
CNN reports that her trial, which began on March 5 and ended earlier than planned, was one dramatic result of a campaign against corruption that the leader of the ruling Communist Party, Nguyen Phu Trong, has pledged to stamp out.
Lan, the chairwoman of real estate developer Van Thinh Phat Holdings Group, was found guilty of embezzlement, bribery and violations of banking rules at the end of a trial in the business hub of Ho Chi Minh City, state media said.
We will keep fighting to see what we can do,” a family member told Reuters, speaking on condition of anonymity. Before the verdict, he had said Lan would appeal against the sentence.
Lan had pleaded not guilty to the embezzlement and bribery charges, Nguyen Huy Thiep, one of Lan’s lawyers told Reuters.
“Of course she will appeal the verdict,” he added, noting she was sentenced to death for the embezzlement charge and to 20 years each for the other two charges of bribery and violations of banking regulations.
Vietnam imposes the death penalty mostly for violent offences but also economic crimes. Human rights groups say it has executed hundreds of convicts in recent years, mainly by lethal injection.
The Thanh Nien newspaper said 84 defendants in the case received sentences ranging from probation for three years to life imprisonment. Among them are Lan’s husband, Eric Chu, a businessman from Hong Kong, who was sentenced to nine years in jail, and her niece, who got 17 years.
Lan started as a cosmetics trader at the central market in Ho Chi Minh City, helping her mother, she told judges during the trial, according to state media.
She later founded her real estate company, Van Thinh Phat, in 1992, the same year when she got married, according to state media. She was found guilty, along with her accomplices, of siphoning off more than 304 trillion dongs from Saigon Joint Stock Commercial Bank, which she effectively controlled through dozens of proxies despite rules strictly limiting large shareholding in lenders, according to investigators.
From early 2018 through October 2022, when the state bailed out SCB after a run on its deposits triggered by Lan’s arrest, she appropriated large sums by arranging unlawful loans to shell companies, investigators said.
The defendant’s action not only violate the property management rights of individuals and organisations but also put SCB under scrutiny, eroding people’s trust in the leadership of the Party and State,” state newspaper VnExpress cited the jury as saying.
The bank is currently propped up by the central bank and faces a complex restructuring under which authorities are trying to establish the legal status of hundreds of assets that were used as collateral for loans and bonds issued by VTP. The bonds alone are worth $1.2bn.
Some of the assets are high-end properties, but many others are unfinished projects. Before her fall from grace, she had played a key role in Vietnam’s financial world, getting involved in the previous rescue of troubled SCB more than a decade before she contributed to the bank’s new crisis.”
Front page of “Africa Voice” newspaper of 29 April, 2024
Headline: “PROF WINS TOP AWARD FOR ISLAMIC MORAL ECONOMY”
“Professor Mehmet Asutay has been selected as the first-place winner of the 2024 Islamic Development Bank (IsDB) Prize for Impactful Achievement in Islamic Economics and influential contributions to the field of Islamic economics and finance.
The prize laureate is a Professor of Middle Eastern and Islamic Political Economy & Finance at Durham University, United Kingdom. He is an internationally recognized academic who produced pioneering and impactful scholarly works.
Professor Asutay was selected in recognition of his novel work on Islamic moral economy and the articulation of Islamic finance to be supportive of sustainable development and the welfare of human beings. This year’s prize cycle aims to recognize, reward and encourage significant knowledge contributions in Islamic economics with the potential to solve major development challenges of IsDB member countries. The prize comes with a US$50,000 award for the first prize winner, US$30,000 for second prize, and US$20,000 for third prize. However, the second and third-position prizes are withheld this year.
Every year the winners of the IsDB Prize are selected by a different committee of experts from outside the IsDB Group, whose work is coordinated by the Islamic Development Bank Institute (IsDB).
