A National Bureau of Statistics (NBS) report has revealed that 63% of persons living in Nigeria (133 million people) are multidimensionally poor: “65% of the poor (86 million people) live in the North, while 35% (nearly 47 million) live in the South. Poverty levels across States vary significantly, with the incidence of multidimensional poverty ranging from a low of 27% in Ondo to a high of 91% in Sokoto.” 

In the video below, I explain why we are still witnessing this level of poverty in a land of  latent abundance. Indeed, Nigeria is wasting years and our leaders are underperforming on their responsibilities. 

This nation has leverageable anchors to lift millions out of poverty. This is simply shameful!  How can 91% of Sokoto people be poor, and the governor qualified himself to even imagine to lead the nation as  a president? This is simply unbelievable on how we do things in this country. I am stunned!

My sincere commendations to NBS for being bold to publish these reports and also my appreciation to the Presidency for not blocking the reports.  I wish the presidential candidates could debate on the substance of the reports.

—Report from NBS

Nigeria launches its most extensive national measure of multidimensional poverty.

The Federal Government of Nigeria through the National Bureau of Statistics today launched the results of the 2022 Multidimensional Poverty Index (MPI) Survey. This survey was a collaborative effort between the National Bureau of Statistics (NBS), the National Social Safety-Nets Coordinating Office (NASSCO), the United Nations Development Programme (UNDP), the United Nations Children’s Fund (UNICEF), and the Oxford Poverty and Human Development Initiative (OPHI). The survey, which sampled over 56,000 households across the 36 states of the Federation and the FCT, was conducted between November 2021 and February 2022, and provides multidimensional poverty estimates at senatorial district level.

Highlights of the 2022 Multidimensional Poverty Index survey reveal that:

• 63% of persons living within Nigeria (133 million people) are multidimensionally poor.
• The National MPI is 0.257, indicating that poor people in Nigeria experience just over one-quarter of all possible deprivations.
• 65% of the poor (86 million people) live in the North, while 35% (nearly 47 million) live in the South. Poverty levels across States vary significantly, with the incidence of multidimensional poverty ranging from a low of 27% in Ondo to a high of 91% in Sokoto.
• Over half of the population of Nigeria are multidimensionally poor and cook with dung, wood or charcoal, rather than cleaner energy. High deprivations are also apparent nationally in sanitation, time to healthcare, food insecurity, and housing.
• In general, the incidence of monetary poverty is lower than the incidence of multidimensional poverty across most states. In Nigeria, 40.1% of people are poor according to the 2018/19 national monetary poverty line, and 63% are multidimensionally poor according to the National MPI 2022.
• Multidimensional poverty is higher in rural areas, where 72% of people are poor, compared to 42% of people in urban areas.

The National MPI is reported with a linked Child MPI, which provides additional information on Multidimensional Child Poverty in Nigeria. According to the report:

• Two-thirds (67.5%) of children (0–17) are multidimensionally poor according to the National MPI, and half (51%) of all poor people are children.
• The highest deprivations are in the indicator of child engagements – where over half of poor children lack the intellectual stimulation that is pivotal to early childhood development.
• Child poverty is prevalent in rural areas, with almost 90% of rural children experiencing poverty.
• Across the geo-political zones, the child MPI shows higher poverty in the North-East and North-West (where 90% of children are poor) and lower poverty in the South-East and South-West (74% and 65.1% respectively). The incidence of Child MPI is above 50% in all States and greater than 95% in Bayelsa, Sokoto, Gombe and Kebbi.
• Four million Nigerians – 2.1% of the population – live with a child aged 15–17 who is the first generation in that household to have completed primary school.

The full report which contains further details and insights from the survey is hosted on the NBS website www.nigerianstat.gov.ng. Hard copies can also be obtained from the Data Shop at the NBS Corporate Headquarters in Abuja.

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Comment 1: That’s one of the craziest things about Nigeria. A non performing governor all of a sudden thinks that he will metamorphose to a performing president. We can’t run away from the fact that our constitution must be tinkered with. The potentials of the various States will remain just potentials under the current system. It is hardly surprising that the bulk of the poor are in the North. We need a birth control policy, you cannot give birth endlessly without thinking about taking care of your children rather you are happy that once in 4 years you have an advantage in the election. There’s life beyond the election. If we can get our States to be more functional, the country will become the better for it. Why don’t our policy makers see the connection between population explosion and poverty explosion? With poverty comes insecurity because the poor must eat, even if they have to steal it. We are better off thinking about the public good if not, it will affect all of our private lives. Can’t you see that the developed world are trying their best to manage their population. Yet the ruling party that has performed poorly for the past 8 years is campaigning to retain power.

