What exactly is the Nigerian Government Student Loan?

The Student Loan Initiative is a program established by the Federal Government of Nigeria to break financial barriers in higher education through the provision of interest-free loans to students.

With that being said, it is good to know what exactly it is all about before deepening your legs in it. You might start wondering if it is not another PalmPay loan or loan shark. You might even have fear for the Nigerian government (fear of being lied to). All those fears will be sorted out in this guide; just read and share.

What is Nigerian Government Student Loan?

The Nigerian government’s student loan is your key to unlocking your educational dreams. This program provides financial support for public universities, polytechnics, colleges of education, and even technical or vocational training! It covers tuition, fees, and living expenses; all you need to focus on is acing those courses of yours. Go for NYSC and get a better paying job.

Under the newly revised Student Loan Act, the Nigeria Education Loan Fund (NELFUND), a corporate body setup by the Federal Government, will be responsible for the disbursement and management of the student loan (with some other government bodies like the FIRS).

Under the same revised student loan act, you will NOT need to provide two guarantors, which include civil servants with at least 12 years of experience, lawyers with at least 10 years of experience after qualifying, judicial officers, and justices of the peace.

Also, under the same revised student loan act of 2024, family income will no longer be a prerequisite for eligibility for the student loan. 

Below is the full revised Student Loan Act of 2024.

10 Key Points About the Revised 2024 Student Loan Act in Nigeria:

1. NELFUND Established: A dedicated Nigerian Education Loan Fund is created to manage student loans. NELFUND is headed by Mr. Akintunde Sawyerr as Managing Director/CEO, Mr. Frederick Oluwafemi Akinfala as Executive Director, Finance and Administration, and Mr. Mustapha Iyal as Executive Director, Operations
2. Loan Coverage Expanded: Financial support goes beyond tuition to include fees, charges, and living expenses.
3. NELFUND Funding Secured: A dedicated source of funding is established from federal tax collections. The student loan program will be financed by allocating 1% of all taxes, levies, and duties that the Federal Inland Revenue Service (FIRS) collects and that go to the Federal Government, directing these funds to a General Reserve Fund. 
4. Family Income No Longer a Barrier: Students from all income backgrounds can now apply.
5. Guarantor Requirement Removed: There is no need for guarantors to qualify for a loan.
6. Skills Training Included: Funding is available for vocational and technical training programs.
7. Parental Loan History Disregarded: Parents’ loan history won’t affect student eligibility.
8. Repayment Starts After NYSC: Focus on education first, then repayment begins two years after service.
9. Penalties for False Information: Providing false information to secure a loan comes with legal consequences.
10. Debt Forgiveness Clause: Loan forgiveness is possible in cases of death or unforeseen circumstances.

Who can Apply for the Federal Government Student Loan?

• Admitted to a Nigerian university, polytechnic, college of education or vocational school (public only)
• Must not have defaulted on any previous loans or been found guilty of any examination malpractice, felony, or drug offenses.

Who cannot Apply?

Below are people who cannot apply for the Federal Government Student Loan:

• Defaulted on a previous loan
• Found guilty of cheating on a school exam
• Convicted of a felony, dishonesty, fraud, or drug offense
• If your parent(s) defaulted on a student loan

How to Apply

Step 1

Register on the Student Loan Application Platform by clicking the “APPLY NOW” button to get started.

Step 2

Proceed to your student loan application, select either tuition/institutional fee, upkeep or both.

Step 3

Your student loan gets approved and disbursed into your school account in minutes.

To get started:

1. Visit https://slas.omniswift.com/auth/welcome or https://nelf.gov.ng
   Click on ‘Get Started‘
2. Next screen, answer the questions about yourself:
   N.I.N.,
   Date of Birth
   Surname
3. Verify your student status, using:
   JAMB Registration Number or BIMs Registration No. (Beneficiary Identity Management Service)

Keep the below details:

1. A cover letter from your school signed by important officials.
2. Attach required documents:
   • copy of your admission letter
   • Guarantor letters recommending you for the loan and agreeing to repay if you don’t
   • Two passport photos from each guarantor
   • Proof of guarantors’ employment (letter and information)
   • If guarantors are self-employed, provide business registration details

Required Documents

1. A completed application form
2. A copy of your admission letter
3. A copy of your JAMB result slip
4. A copy of your WAEC/NECO result certificate
5. A copy of your birth certificate
6. A copy of your passport photograph
7. A guarantor’s letter of support from each of your two guarantors
8. A copy of your guarantors’ employment letter(s)
9. A copy of your guarantor’s passport photographs

After You Apply

• The approval process is instant if you are eligible, and your details are correct and valid.

Repaying the Loan

• You don’t have to start paying back until two years after finishing your National Youth Service Corps program.
• Payments will be automatically deducted from your salary (10% of your salary).
• If you are self-employed, you will need to send 10% of your monthly profit to the loan program.
• There are penalties for not repaying the loan.

NOTE: After you follow the above process, the final decision lies with NELFUND.

Frequently asked questions about the Federal Government Student Loan in Nigeria

Who is eligible to apply for the student loan?

Eligibility is based on specific criteria, including admission to a recognised institution (have an active academic profile), a valid BVN (Bank Verification Number) and NIN (National Identity Number), and a valid Jamb record.

