African lawmakers and observers should not be surprised that Kenya, one of the region’s most stable democracies, has erupted in deadly “cost of living” protests. They should be asking why it has taken so long for them to happen, and where on the continent the next explosion could take place.

At the core of these demonstrations is the fact that too many Africans have reached a stage where they are barely able to survive on their meager earnings and are ready to strike out at leaders seen as corrupt, uncaring and out of touch with the reality of ordinary people’s struggles.

At least 23 people were killed in widespread protests after President William Ruto’s government tried to proceed with a controversial finance bill that would introduce a tax on internet data, fuel, bank transfers, eggs, sanitary napkins and disposable diapers, and numerous other services. Ruto has now withdrawn the bill.

Only arrogance could have made Ruto and his colleagues fail to see the unrest coming. In July 2023, six people died in anti-government protests following the passing of tax reforms in the “Kenya Finance Bill 2023.” Over the past year, social media chatter has indicated opposition to any austerity measures. How a different outcome was expected just a year later boggles the mind.

Ruto’s finance bill was aimed at cutting the country’s budget deficit and borrowing. Many other African countries face similar challenges of high debt and poor revenue while pressure for infrastructural development and social welfare programs intensifies. For political leaders, it’s worth remembering that in March 2023 South Africa’s radical Economic Freedom Fighters party led cost-of-living marches across the country while its associates and other opposition leaders led similar marches in Kenya, Nigeria and Tunisia. South Africa’s army was deployed to keep a lid on those demonstrations. In Liberia, the cost-of-living crisis — accompanied by protests over more than a year — led to the electoral defeat of George Weah, the previous president, last October.

Many African economies have shown little or no growth since the Covid-19 pandemic; meanwhile youth unemployment is at record levels, inflation has exploded, and corruption and conspicuous consumption by political elites is a major area of discontent.

Take Nigeria, where the naira’s value dropped 70% against the US dollar in the past year. The country’s inflation rate climbed to a 28-year high in May, with consumer prices rising an annual 33.95%, according to the National Bureau of Statistics. In March, food trucks were attacked and seven people killed in a stampede to get rice.

South Africa, like Kenya, faces crippling national debt (74% debt-to-GDP ratio), a weakening currency, and significant increases in the cost of living. Youth unemployment has averaged 56% in the decade between 2013 and 2024, while wealth inequality is consistently among the highest in the world.

Youth dissatisfaction is particularly important. Kenya’s revolt is not led by Raila Odinga, the opposition leader, as happened last year, but by a disparate grouping of social media-savvy young people organizing on TikTok and other platforms. The 2020 #EndSARS protests in Nigeria against the police were fueled by youth anger and fueled by social media. Tactics driving Kenya’s “7 Days of Rage” this week are similar, but more sophisticated. At least 12 influencers and bloggers have been arrested or have disappeared, raising concerns of a government clampdown on influencers. Internet connectivity was throttled.

Kenya’s president Ruto has called the protests “treasonous” and described them as an “existential threat.” He is wrong. The people on the streets of Nairobi and virtually every town and city in Kenya are patriots driven to the edge of starvation. They see no creative solutions by politicians to their suffering except swingeing austerity measures. This is a cry for help, and it is emanating from communities across the continent. Leaders can opt to brand protesters as traitors, or find ways to resolve the real threat for the continent — rampant price increases.

Leaders need to be believable and relatable. Part of the crisis in Kenya is that Ruto has been accused numerous times of living the high life, including hiring private jets to fly overseas and flashing expensive watches, while life for the poorest in his country has become precarious. Even though the president is correct in wanting to slash debt, poor Kenyans are more likely to buy the story that it will all be funneled to corrupt politicians’ pockets.

Such skepticism is what one hears increasingly in Johannesburg, Lagos and other capitals. The events in Kenya this week should serve as a cautionary tale for leaders elsewhere not to try and ram through political and economic programs that are not balanced with deep reflection about their impact on the young and the poor.

Bloomberg

There’s no doubt that being born with a silver spoon in your mouth gives you a leg up in the world — but it can also have its downsides, financially speaking.

Growing up rich has many perks, but it can also hinder a person from learning essential money lessons.