Comment 2: The root cause of the poverty and any of the symptoms we see manifest in the greater society is strategic ineptitude fueled by corruption, avarice and gold plated stupidity!
We are poor because :
1. We conduct our major export trade in USD and retain same in non Nigerian owned banks. The FX remains abroad and we artificially print Naira to sell to the industries that require them ( but give preference to BDCs that are economic rent seekers) thereby creating huge inflationary pressure on the Naira and causing poverty (poverty is actually lack of productive capacity that is competitive) on a economic grand scale.
2. Education dysfunctionality: since inception there are just slightly over 50k chartered accountants in Nigeria (by ICAN rolls) and these include the dead and departed. Medical doctors are under 30k ( as at 2018) and by 2020 40% of them have quit Nigeria for greener pastures. Same goes for engineers, actuaries, realtors, machinists! The more of these a society has the more wealth is created. Check China, Turkey, Germany etc.
3. Low value addition : from crude oil to cocoa, cassava chips to sesame seed, we export without benefication. And we import crazy things like egg shells ( yes eggshells in millions of dollars)
Etc.

This is an asymmetric attack: ‘Google has ordered loan apps in Nigeria and Kenya to provide proof of license to operate in the country, or risk being taken down from the Google Play store. This move according to Google was necessitated to protect borrowers from rogue loan apps, otherwise known as “loan sharks”, many of which charge borrowers outrageous interest rates as well as operating against legal provisions’.

This one will certainly work. The government has banned these companies and many continue to operate even though they are not registered or licensed or permitted. How do they get bank accounts opened? The government has gone to their physical offices and fought them. Yet, nothing has worked.

This playbook of using Google will certainly work because if the head is cut-off, the apps will fade. Yet, do not celebrate. While I do not support what these loan sharks are doing, we need to understand the circumstances which make them useful to some citizens.

If you do not have money. If your bank does not believe in lending. If your network cannot offer any financial support. But you have a loved one in the hospital, and a loan shark is charging outrageous interest, but can help with fast funds, that should not be seen as stupidity on your side. There are many people  who are fighting the economic crisis daily because they are poor. They live for hours and not days. These loans put them in a vicious loop but sometimes save the hours!

If the government thinks shutting down the loan apps is the solution, that is playing a short-term game. Indeed, there needs to be a mechanism to make sure these citizens do not need those solutions by offering them alternatives. Otherwise, kicking the apps out of Google does not help in the long term because they will continue to need those fire funds to live in the hours!

I ask you to permit me to write that the government is part of the problem. If there are decent alternatives for these citizens, loan sharks will not be necessary. So, no moral high ground here. Engaging Google will cut off these loan sharks but that does not mean the citizens have been helped. I still find it hard to understand why in this digital age, Nigeria cannot organize alternative credit systems to help people access credits in the formal banking system.

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Comment 1: The move by Google is a step in the right direction, some of these loan sharks have taken undue advantage of desperate Nigerians, there’s need for serious regulations to enable genuine operators thrive and to protect the data and sanctity of debtors

Comment 2: How about the citizens that borrows money with the intention of never paying. Personal financial growth is the responsibility of the individual, and in most cases people don’t want to take decisive choices that we make them grow.

Comment 3: Insightful. I agree with this and I will like to add that, shutting them down on playstore is not enough measure, they can just go on and maintain websites to continue their venture.

The government should, as you’ve said, provide alternatives. Access to credit is very key to helping the poor out of poverty not only when they’re lives are at risks.

Comment 4: The online world needs to be regulated. Since the activities have moved to online. If it is not done lots of bad things will go on unpunished. Lending is a specialized field. You have to show that the government knows about your activities.

Comment 5: My understanding of their modus operandi,they do not carry out due diligence on their customers before approving the loans hence getting their money back becomes a problem. I lost my phone sometime in October last year at computer village around 3pm in the afternoon. I ran to the Bank to block my account. By the time I retrieved d line 3 days later, some one has used the phone number to borrow 10,000 naira from a loan shark company without my knowledge hence they started threatening me that I must paid back the loan which I refused. We are Valuers to lots of commercial banks in Nigeria and I can attest to it that they carry out due diligence before granting loans to their customers atleast on 90% scale. I support this moves by Google for them to show their evidence of license registration as a requirement for them to operate on the Google play store. These loan shark companies send ridiculous text messages on Whatsapp and sms to people claiming all sorts of nonsenses and harassments to claim their loan back

We can learn many things from the military. They move battalions. In markets, we move and control factors of production. At Tekedia Institute, I teach a course on the OODA Framework, picking perspectives from the military on how to build fast-growth companies.

Protect your flanks and move the columns, being aware of frontal attacks. Join us and learn from the kid who grew up in Ovim – the “land of generals” – and thrive in your business and career.

Zoom link in the Board. Register for the next edition here .

It has been a long time since I taught in the Nigerian Defence Academy Kaduna (we seek great security to enjoy the abundance of Nigeria). but tomorrow, at Tekedia Institute, we will be examining military frameworks on business growth and capturing territories (market shares). This is a very important course which helps business leaders understand how to grow territorial advantages. Join us at the Institute – Zoom link in the Board.

