Nigeria’s economic tightrope: From tourism boom to asset auctions

Welcome to this week’s edition of 234Digest. As we navigate through Nigeria’s complex economic landscape, we’re witnessing a nation striving for progress amidst significant challenges and opportunities.

This edition explores Nigeria’s multifaceted economic reality: from the tourism boom of ‘Detty December’ in Lagos to the EFCC’s upcoming auction of forfeited vehicles. We delve into the persistent inflationary pressures, rising telecom tariffs, and upcoming GDP rebasing exercise, all of which paint an economy in flux.

Amidst these economic developments, we also celebrate our cultural heritage. Our feature on a broadcasting pioneer reminds us of the enduring power of media in shaping our national narrative, while our “Photo of the Day” captures a poignant moment that embodies the blend of tradition and modernity in Nigeria’s evolving media landscape.

As your curator, I aim to provide you with a comprehensive yet concise overview of these intertwined issues shaping our nation’s future. Let’s dive in.

— Samuel Okocha | Curator and Editor, 234Digest

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Today’s briefs

Detty December boosts Lagos tourism

Lagos, Nigeria's commercial capital, generated $71.6m in revenue from its "Detty December" festivities, a month-long extravaganza of concerts, beach activities, and nightlife. The event attracted over 1.2m visitors, with 90% of the 550,000 inbound air passengers coming from the Nigerian diaspora. The surge in tourism was partly fueled by the naira's 41% depreciation against the dollar in 2024, making Nigeria an attractive destination for foreign currency holders. The government now aims to expand this success nationwide, with similar events emerging in Abuja and Edo state.

EFCC to auction 891 forfeited vehicles

Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), will conduct an e-auction of 891 vehicles seized from suspects. The online sale, running from January 20th to 27th, includes luxury models and mid-range cars like Toyota Camrys. Vehicles are located across Nigeria, including Abuja, Lagos, and Port Harcourt. The EFCC says the auction complies with relevant laws and will be transparent. Successful bidders must pay within 72 hours via the Remita system. Critics, however, point to alleged irregularities in past auctions. The sale highlights Nigeria’s ongoing struggle with corruption, while potentially boosting government coffers.

Telecom tariffs set to rise

As tourism flourishes, Nigeria's telecommunications sector is set for a significant change. The Nigerian Communications Commission (NCC) has approved a 50% increase in telecommunications tariffs, the first hike in 12 years. This adjustment, while significant, is half of what operators like MTN Nigeria had requested to offset economic pressures. The NCC stated that the decision aims to support continued investment in infrastructure and innovation, ultimately benefiting consumers through improved services. The move comes as the industry grapples with high inflation and currency depreciation.

Inflation continues to climb

In line with economic challenges, Nigeria's inflation rate rose for the fourth straight month in December, reaching 34.80% in annual terms. The uptick was attributed to increased demand during the festive period, with food and non-alcoholic beverages contributing the most to price pressures. Food inflation stood at 39.84% year-on-year in December. The government expects inflation to fall to 15% this year, aided by lower imports of petroleum products.

GDP rebasing on the horizon

Amid inflationary pressures, Nigeria plans to rebase its gross domestic product (GDP) and inflation data by the end of January 2025, according to the National Bureau of Statistics. This exercise, last conducted in 2014, aims to capture changes in the economy's structure and provide a more accurate picture of economic activity. The rebasing could potentially reveal a larger economy and affect key economic indicators, with implications for policy-making and international perceptions of Nigeria's economic standing.

Catch Up: Footprints in the Airwaves: How Voice of Nigeria Shaped a Generation of Broadcasters

In the wee hours of a Lagos night in 2008, I marveled at the speed of an internet connection. Fresh from national service in Kaduna, it was a revelation. This digital epiphany, experienced in the newsroom of Voice of Nigeria (VON), the country's external broadcasting service, was more than mere technological wonder. It was the legacy of a man who had left his post four years earlier.

Aremo Taiwo Alimi, director-general of VON from 1999 to 2004, is the subject of "Footprints in Broadcasting," a new book by Qasim Akinreti, a deputy director at the broadcaster. Mr. Alimi's tenure, though brief, was transformative. "He turned Voice of Nigeria around," says Dr. Akinreti. The mantra was simple: "We must be heard louder and clearer."

Mr. Alimi's influence extended beyond the confines of VON. He introduced election debates to Nigerian media, an idea gleaned from his time in America. At Lagos Television, he assembled a crack team of young professionals, giving the state broadcaster, the Nigeria Television Authority, a run for its money.

Under his stewardship, VON launched its website in 2003, a pioneering move in Nigeria's media landscape. He signed partnerships with international media platforms, prioritizing African international radio stations such as Channel Africa of SABC, Radio Sudan, and Egypt Radio. Collaborations with global heavyweights like the BBC, RFI, Deutsche Welle, and VOA followed. These partnerships included programme and personnel exchanges lasting three months. "Voice of Nigeria became the first media organization in Nigeria to have a website and an online platform department," Dr. Akinreti notes with pride.

This global outlook proved invaluable for VON's staff, even years after Mr. Alimi's departure. Personally, it enabled me to think beyond local constraints. My 15-year career at VON, which began with that late-night encounter with high-speed internet, saw me rise from a news desk editor to a reporter drafted as a correspondent in the state house in Abuja. Along the way, I honed my skills in multimedia journalism, leveraging VON's international focus to contribute to various global media outlets. This exposure solidified my position as an international multimedia journalist, a trajectory set in motion by the forward-thinking policies of Mr. Alimi's tenure.

Mr. Alimi's legacy, however, is not merely technological. "He was incorruptible," Dr. Akinreti emphasizes, a rare quality in a country where public office often leads to private gain. Despite overseeing large projects, Mr. Alimi reportedly never profited personally.

Yet recognition has been scant. No broadcasting facility bears his name, no national honour has been bestowed. Dr. Akinreti's book seeks to rectify this oversight.

As Nigerian media grapples with technological upheaval and shifting audience tastes, the lessons of pioneers like Mr. Alimi remain pertinent. "Broadcasting is not about personal aggrandizement," Dr. Akinreti insists. "It is about contributing to society."

For a generation of Nigerian journalists, myself included, that contribution began with a high-speed internet connection and a vision of global standards—a legacy that continues to reverberate through the country's airwaves.

Quote of the day: "The only limit to our realization of tomorrow is our doubts of today." — Franklin D. Roosevelt

Photo of the day

And that’s a wrap. Thank you for joining us on this journey through Nigeria’s economic and cultural landscape. Until next time, stay informed, stay engaged, and keep believing in Nigeria’s potential.

Your faithful curator,

P.S. 234Digest drops thrice a week, including a Sunday Special edition. We missed last Sunday’s, but made up for it with today’s Catch Up segment.

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