GOBankingRates spoke with people who come from privilege but recognize their upbringing didn’t equip them with the necessary financial skills to set them up for long-term success. Read below for their insights on money lessons they wish they had learned.

Wealthy people know the best money secrets. Learn how to copy them.

Appreciating the Value of Money

“Having grown up in a wealthy family and now working for my own business, I have unique insights into the financial lessons often missed when money is readily available,” said Ben Hilton, founder and managing director of Switch Jam Digital.

“I never felt the need to worry about money as a child, and therefore, I failed to understand its real value. I now wish that someone had inculcated in me an appreciation of the actual work that goes into making money,” he said. “For instance, why did someone waste hours in the pursuit of a better deal or draw up a stringent budget? If I had known better the value of money, perhaps I would have been more enlightened about money management and spending habits.”

“I didn’t have to budget because it wasn’t expected or required in my home, and I’m still unaware of how to properly maintain a budget,” Hilton said. “When I first left home and lived alone, I struggled to balance my expenses and income.”

He noted that making sure a person knows how to set up and maintain a budget is a rather important skill that prevents overspending and helps to uphold and support personal financial stability.

Nischay Rawal, CPA, founder and managing partner of NR Tax & Consulting, shared a similar experience.

“Growing up with wealthy parents, I never learned the value of a dollar or what it meant to budget,” he said. “Money was always there for whatever I needed or wanted. As a result, I didn’t develop key financial skills that most people gain from an early age.

“When I started my own business, I had no idea how to forecast expenses, set financial goals or manage cash flow,” Rawal explained. “The first few years were a crash course in Finance 101. I made many mistakes that could have been avoided if I had a better grasp of basic money management.”

Investing Wisely

“While I had the money, I never learned how to invest early. I lost the basis for generating wealth through investment,” Hilton said. “A clear illustration of this is the fact that I was unaware of compound interest when I was 20 years old, a knowledge that could have significantly increased my financial worth.”

Learning investment principles and how to build wealth is crucial, according to Hilton. “How to invest wisely is a critical lesson for long-term financial growth,” he said.

Financial Independence

“Financial security during childhood is typically already wealth-dependent,” Hilton said. “I wish somebody had taught me about financial independence very early. For instance, in the early days of my career, it became easy to reach out to family for money and support instead of struggling and fighting to succeed financially independently.”

He added that knowing the importance of financial independence teaches a person the value of hard work and personal development.

Finding Purpose and Meaning Outside of Money

Rawal noted that another key lesson he didn’t learn was to find purpose and meaning outside of money.

“My parents’ wealth afforded me opportunities but didn’t give me a sense of direction or fulfillment. I had to discover my own passions and work toward building something meaningful,” he said. “The satisfaction of accomplishing goals through hard work was completely new to me.”

Rawal added that he wasn’t set up for long-term success. “While being raised in an affluent family provided privileges, it didn’t set me up for long-term success,” he said. “The skills I lacked — like budgeting, financial discipline and finding purpose — were much harder to develop as an adult. But going through that process gave me a much healthier perspective on money and a deeper appreciation for what really matters.”

For Rawal and others in his situation, it’s key to gain perspective about what money can and can’t provide. “For those raised in wealth, the biggest lesson is often learning that money alone does not solve life’s challenges or buy happiness. True success comes from within,” he said.

Financial Literacy Based on Modeling

“I grew up in a fairly wealthy family. My father and mother own their own businesses, real estate and were heavily invested in the stock market,” said Jordan Grumet, hospice doctor and author of The Purpose Code.

“What I generally found is that my parents modeled great behavior. They acted like rich people and thus as I got older, I tried to do the same things,” he said. “They saved and invested, so I saved and invested. They owned real estate, so I purchased real estate. They ran their own businesses, so I ran my own business.”

Grumet did see how his parents successfully managed their money but often lacked an understanding of how they did it. “While I think my parents modeled great behavior, they often didn’t tell me the exact how. I knew that investing in the stock market was important, but had no idea what stocks to pick,” he said.

