IFC Seeks ‘Ambitious’ Reforms for Inclusive Growth in Nigeria
Obinna Chima
The Country Manager for the International Finance Corporation (IFC) in Nigeria, an arm of the World Bank, Eme Essien Lore, has stressed the need for what she described as ambitious reforms in Nigeria, to stimulate economic growth in the country.
Lore, who said this during the Nigeria 2020 Economic Outlook organised by Deloitte in Lagos recently, said good policies are instrumental in having inclusive growth agenda, “and there is no question about that.”
According to her, there is an incredible amount of dynamism from the private sector in Nigeria.
However, she pointed out that there is a broken social contract in the country, saying that the populace doesn’t trust government, “and therefore, for example, we have a situation where there is low tax compliance.”
“I think we also have a fractured business contract between government and the private sector. We don’t have enough trust between these two critical stakeholders in the ecosystem.
“It is pretty low and I think it would take years to build that trust and there must be commitment on both sides to make that happen,” she added.
According to the IFC country manager, the multilateral agency would continue to advocate for good and robust policies, as well as for trust between the private sector and government.
“We should be in a hurry in Nigeria,” she said.
Lore noted two areas policymakers in the country should focus on.
“There is a policy-driven part, which focuses on government making the right decision and putting in place robust policies. That is very important and we should always advocate for that.
“There is also a part that requires more innovation and collaboration in the private sector and focusing much more in the sub-national level, which I think there are lots more opportunities at that level.
“Essentially, what I am saying is that there is a part the private sector has to play. It doesn’t entirely depend on policy. We think there is absolutely an opportunity for that in Nigeria.
“I do think we have a very dynamic private sector in Nigeria and things can be done outside the policy framework that are very impactful in Nigeria,” she said.
Continuing, Lore added: “Why is inclusive growth important in Nigeria? It is important because of the impact it has on people, and ordinary, hardworking Nigerians, who are essentially the backbone of this society.
“For more than 10 years in Nigeria, there was a situation where we had about seven per cent growth. But if we are very honest with ourselves, we would know that it was jobless growth.
“In fact, in some areas in the country, then, in spite of the fact that we had growth, there was increasing poverty.”
According to her, statistics today show that many people in Nigeria are suffering.
“Is it malnutrition, youth employment or maternal health? For me, it is the issue of literacy that is worrisome. Statistics shows that only 19 per cent of Nigerians who are primary school graduates are literate. “That is, only 19 per cent of people who leave primary school in Nigeria can read. That hits me in my heart.
“This and other scaring statistics make it imperative for us to pursue inclusive growth. We must be relentless about pursuing inclusive growth.
“We must be absolutely dogged about this. It matters because it affects people in their everyday lives,” she added.
She stressed the need to put the private sector in the middle in the quest to deliver inclusive growth in the country, saying “It is not government that would deliver on it, it is the private sector that can deliver on that agenda.”
“But we don’t think there is a simple solution, but we do believe that boosting productivity will accelerate growth and help create more and better jobs.
“So, from our perspective, all policies in the country should be designed with the objective of boosting productivity and creating more and better jobs.
“Nigeria is far away from its aspirational peers and there is a lot to be done. Those aspirational peers, many of them are in Africa and in Asia as well. So, there is a lot to be done for Nigeria to bridge its productivity gap,” she added.
Report: Unemployment, Quick Wealth Fueling Cybercrime
The high rate of unemployment and the quest for quick wealth are the two major factors driving individuals towards cybercrime in Nigeria, a report by the Financial Derivatives Company Limited (FDC) has stated.
The FDC in its latest bi-monthly economic bulletin, noted that the country is presently experiencing a surge in cybercrimes supported by the prevailing economic conditions.
According to the Lagos-based financial advisory company, these threats pose a great risk, which could only be eliminated through strict enforcement of cybercrime laws, provision of lucrative opportunities in the economy, information sharing, among others.
“For individuals, simple security tips such as having an updated and recognized anti-virus software, avoiding pop-ups requiring personal information, using strong passwords, and ignoring emails or calls requiring financial details to help unblock cards or accounts etc, will go a long way in preventing security breaches.
“However, in the medium to long term, increasing awareness could help mitigate the cyber threats, if action is taken,” it stated.
With about 3.9 billion users, the internet has become one of the greatest technological developments. While widely accepted for its ease and efficiency, it is also embedded with a multitude of vulnerabilities, which pose significant security threats to users and has led to the emergence of cybercrime.
Cybercrime, which includes any crime committed with the aid of a computer and network (e.g. phishing, bank verification number scams, fraudulent emails, hacking, cyber harassment, spamming, ATM spoofing, social media hi-jacking etcetera), exploits vulnerabilities of both electronic devices and their users. In Nigeria, a number of key factors – such as a high rate of unemployment, the quest for wealth, a lack of strong cybercrime laws, and incompetent security on
According to the report, the estimated annual financial loss in Nigeria due to cybercrime was N250 billion ($649 million) in 2017 and N288 billion ($800 million) in 2018.
“Cybercrime destroys the reputation of a country, making the business environment difficult for start-ups and small and medium-sized enterprises, while discouraging investment in the economy by foreign companies.
“For individuals, cybercrime results in the loss of financial resources, intellectual property or personal confidential information, and the damages can be extreme, often targeting senior citizens and people who are vulnerable,” it stated.
In 2018, in the US, roughly 62,000 people age 60 or older reported losses totaling over $649 million.
This was only based on crimes reported. McAfee estimated that 95 per cent of cybercrimes go unreported.
“With Nigeria venturing into a cashless society, the threat of cybercrime becomes all the more relevant. There needs to be integrated efforts between individuals, businesses, the Nigerian government and the international community.
“Reforms such as increasing awareness on the mode of operations of cyber criminals, improved personal security, establishment of anti-scam centers etc are vital in minimizing cybercrimes,” it stated.
As part of efforts to combat cybercrimes, the Central Bank of Nigeria had introduced a risk-based cyber security framework and guidelines for deposit money banks and payment service providers. This framework lays out proactive steps to secure critical information assets including customer information that is accessible via the internet.
“There are many initiatives employed by different countries to combat cybercrimes, which Nigeria can emulate. One example is the Anti-Scam Centre in Singapore. Set up by the police in collaboration with the three major banks, the Anti-Scam Centre disrupts the operations of scammers by impeding fund transfers. In two months, the Anti-Scam Centre received 1,047 cases in which victims had lost a total of $2.4 million ($1.8 million),” the report added.
