By Dr Ibrahim Modibbo

In the race towards globalisation and multiculturalism in modern economies, consensus is built around strategic thinking for the common good of the people. Conscious of the enormity of myriad of problems confronting the Nigerian economy, the Central Bank of Nigeria is strategising with focus on exploring the threshold of the problems with a defined trajectory of revamping the economy.

In a world increasingly driven by the movement of people, the financial contributions of Diasporas are becoming indispensable to many nations’ economic development.

For Nigeria, a country with one of the largest diaspora populations globally, remittances should be considered as a critical lifeline, not only for millions of households but for the national economy.

Recognising this potential, the CBN under the leadership of Governor Olayemi Cardoso has embarked on a strategic campaign to strengthen the ties between the Nigerian diaspora and the country’s financial system, with the objective of turning remittances into a powerful engine for sustainable economic growth.

At the heart of this initiative is the CBN’s recent engagement in Houston, Texas, United States of America, where the Deputy Governor (Economic Policy), Muhammad Sani Abdullahi, led a team of stakeholders in a forum titled: “Optimizing Remittances to Nigeria: A Vision for the Future.”

The forum, which featured representatives from the Nigeria Inter-Bank Settlement System, major Nigerian banks, and International Money Transfer Operators, was part of a larger series of engagements to improve remittance flows and maximise their impact on Nigeria’s economic development.

Remittances are a crucial component of Nigeria’s economy, with the World Bank reporting average inflows of $20.5 billion annually over the past decade. However, much of this money is directed towards consumption, with only a fraction being utilised for investments that could foster long-term development.

This is where the CBN’s current efforts are groundbreaking. Governor Cardoso’s administration is focused on transforming remittances from mere tools of consumption into catalysts for growth, highlighting the importance of strategic investments in sectors like real estate, technology, infrastructure, and manufacturing.

In addressing the Houston forum, Abdullahi highlighted the importance of engaging the Nigerian diaspora in this vision, stressing the need to channel remittances into productive sectors that can spur inclusive economic growth, create jobs, and foster financial inclusion.

“We are committed to doubling the volume of capital inflows and remittances to Nigeria,” Abdullahi said, reiterating Governor Cardoso’s focus on strengthening Nigeria’s macroeconomic fundamentals to create an enabling environment for private sector growth.

The point cannot be overemphasised that the Governor Yemi Cardoso-led CBN has taken a bold and laudable step. With over 20 million Nigerians living abroad, most of whom are professionals doing exceptionally well, the potential for remittance inflows is enormous.

If well-harnessed through targeted policies, roadshows, and greater financial literacy, the Nigerian diaspora can become a significant driver of the country’s economic resurgence.

Nigeria is not the first country to recognise the potential of diaspora remittances as a key driver of economic development.

Countries like India, Mexico, and the Philippines have successfully tapped into their diaspora populations, transforming remittances into long-term investments that have fuelled economic growth.

India, for example, has one of the largest diaspora populations in the world, and remittances have played a pivotal role in its economic development. In 2022 alone, India received over $89 billion in remittances, accounting for approximately 3% of its GDP.

The Indian government created various investment-friendly policies and programs that encouraged its diaspora to invest in infrastructure, real estate, and business ventures. These initiatives transformed remittances from a safety net into a source of capital that has helped modernise India’s economy, improve infrastructure, and boost employment.

Similarly, Mexico’s remittance inflows – largely from the United States – have been instrumental in reducing poverty and improving education and healthcare in rural areas. By fostering financial inclusion and providing investment opportunities, the Mexican government ensured that remittances were not just a stop-gap measure for consumption but also a foundation for long-term national development.

Nigeria can – and should – follow this examples. The bold step by Governor Cardoso and his team in initiating direct dialogue with the diaspora is a critical first move in this direction. With the right policies, including lower transfer costs, improved access to financial services, and incentives for investment, Nigeria could not only increase remittance inflows but also ensure they contribute to the country’s sustainable development.

One of the more immediate effects of harnessing remittances effectively is the potential impact on the value of the Naira. As more foreign currency flows into the country, the supply of foreign exchange increases, helping to stabilise the local currency. With Nigeria’s current struggles with exchange rate volatility, boosting remittance inflows could play a significant role in strengthening the Naira.