It wasn’t until later that Grumet realized the lessons he didn’t learn. “Once I started buying property and being a landlord, I realized my parents had never really taught me the details needed to be a property owner,” he said. “The same goes for owning a business. My parents provided me with the path but never really taught me how to traverse it.”

Now that Grumet is a parent, he’s trying to teach his children these essential money lessons.

“As a parent myself, I try to teach my kids about money in three important ways,” he said. “Modeling: They see me earning, investing and creating wealth.”

Grumet said teaching is equally important. “I use didactic methods to sit them down and explain exactly what I am doing and why.”

And finally, he noted that experiential learning is vital to teach kids.

“I give them opportunities to manage money, invest and handle debt but in a safe way in which the consequences are minimal,” he said. “A good example is that when they were young we used to give them a yearly allowance and then let them self-budget.”

GoBankingRates

The Nigerian National Petroleum Company Limited (NNPCL) has declared a state of emergency on oil production, aiming to boost the country's crude oil output and grow its reserves. This announcement was made by the Group Chief Executive Officer of NNPCL, Mele Kyari, during his keynote address at the 23rd Nigeria Oil and Gas Conference and Exhibition Week in Abuja on Tuesday.

"We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation," Kyari stated.

Kyari highlighted that a thorough analysis of Nigeria's oil assets indicates the country can produce two million barrels of crude oil per day without deploying new rigs. However, the main obstacle to achieving this target is the industry's slow response to necessary actions.

He emphasized that the "war" will enable NNPCL and its partners to quickly address and eliminate all identified barriers to efficient production. This includes overcoming delays in procurement processes, which have been a significant challenge within the industry.

Aliko Dangote, president of the Dangote Group, says the increase of interest rate to almost 30 percent by the Central Bank of Nigeria (CBN) will stifle growth. 

Speaking on Tuesday during a three-day summit organised by the Manufacturers Association of Nigeria (MAN) in Abuja, Dangote said the country is battling “a very high” interest rate. 

In May, the monetary policy committee (MPC) of CBN raised interest rates from 24.75 percent to 26.25 percent

The business tycoon said he understands that the CBN aims to tame inflation by increasing interest rate.

“Right now, at 30 percent, there is no way anybody can create jobs. If the interest rate is 30 percent, there would not be any job creation because we are actually stifling growth,” he said.

“So, interest rates can remain at 30 percent but then no growth will happen unless that interest rate goes down.” 

‘DANGOTE CEMEMT AND TAXES’

The billionaire said Dangote Cement alone paid “more taxes” into the coffers of the government “than the entire banking industry” in 2023. 

Dangote also said protecting industries would not lead to monopoly, adding that it is common knowledge that foreign investors only enter the market when they see that local investors are also doing well.

“I am convinced that when government policy becomes more supportive and protective, investors will be more willing to collaborate and partner with the government in resolving other challenges such as infrastructure deficits, market instabilities and macro-economic issues such as inflation and foreign exchange volatilities,” he said.

The businessman reiterated that Nigeria has all it takes to develop and sustain a globally competitive manufacturing sector.

Dangote called for re-thinking of the country’s industrialisation policy, through learning from leading western and eastern countries that are actively protecting their domestic industries.

The Cable

The recent news of a 210% increase in capital importation to Nigeria in the first quarter of 2024 might, at first glance, seem like a cause for celebration. President Bola Tinubu's administration has been banking on foreign currency inflows to revitalize the struggling Nigerian economy and bolster the beleaguered Naira. However, a closer examination of the data reveals a less optimistic picture that demands a more nuanced approach to economic development.

The National Bureau of Statistics reports that total capital importation reached $3.38 billion, up from $1.09 billion in the previous quarter. While this surge appears impressive, the composition of these inflows raises serious concerns about their long-term impact on Nigeria's economic health.

Foreign portfolio investments (FPI) dominated the influx, accounting for a staggering 61.48% of the total. These short-term investments, while providing a temporary boost to the stock market and financial derivatives, are inherently volatile. They can exit the country as quickly as they entered, potentially leaving economic instability in their wake. The substantial portion of "other investments" (34.99%) likely falls into a similar category of transient capital.

