Wednesday 18 March 2015

Medical tourism, another drain on the economy





It has now become common place for Nigerians who can afford it especially public officials in Nigeria to seek medical care abroad even for ailments that could be handled at home. It is said that Nigerians spend about $500m (N78bn) yearly for medical treatment abroad. The most popular destinations are India, Germany, UK, and the United States. This is despite the fact that Nigeria has many trained medical practitioners and numerous medical centers. Ag. Head of Investigations, YEMI OLAKITAN, examines the reasons for this medical exodus abroad and what could be done to address it.
Health is wealth so the saying goes, which is why people go to great lengths to ensure proper medical care for sundry ailments. However, the rising spate of chronic illnesses such cancer, renal failure and cardiovascular diseases has raised demand for specialist and sophisticated medical care, which is in short supply in Nigeria. Even though some of the nation’s tertiary institutions still have requisite personnel and equipment to manage chronic cases, many Nigerian prefer to fly abroad to treat both chronic and not-so-chronic conditions believing that the level of care available in-country is not up to scratch.
Indeed, people fly to London for mere check medical ups and common colds and many even end up in the hands of Nigerian doctors in the United States, where about 20,000 Nigerian are estimated to be practicing medicine and in other countries such as the UK and Saudi Arabia.
Expectedly, the overall bill is high since this come in dollars, a situation that has not gone down well with Nigerian doctors, who wonder why people are ready to pay so much abroad while they often hold the short end of the stick at home often going on strike to get decent wages and allowances. Private clinics hardly fare better with many struggling to cope with patients’ debts and unremitted fees from Healthcare Maintenance Organisations, which is threatening the entire National Health Insurance Scheme.
Most worrisome if the fact that public officials in middle to senior cadre travel aboard at the drop of a hat for medical care and the bills are picked by the government, which is accused of failing to properly address the needs of the health sector in terms of staffing, equipment and facilities.
Some of the high profile cases of top government officials and family members seeking medical treatment abroad including late President Umaru Yar’Adua, First lady Patience Jonathan, prominent, state governors and ministers drive home the point most poignantly.
The Nigerian Medical Association, NMA, estimates that Nigerians spend over N120bn annually, on medical tourism while about 5,000 patients travel to India monthly for treatment in line which a rising phenomenon called medical tourism.
Medical tourism’ is originally a term used to qualify a patient’s movement from highly developed nations to other areas of the world to get medical treatment, usually at a lower cost.
More recently, however, the term is being generally used to mean every form of travel from one country to another in search of medical help, which can also simply be called ‘medical travel’. It also includes traveling to countries where treatments for particular conditions are better understood.
NMA President, Dr. Osahon Enabulele, says the organisation had been encouraging public office holders to patronise Nigerian hospitals rather than going overseas for minor ailments that could be handled locally.
“In fact, things have gone so bad in the country that Nigerians travel abroad to conduct medical check-up on simple matters such as blood pressure,” he said.
According to the NMA, Nigeria has the resources and manpower to tackle most ailments ravaging citizens within the country.
It says the country is suffering in the midst of plenty and needs laws to address issues of medical tourism. A medical board that would screen public office holders to ascertain their eligibility for medical treatment abroad is necessary particularly where public funds are involved.
The association warns about the staggering amount of money Nigeria is losing to foreign countries (especially India) on medical tourism.
According to reports, U.S and Great Britain used to have greater share of Nigerians seeking foreign healthcare; Indian has outperformed these countries in recent years. It is estimated that 95 per cent of Nigerians traveling abroad for medical treatment go to India.
The NMA said India rakes in well over N40bn, which is about 50 per cent of the bill. (Over 5000 Nigerians travel to India, with each of them spending between $20,000 and $40,000 on the average a year.) India was also projected to have raked in a whopping $2bn from a global medical tourism valued at $20billion a year.
Reports reveal that the phenomenon called medical tourism is not limited to Nigeria alone. It is a subject of global concern. This is because many surgical procedures performed in medical tourism destinations cost a fraction of the price they do in the Europe of the US
Investigations reveal that a liver transplant that costs $300,000 in America costs about $91,000 in Taiwan. Another problem is that countries that operate public health-care systems often have long wait times for certain operations. In Canada, for an example, an estimated 782,936 Canadians spent time on medical waiting lists in 2005, waiting an average of 9.4 weeks. This prompted Canada to set waiting-time benchmarks, such as 26 weeks for a hip replacement and 16 weeks for cataract surgery, for non-urgent medical procedures. This is one of the reasons why people seek medical care abroad.
Medical tourists come from a variety of locations including Europe, the Middle East, Japan, the United States, and Canada. Factors that drive demand for medical services abroad in First World countries include: large populations, comparatively high wealth, the high expense of health care or lack of health care options locally, and increasingly high expectations of their populations with respect to health care.
In countries, like the United States, medical tourism has large growth prospects and potentially destabilising implications. It is projected that medical tourism originating in the US could jump by a factor of 10 over the next decade.
An estimated 750,000 Americans went abroad for health care in 2007, and a report estimated that 1.5 million would seek health care outside the US in 2008. The growth in medical tourism has the potential to cost US health care providers billions of dollars in lost revenue.  Popular medical travel worldwide destinations include: Costa Rica, India, Israel, Malaysia, Mexico, Singapore, South Korea, Taiwan, Thailand, Turkey, United states.
Investigations reveal that India is placed among the top three medical tourism destinations in Asia, mainly due to the low cost of treatment, quality healthcare infrastructure and availability of highly-skilled doctors.
In Nigeria, India has become the doyen of medical tourism and the preferred location. India, Thailand and Singapore are the three countries that receive maximum medical tourists owing to low cost of treatment, quality healthcare infrastructure, and availability of highly-skilled doctors within Asia itself.
Why have Nigeria chosen India over other countries of the world? It is said that in Indian, medical tourism is one of the largest sectors and is poised to grow at an annual rate of 15 per cent to reach about $158.2 billion by 2017. India and other Asian countries have introduced various marketing strategies to attract medical tourists, and they have succeeded immensely and Nigeria is just one of the countries going there.
Patients are attracted to low priced treatment options, availability of variety of treatments, improved infrastructure in terms of healthcare facilities and attractive locations for spending time after treatment.
A nation such as Thailand positions itself as a dual purpose destination for both medical and economic holiday with attractive locations; Singapore promotes itself as a destination for fine quality in medical treatment. India is known mostly for its cost-effective medical treatments along with high standards in cardiology, orthopedics, nephrology, oncology and neuro-surgery.
Another reason why Indian is reportedly a popular destination for medical tourists is that she is known for its alternative treatment options such as yoga and ayurveda. India’s medical travel industry is clipping along at a 30 per cent growth rate annually. India welcomes most of its cross-border travelers from the immediate region (e.g. Bangladesh, the Middle East and Africa). However, some of those gains have arisen from increasing numbers of Americans, Canadians, and Europeans seeking treatment, particularly the more expensive cardiac and orthopedic surgeries, for which health travelers can save tens of thousands of dollars compared to the cost of treatment at home.
India’s official national health policy encourages medical travel as part of its economy’s “export” activities, although the services are performed within India. The government uses revenues generated from medical travel to increase its holdings in foreign currency. With government and corporate investment solidly behind its healthcare system, more international hospitals and super-specialty centers are opening every year.
Heart care has become a specialty in India, with centers such as Fortis Wockhardt (Mumbai) and Apollo (New Delhi and Chennai) leading the way. Success and morbidity rates are on par with those found in the US and Europe, with major surgeries at up to 15 per cent of the cost.
Factors that have led to the increasing popularity of medical travel include the high cost of health care, the ease and affordability of international travel, and improvements in both technology and standards of care in many countries. The avoidance of waiting times is the leading factor for medical tourism from the UK, whereas in the US, the main reason is cheaper prices abroad.
Biodun Ogungbo, a consultant neurosurgeon, said there are huge risks for Nigerians in medical tourism. There are dangers in going to places such as India, South Africa, United Kingdom and Egypt for medical treatment, without proper information about the doctors working there, their qualifications and experience.
“Many patients and their relatives have no clue about the doctors treating them and whether they are truly qualified to carry out the prescribed treatment. A few patients have returned from these countries with much more than they bargained for. Some have had the wrong operation, unnecessary procedures and treatments and others have significant, lingering and life-long complications. Some hospitals also perform totally useless and experimental procedures on patients at huge costs”, he said.