What documents are required for the application?

You will need your Admission letter and Student ID Card (optional)

How long does the approval process take?

The approval process is instant if you are eligible, and your details are correct and valid.

Can I apply for living expenses in addition to tuition fees?

Yes, you can apply for an upkeep loan in addition to the institutional fee.

When should I start repaying my loan?

Repayment of your loan starts 2 years after your NYSC and will be deducted automatically from your bank account.

Is there a grace period after graduation?

Yes, you have a 2-year grace period after your NYSC.

What is the maximum loan amount a student can receive?

The maximum loan amount is outlined in the Student Loan Act. It is subject to periodic review by the Special Committee.

Can I apply for multiple loans under this initiative?

Eligible students can apply for upkeep and tuition loans but there is only one application for each loan type.

How does the interest-free aspect of the loan work?

Interest-free means that you will not be charged additional fees or interest on the loan amount. You will only repay the principal amount borrowed.

Can I use the loan for expenses other than tuition fees?

Yes, the loan can cover additional expenses such as living costs (upkeep), as specified in the Student Loan Act.

Can parents apply for a loan on behalf of their child?

No, parents cannot. Eligible students must apply for the loan themselves in accordance with the eligibility criteria outlined in the Student Loan Act. However, parents may act as guarantors if required.

Are there any penalties for early repayment of the loan?

No, there are no penalties for early repayment. In fact, early repayment is encouraged as it helps reduce the overall financial burden.

How are loan repayments made?

Repayments are facilitated through salary deductions arranged with employers. The Nigerian Education Loan Fund coordinates with employers to ensure seamless repayments.

How do I become a guarantor for a student applying for a loan?

You can become a guarantor by providing a letter of recommendation and agreeing to accept liability in case the student is unable to repay the loan.

Can a guarantor be changed after the loan has been approved?

In exceptional cases, a guarantor may be changed, but it would require approval from the Nigerian Education Loan Fund and should be communicated promptly.

Can a parent apply as a guarantor for multiple children simultaneously?

Yes, a parent can act as a guarantor for multiple children, provided they meet the criteria outlined in the Student Loan Act.

Can parents receive updates on the loan status and repayment process of their child?

Yes, parents can request updates from the Nigerian Education Loan Fund regarding the loan status and repayment progress of their child.

Can parents serve as guarantors if they are not Nigerian citizens?

The Student Loan Act specifies that guarantors must be Nigerian citizens, so parents who are not Nigerian citizens would not be eligible to serve as guarantors.

Are there any provisions for loan forgiveness in certain cases?

The Student Loan Act outlines specific circumstances under which loan forgiveness may be considered, such as in cases of permanent disability or death.

How is the effectiveness and impact of the initiative assessed and reported to the public?

The Student Loan Act requires the Nigerian Education Loan Fund to provide regular reports and updates on the initiative’s progress.

Can a guarantor withdraw their support after the loan has been approved?

While possible in exceptional cases, it would require careful consideration and adherence to the processes outlined in the Student Loan Act.

What happens if a student changes their course or institution after receiving the loan?

Changes in course or institution must be communicated to the Nigerian Education Loan Fund for evaluation and approval, as outlined in the Student Loan Act.

How is the Student Loan Initiative funded?

The initiative is funded through government allocations, grants, and contributions from various stakeholders, as outlined in the Student Loan Act.

The post Federal Government Student Loan in Nigeria: How to Apply Easily appeared first on AFRICA EXPLAINED.

Viral trend is a social media marketing platform that pays you daily to do the regular things you do online with your social media accounts. These activities range from likes and comments to posting and subscribing to Youtube channels.

What Is Viral Trend?

Viral trend is an online community of social media promoters geared towards improving brand visibility. Through their combination of different digital and social media marketing practices, they bring your business to the limelight.

They offer advertisers the opportunity to create adverts or social media tasks like likes, video views, follows, on all the social media platforms.

Promoters who decide to use viralTrend get paid for each social media task they perform while the publishers earn from the number of adverts they publish and showcase on their websites.

Additionally, Viral trend has a website called Viraltrend.org where you can easily sign up to receive your tasks easily. They believe that having good awareness generates sales and increases income which is what every business wants. This is why they give you a chance to build massive Facebook, Instagram, and Twitter followers, optimize your business page, and increase Youtube Views and subscribers through their platform.

Also, You can decide to join viraltrend as a promoter or advertiser, It all depends on you. As a promoter, there are two levels of membership plan – the basic plan which costs 500Naira and the Premium plan which costs 2500 Naira

But before you start joining, you should know how Viraltrend.org works.

How it works

To know how Viral trend works, you have to first sign in on Viraltrend.org to create an account for yourself. You can either sign in as a social media promoter or you can sign in to advertise.

As a promoter, you will get paid daily to like, comment, share, retweet, subscribe, & follow on all Social Media platforms. In other words, you get paid to promote brands using your social media accounts.

Also, as an advertiser, you can sign up on viral trend to create adverts for your brand. Viraltrend takes up that advert and promotes it on all social media platforms while you pay for the service.