Most troubling is the meager 3.53% share attributed to foreign direct investment (FDI). This paltry figure—amounting to just $119.18 million—represents the only portion of capital importation with the potential for lasting positive impact on the Nigerian economy. FDI is crucial for job creation, technology transfer, and expanding the country's productive capacity. Its absence speaks volumes about the persistent challenges in Nigeria's business environment.

The concentration of inflows in the banking and trading sectors, while neglecting critical areas like manufacturing, further underscores the speculative nature of this capital surge. Moreover, the geographic disparity in investment destinations—with Lagos and Abuja absorbing nearly all inflows—highlights the ongoing struggle to achieve balanced economic development across the nation.

President Tinubu's administration must recognize that chasing high capital importation figures without regard for their composition is a dangerous game. The government needs to pivot its focus towards creating an environment conducive to sustainable, long-term investments. This means addressing fundamental issues such as infrastructure deficits, regulatory inconsistencies, and security challenges that have long deterred serious foreign investors.

Policymakers should prioritize incentives and reforms that specifically target FDI in key productive sectors. Streamlining business registration processes, improving transparency in governance, and investing in human capital development are crucial steps. Additionally, efforts to diversify the economy beyond its traditional reliance on oil exports must be redoubled to create a more attractive and stable investment landscape.

While the headline figures of capital importation may provide a temporary boost to economic indicators, they mask the underlying weaknesses in Nigeria's economic structure. True progress will only come when the nation can consistently attract and retain investments that contribute to real economic growth, job creation, and improved living standards for its citizens.

The government must resist the temptation to celebrate this surge in capital importation as a sign of economic recovery. Instead, it should view these figures as a wake-up call—a clear indication that much work remains to be done in building a robust, diversified, and sustainable Nigerian economy that can compete on the global stage.​​​​​​​​​​​​​​​​

Riot police fired tear gas grenades and charged at stone-throwing protesters in downtown Nairobi and across Kenya on Tuesday in the most widespread unrest since at least two dozen protesters died in clashes a week ago.

The nationwide demonstrations signalled that President William Ruto had failed to appease a spontaneous youth protest movement, despite having abandoned plans for tax rises that triggered the unrest last week.

Tuesday's demonstrations began in ebullient mood but turned violent as the day wore on. In Nairobi's downtown business district, police wearing helmets and carrying shields and wooden clubs charged at the protesters, and tear gas bombs exploded in the crowds.

A kiosk was set ablaze in the centre of a street. Medics tended to a youth who lay on the pavement with a bloody hand. Police bundled other youths into the bed of a pickup truck.

Outside the capital, hundreds of protesters marched through Mombasa, Kenya's second largest city, on the Indian Ocean coast. They carried palm fronds, blew on plastic horns and beat on drums, chanting "Ruto must go!"

Later, Kenya's NTV television reported two people shot in Mombasa, showing pictures of cars ablaze.

Ruto, facing the worst crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.

Members of the protest movement, which has no official leaders and largely organises via social media, have rejected Ruto's appeals for dialogue - even after he abandoned his proposed tax rises.

"People are dying in the streets and the only thing he can talk about is money. We are not money. We are people. We are human beings," protester Milan Waudo told Reuters in Mombasa. "He needs to care about his people, because if he can't care about his people then we don't need him in that chair."

Other protests took place in Kisumu, Nakuru, Kajiado, Migori, Mlolongo and Rongo, according to images broadcast on Kenyan television. In the southwestern town of Migori, protesters set tyres on fire.

Activists blamed Tuesday's violence on infiltrators they said had been unleashed by the government to discredit their movement, and said it was now time for protesters to disperse.

"Good people. Let’s go home. As usual the government has let goons take over, loot, and burn property again," one of the most prominent activists, Boniface Mwangi, wrote on X.

The Kenya National Commission on Human Rights (KNHCR) says 39 Kenyans have been killed in demonstrations and clashes with police since June 18. Most of the deaths took place on June 25 when officers opened fire near parliament where some protesters tried to storm the building to prevent lawmakers from voting on the tax hikes.

'BEAUTIFUL DAY'

"We are determined to push for the president's resignation," said Ojango Omondi, an activist in Nairobi. "We hope for a peaceful protest and minimal casualties, if any."

The authorities appealed for calm.