“When the treatments have gone well, who will continue the necessary follow-up care here in Nigeria? When you receive treatment in a foreign country; it becomes expensive to travel back for follow up in order to consult with whoever provided you with primary care. When you shop around for a hospital in Nigeria, you can easily visit them in person and meet with the staff.  But, this type of in-person inspection becomes harder if the hospital is in another country. These hospitals are not vetted by the Nigerian Medical Association, NMA, the Health Ministries or the Medical and Dental Council of Nigeria, MDCN, so you don’t know what you are involved in. We do have good hospitals here and doctors who are credible and well trained.’’
Chief Medical Director, the Lagos State University Teaching Hospital, LASUTH, Ikeja, Prof. Olawale Oke, said some of these treatments can be obtained in Nigeria.  According to him, some Nigerians who seek medical help abroad die in the process based on wrong diagnosis and treatment.  “Anyone who goes on medical tourism should be sure of where they are going to because some of the ailments they go for can be treated here. They could fall into wrong hands”, he said.
Investigations by Sunday Mirror reveal that, medical tourism is facilitated through companies who openly advertise here in Nigeria while Nigerian hospitals and doctors are not allowed to advertise. Yet, many of these hospitals and businesses in India, Egypt and South Africa do not subscribe to the same ideals and openly advertise their services in Nigeria.
This development has prompted the Federal Government through the Minister of state for Health, Alhaji Suleiman Bello to issue a statement saying, the “Federal Government will no longer be interested in funding medical trips for its officials abroad. President Jonathan said the funds used for such trips have led to loss of the nation’s scarce resources.’’
The House of Representatives also decried the culture of affluent Nigerians seeking medical services overseas. It says the trend was detrimental to the improvement of health care services locally and a drain on the nation’s scarce resources. It therefore tasked the Federal Ministry of Health to set in motion all necessary machineries that would enhance the full implementation of the budget in the health sector so as to elevate the quality of medical services available in the local health institutions and discourage what has now become medical tourism.
Sunday Mirror investigations reveal that even poor Nigerians seek treatment abroad. There have been cases of poor and sick people campaigning for funds to travel abroad to secure medical care for ailments that could be treated in Nigeria.
There are also cases for which the Nigerian medical system is incapable of treating- or is believed to be incapable of treating, due to lack of standard equipments or perceived lack of qualified and experienced personnel.
Popular music producer, Babatunde Okungbuwa aka OJB Jezreel, had a kidney transplant in India although he was not a government official or political office holder. He could not afford to go but well meaning Nigerians picked up the bill. He was quoted to have quarreled with the expression, medical tourism, saying “How can a life-saving trip be compared in any way to tourism! Really, trips like this are motivated by lack of medical commitment ‎to saving lives and poor facilities in our country,” he said.
Indian national policy continued to be directed at positioning the country as a medical destination of choice in global medical/health care delivery. India is achieving this because of the competitive costs, seamless facilitation through pre-diagnostics in Nigeria itself and smoother visa issuance procedure, wide choice of good hospitals and the better patient-doctor interface leading to higher mutual comfort and trust.
Mr. Babatunde Adisa, a Lagos businessman who spoke to Sunday Mirror on the subject said, ‘‘Medical tourism is a global issue. It is not just a Nigeria problem alone. The world is fast becoming a global village and we must sink or rise to compete favourably with rest of the world, not only in medicine but in other sectors. There is no reason why Nigeria cannot and should not achieve what India has achieved. They are not better economically. These things are simply based on preferred priorities. If Nigeria decides to position herself as a medical center of choice for the global community and invest in that sector, the world will come to us. We have the resources, instead of lamenting we should simply go to the drawing board”.
Reports reveal that there is a National Health Bill on the floor of the National Assembly that seeks to curb medical tourism although some have argued that patients are free to seek medical care from wherever and whoever they deem fit, and with the globalization of the world, things are continually changing and the options for where to seek care from are increasing. It will not be right to force people to get treatment from where they have no confidence.
Another problem affecting the medical sector in Nigeria is that Nigerian doctors and hospitals are not allowed to advertise while their counterparts abroad advertise regularly on the internet and other media platforms.
Reports reveal that physicians were once not allowed to advertise by the American Medical Association, AMA. This situation has changed after the AMA was sued by doctors and the US Supreme Court declared that it was an unfair restriction. The Court ruled that it was also unfair to patients, who need access to information on doctors, so they can select the best for themselves.
Several other countries have also followed the pattern of regulated advertisements and have made information about their services and professionals available to the world, attracting seekers of medical care worldwide including Nigerians.
By allowing this kind of outdated policies to continue, Nigerians limit the growth of medical care in the country and build up those of other countries.
Ola Ayodeji, a kidney specialist with the Peninsula Kidney Associates in Hampton, Virginia while speaking on whether banning overseas medical treatment for senior government officials would help improve Nigeria’s health system, said, “I would not advocate restricting access to highly needed care, because when you have a medical problem, it becomes a personal thing, you want to survive, whatever it takes, wherever you can get the care, whatever you have to pay”.
However, some experts see the need to encourage private sector investments in the medical sector as most of the hospitals being patronised abroad are in any case privately-owned facilities.
Chairman Life Bridge Medical and Diagnostic Centre, Senator Ikechukwu Godson Abana, said, high import duties, multiple taxations and exorbitant fees by various government agencies are responsible for low patronage of private investment in Medicare in Nigeria.
He noted that the various taxes are often transferred into the costs of providing services to Nigerians. The reason why Nigeria loses huge sums in capital flight to medical tourism is because of citizens’ lack of confidence as Nigerians often complain that most of the nation’s hospitals lack the modern equipment needed for effective diagnosis and treatment.
It appears however that government is waking up to this reality.
President Goodluck Jonathan, whose wife had made some medical trips to Germany in recent years, had recently expressed his determination to curb medical tourism by involving private investors in the health sector reforms.
The president made the declaration during the inauguration of the Nigeria-Turkish Nizamiye Hospital in Abuja.  The president said that the state-of-the-art hospital demonstrated a pragmatic response to the government’s policy aimed at enhancing private-sector participation in healthcare delivery in Nigeria.
“A lot of Nigerians go out almost on a daily basis to seek medical help abroad and almost all the hospitals that attend to them outside this country are privately owned.  If we encourage the private sector to take the lead; that would save the amount of money Nigerians pay outside.  The determination of our government is to ensure that our citizens have access to quality and affordable healthcare services. In this regard, the role of the private sector in complementing government efforts is very crucial. private-sector initiatives such as this hospital will aid government’s efforts to halt the enormous capital flight arising from increased medical tourism and the avoidable stress experienced by Nigerians”, he had said.
The president said that the Federal Government had constituted a committee to develop a network of improved modern healthcare infrastructure to further stimulate investments in the health sector.  Jonathan stressed that a number of world-class diagnostic and treatment facilities were being developed in Abuja, Lagos and other locations across the country.
Dr Mustafa Ahsen, the hospital’s Medical Director, said that the hospital offered Nigerians the opportunity of staying in their country and receiving world-class medical treatment which they hitherto sought abroad.
According to him, the hospital aims to encourage Nigerians to receive medical treatment in Nigeria where their friends and relatives are readily available.
“The crux of the hospital’s operational mode centered on the treatment of patients with compassion, respect and utmost care, we will never lose our compassion and concern; we will never fall into the wrong delusion of viewing our patients as file numbers.  We want to approach people who are suffering, distressed, frightened and on the verge of despair with empathy to end their pain.  Our goal is to be a friend to someone who seeks a friend and a symbol of hope to the needy”, he added.
Observers stress that Nigeria is blessed with a lot of qualified, seasoned and proficient medical personnel, and doctors, who can manage any medical condition or disease. However, serious improvements in state of Nigerian hospitals in terms of equipment and funding will go a long way in curtailing medical tourism.
A veteran nurse and midwife, Mrs. Olayinka Adeyemo, who spoke with Sunday Mirror on the subject, said, Nigeria must first of all solve the problem of electricity. “This is a major problem in medical practice. A private hospital in Nigeria that is running on diesel on a daily basis cannot perform a surgical operation at the same cost as an Indian hospital would. It will be cheaper. Our epileptic power supply is a major obstacle to curbing medical tourism”, she stressed.