Governor Cardoso’s strategic vision is timely. If, without targeted efforts, Nigeria has been receiving $20.5 billion annually, there is no reason to believe that with proper engagement, these figures cannot double or even triple in the next few years. As the CBN continues its outreach to Nigerians abroad, more opportunities will open up for the diaspora to contribute to Nigeria’s development in meaningful ways.

This is a point some of us have been advocating for years: with the unprecedented number of Nigerians in the diaspora, if a proper roadshow and guidelines are put in place to encourage more remittances, it will not only boost development in the country but also strengthen the value of the Naira. Governor Cardoso’s initiative marks a pivotal moment in this ongoing discussion and deserves applause for taking such a bold and innovative step.

One of the key takeaways from the Houston forum is that collaboration is crucial. No single institution can unlock the full value of remittances alone. As noted by Dr. Oliver Alawuba, the Group Managing Director of UBA, the combined efforts of banks, regulators, fintechs, and international transfer operators are essential to creating an ecosystem where remittances can thrive. This is especially important as remittances transition from being a safety net for individual households to a tool for national development.

The collaboration among the stakeholders is key as seen at the Houston event, ensuring that remittances are not only easier to send but also more cost-effective. By doing so, remittances can serve as a powerful instrument for financial inclusion, giving more Nigerians abroad access to banking services, savings products, and investment opportunities.

With the current initiative, the CBN is positioning Nigeria to unlock the full potential of its diaspora population. The $20.5 billion in annual remittances is just the beginning. This figure could easily skyrocket in the coming years, providing the necessary funds for infrastructure development, job creation, and overall economic growth.

The bold steps taken by Governor Olayemi Cardoso and his team at CBN will soon mark a turning point in Nigeria’s economic journey.

With the vision of transforming remittances from a tool of consumption to an instrument of development, the CBN is not only empowering the diaspora but also driving the nation towards a brighter, more prosperous future. This is an initiative that deserves both recognition and support.

Ibrahim Modibbo Ph.D, writes from Abuja, Nigeria

The northern elites, have offered lip service to the issues surrounding the development of the region, since the death of.Sardauna Sokoto, Sir Kashim and Tafawa Balewa.

Majority of the culprits are the military politicians over the years, and their civilian collaborators, some of whom are criminally minded and are among us today.
They had the uppurtunities to turn things around as regards policies and their implementations, yet they chose the inglorious Parth to curruption and mismanagement and destruction.
Many ministers, governors, heads of parastals, academics and business men, as well as traditional rulers, were among such collaborators.
The name arewa, which only exist for the convenience of debates among interest groups, died, long ago. Can you imagine a self sufficient region like this, been destroyed by bandits, religious activists, curruption, bad governance and mismanagement?
The non Hausa and Fulani among us no longer feel safe and sense of belonging like the Sardauna era?
Going back to the drawing board always matters. But who would be the champions, with political office holders at all levels from the region, hardly bring about policies that would change the fortune of the region in education, health care, human capital development, women and youths empowerment, urban and rural renewal and so on.
Energy crisis has destroyed the northern industries. What are we doing with national grid, when we can harvest clean energy from solar?
Our hospitals have become mere consulting clinics, while elites travel abroad for medical service at every excuse. Women and children continue to die during child birth. Public schools are in a sorry state as elites send their kids to private schools including universities in Nigeria and other countries.
Security challenge has taken over the region and the elites think living in high end Abuja secured property and estates can guarantee their safety, unfortunately, they are never safe.

