The Ogbeni Rauf Aregbesola Colloquium 2020, a web seminar organised in recognition of the Minister of Interior’s work while he was Governor of Osun.

This year’s; edition discussed some of the topical issues in Nigeria, particularly those relating to the growth of the economy, with the theme of discussion centered around the creation of wealth in the predominantly poverty-stricken community.

Hosted by Boason Omofaye, the panel had eight prominent, and expert thought leaders across different sectors in Nigeria, including Government, Financial Sector and Advocacy.  They included: Bismarck Rewane, a member of the Presidential Economic Council and CEO of Financial Deriviatives; ‘Yemi Kale, Statistician-General at the National Bureau of Statistics. Dr. Joe Abah, Country Director DAI; Hajara Adeola, CEO Lotus Capital; Olayemi Cardoso, Chairman of Citi Bank Nigeria; Mallam Nasir El-Rufai, Governor of Kaduna State and Senator Abubakar Bagadu, Governor of Kebbi State.

The conversation began with a question on economic solutions Nigerians could employ to create wealth.

Bismarck highlighted some key indicators that spotlights a prototype of success in governance at a state level, as he made mention of the states’ poverty line which is the lowest at 6.2%. He would also go on to discuss other impressive stats from the state and suggested that if every state in Nigeria could take the route used by the Osun state government, then the country as a single unit could eliminate poverty.

‘Yemi Kale, spoke on how agriculture is undermined it is in Nigeria while pointing out key figures to show that farmers make up a vast number of the rural population in Nigeria.

He listed them as one of the lowest earners in the country, making them an essential and widely important part of the economy with an earning that doesn’t reflect their relevance. Citing that larger families, especially in rural areas tend to have a higher dependency ratio, the Statistician buttressed his points with a comparison between the five wealthiest states in Nigeria and the five poorest; spotting high population, social initiatives, unemployment, productivity issues and education as the biggest gap determinants.

For Dr. Abah, he spoke about four factors that could give insight into how to make the country’s population prosperous; Development Finance, Why Nations Succeed, Reducing the cost of governance as well as the link between Government and Development. While speaking on financing sustainable development, he advised that the government refrain from borrowing and incurring national debt. his solution, He advised them to look inwards for financial solutions, by creating initiatives that bring and trap money within the Nigerian borders.

In answering the question of Why Nations Succeed, he stated that the main difference between a successful country and an unsuccessful country is their productivity level; urging government to find a way at raising GDP per capital and GDP per worker.

On reducing cost of government, he enjoined them to tackle corruption and waste, link budget and funding to productivity, introduce new technology and create accountability metrics. He added that investment in tax services, human and financial resources could help generate the internal revenue needed to foster development.

Innovative financing idea to deliver at sub-national level (State of Osun especially)

Adeola stated that infrastructure is key to development, survival and sovereignty. In reference to Sukuk; a financial outfit designed to bridge the vast infrastructure gap in communities, from where the FGN has raised N200b.

Adding that the group’s transparency and accountability is nothing to worry about, she explained that public wealth is trapped in public real estate, and by using financial structures like Sukuk, you can unlock public assets.

She stated that alongside identity management, there’s need to focus on not just conventional education, but one fueled by ICT in collaboration with donors and service providers of computer companies. She also noted that in stimulating domestic production, she noted that government can insist on using Nigerian made products for its officials.

On gender issues, she described the nexus between massive impact and actively including women in economic activities.

Innovative financing and economic solutions for delivering mass prosperity 

Olayemi Cardoso opined that “it is important for Nigerians to develop an innovative framework, to align its growth strategy with its changing factors and endowment,” stressing that liberating people from societal and economic constraints allows them to flourish.

He also emphasized the protection of basic rights as well as the rejection of regulations and taxes that thwart free enterprise;

On the part of Governor El-Rufai, he pointed out that his state is doing a good job already, citing Kaduna’s double-digit growth. Although he expressed concerns on the high levels of inequality among his people, he pointed out the fact that the former Osun governor found a way to engage the youth through civic duties and rewarded their efforts. Thus, creating eagerness to work while also keeping crime rate low. For El-Rufai, the move was a genius move and he is trying to model same.