Generally, Viraltrend provides solutions to brand owners on how they can improve the visibility of their brands and get the recongnition they deserve. These solutions are through intense social media marketing and ads placed strategically to reach the target audience and convert to leads.
It can be summarized as a brand that offers the following;

• Advert Campaigns
• Digital Marketing
• Brand awareness
• Advert Monetization.

Whichever of these skills you possess, you can earn money from Viral trend.

Is Viral Trend Legit Or A Scam?

This Viral trend review will not be complete if I don’t answer this question “Is ViralTrend Legit or a Scam?”

Yes. Viral trend is legit. In fact, it is as legit as the “P” in “Psychology”. It is not a Ponzi scheme neither is it one of those get-rich-quick schemes.

One of the major things that made me believe that Viraltrend is legit is that while gathering information for this Viral trend review, I observed that there are no negative reviews about this money-making platform anywhere online. This screams LEGIT!

Also, Since its inception, Viral trend has paid out over 38M Naira and has had over 70,000 processed adverts that have converted to leads.

Now you ask yourself “Why would an advertiser want to create adverts on a platform that is a scam?”

Also, they have over 100,000 members that get paid daily for just promoting brand ads on their social media account. You can even earn by sports betting or crypto trading.

Additionally, Its method of payment is very easy and straightforward. Promote brands, get engagement from the public, and receive your naira. You even get back the membership fee you paid during the sign-up and in most cases double or even triple it.

Can I Earn Money On Viral Trend?

The answer is Yes. You can earn money on Viral trend by doing the things you regularly do with your social media accounts. But first, you have to sign up on Viraltrend.org. and become an active user.

To be more specific, you can earn money on Viral Trend for doing the following:

• Following clients’ social media pages and profiles.
• Liking clients pictures on Facebook, Instagram, or Twitter
• Commenting on either posts or pictures on Facebook, Instagram, or Twitter
• Subscribing to clients Youtube channel
• Viewing pages and posts on Instagram
• Retweeting clients’ posts on Twitter.

On completion of either of these tasks at the end of the day, you receive your pay. You can make much money on Viraltrend depending on how active you are on the site and how many tasks you complete. Viraltrend pays as much as N10 per follow.

You can also earn from referrals on Viraltrend. When you refer a friend, you will earn 1,250 Naira if you are a premium member and 250 Naira if you are a basic member. That is not all, you will earn an additional 10% of what your direct referrals earn when they also get their referrals.

How Much Can I Earn On Viral Trend?

You can earn anywhere between 3 to 10 naira per follow, like, and comment on either Facebook, Instagram, and Twitter.

You can also earn between 10 to 15naira for subscribing and watching videos on YouTube. Generally, the minimum payout on Viral trend is 2500 naira.

But if you still doubt it, you can see what users of Viral trend are saying online.

How To Join Viral Trend?

If you would like to join Viral Trend, you can do so in these simple steps

• Go to viraltrend.org and create an account for yourself
• Choose an account type. You can either sign up as an advertiser to launch campaign adverts for your business or you can sign up as a promoter to earn money.
• An email verification will be sent to the mail you used in registering.
• Upon verification of email, go back to viraltrend.org to activate your account
• Once your account has been set up, link all your social media accounts ( Facebook, Twitter, Instagram, and YouTube) to your viraltrend.org account to help you easily complete your tasks online.

Click the button below to go to viraltrend.org and get started.

VISIT VIRAL TREND

Final Thought…Is Viral Trend Worth It?

Absolutely. Viral Trend is worth it for anyone who wishes to make money online through a legit means. Normally you like, comment, retweet and watch Youtube videos with your social media accounts. How about you monetize it?

The post Viraltrend Review 2022: Legit Or Scam? appeared first on AFRICA EXPLAINED.

The reasons for the global crisis are simply explained, the coronavirus pandemic of early 2020 disrupted supply chains when it forced factories around the world to shut down, the supply chains have not fully recovered since. Then in 2022, Russia invaded Ukraine, triggering a disruption in the global energy market with Western countries sanctioning Russia, and Moscow in return cutting of energy supply to Europe.

On top of these global causes, individual countries also have additional causes that are exacerbating the crisis within their borders. Nigeria’s crisis, for example, is exacerbated by insecurity and poor infrastructure that has led to widespread flooding across the country.

What is Personal Inflation Rate?

It’s no news that the world is experiencing inflation – and Nigeria & Ghana are feeling it more intensely. But do you know about your personal inflation rate? Yes, you know your country’s inflation rate, but do you know your own? What’s the disparity between your spending last year and this year?

Personal Inflation Rate shows you how a country’s inflation rate affects a person’s spending habits. Knowing your personal inflation rate helps you to understand how your country’s inflation has affected you, your pocket and your lifestyle. 

Here’s how to calculate yours:

• Step 1: Calculate how much you spent in September this year (2022) and calculate how much you spent in September last year (2021). 
• Step 2: Find the amount difference between both months’ spending. i.e. the difference between how much you spent in September 2022 and how much you spent in September 2021. 
• Step 3: Divide the difference by September 2021’s amount, then multiply by 100. 
• Step 4: The answer is your personal inflation rate. 

Let’s take a realistic example:

Matthew’s expenses for September 2021 is 150,000 Naira (this includes feeding, transportation, data, black tax and other bills). In September 2022, Matthew spent 250,000 Naira. 