The winner of this year’s prize will receive the award during the IsDB Group Annual Meetings, scheduled for 27 – 30 April 2024 in Riyadh, Saudi Arabia. In his comments on this occasion, the President of the ISDB, H.E. Dr. Muhammad AI Jasser, congratulated the laureate for his impactful knowledge contributions and wished him success in this various endeavours. Acting Director Generl of IsDB, Dr. Sami Al-Suwailem, also congratulated H.E. Dr. Al Jasser for guiding the Institute towards the successful coordination of the prize.”
Opinion
President Trump’s Transformation of the Democratic System

By Magnus Onyibe
President Donald J. Trump is actively reshaping the global political landscape, navigating the tension between globalization and fragmentation to establish a new order in the United States and, by extension, the world.
Before delving further into this discussion, I must disclose that I am an unapologetic supporter of the 47th President of the United States, Donald J. Trump. My support stems from my belief that he is undeniably a catalyst for change.
Many, including Democratic presidential candidates in the 2024 elections,ex president Joe Biden and former Vice President Kamala Harris, have accused Trump of seeking to dismantle democracy. However, a more accurate assessment is that he is challenging the status quo in Washington through radical policy shifts. While Democrats frame his actions as a threat to democracy, I see this as a misleading narrative,because changing the dynamics of democracy does not equate killing it.
Despite the alarm raised by his opponents, American voters prioritized economic concerns—rising inflation, the high cost of living, soaring housing prices, and the influx of undocumented immigrants—over the warnings about imminent death of democracy. It was these pressing issues that motivated voters to support Trump’s return to the White House.
The more than 77 million Americans who voted for him did so because they believe he was on a mission to address what they see as a “woke” and financially struggling America. According to the Oxford Dictionary, “woke” refers to those who are socially aware but is often used pejoratively to describe individuals perceived as self-righteous or overly dogmatic in their advocacy.
True to his promises, Trump wasted no time in implementing his agenda. During his inauguration, he took a strong stance against “woke” ideology by affirming that the U.S. Constitution recognizes only two genders—male and female—a direct challenge to the LGBTQ+ community. He has since followed through on his pledges by signing a series of executive orders aimed at radically reshaping America.
So, from my perspective, Trump is simply fulfilling the commitments he made during his campaign. The backlash from those negatively affected by his policies is therefore unsurprising, yet it should not overshadow the fact that he is delivering the change that millions of Americans willingly voted for, believing it will restore the country’s greatness.
As someone who embraces change, I am excited to see a leader who challenges the status quo in public leadership finally take charge. That leader is Donald J. Trump, who has now assumed office in the White House, the seat of U.S. political power.
Given President Tinubu’s huge appettite for change which has wrought on Nigeria in the past 2O months,he may be said to be cut from the same cloth with Trump, literally speaking.
Mr. Trump as the leader of the free world- U.S, exerts enormous influence on global affairs, reinforcing the popular saying: when America sneezes, the rest of the world catches a cold. This is evident in Trump’s decision to impose tariffs on key trading partners—25% on Mexico, 25% on general goods plus 10% on Canadian oil, and 10% on China—primarily to curb illegal immigration and combat the flow of fentanyl, a deadly drug ravaging American communities.
Before Trump even took office, his threats of tariff hikes caused global concern. However, World Trade Organization (WTO) Director-General Dr. Ngozi Okonjo-Iweala, speaking at the World Economic Forum (WEF) in Davos, urged caution: “I am concerned, but my approach is to stay calm. Let’s wait to see what policies are actually enacted before overreacting.”
Despite this advice, some countries affected by the new tariffs —especially Mexico and Canada—have already announced retaliatory tariffs, raising fears of an all-out trade war. Meanwhile, China has opted for a legal approach, filing complaints against the U.S. through the WTO.
As the head of the WTO, Dr. Okonjo-Iweala will play a crucial role in resolving this looming global trade conflict. Given her extensive experience—including her tenure at the World Bank and her ongoing second term as WTO chief—there is hope that she can help de-escalate tensions.
