The Nigerian Senate has proposed to amend Nigeria’s Electoral Act 2022 and introduce same-day elections nationwide, to cut costs and curtail voter apathy.

The proposal is gaining traction among voters, civil society organizations, and political analysts who believe the reform could significantly reduce electoral malpractice.

The bill, sponsored by Senator Saliu Mustapha (Kwara Central), has already passed a second reading in the Senate, with widespread support from lawmakers who argue that Nigeria’s staggered election process is inefficient, expensive, and vulnerable to manipulation.

Mustapha highlighted that Nigeria’s election costs have skyrocketed from N1.5 billion in 1999 to N350 billion in 2023, calling the trend unsustainable. He also stressed that holding all elections on the same day would increase voter participation, reduce political tension, and prevent a scenario where parties that lose one election manipulate subsequent ones.

But while the idea is generating enthusiasm, concerns remain about whether the Independent National Electoral Commission (INEC) has the capacity to execute elections at all levels on a single day.

Electorates Cite 2023 Lagos Elections as Case Study

The proposal has resonated deeply with many Nigerians who believe that the current staggered system enables electoral fraud. Some have pointed to the 2023 general elections in Lagos State, where the ruling All Progressives Congress (APC) suffered an unexpected defeat in the presidential election but quickly regrouped to suppress voter turnout during the governorship election.

During the presidential poll, opposition parties, particularly the Labour Party (LP), secured a shock victory in Lagos, exposing weaknesses in APC’s stronghold. However, before the governorship election, the ruling party allegedly deployed thugs and security agents to intimidate and disenfranchise voters in key opposition areas.

Eyewitness reports indicated widespread voter suppression, particularly targeting areas with large populations of non-indigenous residents who had voted against the APC in the presidential election.

A video before election day also showed the then head of the National Union of Road Transport Workers (NURTW), popularly known as MC-Oluomo, warning voters not to come out unless they were prepared to vote for the ruling party. Many polling units in opposition strongholds recorded low turnout, partly due to fear of violence.

Against this backdrop, advocates of the bill argue that consolidating all elections into a single day would prevent politicians from adjusting their rigging strategies between election rounds. Under the current system, parties that perform poorly in early elections can use the interval before subsequent ones to deploy vote suppression tactics, bribe electoral officers, or influence security agencies.

Concerns Over INEC’s Capacity

Although the bill has garnered broad support, some lawmakers have expressed doubts about whether INEC has the logistical ability to manage a nationwide election covering presidential, National Assembly, governorship, and state assembly seats on the same day.

Senator Adams Oshiomhole warned that such a large-scale election would require major structural improvements in voter education, logistics, security, and election management.

“While the bill has good intentions, we must ensure that INEC is adequately prepared for the enormous task of conducting elections for all levels of government in one day,” Oshiomhole stated.

Others have raised concerns about potential voter confusion, especially in rural areas where many voters are less familiar with complex ballot systems. Managing multiple ballots for different positions on the same day could slow down voting and increase the risk of errors.

However, supporters of the bill pointed out that other countries—such as the United States, India, and Brazil—have successfully implemented same-day elections, demonstrating that with proper planning, Nigeria could do the same.

Will the Bill Pass?

With its passage for second reading, the bill is set to undergo further legislative scrutiny in the coming weeks. Lawmakers will debate the feasibility of its implementation, potential modifications to the existing electoral framework, and strategies for enhancing INEC’s capacity.

If passed, it would mark one of the most significant electoral reforms in Nigeria’s history, addressing long-standing concerns about election cost, manipulation, and voter disenfranchisement.

Nigerians are expressing optimism that the change will be adopted, believing that it will enhance democratic integrity, reduce political violence, and prevent the kind of post-election suppression seen in Lagos and other states.

Pat Gelsinger, the former chief executive of Intel, has criticized Taiwan Semiconductor Manufacturing Company’s (TSMC) decision to invest an additional $100 billion in advanced chip manufacturing plants in the United States, arguing that the move does little to help the country regain its leadership in semiconductor production.

His remarks come shortly after the White House praised TSMC’s investment as a milestone in efforts to bring production of advanced semiconductors back to US soil. However, Gelsinger insists that without research and development (R&D) capabilities in the US, the country cannot expect to achieve long-term leadership in semiconductor manufacturing.

“If you don’t have R&D in the US, you will not have semiconductor leadership in the US,” Gelsinger said. “All of the R&D work of TSMC is in Taiwan, and they haven’t made any announcements to move that.”

Trump’s Tariff Pressure Beneficial to US Chip Industry

Despite his skepticism about TSMC’s investment, Gelsinger acknowledged that President Donald Trump’s tariff policies had been “incrementally beneficial” in incentivizing chip manufacturers like TSMC to expand their presence in the United States. The Trump administration has pushed for greater US-based chip production amid concerns about Intel’s ability to compete with its Taiwanese rival.

Intel, once the undisputed leader in semiconductor manufacturing, lost its technological edge to TSMC over a decade ago. Under Gelsinger’s leadership, the company had embarked on an ambitious turnaround plan aimed at regaining that position, but his abrupt departure late last year underlines the board’s loss of confidence in his strategy.

“I wasn’t done with the five-plus years when the board made a directional change,” Gelsinger said, hinting at disagreements over Intel’s long-term vision. His successor, Lip-Bu Tan, appointed earlier this month, has yet to outline his strategy for Intel’s future.

TSMC to Keep R&D in Taiwan

TSMC has confirmed that its US expansion will focus solely on existing process technology rather than the development of next-generation semiconductor innovations. Gelsinger argues that without cutting-edge research in the US, the country will remain at a disadvantage.

