The Long Road Ahead for State Police in Nigeria
Welcome back to the Vault.
This week, Nigeria takes the centerstage. We bring you excerpts from our policy brief on the proposal for establishment of state police in Nigeria (which has been a contentious issue in the country for decades), as well as the imposition of a levy on Nigerian companies that employ expatriate workers. Thereafter, we examine data on food inflation in the continent, and highlight key developments that we have been tracking across the continent.
Feel free to share your thoughts with us, check out our website for the latest policies, and let us know if you need any insight on public policies, regulations, and guidelines in Africa.
The long road ahead for State Police in Nigeria
Despite billions of Naira spent on security operations and enhancements over the past decade, cases of killings, kidnapping for ransom, suspected rituals / organ harvesting, gang clashes, herdsmen attacks, ethnic and religious clashes, etc. continue to rise across the country. The escalating insecurity, seeming failure of the Nigeria Police Force (“NPF”) to proactively prevent crime, together with inability of Governors to direct the affairs of state commands of the NPF – being a federal agency – has set the tone for repeated calls over the years for establishment of a police force by each of the states of the federation (in line with true federalism).
Spurred, therefore, by seeming helplessness in taking real charge of the security situation in their respective States, the Governors recently proposed the creation of a police force for each of the states in Nigeria. As reported, the presidency and governors have agreed to explore the establishment of State Police.
This is the first time in close to 25 years that the Federal Government has entertained the idea and indicated a willingness to continue the conversation. Interestingly, a new bill for creation of state police was presented before the House of Representatives (Nigeria’s junior legislative house at the federal level) for second reading a week ago. In our Policy Brief, we shared thoughts, made recommendations and described the process that could lead to a major policy shift in Nigeria.
Read the policy brief here.
Nigeria imposes additional levy on employers of expatriate workers
On 27th February 2024, the President of Nigeria, Bola Ahmed Tinubu, approved the implementation of an annual Expatriate Employment Levy Scheme (the “EEL Scheme”). The principal effect of the EEL Scheme is that a private company or other private sector organisation in Nigeria that engages expatriate workers for a period equal to 183 days or more within a fiscal year, is required to pay an annual expatriate employment levy (the “levy”) to the Nigerian government in the sum of USD15,000 (for directors) and USD10,000 (for other expatriates i.e. non-directors).
In our policy brief, we highlight the impact / things to note and assess the purported objectives of the EEL Scheme vis-s-vis the details set out in the EEL operational guidelines published by the Ministry of Interior. We also share our insight on recent foreign-investment related actions by the Ministry.
Read the policy brief here.
Data Vault: Food inflation is soaring across the continent
Globally, food prices have surged since 2019, primarily due to disruptions in supply lines caused by pandemic restrictions and the impact of climate change on weather conditions. More recently, the Russian-Ukraine war has played a significant role in driving up food prices.
African countries appear to be experiencing a more pronounced impact than the rest of the world. As illustrated in the chart below, the 10 countries on the continent with the highest food inflation rates are well above the global average of 6.5%.
These elevated prices highlight the urgent need for increased policy attention to address food insecurity among impoverished households in the continent. onditions. More recently, the Russian-Ukraine war has played a significant role in driving up food prices.
African countries appear to be experiencing a more pronounced impact than the rest of the world. As illustrated in the chart below, the 10 countries on the continent with the highest food inflation rates are well above the global average of 6.5%.
These elevated prices highlight the urgent need for increased policy attention to address food insecurity among impoverished households in the continent.
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Get in touch with us here: <mailto:team@policyvault.africa>.
What we are tracking
We’re also tracking the latest current events in the news, and how they may affect the decisions of policymakers. Below are some of the latest developments.
Kenya | Kenya has waived entry fees for South Africans and six other foreign nationals
Kenya has scrapped entry fees for passport holders from South Africa and six other countries, including Ethiopia, Eritrea, Congo-Brazzaville, Comoros, Mozambique, and members of the East African Community (EAC) regional bloc. This decision comes in response to criticism of the recently introduced $30 fee and aims to boost tourism and attract business travelers. Previously, all foreign passport holders had to pay visa fees, but the move was met with backlash due to concerns about increased travel costs and bureaucracy. The new policy grants exemptions to passport holders from the mentioned countries and members of the East African Community regional bloc.
Nigeria | Central Bank of Nigeria raises interest rate to 22.75%
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has raised the benchmark interest rate, known as the Monetary Policy Rate (MPR), by 400 basis points from 18.75% to 22.75%. This increase is aimed at curbing inflation which rose to 29.9% in January 2024. The MPC also raised the Cash Reserve Ratio (CRR) to 45% and maintained the Liquidity Ratio at 30%. In addition to these measures, the committee announced the adoption of an inflation-targeting framework to effectively manage and control inflation.
Chad | Chad set to hold Presidential Election in May-June
Chad’s election agency has set the dates for the upcoming presidential election, marking a commitment to move the country away from junta rule and back towards democracy. The election will comprise two rounds, with provisional results expected by July 7. The first round of the presidential poll will take place on May 6, followed by the second round on June 22. The agency also announced that the selected candidates’ lists, determined by the Constitutional Council, will be published on March 24.
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