NARC SENIOR RESEARCH FELLOWS AND SUBJECT EXPERTS MAKE PRESENTATIONS

By: Our Reporter

The Friday, 22 November 2024, edition of the Nigerian Army Resource Centre (NARC) Weekly Subject Experts’ Presentation was held at Hall A, TY Buratai Block Abuja. There were two presentations made by the Subject experts on Eastern Europe and East/Central Africa.

The first presentation was made by Brig Gen AK Egwuagu (Rtd) subject expert on Eastern Europe, he centered his presentation on how BRICS Welcomes Nigeria. Nigeria has officially joined BRICS alongside 12 other nations, further strengthening its economic ties with the inter-governmental bloc. This announcement was made during the last BRICS summit held in Russia from 22-24 Oct 2024 (The Punch, 25 October 2024). Twelve additional countries including Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Thailand, Turkey, Uganda, Uzbekistan and Vietnam joined the BRICS alongside Nigeria, making them 13 in number, as partner countries of BRICS and not full members (Nairametrics, 25 October 2024).

This followed the full membership granted Iran, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates in Jan 2024, which qualified them to attend their first BRICS summit as full members at the Oct 2024 gathering in Russia. The group which was initially formed by Brazil, Russia, India and China (BRIC) in 2009, welcomed South Africa as a member in 2010 to rebrand the alliance to BRICS, with a core mission to foster trade, investment, development, security and cooperation among leading emerging market economies. Nigeria’s inclusion came up on the heels of a significant surge in foreign capital inflows from BRICS nations, having risen by 189% in the first half of 2024, reaching $1.27 billion compared to $438.72 million during the same period in 2023 (Arise News, Oct 25, 2024). By inviting Nigeria to participate in initiatives and discussions aimed at strengthening economic ties and cooperation between BRICS and other emerging nations due to her economic potential, large population and strategic location in Africa, the bloc is signaling its intention to diversify as a global economic force.

In his analysis and lessons for Nigeria, Brig Gen AK Egwuagu (Rtd) pointed out that, last year, Nigeria’s Vice President Kashim Shetima attended the BRICS summit in South Africa, but did not push for Nigeria to become a member when the bloc admitted new full members including two from Africa – Ethiopia and Egypt. Despite her membership to many international and regional organizations including UN, AU, ECOWAS etc, Nigeria needed to reassess its foreign policy and economic strategies in order to become a viable candidate for BRICS. Nigeria’s non-invitation to join BRICS in 2023 was largely due to its foreign policy thrust and lack of alignment with BRICS goals.

Her foreign policy needed to align with that of BRICS, and could be challenging to the Western countries that had historical relationship with it. But surprisingly in November 2023, Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, expressed the country’s intention to join BRICS as a full member within the next two years, and to also join the G20, leveraging on its large economy and population. As a follow-up to the plan, the spokesperson for the Ministry of Foreign Affairs, Ambassador Eche Abu-Obe confirmed Nigeria’s partnership with BRICS on Thursday 24 Oct 2024 (The Punch, 25 October 2024). With the realization of the minister’s dream of Nigeria becoming a member of the BRICS family, it is pertinent to note that while joining the bloc is a significant move for the country with many advantages, there are also some disadvantages. Hence, a BRICS membership will enable Nigeria to benefit from the bloc’s diverse economies, leading to increased trade and investment opportunities that would serve as alternative to Western dominance on the economic system (Meta AI). It will also provide Nigeria with more flexible opportunities in its economic policies, enabling it to gain more prominence on the global stage and allowing it to play a more significant role in international affairs. Joining BRICS will make Nigeria more resilient to economic shocks, giving it access to large consumer markets of BRICS countries and increased demand for Nigerian goods and services

He recommended that, the Federal Government of Nigeria, NASS and the Ministry of Foreign Affairs should undertake a critical review of Nigeria’s foreign policy in line with the current realities and also Nigeria should engage with both BRICS and Western countries towards maintaining a diplomatic balance.

Similarly, the second presentation was made by Brig Gen ED Idimah subject expert on East and Central Africa who focused his presentation on, Contractors Association Urges Government to Address Outstanding Debts of Members. On Monday 11 November 2024, the Guardian newspaper, Tanzania, reported that The Tanzania United Contractors and Allied Services Association (TUCASA) has called on the government to address substantial overdue payments owed to many of its members. In a statement issued yesterday, TUCASA Chairman Samuel Marwa emphasized that these delayed payments, which are associated with completed government contracts, have significantly disrupted the operations and financial viability of numerous companies, thereby jeopardizing the future of Tanzania’s construction and supply sectors.

Marwa highlighted that TUCASA’s members encompass contractors, suppliers of construction materials, and equipment providers, all of whom have diligently fulfilled their obligations by despite their commitment, these businesses are experiencing extensive delays in receiving payments from the government, with some waiting for years. Delivering essential infrastructure projects and supplying vital materials. “The situation is increasingly untenable as contractors face mounting costs from unpaid bank loans, accumulating interest, and intensifying pressure from creditors. The ramifications of these overdue payments are severe,” he stated. He elaborated that many contractors are struggling to meet their financial obligations, with some companies on the brink of insolvency or contemplating liquidation.

Additionally, in a bid to reduce operational costs, numerous companies have been compelled to implement workforce layoffs, resulting in significant job losses and economic distress for many Tanzanian families. “With inadequate cash flow to maintain their operations, several companies are at risk of closure, which poses a threat to the future of Tanzania’s construction industry and the availability of dependable infrastructure services. The current crisis is forcing companies to make challenging decisions merely to stay afloat,” he noted. Marwa warned that without prompt government intervention, the repercussions will extend beyond individual businesses, adversely affecting the broader Tanzanian economy, including job security, livelihoods, and vital national development projects.

In his analysis and lessons for Nigeria, Brig Gen ED Idimah stressed that, Nigeria, a country rich in resources, has witnessed significant infrastructural development over the past few decades. However, the government’s inability to pay indigenous contractors has led to a crisis that affects economic growth, employment, and the sustainability of local businesses. Historically the relationship between the Nigerian government and indigenous contractors has evolved over the years. After the end of military rule in 1999, there was a push for local contractors to participate in government projects. However, various factors have led to a backlog of unpaid debts (Adeleke, 2020).

The Public Procurement Act of 2007 was established to enhance transparency and accountability in the procurement process. Despite this, many contractors report difficulties in receiving payments for completed projects, leading to disputes and legal battles (Ogunyemi, 2019). Report by the Central Bank of Nigeria in 2022 indicates that Nigerian government debt to indigenous contractors stands at N3.4 trillion. This debt has accumulated due to various reasons, including budgetary constraints, corruption, and mismanagement of funds (Okeke, 2022). The inability of the government to settle these debts has far-reaching implications. It hampers the growth of indigenous contractors, limits job creation, and affects the quality of infrastructure development (Ibrahim, 2021). Additionally, the trust deficit between the government and contractors can deter foreign investment in the sector.

He recommended that, the Federal Government of Nigeria should establish a streamlined process for ensuring timely payment of contractors and also emphasize and encourage transparency in the procurement process to reassure contractors of stability and reliability of future contracts.

NARC SENIOR RESEARCH FELLOWS AND SUBJECT EXPERTS MAKE PRESENTATIONS