“The Pandemic has thought us a few lessons: The rest of the world doesn’t care. They are becoming increasingly nationalistic. We must invest in digitization,” he noted.

The former FCT Minister also admitted that there was a need to redefine the role of government such that it that knows when to intervene and never to obstruct.

Raising Productivity levels

For Dr. Abah, the first practical thing is to find a will to succeed, referring again to Aregbosola’s efforts in combating poverty in Osun state as an example of what “a determination to improve the standard of living can produce.”

What are some of the ways a state like Osun can do to deleverage its debt and have sustainable funding for some of the innovative and creative option presented by some of the panelists?

Bismarck estimated the debt level of Osun to be currently at $94 million dollars for the foreign portion and N138b for the domestic portion.

He pointed out the importance of figuring out how much of your total revenue is going to debt service, suggesting that what to do at this point in time is to ask for a debt standstill. He also advised the givernment to ask for a debt restructuring, so as to elongate the maturity profile and finally, sell assets that don’t fetch any money.

“The most potent and important strategy for funding growth is investment,” he added.

Adeola pointed out that 2020 is a defining moment of the millennium. She quoted a friend who told her that in hindsight, people are going to look back and ask. “In 2020 what did you do, what response did you give?”

While Olayemi Cardoso, noted that borrowing wasn’t a crime, Adeola’s view point was that when it comes to borrowing money, well defined specific projects need to be established and what economic returns you expect from the project needs to be stated before borrowing money for it. She further made a case for unlocking dead assets.

“We have a lot of assets that of we can secularize and can attract both domestic and foreign liquidity,” she said.

How to innovate and creatively handle the issue of tax on a sub-national level and grassroots level?

“The lazy option is simply to raise taxes, and still have the same 20% of the population struggling with it. The more intelligent option is to find ways to bring more people into the tax system,” Joe Abah responded. He alluded to the fact that Lagos and Kaduna have done a great job with tax and suggested that the government can start by introducing flat-rate taxes, and could also work closely with big industries.

Closing remarks:

Adeola Hajara quoted a Scandinavian leader- “A developed country is not one which the poor drives car but one where the rich takes public transport.” “Let’s face our infrastructure,” she concluded.

For Joe Abah, “when there is a will, there is a way. The public sector is not a nuisance, but the public sector will work the day the government decides to make it work.”

‘Yemi Kale:

“Understand what works for you and what works for your state, what works for another state might not work for you.”

Bismarck Rewane:

“Leadership is about people society, and enterprise. The day you take office is the day history is being written, you have no control over time and you have no control over history. The most important thing your legacy, you cannot control your legacy, your legacy comes as a result of your actions.”

Nasir El-Rufai:

“We need to be very deliberate about who we choose to be our leaders, and we should rate the quality of public leadership.”

Finally, the Chief Host, Aregbesola was given the floor to speak. He kicked off his speech by answering the question posed by Governor Bagudu pertaining to the risk incurred in guaranteeing mass prosperity.

Aregebosola replied that it was more of motivation than taking a risk. “Even as a child, I always wanted to being part of the process to liberate the poor,” explaining that his mission as governor to create wealth was motivated by a hatred for poverty.

“A motivated people, a mobilized people can never be in debt,” he opined, stressing that his administration did not use debt to fund any of its social problems as bulk of the debt was a result of an overdraft of salary.

“The loans taken from the capital market were directed at physical and human development and at the end of the day, they will have enough to pay whatever it is that had gotten them the debt in the first place,” Aregbesola noted.

He also mentioned Nigeria’s role as a continental leader stating that the nation is destined to lead the black man to liberty and leading the black men out of the inconsequential situation we’ve found ourselves in.

The former Governor thanked medical practitioners who were risking their lives, working in the front line of the pandemic and encouraged women to push harder, rather than wait for society’s help, describing them as a core element of human society.