Anticipating the economic impact of the trade war, President Trump has urged Americans to brace for temporary hardships, acknowledging that tariffs might contribute to inflation. However, he remains confident that the outcome will ultimately benefit the country, declaring: “This will be the golden age of America. Will there be some pain? Yes. But we will make America great again, and it will be worth the price.”
This sentiment is reminiscent of Nigerian President Bola Tinubu’s remarks when he removed the long-standing fuel subsidy and floated the naira, leading to economic hardship for Nigerians. He reassured the nation, saying: “I understand that our people are suffering, but there can be no childbirth without pain. The joy of childbirth is the baby. Relief comes after the pain. Nigeria is being reborn.”
Remarkably,Trump’s policies signal a fundamental shift away from globalization—a concept introduced between 1870 and 1914 and later popularized in 1983 by economist Theodore Levitt in his essay titled “The Globalization of Markets.” The current global order, shaped by decades of economic integration, now faces disruption under Trump’s America First doctrine, which prioritizes national interests over international cooperation.
Interestingly, Trump’s long-held stance on tariffs is not new. In a resurfaced 1978 interview with Oprah Winfrey, he expressed similar views, making it clear that his current trade policies have been decades in the making.
While trade wars typically harm weaker economies (when elephants fight, the grass suffers), Africa might stand to benefit from this geopolitical shift. As tensions escalate among major trading partners—U.S., Canada, Mexico, and China—Africa, historically seen as merely a source of raw materials, could emerge as an alternative manufacturing hub.
For instance, Nigeria’s oil exports to the U.S. declined significantly under President Barack Obama, with Canada and Mexico becoming America’s top crude suppliers. However, if the trade war leads to disruptions in North American oil exports, Trump may turn back to Nigeria, currently the 8th largest supplier, to fill the gap.
So, rather than viewing Trump’s policies as purely negative, it may be worth considering the potential opportunities they create for Africa. As a matter of fact , instead of getting caught up in narratives of doom and gloom, could this be a moment for the continent to reposition itself as a key player in the evolving global trade landscape?
I would argue that it is time for the world to recognize that Africa is not a problem to be solved but a vital part of the global solution. Thats owed to the fact that the continent holds vast reserves of critical minerals essential for the energy transition that the world desperately seeks. Rather than being viewed merely as a supplier of raw materials, Africa should be seen as a prime destination for investment and industrial partnerships.
There is a well-known economic principle that a rising tide lifts all boats and yachts. In that spirit, industrialized nations like the U.S. and China must acknowledge that Africa—home to 54 countries and a population of approximately 1.5 billion, larger than China’s 1.3 billion and rivaling India’s 1.4 billion—is not a charity case but an investment opportunity.
As a long-time advocate for Africa’s economic resurgence, I have consistently argued that the continent needs trade, not aid. So, it is imperative that major global economies shift their perception of Africa from a passive recipient of aid to an active economic partner. Historically, Africa has been exploited—most notably through the partitioning of the continent at the 1884–1885 Berlin Conference, where European powers divided African territories for their own benefit. As a result, Africa has remained marginalized in global trade, accounting for less than 3% of total global trade, despite having 18% of the world’s population.
To secure a greater share of global trade, Africa must be integrated into the evolving international economic order. Without disruptions to the existing system—such as those triggered by President Trump’s policies—meaningful change is unlikely. Given the resistance Africa has faced in its bid to gain a permanent seat on the UN Security Council, a fundamental shift in global power structures, like the one Trump is advocating, may be necessary for Africa to be taken seriously as a key player in international trade.
At this moment in history, the world may actually benefit from the tensions between defenders of the entrenched old order and leaders like Trump, who are determined to shake up the system. Since assuming office on January 20, 2025, Trump has been implementing the bold changes he promised during his campaign. In my assessment, the mandate given to him by American voters provides a unique opportunity to push for a rebalancing of global trade and governance.
Throughout history, transformative change has always required bold action. If astronauts had not pushed boundaries, Neil Armstrong would never have walked on the moon in 1969, a breakthrough that reshaped human understanding of the universe. Similarly, astronomer Galileo’s discoveries challenged the belief that the Earth was flat, while it is actually cylindrical paving the way for modern scientific thought. It is this same drive for progress that appears to be fueling Trump’s disruptive approach to governance.