Unending demand for state creation

By YEMI OLAKITAN 

bog-readMany interests have mobilised to campaign for creation of more states in Nigeria. These agitations have been persistent and seemingly endless. Nearly every ethnic group has at one time or the other demanded its own state even though most of the 36 states remain economically unviable and rely on monthly allocations from the Federal Government to survive. Ag. Head of Investigations, Yemi Olakitan looks at the politics.
There seems to be no end in sight to the demands for state creation in Nigeria. Ethnic jingoists and politicians keep agitating for state creation in order to address perceived marginalisation of their people in the scheme of things. The campaign for state creation has always been present throughout the history of Nigeria and has continued to this day.
Each ethnic group has continuously come to think of itself as a distinct entity with interests and demands. They want states created whether or not the states have the capacity to survive economically or not. At a time the late sage Chief Obafemi Awolowo mocked some of the proponents of states creation when he said that such agitations will stop when his home town, Ikenne, becomes a state.
According to vocal preacher and activist, Pastor Tunde Bakare of Latter Rain Assembly, only about four of the states in Nigeria are viable. According to him, the agitations for state creation are usually to satisfy ethnic nationalism to the detriment of Nigerian nationalism. Most of the states are wholly dependent on the federal purse for survival.
Olufemi Gbolahan, a politician and native of Ado-Odo Ota local Government in Ogun State observed that “the call for state creation is ever present among us and it is usually as a result of marginalisation and lack of development of certain ethnic groups or areas in the country. Nigeria is a nation of diverse tribes, languages, cultures and religions and each group wants to have a share of the nation’s resources. Nobody wants to be left behind in terms of development”.
Speaking further, Gbolahan said, “The issue of marginalisation is also real. Take the Yewa community in Ogun State for example, where I come from. We have always been marginalised. Ado Odo-Ota is the richest local government and the most industrialised in Ogun State. It is also the second largest and yet the least developed. Ado-Odo-Ota has never produced a governor in Ogun since the state was created and all the past governors have concentrated development efforts on Abeokuta, the capital city. Take Ado-Odo for example, development in Ado-Odo is zero, the roads are bad, there is no university, no college of education, no polytechnic and the town is nearly the size of Abeokuta, Tell me, why we won’t support the agitation for state creation? These are the factors that lead to the campaign for state creation in Nigeria.”
Speaking further, he said, “State creation is good for a nation like Nigeria because of our diversity. No matter what the skeptics say. The states will develop with time and will become strong. Rome was not built in a day. We need states because it creates a sense of belonging.” he said.
Investigations by Sunday Mirror reveal that the agitation for states creation can be traced to the British Colonial Administration with the indirect rule system which was created to suit the purposes of colonial ideology and ease of administration. The indirect rule system encouraged ethnicity since Nigerians of Northern and Southern regions did not interact as one people. The colonial master was more interested in the easy administration of the large entity called Nigeria,
Thus, the phenomenon of regional ethnicity found its way into Nigerian politics. The earliest political parties in Nigeria; the National Council of Nigerians and Cameroon, NCNC, founded in 1944, the Northern People’s Congress, NPC, and Action Group, AG, both established in 1951, were defined along tribal and ethnic bases.
Ethnicity and regionalism became Nigeria’s way of life. It was this development that led to minorities’ agitation for self-determination in virtually all the regions during the colonial rule. Ethnicity has been a re-occurring factor in Nigerian politics since then. This has continued to influence the agitation for state creation. Successive governments also use state creation either as a tool for political self-enhancement, or as a means to gain stronger hold on power.
Nigeria was initially a Federal State with three regions – Northern, Western and Eastern regions, during the First Republic; the Mid-Western Region was created out of the Western Region. These regions were virtually self sufficient depending on mainly agricultural produce and exports to keep their respective economies going.
Historians suggest the creation of that region was aimed at the excision of the non-Yoruba from the Western region. It did not arise from genuine concern by the nation’s leaders for the predicament of the minorities. The reorganisation was part of vindictive campaign by the ruling Federal coalition parties – the NPC and the NCNC to destroy the opposition party, the AG, while resisting the statehood ambitions of minorities in their home regions.
The creation on 27th May, 1967 of 12 states from the existing four regions by the Gowon regime was an attempt to nip the secession of the Eastern Region bid in the bud.
It was as a result of a desire to cut the influence of the then Governor of Eastern Region, the late Chief Chukwuemeka Odimegbu-Ojukwu at the height of hostilities between the Region and the Federal Government. It was also aimed at solving the perceived political problem threatening the continued existence of Nigeria as a single entity.
However, the politics of state creation has not taken into account the ability of these states to sustain their existence.
Also, another set of problems started with some ethnic groups claiming that the new states were highly unequal. For example, the North-Eastern State alone accounted for about one third of the total land area of Nigeria, while the 11 other accounted for the balance. In view of these, Gowon promised that he would review the whole issue of state creation after the war.
This promise heightened the tempo of demands for new states, but no effort was taken to re-assess the exercise until Gowon was overthrown in 1975.
When the late General Murtala Mohammed overthrew General Gowon, he quickly set up the Justice Ayo Irikefe Panel to look into the issue of state creation. The panel received about 32 demands for new states. It was based on the memoranda submitted to the government by the panel that the number of states was raised to 19, on 3rd February, 1976. The 19 states were Lagos, Ogun, Ondo, Oyo, Bendel, Cross-River, Anambra, Imo, Rivers, Kwara, Benue, Plateau, Borno, Bauchi, Gongola, Sokoto, Niger, Kano and Kaduna. The 1976 exercise was implemented in the wake of a phenomenal growth in Federal petroleum exports revenue. Thus, in addition to being a vehicle for extending political and economic self-governance to distinct ethnic communities, states creation became an administrative strategy for the devolution of Federal generosity to an unstructured array of territorial communities and coalitions.
This gave rise to a phenomenal increase in the demand for even more states as various ethnic groups and elites struggled to maximise their share of the national cake. Consequently, the Igbo people argued later that a situation where they had only two states (Anambra and Imo) from the 1976 exercise while the Yoruba and Hausa/Fulani, the other two majority groups, had about five each, was unjust and unacceptable. Invariably, the agitation for states creation in the country became a contest among majority ethnic groups, struggling to square up, more than the struggle of the minorities for self-determination. The agitation for more states went unabated during the Second Republic (1979-1983) and the demands for new states were so volatile that none was eventually created till the collapse of the Republic.
When General Ibrahim Babangida took over power in his 1985 coup, the clamour for states creation reached new heights and he set up the Political Bureau, headed by Dr. S.J. Cookey to look into the fresh demands.
It was based on the recommendations of the Bureau that the Federal Government in September 1987 created two more states – Akwa-Ibom and Katsina – thus, increasing the number of States in the country to 21. The Bureau had actually recommended the creation of six new states – Akwa-Ibom, Delta, Katsina, Kogi, Sarduana and Wawa.
In creating the two states, Babangida announced that the demands for new states will no longer be tolerated. However, in August, 1991, the regime reversed itself and created nine new states to bring the number of states to 30. The nine states were Abia, Enugu, Delta, Jigawa, Kebbi, Osun, Kogi, Taraba and Yobe. The regime justified the creation of more states as the need for balanced federation, bringing government nearer to the people, even development among others. However, critics insisted that “the 1991 exercise was largely intended to galvanise support for the regime, whose strength was ebbing and to compensate close allies.”
The agitations for states creation seemed to redouble when General Sani Abacha came to power in 1993. Thus, following the recommendations of the National Constitutional Conference on the need to create more states, Abacha set up a Committee for States Creation, Local Government and Boundary Adjustment, headed by Arthur Mbanefo. The Committee received a total of 85 requests for new states and on the occasion of the country’s 36th Independence Anniversary on 1st October, 1996; late Abacha announced the creation of six new states. This last exercise brought the number of states in the Nigerian Federation to 36 States and the Federal Capital Territory, and 774 Local Government Areas.
The question remains whether the continuous division of Nigeria into smaller, weaker units has actually brought government, power and development closer to the people.
Postponements of state creation have argued that the creation of states brings the government closer to the people because of the population and land mass of Nigeria. It has also been argued that state creation reduces marginalisation.
As result, The National Conference under President Goodluck Jonathan approved 18 requests, in principle, for state creation across the country as a way of meeting the yearnings and aspirations of the people.
