On Wednesday, Nigeria’s federal government unveiled a bold new initiative aimed at establishing an operating model and framework for Economic and Financial Inclusion. This project is part of a larger vision to transform Nigeria into a $1 trillion economy by 2030, focusing on combating poverty and driving sustainable economic growth from the grassroots level.

Vice President Kashim Shettima highlighted the significance of this initiative as a testament to the administration’s commitment to enhancing financial and economic inclusion across the country.

Speaking at the kick-off meeting for the Operating Model for Economic and Financial Inclusion, Shettima noted the administration’s dedication to providing access to capital and eradicating poverty through legislative interventions and critical policies.

This new initiative builds upon the Aso Accord on Economic and Financial Inclusion, unveiled on April 25, 2024. The accord is a comprehensive blueprint designed to achieve universal access to financial services and represents a core pillar of President Bola Tinubu’s Renewed Hope Agenda. This agenda aims to transform Nigeria into a $1 trillion economy by 2030 while addressing poverty and insecurity through broad-based prosperity.

Shettima disclosed that inclusive economic growth and development are at the heart of every strategy championed by Tinubu. He pointed to recent positive outcomes, such as the upgrade of Nigeria’s credit outlook to positive by Fitch Ratings, as recognition of the reform progress under the current administration.

However, Shettima acknowledged the short-term impacts of the reforms and stressed the importance of measures to mitigate the effects, citing the Student Loan Act and efforts by the Federal Ministry of Agriculture and Food Security to combat food insecurity.

The Vice President also highlighted that economic and financial inclusion has been elevated to the agenda of the National Economic Council (NEC), where all governors of the 36 states and the FCT minister participate in crucial policy deliberations alongside other stakeholders. He noted that this elevation underscores the administration’s belief that inclusive growth must be both strategic and sustainable.

Addressing the implementation team and stakeholders, Shettima called on them to recognize the weight of their responsibility.

“You have been entrusted with a vital national assignment, and I have full confidence that you will bring your best efforts to ensure its success,” he stated.

He urged the team to engage all stakeholders fully and contribute their insights, expertise, and dedication to forge a robust operating model that will drive economic and financial inclusion across Nigeria.

Shettima stressed the importance of developing solutions to alleviate the impact of ongoing economic reforms on over 30 million financially excluded Nigerians, propelling the country toward sustainable and inclusive growth.

Speaking at the event, Dr. Nurudeen Zauro, Technical Advisor to the President on Financial Inclusion, reported substantial progress in implementing the Aso Accord on financial inclusion and other initiatives aimed at broadening financial access across the nation. He noted that discussions on financial inclusion have reached the highest levels of government, including the NEC.

Zauro highlighted that the operationalization of the accord has received funding from the Bill & Melinda Gates Foundation through the Lagos Business School (LBS). The team is setting up the operating model and legal framework to ensure the project’s smooth takeoff and alignment with the Renewed Hope Agenda. Collaborators on the team include Augmentum Advisory, Banwo & Ighodalo, and Ndarani (SAN) & CO.

Also, Prof. Olayinka David-West, Project Manager at Lagos Business School, commended the Tinubu administration for prioritizing economic and financial inclusion. She noted that the team at LBS, in collaboration with counterparts in the VP’s office and other stakeholders, is working on the legal framework for financial inclusion and giving the initiative the convening power and national coordination needed to drive ownership across the country.

David-West noted that while LBS and its partners have made deliberate efforts to entrench financial inclusion over the years, the current administration’s initiative will serve as a gateway to successfully operationalizing the policy nationwide.

The engagement with the Vice President aims to identify the right platforms and structures to galvanize relevant authorities to support the initiative.

Current Economic Realities Breed Skeptical Outlook

Nigeria’s economy has faced significant headwinds in recent years, with declining oil revenues, inflation, and foreign exchange instability impacting overall economic performance. The country’s GDP, once a powerhouse in Africa, has struggled to regain its footing, falling below $300 billion. This economic trajectory has led many analysts and citizens to question whether the ambitious goal of transforming Nigeria into a $1 trillion economy by 2030 is achievable under the current administration.

While some analysts believe that the Tinubu administration’s focus on economic and financial inclusion is a step in the right direction, they note it must be coupled with broader economic reforms to address the underlying issues affecting Nigeria’s economy.

For instance, they note that ensuring stability in the foreign exchange market, fostering an environment conducive to foreign investment, and implementing policies that stimulate growth across various sectors are crucial to achieving the ambitious $1 trillion economy target.

While the new initiative and the Aso Accord on Economic and Financial Inclusion provide a framework for addressing some of these challenges, the path to a $1 trillion economy will require more than just regulatory frameworks and financial inclusion efforts, economists note. They add that it will demand a holistic approach, political will, and sustained efforts to drive structural economic reforms and create a resilient, inclusive economy.