Just look at the convoys of your governors, the amount invested in such SUVs.
Sponsoring several political thugs and hangers on to go on Hajj trips and Jerusalem. While such people still remain poor on return. Even Islam which provides for Hajj, did not say is meant for the poor. Religious leaders are also enmeshed indeep curruption. That is the reason for their deep silence.
Sardauna of Sokoto and others of blessed memory have given the North more, when the resources ware scarce. The same generation who enjoyed free schools, feeding, uniform, books and scholarship, are the same people who destroyed the very system that helped them get to were they are.
Drug abuse by women and youths, lack of skills and jobs, thousands in IDP camps and Prostitution are a culture, now. Many young kids of the so called elites from the North, are all over private drug and substance rehabilitation centers around Abuja, Lagos and Mararraba. What do you expect when they are jobless and have a lot of the stolen money to spend at night clubs with girls and drugs? Even their mothers are on hard drugs, now. Many of them drive around in expensive vehicles they have never worked for. In fact, they organise car race using those cars from stolen wealth.
Some of the daughters of these elites are also on drugs and jobless. They are usually all over restaurants, supermarkets, cinemas and Suya joints. Looking forward to relate with men. They neither have skills, nor are they employable. Even as women, they can not make good house wives. They can’t go beyond boiling tea or making noodles. Just think, if they can bring up a kid…
Some of these girls have taken over most hotels around Abuja city center with seven and eight girls and women per room. While women and girls from other regions are involved in economic activities. Of course, the Once from Benue have also become so notorious that prostitution is their second names, with recent findings revealing that they are all over the hotels in the North central.
Under PMB, the North had the uppurtunities to reinvent it self. The leaders threw away the uppurtunities to the dogs.
Now, they turn around to blame BAT. Sadly, charity begins at home. Many elutes can no longer drive in the I ter state highways, or visit their home towns. Time would come, when they would follow the elites to Abuja, Lagos and PH to make mince meat of them.
The list in the EFCC continue to grow. But mostly, it is the northern elites.
I write this with deep concern and sadness, that our region which happens to be a prosperous and almost self sufficient in the first republic, is now in a very sorry state.

Mustapha Mohammed
A political analyst and social commentator
Writes from Abuja

By Sonny Aragba-Akpore

An imminent feud is underway between telecommunications regulator, Nigerian Communications Commission (NCC) on one hand and Starlink and Mobile Network Operators ( MNOS) on the other.

On October 1, 2024 ,Starlink, an internet service provider (ISP) via satellite owned by Elon Musk, the world’s richest man, announced an increase in its monthly subscription prices in Nigeria.

The company, blaming inflation, increased its standard package for residential housing, monthly subscription to N75,000, from N38,000 per month — an increase of 97.37 percent.

The price for the mobile-regional roaming unlimited is now N167,000 while that of the mobile-global roaming service is N717,000.

The cost of the Starlink hardware was also increased from N440,000 to N590,000.

Sensing industry backlash, the Nigerian Communications Commission (NCC) came out with a statement on Tuesday, October 8,2024 saying Starlink had contravened sections 108 and 111 of the Nigerian Communications Act 2003 by unilaterally increasing tariffs without approval.

“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission (NCC),” NCC,s said in an initial original statement adding that “We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.”

“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink’s Licence Conditions regarding tariffs.

“The Commission will, therefore, take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry.”

NCC statement said it was “surprised” when the company announced the price changes.

It said Starlink had filed a request with the commission for a price adjustment, but the regulator was yet to give approval adding that the commission would take enforcement measures against the satellite company.

The NCC said Starlink contravened section 108 of the NCA 2003 which gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.

Section 111 of the Act empowers the telecoms regulator to impose financial penalties on any licensee that exceeds approved tariffs, regardless of other legal provisions.

“Notwithstanding any other provision of this Act, the commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the commission for the provision of any of its services,” the Act reads.

Mobile Network Operators (MNOS) in Nigeria have been agitating for tariff hikes based on rising inflation and several economic headwinds including high cost of diesel, rising cost of doing business, high foreign exchange rates among others saying their services were overdue for price increments as they have not raised rates in the last 11 years.

Strangely, a few hours after the NCC statement on Starlink, and in what appeared to be a face-saving move, the NCC came out with another statement to withdraw the earlier one saying “it was sent in error “.

It is however not clear if the regulator has capitulated on its laws and guidelines because industry players who have clamored for tariff raise for so long citing economic headwinds and high foreign exchange including spiraling cost of doing business are worried that should the NCC keep mum over the Starlink unilateral tariff hike, then Mobile Network Operators (MNOs) May resort to self help.

Although no reason was given for the withdrawal of that statement, analysts think the commission may have been complacent as a result of regulatory inactivities especially now that there is a lull in the industry due to dwindling fortunes of operators some of whom have declared losses due to the economic downturn.