Personal Inflation Rate is = (250,000 – 150,000)/150,000 x 100

                                        = 66.67%

So, while Nigeria’s inflation rate is 20.77%, Matthew’s personal inflation rate is 66.67%. This means that the increase in goods and services has deeply affected Matthew’s pocket and he’s spending more on the same goods and services from the previous year.

How to protect your finances against inflation

With prices of goods and services rising almost in real-time, there are a few steps that can be taken to mitigate the effect of inflation.

• Monitor and Manage your expenses.
• Get an additional source of income to maintain this new increase in expenses. 

An additional source of income can be selling your skills, investing in the stock market, or even earning returns on your locked money.

The post How to calculate your Personal Inflation Rate appeared first on AFRICA EXPLAINED.

Uganda’s Idi Amin had to kill over 200,000 of his own citizens to stay in power, Nigeria’s Sani Abacha stole billions of dollars from his country fearing that he might be deposed at any moment. Dictators have absolute power over their people, which enables them to do whatever they want.

With great power comes great responsibility as the saying goes, there are dictators who used their absolute power, not for evil, but to help their people. And there’s quite a few. If you are from the West, some of these might shock you. If you are not, well, enjoy the ride;

Muammar Gaddafi

Gaddafi is often portrayed as a bad guy, and as Ronnie put it “the mad dog of the Middle East”

But that is in fact, not true.

Let’s take a look at some of the luxuries that Libyan citizens had during his rule

• 1: Free electricity.
• 2: Free housing.
• 3: Free healthcare. Not only free healthcare, but the best free healthcare in Africa and the Arab world.
• 4: A high GDP per capita for two decades before the West started sanctioning Libya.
• 5: A portion of the money made from oil sales went directly into the bank accounts of Libyan citizens.
• 6: If healthcare in Libya was not sufficient, the state would finance the entire trip to a foreign hospital.

I could go on and on, but those are just six things.

Also this

Libya had the highest rating on the Human Development Index in Africa while Gaddafi ruled it.

So while he might be portrayed as a bad guy, he was actually a really good leader.

Lee Kuan Yew

Lee. Kuan Yew was the Prime Minister of Singapore for three decades between 1959 and 1990. In those three decades, he transformed the undeveloped city-state, which had no natural resources, not much land area and a small army, into a shining example of a developed country. But he did this with many challenges facing him, like the multiculturalism of Singapore. The population was a collection of Malays, Chinese, Englishmen, Frenchmen, Indonesians and many more ethnic groups.

While he did implement dictatorial measures, such as muffling the press, outlawing protests and arbitrarily detaining people, he still holds the title of “The Least Brutal Dictator in History”. He did not kill a single person during his three-decade-long rule. Torture was not implemented either.

Before he took the mantle of leader, Singapore was nothing more than a collection of plastic houses and shanties. Look at Singapore now.

Park Chung-hee

Park Chung-hee didn’t exactly come to power by democratic means. He made himself leader in a military coup. But unlike many leaders of military juntas, he was not a selfish blowhard who worked only to enrich himself. Instead, he enriched his country, South Korea.

He developed South Korea’s banking sector, business sector, and enriched the country with a policy of export-oriented industralization.

To give you some perspective, when he came to power, the GDP per capita in South Korea was a miserable 59 dollars. When his rule ended, it was 1,000 dollars.

Unfortunately, he was betrayed and assassinated in 1979, before he could do any more good to South Korea.

And as a bonus, he defended South Korea from communism.

Qaboos bin Said al Said, or Sultan of Oman for short

When he took power way back in 1970, Oman was the poorest country in the Arab world. Now, it gained the nickname of “The Switzerland of the Middle East”. All thanks to this man.

Oman, like many other Arab countries, is rich mainly due to oil exports, but added to that, Oman also has a developed banking and finance sector. Hence the nickname. Oman also serves as one big negotiating table, due to its policy of military neutrality.

In 1970, Oman had just three or four schools. Now it has over a thousand, and a few universities, the most famous one being named after him. Also in 1970, the average GDP per capita in Oman was 345 dollars. Now, it is 15,000 dollars. Qaboos still rules Oman, and continues to improve it.

While other Arab countries constantly squabble, Oman quietly sits and looks by, enjoying its wealth.

Thomas Sankara

Sankara achieved many great things during his short rule, from his coup in 1983 to his deposition and murder in 1987.

He ordered the planting of million upon millions of trees, in order to prevent desertification. He lowered his own salary, and rid the government of most of its corruption, which was a giant problem. He connected the country via roads, and built housing for the citizens of his country. He made it self-sufficient in farming. And he saved the country from French dominance.

He renamed the country from Upper Volta, its colonial name, to Burkina Faso. He composed the national anthem, and designed the flag of Burkina Faso.

Unfortunately, he was killed in a military coup, which was, predictably, sponsored by the French. It installed a brutal dictator who impoverished the country and was a puppet of the French.

The post Top Five Dictators Who did their Country Good appeared first on AFRICA EXPLAINED.

The importance of your SIM card to your financial security cannot be over emphasized. To this end, as an MTN customer, the ability to quickly block your SIM card when it is stolen/lost is every important.