"It's a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood," State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: "Violence is not patriotism."

Opposition leader Raila Odinga, runner-up in the last four presidential elections, backed the protesters though they have called on politicians to keep out of it.

"The youth have given our country its last best chance," Odinga's ODM party said in a statement. "We either seize it and swim with it by implementing all their demands, or we ignore it and sink the country altogether."

The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax increases in a proposed finance bill, have grown into a nationwide movement against corruption and misgovernance.

Ruto has directed the treasury to come up with ways to cut spending to fill a budget gap left by the withdrawal of the tax plans, and also said more borrowing would be required.

Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, "there isn't an indication that he wants to take action" on protesters' demands, including firing corrupt officials.

"There hasn't been any indication by the government that they are going to take the calls to deal with corruption seriously," he said.

The protests had been mostly peaceful until June 25, when some demonstrators briefly stormed parliament and set part of it ablaze, prompting police to open fire.

Ruto has defended the actions of the police and blamed the violence on "criminals" who had hijacked the demonstrations.

Reuters

Senior Advocate of Nigeria, Olisa Agbakoba, has warned that a "hunger riot" may soon erupt in Nigeria if the Federal Government does not take swift action. Speaking to journalists on Tuesday at his office in Ikoyi, Lagos, Agbakoba highlighted the extreme poverty that has left many Nigerians unable to afford basic food.

Despite Nigeria's vast oil and gas resources, Agbakoba noted that these have been largely controlled by foreign interests, leaving the local population in dire straits. He cautioned that if the government fails to address this issue, widespread protests could ensue, with people potentially resorting to theft in broad daylight to feed themselves.

"Hunger riots can occur anytime in Nigeria," Agbakoba stated, urging President Tinubu to restructure his cabinet and reduce the cost of governance. He argued that the current size of the cabinet, with over 40 ministers, is excessive and should be trimmed to no more than 20 ministries.

Agbakoba also recommended scrapping some government agencies and expanding the tax net, particularly targeting multinational oil companies accused of tax evasion. "Don’t increase taxes, just expand the tax net and go after defaulting IOCs," he advised.

The legal practitioner's warning comes amid rising food inflation in Nigeria, which hit 40.66 percent in May 2024. This marks a significant increase from 25.25 percent in June 2023, according to the latest Consumer Price Index and Inflation report by the National Bureau of Statistics (NBS). The report also noted that headline inflation climbed to 33.95 percent in May, up from 33.69 percent in April, reaching a 28-year high since March 1996 due to soaring food and transport prices.

Agbakoba emphasized the urgency of taking decisive actions to prevent the looming hunger riot and alleviate the economic hardship faced by many Nigerians.

Thousands flee their homes as Israeli forces bomb southern Gaza

Israeli forces bombarded several areas of the southern Gaza Strip on Tuesday and thousands of Palestinians fled their homes in what could be part of a final push of Israel's intensive military operations in nine months of war.

Eight Palestinians were killed and dozens wounded, health officials said. Israel's military said that two soldiers had been killed in battle a day earlier.

Israel's leaders have said they were winding down the phase of intense fighting against Hamas, the Islamist group that has governed Gaza since 2007, and would soon shift to more targeted operations.

Later on Tuesday, 17 Palestinians were killed in Israeli tank shelling of a street in the densely populated Zeitoun neighbourhood in Gaza City in the north of the Strip, medics said. Footage on some Palestinian social media that Reuters was not immediately able to verify showed the scene at a local market, with bread scattered on a floor stained with blood.

The Israeli army ordered residents of several towns and villages in eastern Khan Younis to evacuate their homes on Monday, prior to tanks re-entering the area the military had left several weeks ago.

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Thousands who had not heeded the call were forced to flee their homes in the dark overnight, as Israeli tanks and planes bombed Karara, Abassan and other areas that had been named in the evacuation orders, residents and Hamas media said.

"Where will we go?" said Tamer, a 55-year-old businessman, who has been displaced six times since Oct. 7.

"Every time people go back to their homes and begin to rebuild some of their lives even on the rubble of their houses, the occupation sends the tanks back to destroy what is left," he told Reuters via a chat app.

