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.

‘By reviewing with an open mind, we can reaffirm what we have already concluded while simultaneously tweaking, improving, revising, and occasionally rejecting old views. It’s not hard if we’re willing to ask questions like these.’

In the movie Paycheck, Ben Affleck finds himself under attack from Uma Thurman’s futuristic weather machine. Buffeted by gale-force winds, Affleck raises his hands and calls out, “Alright, I give up! I give up!”

Thurman turns off the weather, smiles mischievously, and coos, “Don’t give up.”

There is more than one way to give up. In the sense of surrender, it means to admit defeat, as in battle or debate. In the sense of relinquish, it means to hand over, as in payment, property, or power.

Yet another synonym for give up is to capitulate, often used to mean conditional surrender. It’s that implied sense of conditionality that makes the word worthy of contemplation, particularly about one common variant . . . which happens to be this week’s entry into the Ethical Lexicon:

Recapitulate (re·ca·pit·u·late/ ree-kuh-pich-uh-leyt) verb

To review, repeat, or summarize; to give a new form or expression to

To repeat the principal stages or phases of a process

The root word capitulate derives from the Latin capitulum, meaning head of a discourse or chapter. In the same way that a capital letter indicates the beginning of a new sentence, a new chapter marks a new phase in the story. And before closing out one chapter, it’s prudent to revisit and consolidate the central idea or point of the previous chapter.

But how does that explain the connection to giving up? With a small shift of focus, we can discover a compelling new insight.

I frequently cite my college English professor Max Byrd, who remarked: “I’ve never understood why people complain about being disillusioned. I would be grateful for the opportunity to be relieved of my illusions.” And the most effective way to dispel illusion is with a healthy dose of reality.

We typically understand the purpose of summarization as providing a better grasp of the material previously learned and currently being reviewed. That’s true. But it’s not the only benefit.

Review is a close cousin of reconsider. If our ideas are sound, a review allows us to understand them more thoroughly and internalize them more deeply. But if our notions are still half-baked or otherwise flawed, recapitulation can help us recognize their imperfections, ideally to correct them or, if necessary, to abandon them.

Herein we find the connection to giving up. We don’t want to remain invested in flawed ideas any more than we want to throw good money after bad in ill-advised business ventures. The willingness to revisit ideas, search for inconsistencies, and make the necessary adjustments is critical to sound judgment, wise policy, and ethical decision-making.

Most of us can still remember the early days of GPS when, upon deviating from the directions dictated by our devices, we would hear the word, “recalculating.” It wasn’t a rejection of the process that had brought us to our current location. It was a reconsideration of the way forward based on new information, the capitulation of slavish loyalty to the past to find a surer path into the future.

Business folklore is filled with examples of giants who vanished from the Earth because they were unwilling to capitulate. Eastman Kodak pioneered digital photography but couldn’t relinquish its devotion to celluloid film. Blockbuster contemplated the shift to streaming but decided it couldn’t give up late fees on tardy DVDs and videocassettes. And maybe there’s still someone out there who favors a PalmPilot over a smartphone touchscreen . . . but extinction is as inevitable as nightfall.

Recapitulation provides the process for decision-makers to better understand their own ideas, strategies, and policies. By reviewing with an open mind, we can reaffirm what we have already concluded while simultaneously tweaking, improving, revising, and occasionally rejecting old views. It’s not hard if we’re willing to ask questions like these:

Are the strategies, processes, and tools that got us here going to move us forward?

Has the playing field changed so that we need to change our game plan?

How can we build upon past success so that we don’t become victims of complacency?

What lessons can we take from taking a wrong turn that will steer us back on course?

Are we more invested in one specific course of action than we are in our long-term prosperity?

After all, we learn as much from failure as we do from success. Often more. As Uma Thurman says to Ben Affleck: “It’s all we are: the sum of our experiences. Besides, some of the best things in life are total mistakes.”

 

Fast Company

Tantita Security Services Nigeria Limited has alleged that oil companies purchase refined Automotive Gas Oil, commonly known as diesel, from illegal refineries in various host communities in the Niger Delta region. This claim was made on Monday during the Nigeria Oil and Gas Energy Week Conference in Abuja.

Tantita Security Services, headquartered in Warri, Delta State, specializes in providing security solutions for the oil and gas sector, including services for the Nigerian National Petroleum Company Limited.

Speaking at a session titled “Exploring Nigerian Content Solutions to Meet Energy Demand,” Warredi Enisuoh, the Executive Director of Operations and Technical at Tantita Security Services, stated that illegal refineries produce large volumes of diesel, which are bought by many downstream operators, including oil companies. He emphasized that the crackdown on these refineries by Tantita and other security agencies has led to an increase in diesel prices.

“Why is there no scarcity of diesel while there is scarcity of PMS (Premium Motor Spirit, commonly known as petrol)? The story is simple: most of the diesel you buy is produced by the communities. About 90 percent of the diesel in the fuel stations is produced by the communities. It will also interest you to know that even the oil companies patronize the local communities. Don’t let anybody deceive you; they (oil companies) also patronize the local communities,” Enisuoh declared.

Enisuoh explained that addressing energy demand with Nigerian content solutions requires focusing on local communities. He insisted that without the intervention of security agencies like Tantita, the production of illegal diesel would continue to rise.

“The reason why the price of diesel is high today is because of the work of private security companies like my company, Tantita Security Services. This is because we have been able to cut down on a lot of the businesses of the illegal refineries. This is why you see the cost of diesel going up,” he stated.