From the minute you discover that your phone is missing, every second matters to prevent unauthorized transactions on the number. Even if your bank account is password secured, some banks allow the instant purchase of airtime without requiring any password. This means that individuals who don’t need your password can still do transactions on your bank account!

How to block MTN SIM card in Nigeria?

To block your stolen/lost MTN SIM card in Nigeria, simply dial 180 – the toll-free customer service number from another MTN line to speak to a customer service representative.

You will however be required to prove that you own the lost number by providing some information such as your tariff plan, last recharge amount, mother’s maiden name, local government and other KYC information as required by the operator.

If you are however unable to block your SIM card online, you can visit any MTN customer experience center or partner shop in your city where you will be asked to prove ownership with your biometrics.

How to block MTN SIM card from another phone?

You can also block your MTN SIM card from another phone by calling the Toll Free number 180.

How to retrieve MTN SIM card?

You can retrieve your MTN number by purchasing a welcome-back pack at any MTN office or partner centre in your city at the rate of just #1,000.

The only requirement to retrieve your lost/stolen MTN number is a valid means of ID e.g. international passport, NIN, Voters card, driver’s license etc. Your identity will be verified at the MTN office with your biometrics on record – fingerprints and picture.

How to protect your MTN SIM from unauthorized access?

You can also prevent your SIM from unauthorized access by implementing the below which will require a password to access your SIM card.

1. Click on Settings
2. Scroll to select security
3. Click on configure SIM card lock
4. Click on the lock “SIM CARD”
5. Insert the default PIN code of the MTN SIM card. The default code is 0000.
6. You will need to change the SIM card PIN code in order to replace the default PIN code.
7. Confirm your new PIN code

If you do it successfully, you will be required to input your PIN code every time you turn on your phone or when you remove and put back your SIM Card.

FAQs on blocking and retrieving MTN number

The post HOW TO BLOCK STOLEN/LOST MTN SIM CARD IN NIGERIA? appeared first on AFRICA EXPLAINED.

The state government is a report from the Specialized Technical Committee on the Evaluation of the Legality of the Alleged Acquisition of Obajana Cement Company Plc by Dangote Cement Company Limited said the claimed transfer of Obajana to Dangote Industries Limited was “invalid, null and void.”

The report claimed that the certificate of occupancy of the company was solely owned by the state government and that “Kogi State Government should take steps to recover all accrued dividends from profits made over the years, including accrued interest on the same.

“Kogi State Government should take steps to cancel the existing seven Certificates of Occupancy in the name of Dangote Cement Company.”

“Agreement between Kogi State Government of Nigeria and Dangote Industries Limited, dated 30th July 2002 and supplemental agreement dated 14th February 2003, as contained in Exhibit 71 of the Judicial Commission of Inquiry Report, purporting the transfer of Obajana Cement Company Plc to Dangote Industries Limited, are all invalid, null and void.

“There is no evidence of consideration paid by Dangote Industries Limited to Kogi State Government from the alleged transfer of Obajana Cement Company Plc and no dividend was paid to the state from the profits realised from the inception of Dangote Cement Company Plc to date.”

On his part, the Speaker of the Kogi State House of Assembly, Matthew Kolawole, said the acquisition of the Obajana Cement Company by Dangote was without the resolution of the House of Assembly, which rendered the process null and void.

“It is clear that you cannot sell a state government property of any form without the resolution of the Kogi State House of Assembly.

“All the transfer process of the share capital to Dangote from Obajana by the previous administration was without any law backing it by the state House of Assembly,” Kolawole stated.

What Dangote is saying

On its part, the management of Dangote Cement Plc has in its reaction to the shutdown of its plant at Obajana by the Kogi State Government, appealed to all its staff and customers to remain calm while the company explores all possible legal steps to address the action by the government which it described as illegal.

A statement issued from the company’s headquarters in Lagos reads,

 “The management of Dangote Cement Plc, wishes to inform members of the public, especially its customers and other stakeholders of the recent invasion of its Obajana Cement Plant, Kogi by armed vigilantes on the orders of the state government.

“The vigilantes, led by some officials of the state government were apparently acting on a resolution of the Kogi state House of Assembly on controversial tax claims.

“Claims that the state governor had also contradicted when he said the shutdown was due to an alleged invalid acquisition of the company by Dangote Industries Ltd.

“In the process of forcefully evicting the workers to enforce the shutdown, the vigilantes shot at 27 of our workers and also destroyed some of the company’s property at the plant.

“While we reiterate that Obajana Cement plant is 100 percent owned by Dangote Cement PLC, we remain resolute in transforming Africa, while creating sustainable value for our people, communities, investors, and customers.’’

What the Obajana seizure means for investors in Africa

Aliko Dangote the businessman and President of the Group is no doubt one of the biggest investors in Africa with investments across multiple African countries including Nigeria, Kenya, Tanzania, and South Africa. The billionaire has demonstrated a remarkable commitment to investing in Africa, and the Obajana Cement plant is one of them.

The forceful closure of the plant which has provided jobs to the youth, revenue to the Kogi State government, and infrastructure for the people is an unfortunate chapter in Nigeria’s polity.