The Israeli military said its forces had struck areas in Khan Younis from where around 20 rockets had been fired on Monday. Targets included weapon storage facilities and operational centres, it added.

It said measures were taken before the strikes to enable civilians to evacuate the area. The military has accused Hamas of using civilian infrastructure and the wider population as human shields. The Islamist group denies that.

Islamic Jihad, an allied group of Hamas, said it was responsible for firing the rockets.

ENDGAME IN RAFAH

Israel, which has been under growing international pressure to relieve the humanitarian crisis in Gaza, said on Tuesday it connected a power line to a desalination plant in the enclave to provide additional drinking water.

Production will jump fourfold to 20,000 cubic metres of drinking water per day from, the Israeli military said.

Though that is far from enough to supply the population of Gaza, Israeli officials said it was significant.

"It'll be quite a game changer in terms of addressing immediate sanitation issues and access to water resources," said an Israeli defence official, adding that it was part of a wider humanitarian effort pushed by Defence Minister Yoav Gallant.

The war in Gaza began when Hamas burst into southern Israel on Oct. 7, killed 1,200 people and took around 250 hostages, including civilians and soldiers, back into Gaza, according to Israeli tallies.

The offensive launched by Israel in retaliation has killed nearly 38,000 people, according to the Gaza health ministry, and has left the heavily built-up coastal enclave in ruins.

The Gaza health ministry does not distinguish between combatants and non-combatants, but officials say most of the dead are civilians. Israel says 320 of its soldiers have been killed in Gaza and that at least a third of the Palestinian dead are fighters.

Herzi Halevi, Israel's chief of general staff, said 900 Hamas militants, including commanders, have been killed by Israeli forces in the Rafah Brigade and the current effort is focused on destroying "terrorist" underground infrastructure, which takes time.

"This is a long campaign," he said. "With determination and perseverance we are accomplishing our missions and wearing down the other side."

Within the areas subject to evacuation orders was the European Gaza Hospital, which serves both Khan Younis and Rafah, and medical officials had to evacuate patients and familieswho had taken shelter in the facility, witnesses and medics said.

Some residents headed west towards the Mawasi area via the beach, which is designated as a humanitarian area but is overcrowded by displaced families. Some slept in the street as they could not find shelter.

Israel says that its operation in Rafah, in southern Gaza near the border with Egypt, that was meant to stamp out Hamas in its final redoubt will soon be concluded.

After the intense phase of the war is over, its forces will focus on smaller-scale operations meant to stop Hamas from regrouping, officials say.

Prime Minister Benjamin Netanyahu said Israel was nearing its goal of destroying the military capabilities of Hamas.

Hamas and Islamic Jihad continue to stage attacks against Israeli forces operating inside Gaza and fire rockets into Israel. Hamas says Israel has failed to achieve the goals of the war and the group is ready to fight for years.

Efforts to secure a ceasefire and the release of hostages in Gaza have stalled. Hamas says any deal must end the war and bring a full Israeli withdrawal from Gaza. Israel says it will accept only temporary pauses in the fighting until Hamas is eradicated.

Reuters

WESTERN PERSPECTIVE

Ukraine not ready to compromise with Russia, says Zelenskiy aide

Ukraine is not ready to compromise with Russia and give up any territory to end the war, a senior Ukrainian official said on Tuesday when asked about U.S. presidential candidate Donald Trump's declaration that he could quickly end the conflict.

Ukrainian President Volodymyr Zelenskiy's chief of staff, Andriy Yermak, told reporters during a visit to Washington that Kyiv would listen to any advice on how to achieve a "just peace" in the war. Russia invaded Ukrainein February 2022.

"But we (are) not ready to go to the compromise for the very important things and values ... independence, freedom, democracy, territorial integrity, sovereignty," he said.

Yermak's visit came ahead of next week's NATO summit in the U.S. capital, where Ukraine is expected to be the main topic of discussion.

Trump, the Republican nominee challenging President Joe Biden, said during a debate between the pair last week that if he is re-elected in November he would quickly solve the war in Ukraine before taking office in January.