The approved requests, included Apa State from the present Benue, Kainji from Niger State, Katagum from Bauchi State, Savannah State from Borno, Amana from Adamawa, Ghari from Kano, Gurara from Kaduna, Etiti State from the South-East zone, Aba from Abia, Adada from Enugu, Njaba/Anim from both Anambra and Imo States, Ogoja from Cross River, Anioma from Delta, Ijebu from Ogun, New Oyo from the present Oyo State and others. The conference said apart from the 18 new states proposed, a separate state-yet-to-be named should be carved out of the South-East to bring the number of the states in the zone to six. The conference said the creation would correct the imbalance of the zone having the least number of states. In the existing 36 states arrangement, each zone has six states with only the North-West having seven states. It was agreed by the delegates that the 18 new states would be shared among the six zones in a manner that no zone would have more states than the other. It was also agreed that states were free to have their own constitutions. The delegates rejected a motion that the number of states in Nigeria should not be more than 55. This gives the impression that in the future more states could still be created.
A delegate, Mr. Femi Falana, SAN, condemned the decision to create more states. He said the action was at variance with the decisions and resolutions earlier taken by the conference on the need by government to cut costs. “Having regard to the several resolutions of the National Conference on the need to reduce the cost of governance, I found the recommendation for the creation of additional 18 states rather contradictory,” Falana said.
Another delegate, a SAN, Chief Mike Ozekhome said, “I stand by the recommendations; we have recommended that 18 more states and an additional state should be created for the Igbo, they are the only one with five states. With 54 states I believe that government would be brought closer to the people.”
According to Mrs. Funke Adekoya, SAN, the creation of more states will not solve the problem of underdevelopment. “I don’t think that it will solve the problem of bureaucracy in the society. What I think we should focus on is the delivery of dividends of democracy to Nigerians. I don’t support creation of more states.”
In another chat with Barister Jesica Ikechuwu, she was convinced that the prospects for national development depend on the emergence of a courageous, visionary and national leadership stressing that Nigeria needs a true Federal system. Ikechukwu said, “The center is too strong and the states rely too much on resources from the center.”
According to her, ‘‘the endless demands for state creation will not end unless there is real development in the grassroots such as good roads, electricity, access to education and affordable health care. “Unemployment must be reduced to the barest minimum. As long as these problems are rampant, we will continue to have agitations for state creation in the next two or three decades,” she said.
Pa Ayodeji Ogunjobi, the president and founder of Hope for the Youth initiative, a non-governmental organisation focusing on the problems of youth unemployment in Nigeria, said “the creation of more states will multiply the existing problems – ethnic minority issues, lack of development, corruption, unemployment.’’
He said states must begin to look inwards and generate income by themselves in such a way that they can become economically strong.
“A situation where all the states created continue to look up to the Federal Government for monthly allocation for survival will continue to inspire fresh agitations for state creation in the country. If the states created already become economically strong and prosperous, the incessant agitations will die,’’ he said.
According to Senate President, David Mark, states creation will bring development closer to the doorsteps of many Nigerians. The scope of political development will be widened to accommodate more governors, more legislators, more state high courts, more police officers. More states will also see to the presence of more federal agencies in the states including higher institution of education as well as other modern developmental structures like airports, banks etc. The agitators for states creation maintain that such an exercise will create an opportunity for the marginalised people or ethnic groups to have access to power. They also maintain that by creating new bureaucracies, it will give mass employment to youths and other qualified graduates.
However, current realities indicate that more states could create more problems than they were meant to solve.
According to the former Governor of the Central Bank of Nigeria, CBN, now Emir of Kano, Muhammad Sunusi II, most of the present 36 States in Nigeria are economically unviable.
Analysing the precarious finances of the states last year, he had said, “Most of the states are spending about 96 per cent of their revenue in paying civil servants’ wage bills. We have created states and other structures that are economically unviable and the result is that we do not have funding for infrastructure, education, health and so on. The unviable status of the existing states has therefore vitiated the argument for more states. Almost all states depend on the Federation Account to survive, and this dependent nature of states makes them subordinate to the Federal centre and negates the Federal principle of local autonomy”.
He had noted that because of the large number of sharing units and the lack of independent sources of revenue, the dependence of these units on the Federal government has virtually impinged on their autonomy and hindered their capacity to carry out independent development.
Other analysts also point to the fact that reduction in land space that comes with carving out new state from existing ones, implies a drastic reduction in the economic power and activities of the states.
Addressing the effect of incessant state creation on the autonomy of the state and true fiscal Federalism in Nigeria, former Vice President Alex Ekwueme observed that, “the increase in the number of states has tended to reduce the states to a level where they have virtually ceased to function as component, autonomous and cognate units in a Federal polity.”
Investigations reveal that there are many federations with higher populations, larger land mass, ethnic and other diversities, higher GDP and higher internally generated revenue by the federating units, yet, have less states than Nigeria.
Indeed, if Nigeria were a federating unit in the United States of America, she would have been the 25th state, in the ranking of the US States by their GDP after Louisiana. Nigeria’s GDP is less than five per cent of the US national GDP.
According to Elder Theophilus Ajibola, an educationist, “State creation if not controlled will not move the country forward. States creation is not, in the least, an answer to the myriad problems the country is facing. Previous exercises have never been done from the perspective of bringing government and development closer to the people. Rather, it has been to score some political goals and satisfy particular interests. A constitutional adjustment that will ensure true federalism, rather than creating unviable and dependent states will help develop the nation economically.”
Speaking further, Ajibola said, the states should be allowed to control up to 50 per cent of their resources. “This will reduce the number of agitations for new states because many of the proposed new states have no economic basis to sustain themselves, except their dependence on federal revenue. It will also encourage states to look inward for internally generated revenue thereby diversifying the economy”, he said.
Sunday Mirror investigations reveal that to actually get the government and development to the people, there is need to reposition the local governments, which is the closest tier of government to the grassroots. The local governments are operating under the strangulating control of state governors. They are centers of corruption and mediocrity. The powers and functions of the local government system should be enshrined in the Constitution and their finances ensured.
Some other commentators point to the fact that new state will only end up as additional cost centres, which Nigeria cannot afford.
In a nation where electricity remains epileptic and industries are relocating to neighboring countries for a more efficient operational base, creation of more states will further raise the already high cost of governance in the country.
Each of the states to be created will become a new cost centre to the federation account. The newly created states will need fresh civil service of their own, a legislature, governor, aides to the governor, commissioners, local governments etc. All these are new cost centers to the federation.
At the moment, both the federal and state governments spend close to 70 per cent of their annual budgets on salaries and cost of running the government. There is little or nothing left for infrastructure and other social services. The result is the high level of under-development in the country.
State governments cannot even pay the N18,000 minimum wage approved for civil servants by the Federal Government. As more states are created, the share of the states from the federation account diminishes.
The consensus however is that creation of new states in Nigeria has had both negative and positive effects on the wheels of governance in Nigeria at different periods.
However, despite the present situation, the creation of states in Nigeria has gone a long way in fostering unity, minimising conflicts, and bringing government closer to the people, avoiding domination of the country by one section of the state by another and ensuring a reasonable level of economic development of all parts.
Another impact of state creation in the business of governance in Nigeria is the fact that the practice has enhanced greater political participation by local governments.
As more states were created in Nigeria, grassroots participation in government and development has increased. The people at the local level benefit directly from the creation of states as they feel less dominated within the existing structure.
If the rationale behind the creation of new states is sincere and effectively applied, there would be healthier economic development and effective collaborations among the various tiers of government in Nigeria, as some have argued.
Apparently, the report of the National Conference indicates that Nigerians are not done yet and state creation will likely remain a key feature of political dialogue for some time to come.