Keyu Jin, a professor of economics and author of The New China Playbook, recently highlighted a growing shift in global trade patterns, noting that China and other nations have been diversifying their markets away from the U.S. even before the current tariff wars. Therefore,Trump’s policies are merely accelerating this trend. In Europe, for instance, we are seeing a rise in nationalist-leaning leaders, particularly in France and Germany, who are also prioritizing domestic interests over globalism.
This geopolitical realignment is further evident in the expansion of BRICS—a coalition of Brazil, Russia, India, China, and South Africa—which has recently welcomed new members like Saudi Arabia, Iran, and Egypt. As more countries join BRICS in an effort to counterbalance U.S. influence, and attempts to reduce dependence on the U.S. dollar in global trade may intensify. The general belief is that if America continues using tariffs as a tool to pressure its trading partners, it risks pushing them further toward alternative alliances, potentially diminishing its own economic influence. But would that really be the case?
For Africa, this shifting landscape presents an opportunity. If trade flows are redirected away from the U.S., Africa could gain a larger share of global commerce—but only if the continent positions itself strategically. With the establishment of the African Continental Free Trade Area (AfCFTA), headquartered in Ghana, Africa is already laying the groundwork to take advantage of this new world order.
While Trump’s critics have valid concerns about the potential risks of his sweeping policy changes—particularly the hardship caused by the deportation of undocumented immigrants and disruptions in U.S. aid to Africa( which was later restored) it is also worth considering the potential long-term benefits of a restructured global economy.
The changes unfolding in global trade could open up unprecedented opportunities for Africa. If the continent plays its cards right, it could emerge as a major beneficiary of the ongoing shake-up. So, instead of viewing Trump’s policies solely through the lens of crisis, perhaps it is time to explore how Africa can leverage this moment to secure a more equitable role in the global economy.
A US based Nigerian Professor Ndubuisi Ekekwe describes Trump’s leadership as a “tsunami-earthquake-storm” approach, highlighting the unprecedented nature of shutting down USAID. According to him, this move signals a clear message to the world—that America has no obligation to fund or influence other nations through soft power. However, he suggests that this could actually be a positive development if African leaders step up and take responsibility.
He further explains how foreign aid often distorts markets and hinders sustainable development. For instance, an entrepreneur might develop a viable product in healthcare, education, or agriculture, only for an aid agency to introduce a similar product for free. This forces local businesses to shut down, and once the aid funds disappear after a few years, communities are left worse off, having lost both the external support and the local solutions that were once in place.
Rather than panicking over these funding cuts, Professor Ekekwe urges African governments to seize the opportunity by creating systems to identify and assist citizens in need. He argues that without external interference, local businesses can step in to fill market gaps, and governments can provide targeted support to those who truly require it. He points out that Africa has a long history of self-reliance and should return to indigenous solutions rather than depending on unpredictable foreign aid.
This perspective aligns with the arguments earlier made by economist Dr. Dambisa Moyo in her ground breaking book “Dead Aid”, where she contends that Western aid has done more harm than good in Africa.
Considering Trump’s repeated assertion that his second term marks a “golden age” for America, it is possibly a golden age for Africa too as the continent could benefit—if it strategically positions itself to take advantage of the shifting global order being shaped by Trump’s policies.
Magnus Onyibe, a public policy analyst, author, democracy advocate, development strategist, alumnus of the Fletcher School of Law and Diplomacy, Tufts University, Massachusetts, USA, and a former commissioner in the Delta State government, (2003-2007) sent this piece from Lagos, Nigeria.
To continue with this conversation and more, please visit www.magnum.ng.
Opinion
EFCC in the Eye of the Storm!