At a time that the continent of Africa is fast-tracking the ‘AFCFTA’ which is the Free Trade Agreement Area, designed to boost industrialization, trade, and development the actions of the Kogi state government are shocking.

For the benefit of the doubt, Nigeria is a democratic state, and where there are issues of concern around the operations of a multinational in a state.

There are four reasons why the recent action of the Kogi state government on the Obajana Cement plant, speaks to the effect of signaling to investors.

• Ease of Doing Business
  Part of the role of government at the federal, state, or local government level is providing an enabling environment for businesses to thrive.
  The actions of Kogi State undermine this and create a hostile environment for businesses.
• Investment Promotion
  Nigeria is doing well in the area of attracting foreign direct investments, which was below $500m in Q2,2022. This current action could create additional shocks for potential foreign investors, who will be worried at the treatment meted out to a major domestic investor.
• Sanctity of Contracts
  It will raise the fundamental question of how Nigeria regards the sanctity of contracts and engagements.
  If there are issues like the Manufacturers Association of Nigeria raised, then the best way to approach it is going through the courts. The laws of engagement should be respected without which investors will develop cold feet for investing in Nigeria.
• Security of Assets
  Prior to this incident, Kogi State was highly rated for security whether for assets or communities. With reports that people were shot during the forceful closure, efforts must be made by the government to resolve the issues amicably and bring back stability to the state.

The post Why the Nigerian government is seizing a cement plant from Aliko Dangote appeared first on AFRICA EXPLAINED.

But investments involve risks, when you find a business idea that pays off, with effort, a little bit of prayer and luck, you might be on your way to life changing success. So if you are looking for where to invest your money in Nigeria especially as we approach the Ember months, this article might just be the guide you need.

Generally speaking, a good business idea in today’s Nigeria should be investment in sectors that are less risky, some of this sectors include;

Buying and selling

Buying and selling simply involve buying items low and in bulk, marking them up and selling them to make a profit. It is a simple business idea that is as old as civilization.

It is however important to know the right items to buy and sell, everyday items like foodstuff, baby items like diapers and fashion items tend to sell faster in Nigeria. A good thing about buying and selling nowadays is that physical shops and store locations are no longer required. Setting up an online shop on e-commerce websites like Shopify, Facebook or Instagram will do.

No technical skills or coding skills are required to set up an online shop, but the entrepreneur should have basic skills in digital advertising, Search Engine Optimization SEO and copy writing. There are freelancers that offer these services for a fee but the entrepreneur should have basic knowledge.

Yuletide is around the corner, Nigerians are known for their love of celebrations and partying. Now is the time to start selling what they will need for all those parties.

Transportation

The movement of people and goods is the very lifeblood of the economy, and those who invest in this lifeblood stand to gain a lot. In almost every Nigerian town and city, there are tricycles popularly called Keke Napep and motorcycles that provide fast and efficient means of transport within the city. Some of the riders are said to deliver up to #5,000 daily to their owners depending on the location, this is a very good source of passive income.

On the higher end, ride-hailing services like Uber and Bolt deliver even higher daily returns, especially in major cities like Abuja and Lagos. One major advantage of ride-hailing services is that the investor can become owner and operator, and they can become a side-hustle driver at the weekend without looking for a third party to ride the car.

Besides transporting people, haulage is another good business idea in Nigeria. Trucks, small or big that transport goods either intra or inter-state. Haulage is how food items and other products move from the factories to the final consumer.

ICT

This can feel overwhelming as the entire world seems to be going digital. There are sectors of Information and Communication Technology that most people thought are now obsolete but are making a comeback. One such is photo studios and professional photographers, everyone now has a camera on their phone but they also have an Instagram account, which means the demand for clearer and professional pictures to stand out is on the rise.

Other ICT sectors making a comeback are business centres and cybercafé! People are doing more and more online registration that requires them to upload documents, some of these things they can’t do on their phones or require a level of expertise they do not have, hence the need for a business centre where they can do it.

Cybercafés on the other hand are needed by freelancers and other remote workers who need a workstation. Cybercafés won’t exactly sell internet access as mobile data is now cheaper than it was 10 years ago at the peak of the café business, but rather they will sell a work space with constant electricity and a conducive environment for remote workers. Cafes can also double as a business center, making more money for the entrepreneur.

Agriculture

Nigeria is experiencing turbulence caused by climate change. From insecurity exacerbated by climate change to the direct effects of climate change like flooding, droughts and poor crop yield. All these means that the country has to produce more food for more people on less land, which can mean good opportunity for entrepreneurs in the agriculture value chain.

Besides crop production and animal rearing, the most underrated business in agriculture is food processing. As Nigerians become more educated, this means more demand for better processed and better packaged foods. More people now buy local fooditems like garri, beans, crayfish, and even ponmo from their supermarkets rather than from the local markets because of better processing and packaging. Entrepreneurs in these value chains stand to make a lot of profit as more Nigerians will prefer cleaner foods to the old way.

Money market

For those with expertise in this sector, the CBN recently hiked the country’s interest rate to 15.5%. This means that bonds, treasury bills and other financial instruments are set to go high.

All investments involve some level of risk that the entrepreneur must undertake, successful entrepreneurs are not the ones who avoid risks completely, but those who take calculated risks after doing their full research.