    Friday 27 February 2015

    START WITH WHAT YOU HAVE WHERE YOU ARE, DO WHAT YOU CAN

    STARTING WITH WHAT YOU HAVE

    A couple weeks ago I went to Powell’s and heard J.D. Roth talk about taking personal responsibility over your financial life. “No one will ever care about your money as much as you do,” he said.
    Very true. And you can say the same about your career, your dreams, your goals, and pretty much anything else that is personal and important. When we stop waiting for someone else to come along and make something happen for us, everything moves a lot quicker.
    The reasons we fail to begin are frequently cited as: time, money, or something elseexternal. The reasons we actually fail to begin are often: fear, inertia, or something elseinternal.
    It’s socially acceptable to blame our indecisiveness on a lack of resources. Everyone understands when you say you’re waiting for a change in situation before beginning. But in fact, it’s relatively easy to deal with the lack of resources. What’s harder is taking the first, critical steps toward overcoming the internal obstacles.
    The act of beginning something is powerful. Putting words to page, setting an unbreakable date on the calendar, making a firm commitment.
    Therefore the important question is: How can you start something today?
    For a long time I wanted to be a writer. Then I finally realized the obvious: if you want to be a writer, start writing! Writing is free, and no one needs to bestow a title of WRITER upon you to begin writing. The same is true with art, business, travel, and plenty of other things.
    If you want to start a business, all you need is one idea. The idea doesn’t need to be big; sometimes small ideas make great small businesses. Think about one thing you know how to do that other people would also like to know how to do. Set up shop as a “very small consultant” offering help with that one thing. Make it easy to get paid. Put a PayPal button on your site and say “I do this thing. Hire me if I can help you.”
    Have you ever visited another country, even just one? Chances are, someone out there wants to know how it works: what they need to do before they go, what they should do when they get there, and so on. I certainly don’t have that market covered—go ahead, do that. Become the “untourist” expert on wherever you’ve been. Alternatively, if you have a hometown, you can do the same thing in reverse. Become the world’s leading expert on Minot, North Dakota and find a way to do something with it.
    If you want to display your art, start on your street. Almost every one of the coffee shops where I live, including the big chains like Starbucks, hangs art by local artists on their walls. If I were a visual artist, I’d take a day and invest $30 on buying coffee at at least 10 different shops. At every one I’d ask how the artist got her art on display. You’ll probably hear about some manager you need to talk to, so I’d get a card and politely follow-up. I’d set a goal of being in at least one shop every month for the next twelve months. If you live somewhere that doesn’t have coffee shops, go to every restaurant. Or go somewhere. The point is that it’s either free or cheap ($3 coffee) to do this. You can start today.
    If you want to see the world, find a way to go on some kind of trip. Here in Portland I see that Alaska Airlines is offering 25,000 miles for any round-trip flight that includes PDX on the itinerary. So if you live here, you take a quick $89 trip to Seattle or elsewhere nearby, and then you have a free ticket to Washington, D.C., Chicago, Orlando, Vancouver, or wherever. Done.
    I know that most of you don’t live in Portland, but hopefully you get the idea. These are examples, so as always, if they don’t fit your situation, think about where you are and what you’re trying to accomplish. Don’t look at what you think you lack; look at what you have and find a way to make it work.
    And just like with J.D.’s book about money, no one will ever care about your goals as much as you do. Don’t wait for someone to get you started. Start yourself.
    What are you trying to do? How can you get closer to it… today?
    ###