By Ayo Oyoze Baje
With comments such as ” embarrassing”, “shameful” and ” disturbing” trailing the recent revelations that not less than 27 officers of the Economic and Financial Crimes Commission, EFCC were reportedly dismissed for acts of misconduct and fraudulent activities in 2024 alone, the clarion call for full-fledged investigations into what really happened has become a necessity. This is compelling because the alleged acts of fraud span from Lagos to Kaduna Zonal Commands. And given the delicate duty hinged on the matching mandate of the EFCC he who comes to equity must do so with clean hands.
But sadly, according to the spokesperson of the federal government agency, Dele Oyewale as revealed on January 6, 2025 the EFCC has started investigating ” a trending $400, 000 claim of a yet – to – be – identified supposed staff of the agency against a sectional head”. But that was just a tip of the iceberg. Some two days later, precisely on January 8, of this year 10 officers of the Lagos Zonal Command were detained over the theft of operational items.
Listed amongst the missing items are gold bars valued at over N1 billion. That is in addition to some precious jewelry and cash of between $350,000 and $400,000. Though the agency is yet to speak on what took place at the Kaduna Zonal Command, an officer simply identified as Polycarp allegedly stole a humongous amount claimed to be over $30,000 in addition to other valuable items.Such an embarrassing situation certainly triggers some flaming questions.
For instance, how do we explain the scandalous scenario that an anti-graft agency of the stature of the EFCC could not provide adequate security for expensive exhibits, including gold and mouth-watering amounts of raw cash? How would any officer, trained to fight for and recover stolen materials and money blame the prevailing poverty and high cost of living in the country as the factors of temptation for his shameful and unpatriotic act? Good leaders do not give excuses for dereliction of duty. Not at all. Rather, they should muster the moral courage to rein in the insidious urge to attempt to convert what does not belong to one as his, for whatever reason. That brings us to the nitty-gritty of the Act which established the EFCC.
Propelled by the Establishment Act first enacted in 2002 and subsequently amended in 2004 the matching mandate of the Economic and Financial Crimes Commission, EFCC is to frontally combat both economic and financial crimes. To bolster its performance the Act enables the Commission to prevent, investigate, prosecute and penalize economic and financial crimes in their various shades. Good enough, the EFCC is also charged with the responsibility of executing the provisions of other laws and regulations that are related to economic and financial crimes.
In its distilled essence, these laws are embedded in Section 7(2) of the Establishment Act 2004. These include Money Laundering Act 1995, Money Laundering (Prohibition) Act 2004 as well as Advanced Fee Fraud and other related Offence Act 1995. Not left out are the Failed Bank Act, 1994, the Criminal Code and the Terrorism Act 2011. But the recent revelations of odious acts of deliberate criminality carried out by officers of the EFCC run against the grains of the fight against corruption. They must therefore, be brought to the public sphere for proper scrutiny while the agency should beam a brighter searchlight into its inner structures to plug the widening loopholes.
Beginning with its recruitment process, it has become expedient for a more thorough assessment of the moral standards of any Nigerian citizen presenting himself for any of the available posts before he is employed there. Also significant is the need to guarantee the safety and security of all forms of exhibits -be it gold, jewelry or cash-preferably in bank vaults. Doing so will cut off any access to them.
From the point of view of security experts it amounts to unprofessional act not to have mechanisms firmly in place to ensure both safety and accountability of the exhibits. And if the EFCC decides to keep them within its purvey they should be well secured with multiple layers of protection provided. With such a guarantee it means that if the court finally decides in favour of the defendants, or those alleged to have stolen the recovered items they would be fully returned, without spurious claims of such to have been stolen by operatives of the EFCC. That brings us to what punishments should be meted out to the culprits.
Beyond their outright dismissal from office, they should be prosecuted and made to face the full wrath of the law. If perhaps, they have relocated outside the country the use of biometrics on record will be handy to trace and track them down.That would send the right punitive message and serve as a form of deterrence, to others with similar inclination to steal. But then, the question on the lips of concerned Nigerians is why all these acts of malfeasance are coming up at this point in time?