He has not offered details of how he would do that, but Reuters reported last week that two key advisers to Trump had presented him with a plan that would involve threatening to cut U.S. assistance if Kyiv did not enter negotiations with Moscow.

Trump said during the debate, however, that he does not accept Russian President Vladimir Putin's terms. Putin has said Russia would end the war if Kyiv agreed to hand over the four regions in the east and south of the country claimed by Moscow.

Asked how Ukraine assesses that Trump would handle the war, Yermak said: "Honest answer: I don't know. Let's see."

Ukraine would lobby a new U.S. administration to continue providing it support, he said, adding that Ukraine had received bipartisan support in Washington and polling showed most Americans still support Ukraine after two years of war.

"It will be ... a decision of the American people. We will respect this choice," Yermak said of the Nov. 5 presidential election.

The United States has provided Ukraine with more than $50 billion worth of military aid since 2022. Defense Secretary Lloyd Austin said on Tuesday the U.S. will soon announce more than $2.3 billion in new security assistance for Ukraine.

RUSSIAN PERSPECTIVE

Ukrainian Su-27s get wiped out at airfield by Russian strike

A Russian missile strike has destroyed five Ukrainian military jets and damaged two more, the Defense Ministry in Moscow reported on Tuesday.

The military released a short video showing the attack and its aftermath filmed from the air. Iskander-M tactical missiles carrying cluster munitions appeared to be used in the strike, judging by multiple simultaneous explosions on the ground.

The target was an airfield southeast of the town of Mirgorod in Ukraine’s Poltava Region. The location in central Ukraine is relatively far from the front line, but is well within the estimated 400km range of Iskander ballistic missiles.

A different version of the same video was circulated on Russian social media on Monday evening, including more footage and markings highlighting the Ukrainian military hardware. Images of fighter jets painted on the ground presumably as decoys for spy satellites can be seen in the clip near actual Ukrainian military assets.

According to the Defense Ministry, the aircraft hit in the strike were Sukhoi Su-27s, which were either stationed at the Mirgorod airfield or were undergoing repairs there.

Reuters/RT

This is the way forward, a desideratum, in fact a prerequisite for the much-needed solution to the myriads of problems facing the country, if we must move forward.

A system that has plunged us into this mess cannot bring us back from the brink. It cannot be business as usual if we want to get out of the woods. So far, no political party has given a policy thrust that will bring us back from the precipice that is staring us in the face, and those who feel they are doing the right thing may in fact be offering derisory plans while thinking they are doing us favour. There must be a paradigm shift in the system which the politicians cannot provide on their own as their motives put their personal interests above those of the collective. There must be a system that is fair and equitable to all concerned and meets global standard of cost control in governance. Now a solution proffers itself:

The political elite are the bane of the worsening situation in the country. As good as they may be individually, it would seem that they always conspire against the rest of us when they come together to play politics and are put in charge of the affairs of the country. This is when they treat the rest of us as fools, they lose their sense of humanity whilethey engage in primitive acquisition of wealth, inanities, waste, profligacy,frivolous and ill-conceived projects, misapplication of resources, compromised institutions and appointments that are more or less sinecure and job for the boys etc. and pay total disregard to service to the nation, democratic governance and collective national interests. The reasons are not farfetched: the general feudalistic background of the political elite had been unduly buoyed by the autocratic and dictatorial tendencies of the erstwhile military whom they replace. So, at the point where proper resource management and sense of proportion should have come to play as in developed democracies, our politicians display total lack of integrity and sense of social justice, but instead display “what is in it for me” or such primordial and parochial tendencies. The political class and their pliant compatriots in the civil service conveniently omitted to restore the checks and balances in governance when the military left the stage. As a result, what we now have is a cosmetic change from military to civil rule- a mere change from khaki to agbada- with total lack of fiscal discipline that is expected in a working democracy.