    Wednesday 18 February 2015

    NIGERIA'S TROUBLED TEXTILE INDUSTRY

    Nigeria’s troubled textile industry


    The nation’s textile industry has been brought to its knees by a combination of huge infrastructural deficits and cheap imports from Asia. Attempts at reviving the sector through fiscal policy and monetary intervention seem to go nowhere.  Ag, Head of Investigations, Yemi Olakitan examines the issues behind the parlous state of the Nigerian textile sector and the way forward.
    The textile industry was one of the booming sub-sectors of the economy in the post independence years. Fed by locally grown cotton and with huge demand for clothing by a fast growing population, it provided direct and indirect employment to hundreds of Nigerians for several decades.
    In the golden era of Nigeria’s textile industry between 1985 and 1991, the sector recorded an annual growth of 67 per cent and as at 1991; it employed about 25 per cent workers in the nation’s manufacturing sector.
    Some of the textiles companies that enjoyed the boom then include Kaduna Textile Ltd (KTL), Arewa Textiles Plc, United Nigerian Textile Plc, Supertex, Nortex Nigerian Ltd and Finetex Nigerian Ltd.  Others were Gaskiya Textiles Mill, Kano Textile Ltd, Aba Textiles, Zamfara Textiles Ltd, Asaba Textiles Ltd, African Textile Mill Plc, Tofa Textiles and several others.
    In that period the functional textile companies numbered around 180, employing about a million people, it accounted for over 60 per cent of the textile industry capacity in West Africa, empowering millions of households across all the geopolitical zones of Nigeria.
    The story however changed in the early nineties and the sector took a massive dive into an industrial abyss. At a point during the crisis in the sector, from about 180 thriving textile companies, the number came down to almost zero, with textile giants such as United Nigerian Textile Company bowing to the pressure imposed by a hostile operating environment.
    The Federal Government in 2009 set up the N100bn intervention fund for the textile industry. The Textile and Garment (CTG) Intervention Fund is managed and disbursed by the Bank of Industry (BOI). However, the fund is yet to bring the textile industry back to his former glory.  According to the Coalition of Closed Unpaid Textiles Workers in Kaduna an estimated 600, 000 people are still rendered jobless in the industry.
    These companies began to close down one after the other. Some of the Textile firms that have closed down most recently include the International Textile Industry (ITI) with factories in Isolo and Ikorodu, both in Lagos, with 800 people losing their jobs. First Spinners Limited, Ikorodu, Lagos, with about 500 employees; Bhojr Textile Industry with about 700 people and Reliance Textile, Ikeja, Lagos, with about 500 employees have also folded.
    The list also includes Fahibdayekh in Kano, with more that 1,000 people sent into the labour market and Atlantic Textile Mill also in Lagos, which finally closed in 2008 with about 800 people losing their jobs.
    Sunday Mirror investigations reveal that the loss of jobs in the sector hit about 100,000 when the largest textile company in the country, the United Textile Mill in Kaduna State closed down with about 5,000 people forced into the labour market. The collapse of the industry was driven largely by smuggling at the borders, failed government policies, high cost of doing business arising from high-priced raw materials, energy costs, and a plethora of challenges, which plagues the investment climate in Nigeria.
    In 1995, World Trade Organisation, WTO, adopted certain agreements on Textiles and Clothing, chief of them was that that all allocations on textile and clothing will be removed among WTO member countries. The main beneficiary of the policy was China. The global textile market is said to worth more than $400bn at present. According to China Customs, the export value of China’s textile and garment alone amounted to $206.5bn.  The Nigerian textile industry was one of those that suffered, because of the cheap exports from China. Nigeria used to be the major supplier of (Ankara) good quality wax-resist textile. However, in the early 2000s, cheap imitations of these products were produced and exported from China to West Africa. Some would be slapped with Made-in-Nigeria labels and then sold in Nigeria.
    Investigations reveal that Nigeria imports about N300bn worth of textiles and garments annually according to the National Union of Textile Garment and Tailoring Workers of Nigeria. Most of the textiles and garments were imported without paying the required duties and taxes. Smuggled textiles have taken over 90 per cent of the Nigerian market.
    A garment and clothing trader based in Lagos Island, who spoke with Sunday Mirror on the subject confirmed that most of the textile been sold in the Nigeria market come from China.
    According to her, some are imported from Pakistan and Dubai. She was quick to point out that buyers also prefer foreign materials because of superior quality. “If the buyers demands foreign products we cannot deny them the right to have them because we are in the market to make money. The global textile and garments industry is very competitive and Nigeria cannot live in isolation. Nigerians travel and they see what they like. There is always a demand for foreign materials. Nigerians are fashionable people.  Though, I also sell Nigerian textile; it depends on what the customer wants, it is not all about high cost of production alone. Demand and supply contribute to the market situation,” she said.
    Investigations have shown that most of the substandard textile goods in the country, which are mostly from China, are smuggled into the country from neighbouring countries like Benin Republic and Niger Republic.  Most worrisome is the fact that some of the imported products are of inferior quality.  Reports say, some of the people behind the smuggling of textile products are employees and operators of the textile firms that have closed shop in Nigeria. Some of them have found an abode for the trade in the North, using Kaduna and Kano as bases.
    According to the Secretary General, National Union of Textile Garments and Tailoring Workers of Nigeria, NUTGWN, Comrade Isa Aremu, “Smugglers have disregarded the government’s orders banning importation of finished textile products by sneaking them through the borders into Nigeria”.
    Aremu said that in order to reposition the sector, the issue of funding needed to be given more priority.  He said the current N100bn textile intervention fund should be increased to about N500bn and made available to the operators in the sector at zero per cent interest rate, which should be repaid within 20 years.
    He pointed out that no fewer than five textile companies in Lagos State have stopped production in the last five months. One of such, Bhajaraj (with an estimated staff strength of over 1000), closed operations. The four firms that have joined the long list of moribund textile manufacturing firms in Nigeria are Four Spinners located in Ikorodu area, ITI factories in Isolo and Ikorodu and Reliance Textiles.
    The five companies were all based in Lagos and employed about 9,000 people. The sad news, however, is that some of the textile firms that are closing shops in Nigeria are shifting operations to neighboring West African countries. Some of the countries that are benefiting from the fall of Nigeria’s textile industry are Sierra Leone, Ghana, and Guinea among others.
    The President of the National Union Textile, Garments and Tailoring Workers (NUTGTWN), Comrade Oladele Hunsu, said the textile industry in the 1980s used to be the second largest employer of labour after the federal government. “However, over the years, there was a steady decline in operations of the textiles firms and then an eventual collapse of the industry, which has led to loss of jobs, dearth of skilled manpower, low capacity utilization and drop in government revenue due to lack of excise duties”, he noted.
    He called on the government to engage Asian government on best trade practices and chart a new course for reviving the textile industry.
    Speaking further he said the Federal Government was losing about N75bn annually on customs duty and Value Added Tax as a result of smuggling of textile materials into the country stressing that the performance of the textile industry remained at low ebb in 2014 due to lack of enabling environment and inconsistency in government policy.
    According to the union leader, the capacity utilisation in the industry remained below 50 per cent and the growth had been stagnant. Cost of manufacturing textiles in Nigeria is high and this gives room for cheap foreign goods. The price of gas was increased by 15 per cent from January 2014; adding that the price of black oil remained high due to scarcity. It stated that textile industry deserved concessional pricing like other industries such as cement, saying that government’s response, however, has been inadequate.
    While commending the Federal Government for the intervention fund set up for the textile industry, but noted that financing was just one out of the numerous challenges facing the textile industry. He pointed out that the key problems of the sector remained infrastructural inadequacy, raw materials shortage, unreliable electricity supply, and smuggling, counterfeiting, faking, among others.  There is also lack of patronage of made in Nigeria textiles due to lack of effective policy enforcement. Indeed, most government ministries and agencies such as police, customs, immigration and army still prefer to use imported fabrics for uniforms rather than sourcing them locally.
    Other African countries have been highly supportive of their textile industry to improve their competitiveness. Ethiopia, for example, had attracted foreign direct investment in the textile and garment industry in recent years creating 28,000 new jobs as a result.  Ivory Coast had one large textile mill; its government however had taken effective steps to check imported counterfeit textiles to protect local industry. Ghana on its own part had three large textile mills and only allowed import of all raw materials, dyes and chemicals and spare parts at zero per cent duty. The union called on the Federal Government to take necessary measures and put in place similar policies that would support and protect the nation’s textiles industry.
    Speaking with Sunday Mirror on the subject, President, Nigeria Textile Manufacturers Association, Olarenwaju Jaiyeola, attributed the problems of the textile industry in Nigeria predominantly to infrastructure.
    “If we address the problems of infrastructure, half of the problems plaguing the sector would have been solved. The problems of electricity, high costs of production are very basic problems facing the industry.’’
    According to him, the smuggling of cheap textiles from abroad, which the local industry is unable to compete against, higher costs of production, high interest rate, and dumping of cheap Chinese wax and African prints, power failure and high cost of fuel are the problems have been identified time and time again.
    “The rising cost of Automotive Gas Oil, AGO, popularly called diesel has teamed up with failing infrastructure to put the final mix to make operation difficult for the surviving textile industries in Nigeria even the current epileptic supply of electricity leaves manufacturer with no options than running a generating plant. Take, for instance, a textile company consuming one million litres of diesel in a month and three million litres of fuel oil a month, the increase in the prices of the fuel will definitely reflect on the price of their products. How then can local companies compete with the cheap materials coming from China? The deterioration in the sector can also be blamed on the weak linkages in the value chain,” he said.

    On the Intervention Fund, he admitted that the Fund has stabilised the situation.  He said, “The fund has not established new factories though, but it has brought some life into the industry. The problems of smuggling and counterfeiting are still robbing us of the expansion we would have enjoyed and cheap imported products still continue to litter the country. These problems are so damaging such that those who have taken the loans could not pay back. Foreign companies have dominated the scene. The cost of electricity is very high. Costs of production are generally very high.”
    The Bank of Industry has said about N60bn has been disbursed to various beneficiaries under the intervention scheme and had resulted in the re-opening of United Nigeria Textiles Limited in Kaduna.
    According to the bank, “Over 8,070 jobs had been saved through the intervention, adding that capacity utilisation for most beneficiaries has increased from below 40 per cent to about 61 per cent at the time while over 50 per cent of those making losses has started reporting profits.”
    On the issue of local patronage, he noted that a bill has been sent to the National Assembly on the matter and the bill is there since 2003.
    “As you know we are in a democracy, the bill is following the process, it has gone through second reading. It is because the problem of local patronage has not been backed by law that is why all the agencies of government are still doing whatever they like otherwise we would have seen a remarkable improvement in the industry. The central point of the bill is that all the agencies of government should patronise the textile sector for their clothing and textile needs. The bill says before you look outside look inward first. There is a ray of hope that when the bill is passed the textile industry will further improve to an extent,” he said.