The reality is that Information Technology has come to stay and has totally revolutionised the way we live – from job placements and interviews to social meetings to financial transactions and of course, legal practice.

Of course, the presence of law firms having an online presence is not exactly new, with Virtual Law Offices (VLOs) existing for almost a decade and operating without any brick and mortar struct, but this is not the same thing as the concept of Legal-Tech/Lawtech, which is defined by one perspective as the use of technologies that aim to support, supplement or replace traditional methods for delivery of legal services, mainly in service delivery packages revolving around the following:-

– Document Automation.

– Advanced chatbots and practice management tools.

– Predictive Artificial Intelligence(AI).

– Smart legal contracts.

– Knowledge management and research systems.

This definition goes further to describe the Lawtech subsector as consisting of law firms delivering legal services through Technology & the vendors that develop and supply technology solutions to those firms.

In the Western world, we already have trailblazers like RocketLawyer , Legal Zoom, Avvo & LegalMatch which are digital platforms aimed at making legal services of a mostly non-dispute resolution nature more accessible and affordable to the public.

So this means that Lawtech can serve as a means for investors and entrepreneurs to tap into the business potential Legal practice holds in Nigeria right? Well, not exactly , and this is the focus of this article, because in all of this, the Nigerian Legal Profession is still very regulated.

What is the Regulatory Framework governing the Legal Profession in Nigeria?

The legal profession in Nigeria is governed by the Legal Practitioners Act(LPA)  and the Rules of Professional Conduct (RPC) through the Body of Benchers, the General Bar Council, the Supreme Court of Nigeria, the Nigerian Bar Association (NBA), and the Legal Practitioners Disciplinary Committee (LPDC).

Can i offer legal services in Nigeria through a digital platform even without being a lawyer?

No you can’t, not even with a lawyer in your employment. 

The LPA clearly states that you cannot :-

– Publicly present yourself as a lawyer.

– Make a misrepresentation by the use of any name, title, addition or description falsely implying that you are a lawyer.

– Prepare any documentation as a lawyer EXCEPT –

a). You are a law pupil, clerk or servant in the employment of a lawyer.

b). In relation to documentation on property in which you have an interest e.g. a Tenancy agreement.

c). In relation to litigation or dispute resolution proceedings to which you are a party.

d). The writing of wills.

e). For recording purposes to be used in Litigation and Dispute Resolution proceedings.

Holding yourself out as a lawyer when you are not can earn a 2-year maximum jail sentence.

Okay, but can i operate a Digital Platform for marketing legal services in exchange for a cut of Legal fees as my profit?

No, that would constitute touting and aiding the unauthorized practice of law that can also get you in jail and get the involved lawyer disbarred.

Can i invest in a law firm as a silent partner or as a major shareholder?

No, you cannot. That is because the Rules of Professional Conduct state that :-

– Law Firms cannot engage in partnerships with non-lawyers or foreign law firms for the practice of law in Nigeria.

– Legal Practice cannot be carried out as a corporation or in a company structure limited by shares.

– Legal services cannot be exploited or controlled by Intermediaries such as companies and agencies.

I am a lawyer and i wish to operate a Digital Legal Consultation & Company Registration Service operating via an automated chatbot. How do i advertise this service?

You can advertise this service as long as :-

– Advertisements are not misleading .

– Advertisements are in compliance with the RPC.

– Advertisements are fair and proper.

– Advertisements make no comparison with other lawyers or other professionals like accountants.

– Advertisements don’t become so frequent as to cause annoyance.

– Advertisements don’t engage in acts of ambulance chasing like publicly inciting litigation.

– Advertisements are not self-aggrandizing.

– Advertisements are not carried out via Television, Radio and Newspapers.

– Advertisements do not rely on brand endorsements.

I am an entrepreneur/Techpreneur and i want to start a Nigerian version of LegalZoom and Rocket Lawyer. How can i engage in services of this nature as a non-lawyer and as a company/corporation?

You can engage in services of that nature in the following ways :-

– By investing in Legal Support Services(services aimed at providing tech support to lawyers and Law Firms) such as case search and law reporting AI services like LawPavilion(a Digital case and statute law search system) and EVA (an automated chatbot system focused on case law search support services).

– By investing in RegTech (Regulatory Technology) platforms rendering DIY (Do-It-Yourself)services that are strictly not classified as Legal services but are best han e.g. Digital Business contract smart generation services, Land title search services, Business licensing Chatbot Consultation services, IT/SLA smart contract generation platforms, Digital Company Secretarial services, digital AML/ CFT/Data Protection Compliance services, etc.

– E-filing services.

– Giving tripartite loans for interest to law firms through lawyers to be registered as charges with the Corporate Affairs Commission.