It would appear that, rather than focus on service to the nation, the political class are focused on the treasury and power for their selfish ends. They venture into politics with the mindsets of men/women out to reaphighest possible dividends from their investments. Therefore, the bootiesafter winning elections, and not service to fatherland, in my opinion,remain the motivating factors in most cases. This is the genesis of our problems: how corruption is nurtured and gain muscle and strength to the point of fighting back; this is why cost of governance is going through the roof while quality of service is going downhill. It is evident that if moneyand power continue to be the motivating factor, things will continue to getworse. Something has to change as we cannot be doing things the same way and expect different results. The politicians, obviously, are at the end of their tethers: So instead of coming up with workable solutions, they engage in the blame game, passing the buck without taking the faintest glimpse at the mirror. But the truth is: the political elite, being bereft of integrity, brought about this mess through their acts of omission and or commission. There is no short-cut for the proverbial palm wine tapper- the means of ascent is the only means of descent. Only statesmen- politicians imbued with integrity and desire for social justice can devise and implement a system that will take us out of the present mess. But no one can give what he does not have, hence the need to help politicians to help themselves and follow the advice of William Shakespeare: “assume a virtue if you have it not” –the need to devise a cost of governance modelthat will serve as a thermostat to direct/regulate cost of governance in line with the available resources, and the level of development of the nation.

DERIVING A FORMULA

In deriving a formula in this regard, realistic view must be taken of the country’s resources and not based on the mistaken assumption that Nigeria is the giant of Africa. It must also be noted that governance is a common service which feature in every country, even if its cost is relative to its resources/size and level of development. The system whereby over 70% of our resources is beings squandered on cost of governance is unwieldy and that is why everything is going downhill. There must be a paradigm shift in the system that turns politics and governance into business ventures.

This paper proposes to give a government or political party an option out of three systems designed as a means of planning for development andachieving desired goal of cost effective/cost efficient governance:

1. By (my) hunch: Cost of governance should be equal to or less than 30% of the country’s resources for the period. This will leave 70% for other commitments - education, health, infrastructure, etc.

2. Learn from others: it will be a wise counsel for the giant to go to the ants, learn their ways and be wise. When Nigeria became independent, we were at par, or even better off economically, thansome countries then classified as third world/developing countries: examples are Singapore, Malaysia, and South Korea. These countries have left us behind and are now proudly referred to as Asian Tigers. Copy the consumption pattern that catapulted them out of the rung of the underdevelopment class.

3. Derive another (if different from 1 and 2 above) which must take cognizance of the fact that this country is the poverty capital of the world and all the indices of development put Nigeria at the last rung. Consider the paradox, the absurdity: the poverty capital of the world is paying the highest remuneration to her legislators or the office of the head of state or minister of the poorest nation being compared with that of the richest nation, one can go on and on, but the point being made here is that the consumption pattern must be based on objective realities.

Some tips on “working to the answer”

Having arrived at a cost of governance model, these are some useful tips in implementing the system: they are by no means exhaustive.

1. The Chief Executive Officer - President, Governor, L.G.A Chairman is the budget leader in his government with the legislative arm as part of the team.

2. The remuneration of the regular public servants is sacrosanct and must take the first allocation of the budget. Virile civil service and strong government institutions are the backbone of any government. However, an unwieldy public service structure, apart from being a cost burden, is lethargic, clumsy and inefficient. Therefore, the first thing to do is to trim the unwieldy civil service and para-statals with a view to achieving greater efficiency with a reduced workforce, and make the contractual part of the reduced workforce remuneration the first charge of each budget; while the surplus workforce are engaged in self-sustaining private/public projects established as part of necessary restructuring program. 

3. Loans should be tied to specific projects or investments which should be self-sustaining.

4. Pensions must be contributory and must be charged to the period of service. There must be no ex-gratia payment and no roll-over of liabilities.

5. Om-buds-man: There must be a strong public service consumer commission to be headed by an independent statesman.

CONCLUSION: The success of Nigeria is our collective desire, but we cannot achieve this if we continue to leave politics to the politicians. It ismy considered opinion that we can contribute our quota in tiny and mighty ways by considering and applying this thesis as a verifiable and veritable chink in the armour of the giant that Nigeria’s problems have become. In other words, when cost of governance is streamlined as suggested in this paper, everything will fall in place. Conversely, the longer the thesis is ignored the more of actions that are less than altruistic we should expect from our leaders.

** Olukoya, a Chartered Secretary and Corporate governance Consultant wrote via This email address is being protected from spambots. You need JavaScript enabled to view it.