    Speaking further, he emphasised the gains of the intervention of the Federal Government through the Textile Fund, which he said had significantly assisted in reviving some of the dead textile companies. He however urged the government to give additional incentives to the textile manufacturers to enable them increase their productivity and create more jobs for Nigerians.
    According to him, the production of cotton for domestic utilisation and exports should be strengthened, adding that existing players in the sub-sector should be supported to expand their current operations in order to attract strong brands as well as enable operators to set up local manufacturing plants in the country.
    Speaking with Sunday Mirror, Director-General, Lagos Chamber of Commerce and industry, Mr. Muda Yusuf, said, “The problems with the Nigerian textile industry is high cost of production, smuggling, technology, and logistics. All these factors have led to the collapse of the industry. The fact is that the global textile industry has moved on from where it used to be years ago and we can no longer compete with bigger brands. We cannot continue to use obsolete technology and expect to compete effectively with the rest of the world. It has now become survival of the fittest.  There is also no enforcement of fiscal policy to ensure protection of the industry. The whole country is flooded with substandard and even contraband textile materials. The exchange rate and even the interest rate are not helping matters. What the Federal Government has done is throw money into the industry. The intervention fund alone cannot help matters because it is not a money problem alone. As long as the problems remain and if the cost of production is as it is, we cannot compete globally in the industry. If the enforcement of fiscal policies put in place for the protection of the industry is effective then there would be satisfactory changes.
    The Federal Government itself needs to patronise the industry. Look at all the police uniforms, military and paramilitary uniforms that government procures from abroad. If there is a policy that says that they must patronise Nigerian textile companies, it will keep the industry busy and then this will in turn create employment for thousands of Nigerians. It is not a question of throwing money at them; some of the companies are already facing receivership. When you collect money from a bank and you cannot pay back, they are going to come after you. They will collect all the assets of your company and this will further weaken an industry that is already on its knees.”
    According to the Yusuf, the Chamber of Commerce had met with government agencies on these issues but nobody is implementing these policies. “This has further contributed to the situation we found ourselves,’’ he said.
    The Lagos Zonal chairman of Nigerian Textile Workers Union, Godspower Irobo, said the folding up of textile industries in the country poses a major threat to government’s efforts to reduce unemployment among Nigerians.
    He disclosed that over a huge percentage of commercial motorcycle riders are textile workers that were disengaged by the moribund firms.
    “It is difficult for a textile worker, especially those in production line, to adapt to other fields. It is also difficult for them to begin their own businesses because they do not have enough resources to do so. So, most of them end up as commercial motorcyclists,” Irobo said.
    Adebola Fayemi, CEO of Fayemz Fashions Label, said the major challenge that we face in the industry concerns the lack of basic infrastructure particularly inadequate power supply.
    He said, “What affects me the most as a designer is power. I donate half of my income to power generation. We are on diesel all the time. If the government must help the textile industry which is directly linked to the fashion industry, they must improve power supply.  This is what will benefit every entrepreneur and have a multiplier effects on the economy because there will be jobs. If entrepreneurs do not spend their money on power generation, the cost of production will be greatly minimised. This is the major obstacle that most Nigerians face. If government can take effective charge of power and provide adequate power supply, then we can concentrate our creative efforts on other areas, which will contribute immensely to the growth of our national economy.   The way I see Nigeria and this includes everybody, I see a malnourish child who has tremendous potential but is not flourishing. Nigerians are very resourceful even with the situation Nigerians have shown that they can perform wonders; given a conducive environment. Look at our Ankara textile materials, which for many years were a favorite of designers in runways all over the world in the fashion industry.
    Our textile factories started manufacturing it in the 80s but it has been highjacked by Asian companies. Some have even claimed that it did not originate from Nigeria and that it was somehow imported from Asia to Nigeria and that we copied it from them. This is because of the stagnancy in the Nigerian textile sector. If the industry had continued to grow at the rate it was growing in that period. No one could say that.   The solution is clear infrastructure, infrastructure, and infrastructure.” he said.
    Mrs. Fadekemi Ahmed, a textile and clothing trader on Lagos Island, also pointed out that the problems of the textile industry are that there are too many Chinese materials in the market and they are often cheaper than Nigerian made textile materials. “We don’t know how those Chinese manage to produce them at such cheaper prices. It is not true that the imported clothes are inferior quality. I can tell you that many of them are of very good quality. When you have a good quality product at a cheaper price imported massively into the country, who wants to buy another product with a lower or equal quality but higher prices even if it is produced in Nigeria by Nigerians.”
    On how she gets her goods, she said, ‘I don’t travel out to import them myself; they come here to supply me. I have heard that some people travel out to bring their goods. I don’t, I have people who supply me. The business is good.”  She explained that government should do what it should do to help the industry as “we will take goods from whoever is profitable since this is where we get our daily bread.
    “I have been in this business for the past 10 years and this is what I use to send my children to school”, she said.
    All hope may not be lost for the industry as falling oil prices have again underlined the need for economic diversification. The issue has also featured in ongoing election campaigns.
    President Goodluck Jonathan during his campaigns efforts for 2015 elections has made a pledge to revive the textile industry one of his cardinal focus.
    According to him, he hopes to generate employment and boost the economy through that sector. At the PDP presidential election rally held in Kaduna, the President had said, ‘With improvement in power supply, we will work closely with farmers and manufacturers to ensure that the textile industry is back to life, thereby reclaiming his lost glory.”
    The governorship candidate of All Progressive Congress, APC, in Kaduna state, Mallam Nasir El-Rufai also assured that if elected, his administration will revive the moribund Kaduna Textile Limited and other collapsed factories in the state.  Analysts say, these comments show that government is fully aware of the problems in the sector and that one can only hope that the campaign promises would be fulfilled.