While some observers of the goings on at the EFCC have applauded the Chairman, Olanipekun Olukayode for mustering the leadership will to ensure probity and accountability in the operations others are not impressed by the method of night raids. Also, with the viral video of one Idris Okunaye, aka Bobrisky who claimed that some operatives of the agency collected N15 million from him to absolve him of the charge of money laundering, though later denied, the image of the EFCC is currently at stake.
But we urge Olukayode to continue with the internal cleaning up process, go ahead with the auditing of the recovered items on Zonal Command basis and ensure their security. He should review the night operations that have led to some deaths of the officials, strengthen oversight functions while doing away with problems traced to political interference.
As the Centre for Anti-Corruption and Open Leadership has rightly demanded for the internal cleansing should be holistic and devoid of manipulations from the corridors of political power.
Indeed, to restore public confidence in the EFCC it must free itself from the antics, sentiments and threats from the executive arm of government at the state and federal government levels. That would also reinforce the standard of morality in the nation, which has been rubbished by the crass, crude and criminal culture of impunity. With some of those who have pilfered the national treasury dry still walking our streets as free men and women, it is hard to discourage our rudderless youths from all forms of fraudulent practices. But we cannot continue to tread that path of perfidy. Not at all.
Opinion
How Wike Benefitted from Dele Momodu’s Expertise and Conflict Resolution Skills

By Dr. Sani Sa’idu Baba
ssbaba.pys@buk.edu.ng
Let me begin with this beautiful quote by Benjamin Franklin that “The doorstep to the temple of wisdom is a knowledge of our own ignorance.” Indeed, some people lack the knowledge of their own ignorance. Earlier this morning, Aare Dele MOMODU posted multiple pictures of him and his friend, the former Governor of Rivers State as he used to do from time to time in his busy social media pages. Immediately I saw those pictures, it reminded me of how CHIEF DELE MOMODU contributed immensely to WIKE’S popularity by showcasing the then Governor’s projects, an event that marked the origin of his nickname “Mr Project” all over Nigeria.
I would always say that WIKE’s popularity in Nigeria especially in the North was not as a result of his failed attempt to cling his party’s presidential ticket during the May 2022 presidential primaries or the events that followed, rather as a result of how the OVATION MEDIA GROUP demonstrated to Nigerians, Africa and many parts of the world that a Governor like Wike actually existed in Nigeria due to the volume of projects he was able to put in place in Rivers State which probably overrode all history of governance at state level in Nigeria. Unfortunately, some ignorant people threw their usual tantrums under the comment section, saying that MOMODU betrayed WIKE, which in my humble opinion is the other way round. Follow me patiently as I make a few points to that effect in a jiffy, keeping in mind the fact that Governor WIKE’s multiple work in Rivers had been undervalued, under-reported, or, let’s say, eclipsed by politics until the OVATION media group intervened in late 2020.
Furthermore, in my own understanding, a journalist has to be fair and ready to listen to the other side of any story. Governor WIKE turned out to be amongst the top beneficiaries of this Momodu’s rare quality as a veteran journalist. Let me take a step back a bit to the best of my knowledge as a meticulous follower of Ovation Media Group. Momodu had interviewed MAZI NNAMDI KANU, the leader of the Indigenous People of Biafra (IPOB) weeks before, specifically on the 29th October, 2020 and his fans were very happy. It was the mother of all interviews because both the interviewer and respondent knew their onions. The brilliant Nnamdi Kanu himself tweeted the following day expressing his satisfaction with Momodu’s comportment and describing him as the Larry King of Africa, which was largely true in my opinion. In fact some called him the man with magic fingers because of his enormous wisdom and prolificness in writing.
Thereafter, many Nigerians at home and in diaspora, his fans and mentees including myself requested him to interview GOVERNOR NYESOM WIKE. In fact, when I called him about that, he said “Dr Baba, I will! I always believe a journalist must hear and ventilate the other side of any story…”. So willingly and by popular demand, DELE MOMODU made it happen.