The post Top business ideas in Nigeria 2022 appeared first on AFRICA EXPLAINED.

DR Congo is arguably the most natural resource rich country on the planet, the country is endowed with exceptional natural resources, including minerals such as cobalt and copper, hydropower potential, significant arable land, immense biodiversity, and the world’s second-largest rainforest. Nigeria is Africa’s largest oil producer and the eleventh in the world, apart from petroleum, Nigeria’s other natural resources include natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc and arable land.

Despite this seeming immense wealth, both Nigeria and DR Congo are seen as the poster examples of why Africa is poor and for good reason. Nigeria is the poverty capital of the world with more poor people living in it than in any other country on the planet. In DR Congo on the other hand nearly three in four people live on less than $1.90 per day, representing one of the largest populations in the world living in extreme poverty despite having natural resources worth an estimated $24 trillion.

Corruption is not the problem

The pathetic economic situation in both Nigeria and DR Congo repeats itself throughout sub-Saharan Africa and most people erroneously blame widespread government corruption in these countries. Here is why;

Imagine a father with 8 children and two wives as financial dependants, yet this father’s entire income is less than $5 a day. Such a family would have been condemned to live in poverty regardless of whether or not the father has other negative proclivities on the side. For such a family, if the father is gambling and drinking, those vices will only exacerbate the family’s financial woes as they will still be poor regardless because earning less than $5 a day is simply not enough to sustain a family of 11.

Most people blame corruption for Africa’s problems without realizing that most African countries simply don’t make enough money and the government doesn’t collect enough taxes. DR Congo has a GDP per Capita of about $1,316, the Nigerian government collected tax revenue of about $15.5 billion from its over 200 million citizens in 2021. Sweden on the other hand collected $143.996 billion from its less than 11 million population in the same year.

The problem here seems obvious when you consider these numbers. Yes, government corruption is a problem, but the money being stolen is from a revenue pot that is not well optimized in the first place. New ideas are needed on how to generate more revenue and optimize existing sources of revenue.

How to end poverty in Africa

African governments need to collect more taxes which they can in turn use to build better infrastructure, provide security and other government services that will enable the people to move out of poverty. To achieve these, in countries like Nigeria the government needs to be decentralized for improved efficiency. The Nigerian federal government controls all armed security outfits in the country which is further exacerbating insecurity, states and communities needed to be allowed the freedom to govern their localities based on their particular peculiarities.

Policies are also a big problem in sub-Saharan Africa. Of the top 10 worse countries on the World Bank’s ease of doing business index, only 3 countries are not in the sub-Saharan Africa region. Wrong and poor policy implementation is holding back a lot of businesses from investing in Africa thereby denying the continent the much needed jobs and tax revenue that would have come from such businesses.

In Nigeria, one of the policies that have worked so well is the deregulation of the communication sector. The government gives licenses to private mobile operators who compete against each other to provide the best network tariffs and services to Nigerians. This competition means today Nigerians pay some of the lowest phone prices on the continent while enjoying similar services to other Africans and the government collects its highest tax revenue from the communication sector. Despite the communication sector being one of the few sectors that work well in the country relatively and the government’s cash cow, Nigeria has not been able to repeat these successful policies in other sectors of the economy.

Africa is poor today because governments across the continent don’t have good policies or are implementing poorly the few good policies. Corruption doesn’t affect the rate of poverty on the continent as much as people think, if the governments can implement good policies to generate enough revenue, poverty will be greatly reduced across the continent.

The post Why are African countries still poor? appeared first on AFRICA EXPLAINED.

“2G brought us SMS and picture messaging,” MTN CFO Modupe Kadiri said in a post. “3G was about mobile internet access. 4G made streaming and sharing a part of everyday life. 5G delivers the future and it’s here – higher internet speeds, downloads without delay, near-instant connection when streaming, using apps, loading websites, playing games, or connecting to smart home devices.

“So today we started another phase in our journey to Brighten the lives of our esteemed subscribers. Yes, today we turned on the 5G spectrum and kicked off our 5G pilot. 20,000 customers with enabled devices can now try out our next-generation network where coverage is available. So seeing 5G on your phone? It means you’re part of the pilot. Welcome to the wonder of 5G!”

So, what exactly is this 5G internet connection and how will it work in Nigeria? Here are some facts about MTN 5G, how to get it and how much it costs;

What is MTN 5G internet connection?

5G simply stands for the 5th generation of internet connection with regards to speed. When MTN first rolled out its services in the early 2000s, it only offered 2G that enabled users to open web pages and send pictures using MMS. The mid 2000s saw the arrival of more sophisticated gadgets like the Blackberry and other smartphones that allowed video streaming and video calls powered by faster 3G connection. 4G enhanced the streaming and video call experience by providing a much faster internet connection. Now, MTN promises that its 5G internet will be 10times faster than the connection on its 4G, further enhancing the streaming and video call experience.

Who need MTN 5G internet in Nigeria?

If all you use the internet for is to stream videos on social media and make video calls, then the existing 4G should be enough for you. 5G is more suited to data-intensive activities like Artificial Intelligence AI – self-driving cars, drone operators, online gamers and remote workers. Because of the super-fast connection, 5G will consume more data compared to 4G, MTN already recommends 100GB of data on activation.