From AP: “Labour leader Keir Starmer has officially become prime minister of the United Kingdom. Starmer received the blessing of King Charles III to form a government in a ceremony known as the “kissing of hands.” Starmer is now headed from Buckingham Palace to take up residence in No. 10 Downing Street, where he is expected to speak. He replaces Conservative Prime Minister Rishi Sunak, who offered his resignation to Charles after his party that ruled for 14 years was swept from power in a Labour landslide”.

This is how democracy works. An opposition party destroyed a ruling party in the voting booths. The leader of the ruling party made way. The elections were free and fair. This is what Nigeria has not picked about democracy. And until we do, the best of Nigeria will not get closer to political leadership.

To Mr. Keir Starmer, nothing will change. As I wrote in May 2019, the UK will be changing leaders until they return back to the EU:

“UK Prime Minister Theresa May resigns. I do not know why it took so long. The fact is this: the world that United Kingdom wants will not happen in the very near future. So, they better be changing leaders because no one can take them to their designed equilibrium point. In the past, it used to be The Rise of Me Only; today, it is now The Rise of All.

“That means – if you expect the world as it was 100 years ago, you are living in an illusion. UK benefited from the world, ravaging empires from Asia to Africa; now, it wants to sleep under its pillows happily, out of the world. That will not happen. Gone David Cameron, gone Theresa May, bring the next person. It will not change UK until it realizes that the new world is The Rise of All and citizens must make adjustments for that reality.”

Count how many UK leaders have rotated since that post…. There is a parallel to Nigeria. Yes, we will mess up the country until we wake up one morning and decide that Nigerians are ready to fix Nigeria. Have you noticed that cholera is back….across Nigeria? Are we moving forward or backward?

Rishi Sunak Loses UK Prime Minister Election, marking an end to Tory’s Conservatives Rule

The recent UK general election has marked a significant shift in the country’s political landscape. The Conservative Party, led by Rishi Sunak, has faced a substantial defeat as the Labour Party emerges victorious, signaling an end to the Conservative rule that has been in place for over a decade. This election has seen the Labour Party, under the leadership of Keir Starmer, secure a commanding majority in the House of Commons.

The results indicate a clear public desire for change, with the Labour Party projected to secure 410 out of 650 seats, a remarkable achievement that underscores the shifting sentiments of the British electorate. The election has been notable not only for the change in government but also for the record number of cabinet ministers from the Conservative Party who lost their seats, including prominent figures such as Penny Mordaunt and Jacob Rees-Mogg.

The election night was dramatic, with Rishi Sunak conceding defeat while retaining his seat, and Nigel Farage finally becoming an MP after multiple attempts. The results have also been historic for the Labour Party, as they are set to form a government with one of the largest Commons majorities in recent history.

Keir Starmer’s Labour Party has outlined a comprehensive set of policies aimed at transforming the United Kingdom. The party’s manifesto for the 2024 general election presents a vision for a government that balances pro-business and pro-worker initiatives, with a strong focus on healthcare, the economy, and national security.

One of the central pledges of the Labour Party is to address the challenges facing the National Health Service (NHS). They have committed to reducing wait times for key care services by adding 40,000 more NHS operations and appointing 8,500 new mental health staff. This is part of a broader plan to reset relations with NHS staff and improve the overall efficiency of healthcare services in the UK.

Nigerians, along with other diaspora communities, have become increasingly influential in British politics. The Labour Party, in particular, has seen a rise in candidates of Nigerian descent, with eight British Nigerians representing the party in the parliamentary election. This representation reflects the Labour Party’s commitment to diversity and inclusion, resonating with a broad spectrum of voters who seek a government that mirrors the multicultural fabric of the nation.

The influence of these communities extends beyond mere representation. The endorsement of the Labour Party by prominent figures such as Peter Obi, a former Nigerian presidential candidate, just days before the election, likely swayed voters’ opinions. Such endorsements highlight the Labour Party’s progressive policies and aim to boost their campaign, potentially impacting the election’s outcome.

Moreover, the active participation of Nigerians in the UK in the electoral process, with 30 candidates of Nigerian descent contesting parliamentary seats, suggests a turning point in the political landscape. Analysts believe that this election could signify a shift, with the Labour Party posing a strong challenge to the Conservative Party’s long-standing rule.

This election outcome represents a pivotal moment for the UK, as it navigates post-Brexit challenges, economic pressures, and a global landscape that is rapidly evolving. The incoming Labour government will have the task of addressing these issues while delivering on their campaign promises to the British public.

As the Conservative Party reflects on its defeat, the Labour Party’s victory marks the beginning of a new chapter in British politics. It remains to be seen how this transition of power will influence the UK’s domestic and foreign policy in the years to come. However, one thing is certain: the people of the UK have spoken, and they are ready for a new direction.