A few days later, he announced the acceptance of the then Governor WIKE to join him for a chat on one of his Instagram live sessions. That was one of the must watched interviews that set all social media streets agog. The interview went well, and he answered very interesting questions as candidly and as boldly as he could, not mincing words about his sharp disagreement with Mazi Nnamdi Kanu and the IPOB he leads, while MOMODU maintained his usual neutrality as much as possible. Momodu also asked the Governor some important questions about his developmental projects because the session was not just about his altercation with Kanu.
Moving fast forward during the interview, Governor WIKE threw a challenge by immediately inviting the Ovation Media Group to visit Rivers and see things for themselves. He was confident that given the infrastructural development Rivers State had witnessed under his watch though unpopular, Ovation would require over two weeks to cover his projects. Momodu accepted his challenge and headed to Rivers, prepared as always, regardless of what was on ground. They were pleasantly surprised. Two weeks and counting, Ovation team was still in Rivers State. There was simply so much to be seen and it was as if the governor had captured them permanently. He was enjoying their stay in Rivers while the whole country was resonating wondering what the Ovation crew were revealing from Rivers state. That was in my best understanding what brought the Governor WIKE’S massive achievement in Rivers to limelight in Nigeria and beyond. They travelled extensively and traversed the length and breadth of Rivers State, given the Governor WIKE all the machineries he needed to brag and beat his chest about the massive development he brought to his own state.
The other face of the story was even more interesting because some people who are extremely loyal to Kanu got angry. They said Wike was lying. They said he was the one who ordered the killing and mass murder of the people in OYIGBO/OBIGBO. They immediately challenged Momodu to go to the town and see the level of destruction and devastation. Some immediately began to rain insults and abuse on the Momodu’s platforms. I still remember clearly some of the false accusations and allegations by the same people who were happy before. Indeed this is not new to any journalist who chose to deploy ethical standards and neutrality. This also reminds me of the atmosphere when CHIEF DELE MOMODU interviewed the former Nigeria minister of petroleum DIAZENI ALLISON MADUEKE in London.
Coming back to the main epistle, DELE MOMODU also accepted the challenge and decided to visit OBIGBO town in Rivers State, a place where all the media spaces in Nigeria have likened to GAZA, PALESTINE where killings and human rights abuse became the order of the day. Momodu’s visit to OBIGBO is also a different story on its own, yet very interesting because what came out of it was totally contrary to a place where everyone believes it was under military siege. Everyone was ready to see the possible bloodbath and devastation that he/she was reading about constantly on social media. It was showcased LIVE in all Momodu’s platforms as the visit was ongoing in OBIGBO town.
In going to OBIGBO, Momodu employed and deployed his vast experience in the last three decades in promoting peace in West Africa and visiting war torn areas. In a sense, he was returning to familiar turfs and terrain. There were times MOMODU had to come down from the car to walk around a bit and interact with the people based on requests, instructions and directions from the INSTAGRAM LIVE feeds. He felt comfortable and very much at home amongst the indigenes and residents of Obigbo and the people welcomed the Ovation crew and freely expressed themselves. He also asked directly from the people about the murders and wanted to know if killings were still ongoing. Everybody he spoke with confirmed what had happened, but they all said the situation was under control, contrary to what the media was falsely and unjustly promoting. Normalcy had been restored substantially, in the town. Markets were bristling with the usual hustle and bustle of a boisterous community and it was live for all viewers to see. Momodu also listened to the Local Government Chairman, Prince Gerald Oforji, and the Chiefs for their own version of the story.
To my surprise however, some people kept raining abuses during the live broadcasts despite Momodu’s open, transparent work and apparent selflessness. He remained unperturbed because obviously he was not out to impress anyone but to do his job as professionally as he knows best.
In my own understanding, that was how most Nigerians naturally exonerated Governor WIKE from the alleged massive killings in OBIGBO as some believed he masterminded everything like a Bollywood director.
Who now is the ultimate beneficiary of these Momodu trips and interventions? Who benefitted from Momodu’s uncommon conflict resolution skills?
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