How do I get the MTN 5G?

Existing MTN customers who have 5G enabled phones will have access to this internet speed when they are in a location where it is available. MTN also sells special 5G routers which can be pre-ordered for #50,000 on their website. Be sure to check coverage areas to see if 5G is available in your location as the service is not yet available nationwide. The device comes with a free 100GB data bonus and up to 32 different devices can be connected to the router.

Do I need a new MTN 5G sim or to upgrade my sim card?

No, you don’t need a new sim card or to upgrade your existing sim. Once you are in an area under the 5G coverage, your phone or device will automatically connect to the MTN 5G network. The mobile rollout is happening is stages, Tecno, Xiomi, Samsung and other Android devices already have access in areas under coverage. Apple devices will soon follow. Other MTN customers who do not have 5G enabled devices can simply purchase the special MTN 5G router to get the same advantages.

Are there unlimited MTN 5G data plans?

No, MTN does not have unlimited data plans for those using 5G. The company however promises to roll out special 5G plans and bonuses in the future. Customers will have to rely on existing data plans and set limits based on their lifestyles. Because 5G is super-fast, customers can expect their devices to consume more data than they used to when using 4G.

5G is the future of the internet that provides superfast connections at speeds more than 10 times that of 4G. We won’t recommend 5G for everyday streaming due to costs, but for those working in AI, online gaming, remote workers, 5G is the future.

The post 5 fast facts about MTN 5G in Nigeria appeared first on AFRICA EXPLAINED.

Asuu often claims that the payroll system is not efficient and wants university lecturers to be excluded from it, while the FGN on its part claim that IPPIS is helping it reduce salary fraud and detect ghost workers.

But the crisis between the FGN and Asuu over IPPIS goes deeper. If the impasse is to be resolved, the entire process through which Nigerian Universities are funded would have to be restructured.

What is IPPIS

IPPIS is a computerized payroll Department under the Office of the Accountant-General of the Federation responsible for payment of salaries and wages directly to Government employees’ bank account with appropriate deductions and remittances of 3rd party payments such as; Federal Inland Revenue Service, State Boards of Internal Revenue, National Health Insurance Scheme, National Housing Fund, Pension Fund Administrator, Cooperative Societies, Trade Unions Dues, Association Dues and Bank Loans.

The payroll system has been in existence since at least 2006, it helps to reduce salary fraud and ghost workers since it captures the biometric details of each worker – with your fingerprint and picture, you only get paid one salary if you are in the system.

University lecturers are not the only ones paid through the IPPIS, every federal employee in Nigeria has their details captured and receives their salary under this payroll system.

Why is Asuu against the IPPIS?

If every other federal employee in Nigeria is receiving their salaries from the IPPIS, then why would ASuu members be requesting an exception to the rule so much so that they routinely shut down academic activities nationwide over this request? The reason is simply explained; University lecturers often visit other universities for a specific period of time as visiting lecturers where they will teach and conduct research during their stay. The problem here is that the lecturers cannot get paid for such visits as the IPPIS would have their biometrics already registered to another university.

Asuu claims that the IPPIS is not flexible enough to reflect changes as most visiting lectures often end up without pay for the months they are away from their original university.

Another criticism of the IPPIS by Asuu is that the deductibles from their salaries are often not the correct amounts. Most lecturers, for example, complain that they receive deductibles from the National Housing Fund when they don’t live in government subsidised housing.

The way forward?

To understand a possible solution to the IPPIS problem, it is important to understand the entire structure of Nigerian universities and how they are funded. Restructuring how these universities are funded will also solve majority of other Asuu demands, thereby bringing an end to recurring Asuu strikes.

Nigerian universities rely on the government to fund almost their entire budgets. The government does this to provide subsidized education to thousands of Nigerians who pass through public universities yearly. Students in public universities go to school almost for free only paying a small processing fee and other small charges. This starves the universities of much-needed funds and most of them end up producing students with poor quality of education.

Nigeria is a poor country, which means that the government simply does not have enough resources to provide free quality higher education as it has been attempting to. Public universities must be allowed to generate funds on their own as other universities around the world do.

Free/subsidized higher education must be ended in Nigeria and replaced with a merit-based scholarship system for qualified students. Between 80-90% of students who graduate from Nigerian public universities don’t get to use their certificates in their field of study because the education they have received is substandard. A merit-based scholarship system will ensure that university students are well thought by reducing over crowding.

Nigerian public universities having an endowment fund will also ensure their financial independence. An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose.

Most American universities generate billions of dollars in endowment funds yearly which makes up a large chunk of their budget. This makes them less reliant on government grants and can therefore fund research and hire lecturers without relying on the government. But endowment funds have one catch, the receiving institution must be trust worthy and always spend the funds according to instruction. Nigeria is one of the most corrupt countries in the world where public trust is low, and this might affect donation.

In conclusion, IPPIS is a problem because Nigerian universities are not financially independent. The only way forward is for the universities to figure out how to survive without relying on the government to fund almost their entire budget.

The post ASUU Strike: IPPIS Payroll System Explained appeared first on AFRICA EXPLAINED.