Industry players frown at what is happening and have begun to criticize the NCC against the backdrop of the regulator’s unyielding stance on the clamor for an increase in tariffs by local telecom operators, especially in the last two years whereas, Starlink, an internet service provider that entered the market officially in January 2023,has been allegedly allowed to increase its tariffs by almost 100%.

An analyst quoted a major industry player as saying “Starlink only beams its satellite in Nigeria and acquired an ISP licence from the NCC to offer its service in the country. It currently has zero investment in the country.

“Many of us started since the liberalization of the telecom sector, putting in all our resources to deploy more infrastructure to get more Nigerians connected despite the various challenges in the operating environment.

“We have been appealing to the Commission to allow us to implement a tariff review for years now, but it said it had to carry out a cost-based study before any decision could be made. We are still waiting for the result of that study. Now, allowing Starlink to implement price increase in the same market shows the regulator’s double standard.”

The NCC may have lost steam over its regulatory oversight and demonstrate lack of capacity especially in addressing the issue of tariff increases by local players.

The operators believe the Commission simply woke up from its slumbers by announcing a statement it could not sustain let alone justify.

“This is certainly not the NCC of our founding fathers “ one veteran player who would rather be addressed as one of the “ancestors “ of the industry lamented.

Starlink came with disruptive technologies that are already making a world of difference for consumers and we looked on as if nothing was happening. The company came prepared.

It obtained six licenses from the NCC and got various permits and approvals to flag off the business of internet services via satellite and equally signed Memorandum of Understanding (MoU) and distribution agreements with Nigerian companies including, Technology Distribution Africa (TD),a big distributor of major technology brands and promoted by a restless technology czar ,Leo Stan Ekeh.

Starlink didn’t stop there ,it has decided to take services to even the unserved and under served communities in Nigeria and parts of Africa for which TD boasts it’s ready for the long haul partnership.

Space Exploration Technology Corporation (Space X ) owners of Starlink got six licenses in a roll from the NCC and is expected to deploy nearly $30b over time for the Nigerian operations alone.

The government is excited that with the entry of Starlink,it may achieve 70% broadband connectivity by 2025 as enshrined in the National Broadband Plan (NBP) 2020–2025.

But is the government just desperate to achieve this at the expense of low purchasing powers of subscribers? Time will tell.

Starlink,s six licenses include that for ISP, Gateway Service Provider, international Data Access (IDA),Sales and Installation Major, Gateway Earth Station and Very Small Aperture Terminal (VSAT) thus making it a mega player and a big threat to other players in the industry.

Starlink officially announced its presence in Nigeria in January 2023. The company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.

SpaceX’s Starlink satellite internet service has more than four million global subscribers, achieving rapid growth despite mounting competition.

SpaceX confirmed the news recently after company President Gwynne Shotwell hinted earlier that the service would reach the mark within days. This represents a remarkable achievement for Starlink, which only crossed three million subscribers in May, highlighting the company’s accelerating growth in the satellite internet market.

Since its beta launch in October 2020, Starlink has rapidly scaled, growing from one million subscribers by December 2022, to two million by September 2023, and now four million just months later. The service operates through a vast constellation of nearly 6,000 satellites, providing satellite internet to users in almost 100 countries, including expanding into previously underserved regions like Africa and the Pacific islands. Starlink’s rapid growth reflects both its market dominance and the rising demand for satellite internet services, which offer coverage in areas lacking traditional broadband infrastructure.

While cable cuts remain a nightmare,Starlink’s boasts of bridging the gap, with its potential impact extending far beyond addressing temporary outages. These include reaching Underserved Areas where Traditional ISPs often struggle to reach remote regions due to the high cost of infrastructure deployment.

Starlink’s satellite-based approach can effectively bridge this gap, offering high-speed internet access to previously underserved communities by unlocking educational and economic opportunities for millions of Nigerians currently excluded from the digital world.

Starlink boosts Business Continuity by avoiding Frequent internet disruptions that can be detrimental to businesses, especially those reliant on online operations.

Starlink claims to be reliable with independent internet access that can provide much-needed resilience, ensuring business continuity even during cable outages.

The recent cable cuts hampered online learning and remote work arrangements. Starlink’s stable internet connection may have facilitated smoother online learning experiences for students and enable seamless remote work for professionals across the country.