    Monday 9 February 2015

    The growing industry of street begging

    By Yemi Olakitan 





    The issue of street begging in major cities of Nigeria is a worrisome subject to many, particularly in Lagos, Onit
    sha, Kaduna and other major cities of the Northern states. It has become a common phenomenon for beggars to eke out a living on account of one physical disability or the other. Some use babies to attract sympathy while others pretend to be stranded and in need of help. Ag Head of investigations, Yemi Olakitan examines what is apparently a multimillion naira “industry”.
    The issue of begging in Nigeria is a long standing social phenomenon, which in certain places especially in the North, cuts across generations. It is usually tolerated based on religious or cultural beliefs that often dedicate an obligation to help the poor.
    However, it has been established that begging has a negative implications for the economies of the cities, the environment and the beggars themselves.
    The growing population of beggars in Nigeria constitutes a blemish or environmental nuisance and a health hazard, particularly those carrying infectious and contagious diseases. Some scholars argue that begging has serious implications for Nigerians and the economy as beggars are not productive and contribute nothing to the economy.
    Beggars portray a bad image to visitors, tourists and foreign investors and unless government develops a practical policy that will cater for the welfare of the poor and remove beggars from the streets, they will continue to pose a problem to the society. The situation is also dangerous because criminals disguise as beggars to perpetuate evil deeds. The story is still fresh in mind of the notorious cannibal, Clifford Orji, who pretended to be mad, waylaid and murdered many people right in the middle of Lagos and ate their body parts or sold them for ritual purposes.
    He was reported to have died in prison while awaiting trial.
    However, beggars continue to be part of the Nigerian society. Lagos, the commercial capital of the country has a large share of the nation’s beggars. In Lagos, beggars can be seen in very corner of the state. At most strategic roads, many with some form of diseases are carried and put at the center of the road with men and women with sacks in their hands soliciting for money.
    Religious places of worship are one of the favourite places for beggars in Lagos.
    According to Deaconess Shola Abimbola of the Global Church of the Living God, “In Lagos, it is not uncommon to see beggars in various religious centers particularly churches. There are people who come to church, well dressed and looking well and what they do every Sunday is to beg for money.
    “I think Lagos is a preferred destination for beggars in this country and many of the beggars you see on the streets are not even Nigerians. They are from neighboring countries such as Niger, Chad, and Cameroun.”
    Friday prayers at the thousands of mosques scattered across the country are also targeted by beggars, who capitalise on Islamic injunctions concerning alms to beg from Muslims.
    However, the authorities are not happy with the situation.
    In 2013, the Lagos state Government launched a war against begging in the state Governor Babatunde Fashola vowed to eradicate all forms of begging.
    The governor stated that the law against begging must be enforced to ensure that beggars were stamped out of the streets of Lagos, as their activities constituted nuisance to the public and the government. Fashola, said there was no reason why people should beg for alms on the streets of Lagos when they could easily learn some vocational skills.
    “When we say people shouldn’t beg on our street, we mean it. The reason is that begging is not an option here.
    Everyone must contribute to this economy and those who have drug problem or illness have the choice to visit our remand homes where we feed them, rehabilitate and treat them.
    “So, we have provided a choice and there is a law against street begging and we will enforce it,” he stated.
    The governor added that several people had been trained at the vocational centers and had become very useful to the society, stressing that those begging for alms could also make themselves available for training in order to become useful to the society.
    He explained that the Lagos State Remand Home and Skill Acquisition Centre, Isheri, was developed over the last years essentially out of nothing.
    The governor said the wood work section at the centre was where a lot of the state’s school furniture was being made adding that the boots worn by officials of the Lagos State Traffic Management Authority and Neighborhood Watch were being made at the footwear centre.
    “We have been to the refrigeration unit of the centre where they teach them basic refrigeration, maintenance, operational and management skills. The young ladies make foot mats, dresses and all of that.
    Other state governors such as Enugu State Governor, Sullivan Chime had vowed to get beggars off the road in his state, saying street begging was an offence under the law.  Governor Abdul Fatah Ahmed of Kwara State also thought it wise to put in place certain measures aimed at discouraging people from street begging.
    Reports say more women have turned beggars in Kwara State. These women reports daily in public offices to beg for alms, claiming that they had contributed to the electoral victories of public officers.
    According to the law, any person who hawks or wanders about to beg for alms is guilty of the offence while any person who encourages or facilitates any act of street begging is equally guilty.
    Besides, any person who contravenes the provisions of the law would be guilty of an offence and would be liable on conviction to a fine not exceeding N5,000 or imprisonment not exceeding three months or both.
    The law has defined alms to mean money, food, clothes or other material things. At one of his monthly media chats, Governor Ahmed described as unfortunate, the myriad social problems confronting the country, resulting to a few people going into street begging as a profession.
    He said his administration has created a rehabilitation programme under the ministry of social welfare to ensure that a lot of skill acquisition centers across the state are put into use, wondering why many people particularly the beggars have refused to take advantage of this.
    The governor noted that the increasing presence of beggars in the state was largely as a result of the evacuation done in other states where they just bundled them into vehicles and dropped them indiscriminately in different locations of the country.
    While those states have their own laws to contend with, he said, his state also has its own and would not bend the rules simply because they want to take care of the less-privileged.
    He called on beggars to take advantage of the systematic programme government put in place for their rehabilitation; he warned that to take to street begging was to contravene the law as government’s door is wide open to support beggars who seek rehabilitation.
    Investigations by Sunday Mirror shows that begging still continues despite the government efforts aimed at curbing it and the laws put in place to arrest offenders. It was found that some of them are controlled by “godfathers” who are entitled to a ‘cut’ of the money they get on a daily basis in return for ‘protection’.
    Ezekiel Keith, a Lagosian and social commentator, says begging in Lagos is worrisome. “It is something the Lagos State Government has not succeeded in curbing despite the megacity status of the state, the law and the rehabilitation centers. It is not uncommon to see beggars wherever you turn to in Lagos begging for food or money. You would think that it is because they are disabled but some are able-bodied men and women with no apparent disability except laziness and poverty. You will find them on the streets, bus stops and garages, even children are not excluded. Sometimes, one will see women with children begging for alms, at other times; you may find children running after you, pulling on your clothes asking you for money. These things still go on.”
    Some people believe that the Almajiri system practiced in the North has ensured that a high number of children are perpetually on the streets begging for alms. Nigeria’s Almajiris are the worst of beggars. These street urchins are a product of that system and impoverished homes. They are deserted or are turned out from their homes as early in life as age five or six, and sent to  live with Quran teachers in local madrassa also called “makaranta alo” (Arabic schools), which are mostly dilapidated “dormitories” constructed from rotten corrugated roofing sheets or inferior bricks.
    The pupils’ learning materials are torn fragments of papers with portions of the Qur’an or small wooden slates known in the Hausa dialect as “alo”. “Alo” is used to write down verses of the Qur’an to be memorized.
    The Senate President, David Mark had recently charged Northern governors to ban the ‘Almajiri’ system. He had argued that the Almajiri system is counterproductive and is a breeding ground for miscreants.
    According to Elder Theophilus Ajibola, an educationist, Almajiris system is the worst thing that has even happened to the Nigerian child. “This is where children are indoctrinated into another form of Islam by perverted and paranoid Islamic teachers to become violent. These children often grow up to have a negative view of life, it is from such ones that terrorist find willing recruits,’’ he said.
    Mr. Babatunde Adisa, a Lagos state businessman, who spoke on the subject, said, “poverty and desperation create the right environment and fertile ground for religious extremism. The only reason why terrorism thrives in the Northern part of the country is because the environment there is conducive for it. Why is it that there is no terrorism in Saudi Arabia or in Qatar, where Islam is the major religion? If you get to these countries, you will think that you are in heaven. The poverty level there is low. Nobody wants to blow themselves up with a bomb there. Beggars should be rehabilitated. Those who can work should be positively engaged in our farms. The Lagos State Government alone cannot handle it. It is a national problem that must be handled from the federal government to the state governments and the local communities”, he said
    However, Mohamed Teid, a Muslim activist, said that the religion obliges Muslim to cater for beggars.
    “Islam has obliged us to cater for the needy in our midst so that they will have no cause to beg on the streets. If we are truly believers in the teachings of Islam, We will see that the religion has made a number of provisions to cater for beggars. There would be no beggars on the streets if we practice the provision of the Islam. There is Zakat, the compulsory charity that should be taken from the rich and distributed among, or expended for, the needy, to establish its importance, Zakat is not given by the rich but taken from their wealth annually. Sharia would have solved the problems of begging in the North but it was restricted to chasing away prostitutes and banning alcohol”.
    Reverend Andrew Akinsuyi, a Nigerian-Canadian, who is also the president of a Christian charity organisation, named Salvation of God Mission, said some beg out of poverty while others are simply lazy.
    He said, “In Canada there are beggars. It is a worldwide phenomenon. There are people who are genuinely poor and there are people who are lazy and do not wish to work but prefer to beg. There is nothing you can do to these kinds of people, they will always beg. They may not be physically challenged, begging is in their mentality. It is a disease of the mind.
    “Many of these people need professional counseling to leave the streets even if you give them work or a house, they will still go back to the streets. It is a disease of the mind. There is something they do in Canada which I will love to introduce in Nigeria if I have sponsorship for it. They establish food bank for the poor. Individuals and corporate entities donate food items to certain centers and the poor can go there and collect food. It is a very laudable programme and I wish that we can emulate the system in Nigeria. The federal and state government must work together if we must eradicate begging in our nation. They must establish rehabilitation centers, vocational training centers and ensure that every Nigerian, no matter how physically challenged, can be productively engaged. The society itself must not live the work in the hands of the government because the poor will always remain among us. We must all join hands together in tackling the menace by providing training. Rehabilitation, opportunities for beggars and every Nigerian so that they can be removed from the streets”.


    However, the Dean of Post-Graduate School, Nigerian Defence Academy Professor Adam Okene, called for synergy among state governors in the northern parts of the country to eradicate the problem of Alamajiri and street begging.
    According to him, 30 per cent of children in the North are street beggars, while recent research showed that the North-west geo-political zone of the country accounts for 70 per cent of the beggars in the country.
    Perhaps it was in recognition of the disturbing trend that President Goodluck Jonathan initiated about 124 Almajiri Models Schools across the country, especially in the North. He personally commissioned the first set of 35 Almajiri Model Schools constructed by Tertiary Education Trust Fund, TETFund. The symbolic commissioning exercise was done in Sokoto.
    These 64 schools that are on stream are those built on behalf of the administration by UBEC. The 64 schools are located at: Adamawa, Borno, Gombe, Bauchi, Yobe, Jigawa, Kaduna, Sokoto, Zamfara, Kebbi, Oyo, Osun, Lagos, Ondo, Ekiti, Edo, Rivers, Kogi, Niger, Katsina, Taraba and Nasarawa States.
    This was part of a drive to completely tackle the out-of-school children challenge that is negatively affecting the nation’s overall development.
    The consequences of the ubiquitous presence of the Almajiris across the North and in other parts of the country are felt by all Nigerians.
    Beyond the construction and furnishing of these schools, the Jonathan administration developed specialised curricula in 11 subjects that are taught in these schools to enhance quick assimilation for the boys. The curricula, which flow with the mainstream basic education curriculum were based on the culture and needs of the Almajiris.
    Many have raised fears about the sustainability of this programme.
    However, the Supervising Minister of Education Barr.  Ezenwo Nyesom Wike said the directive of the President on continued engagement with stakeholders at all levels will be carried out.
    Another important step towards sustaining and expanding the gains of this programme was a memorandum of understanding (MOU) signed between the Federal Government and State Governments on the running of these schools.
    It covers the running of the schools, maintenance of infrastructure, enrolment drive, employment of qualified teaching and non teaching staff, provision of uniforms and writing materials and the provision of day-to-day running expenses of the schools.
    The MOU also provides for the protection of facilities at the schools, impact assessment after pre-determined periods of operation and submission of quarterly reports by State Universal Basic Education Boards, SUBEBS, to UBEC. The last major component of the MOU is ensuring that sustainable provision for the feeding of the Almajiris in the schools is always on ground.
    Also, the Jonathan administration developed and produced a National Framework for the Development and Integration of the Almajiri Education into basic education.
    This framework is to serve as a guide to states, local governments and nongovernmental organisations to key into this project aimed at providing quality education to these less privileged Nigerians.
    It is however no clear how this programme is being implemented now especially with the raging insurgency situation in the North, which has led to over two million people being displaced from their homes and communities with many already destitute, a factor that is bound increase the population of beggars across the nation.

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