“Unless you’re designing the next-generation transistor technology in the US, you do not have leadership in the US,” he said.

While Intel has struggled to regain its manufacturing lead, the US still maintains a technological edge in areas like artificial intelligence (AI) and quantum computing. Gelsinger, who has since joined Silicon Valley venture capital firm Playground Global, is now focusing on investments in “deep tech” innovations, including quantum computing and advanced semiconductor technologies.

Dismissing DeepSeek’s Threat, Advocating Cost Reductions for AI

Addressing concerns about China’s growing AI capabilities, Gelsinger dismissed recent fears surrounding DeepSeek, a Chinese AI company that made waves with its low-cost AI technology. He argued that while the company’s work was solid engineering, it did not represent any groundbreaking innovations.

“DeepSeek was good engineering, it wasn’t core innovations. It wasn’t major breakthroughs,” he said.

Gelsinger also pointed out that while AI has revolutionized technology, its current high costs remain a barrier to broader adoption. He stressed that significant cost reductions in AI inference—the process of running AI models—are necessary for the technology to be fully integrated into everyday life.

“AI, as exciting as it is, is much too expensive,” he said. “We have to have dramatic reductions in the cost of inference for it to be truly deployed in every aspect of humanity.”

Silicon Valley’s Future Investments in Chip Technologies

Gelsinger’s new role at Playground Global positions him at the forefront of emerging semiconductor innovations. The firm backs start-ups such as xLight, which develops advanced lasers for future chip-making lithography, and PsiQuantum, which is building large-scale quantum computing systems. Another investment, d-Matrix, is attempting to surpass Nvidia in AI chip development.

While his tenure at Intel did not yield the intended results, Gelsinger’s continued involvement in deep technology suggests he remains committed to shaping the future of semiconductor and AI advancements. However, he didn’t attempt to answer the broader question: can the United States regain its semiconductor leadership, or will it continue to rely on foreign companies like TSMC without securing the critical R&D capabilities needed for long-term dominance?

Nigerian banks increasingly rely on short-term commercial papers (CPs) to navigate liquidity challenges as the Central Bank of Nigeria (CBN) enforces stringent cash reserve policies, significantly driving up the cost of deposits.

The move highlights the growing pressures on financial institutions in the face of aggressive monetary tightening measures by the apex bank.

Access Holdings Plc, the country’s largest bank by assets, along with at least three other financial institutions, have either recently issued or are in the process of issuing commercial papers to bolster liquidity. The decision to embrace CPs comes as banks struggle to attract deposits while grappling with rising funding costs imposed by the CBN’s policies aimed at stabilizing the naira and curbing inflation.

Since the central bank raised the cash reserve ratio (CRR) to 50% in September 2023, it has withdrawn approximately N26.6 trillion in liquidity from the banking system. The CRR policy effectively doubles the cost of raising deposits for financial institutions, as a significant portion of customer deposits is locked away at the CBN rather than being available for lending or investment.

Data from January 2024 shows that while the average rate for a six-month deposit stood at 19%, banks faced an effective cost of 36% due to the high CRR. Analysts point out that this reality significantly limits lenders’ ability to operate efficiently.

Chika Mbonu, Chief Executive Officer of KSBC Advisory Partners Ltd., explained that the effective cost soars to 36% because only half of the total deposits are available for lending.

“Assuming the customer deposit was obtained at 18%, the effective rate will be 36%, because of the high CRR rate, he told Bloomberg.

This situation has left banks searching for alternative funding mechanisms to keep their operations running smoothly.

CBN’s Interest Rate Hikes Intensify Liquidity Squeeze

Beyond the high CRR, Nigerian banks are also feeling the heat from the CBN’s sustained monetary tightening. Since early 2023, the apex bank has raised its benchmark interest rate by 875 basis points, bringing it to 27.5%. Additionally, the standing lending facility rate—a key tool used by banks to access short-term liquidity—has surged to 31.75%.

These measures, while intended to curb inflation and stabilize the currency, have made it increasingly difficult and expensive for banks to secure funding through traditional deposits. As a result, commercial papers, that offer short-term financing without the burden of CRR deductions, have become a more attractive option for banks seeking liquidity relief.

Commercial Papers Gain Favor Over Certificates of Deposit

The banking sector’s shift towards commercial papers reflects the rising cost of wholesale deposits and the need for more flexible funding options. Unlike certificates of deposit (CDs), which are subject to CRR deductions, CPs provide a workaround that allows banks to access funds without additional liquidity restrictions.

Samuel Sule, CEO of Renaissance Capital Africa, noted that CPs are becoming an increasingly preferred funding tool for banks. He explained that wholesale deposit rates are currently higher than commercial paper rates, and wholesale deposits often come with shorter tenors, making CPs a more viable alternative for liquidity management.

With CPs gaining traction, it is expected that more Nigerian banks will follow suit in issuing these short-term instruments to cushion the impact of CBN’s tightening measures.

“Other banks will follow to issue commercial papers as this is one of their funding tools,” he said.

Wider Implications for the Nigerian Banking Sector

The rising cost of funding and persistent liquidity constraints are poised to reshape Nigeria’s banking industry. Analysts suggest that the CBN’s aggressive monetary policies may continue to exert pressure on financial institutions in the near term.

While issuing commercial papers offers a temporary solution, the long-term sustainability of this approach remains uncertain. Banks will need to adapt to the evolving regulatory environment by exploring innovative financing models and diversifying their funding sources.

The continued reliance on costly short-term debt instruments such as CPs could also impact banks’ profitability and lending capabilities, potentially leading to reduced credit availability for businesses and consumers.