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Analysis: Learning From Rwanda: Why Nigeria Needs Effective Governance Scorecard



Surely it is clear: holding leaders accountable is the only way Nigeria and other countries can make the progress in the human development so needed at this special moment in history.

…Surely it is clear: holding leaders accountable is the only way Nigeria and other countries can make the progress in the human development so needed at this special moment in history.

Could a governance scorecard reduce corruption and improve governance in Africa? In Nigeria?

Could it hold leaders accountable and improve government performance?

Could it reduce corruption and ensure that citizens participate in important decisions that affect their lives?

This is a lot to ask from a scorecard, but Rwanda, which has pioneered such a model, has seen stunning improvement in economic, political, and social development. This progress is due, in great part, to a number of “homegrown initiatives” that track government performance, involve ordinary citizens in that tracking, and hold leaders accountable for making measurable progress in their communities and country. Results from Rwanda indicate that holding leaders accountable with a measurable scorecard could do all of these things in Nigeria and in Africa.

Since the 1994 Genocide Against the Tutsi, Rwanda has delivered impressive development results, including rapid economic growth and poverty reduction. At 61.3 per cent, Rwanda has the highest proportion of women in parliament of any country in the world. The innovative use of technology, such as drones, is being used to deliver medicines to remote areas. With a very high rate of immunization, almost universal insurance coverage and a focus on gender equity and female education, Rwanda has seen rapid and significant declines in infant, child, and maternal mortality.

Life expectancy for women in Rwanda is 71; in Nigeria, it is 56. For men, it is 67 in Rwanda and 54 in Nigeria. In Nigeria, the infant mortality rate (deaths per 1,000 live births) is 74. In Rwanda, it is 26. In Nigeria 1,222 women per 100,000 die in pregnancy or childbirth. In Rwanda, this maternal mortality rate is 297. This is in spite of the fact that Nigeria is, by all measures, significantly richer than Rwanda.

How did this happen, as Rwanda was devasted in 1994; essentially, there was not a country, but only death and destruction everywhere.

To make a rapid and impressive change like this requires at least four things: a shared vision of a better future, a plan for implementing the vision, a way to monitor progress (or not) toward that vision, and accountability for those in charge of implementing the vision. All of these elements are in place in Rwanda.

After the 1994 genocide, Rwanda developed what they call homegrown solutions to address some of its enormous societal challenges. All of these homegrown solutions engage citizens in evaluating public services such as education, health, and leadership, and all are based on traditional practices. Simply put, they hold leaders accountable for providing for the common good. Few outside Rwanda understand or appreciate the importance of these citizen-based efforts and the level of citizen participation in governance.

Three of the most significant are called Ubudehe, Imihigo, and the Rwanda Governance Scorecard. Ubudehe is a participatory process developed from a traditional concept of working collectively in agriculture. Ubudehe took place when all social and ethnic groups prepared the fields together before the rains came and the planting season arrived. It now refers to a participatory process of budgeting and planning at the village level, whereby citizens themselves allocate decentralized funds according to village priorities. Imihigo is a traditional ritual that occurred when a group of people came together and engaged publicly in activities that tested their bravery. The community was being tested as well as the individual. Imihigo is now used in Rwanda at all levels to represent a performance management contract. It is used to set and evaluate progress in all areas – education, health, governance, food security, business, etc. It is a powerful tool used to keep leaders accountable and transparent.

The Rwanda Governance Scorecard, produced by the Rwandan Governance Board was launched ten years ago to assess the status of governance in Rwanda. The scorecard evaluates performance on eight essential “pillars”: including the Rule of Law, Political Rights and Civil Liberties, Participation and Inclusiveness, Safety and Security, Investing in Human and Social Development, Economic and Corporate Governance, Anti-Corruption. In each pillar, data are collected from the most reliable international and national data sources, including IMIHIGO as well as nationwide citizen satisfaction data emerging from the Citizen Report Card. The Citizen Report Card is a public audit tool where citizens provide feedback on service delivery in Agriculture, Livestock, Infrastructure, Land and Private sector, Education, Health, Hygiene and sanitation, Social Welfare and Family issues, Gender-Based Violence, Local Administration, Justice, Governance, and Human rights and Security.

The Governance Scorecard uses data from the Citizen Report Card as well as many other indicators and data sources. It is a complex and statistically sound undertaking. The data are compared to national and sector-based targets and commitments, to determine where progress is – or is not – being made on these commitments. The scorecard results are taken very seriously in Rwanda. Leaders are held accountable for reaching the agreed-upon targets. Numerous senior leaders have lost their positions for not making progress in their specific sector. This year, the safety and security pillar which focuses on personal security and property, national security, reconciliation, social cohesion, and unity, received the highest score of 95.5 per cent, certainly a very enviable score from a Nigerian point of view.

According to Emmanuel Nibishaka, the deputy chief executive officer of the Rwanda Governance Board (RGB) that coordinates all of these efforts, the scorecard “has helped us to monitor, assess and improve our social, economic and political development. It has consistently triggered key policy actions and strategies which have helped us improve low-performing sectors.”

These data-driven homegrown initiatives have helped foster a culture of accountability and transparency. Every community knows the common objectives, because they helped identify them and, because of the scorecard, every community can see whether their leaders are achieving measurable results.

There are performance scorecards in Nigeria and Africa but they are not institutionalized and leaders are not held accountable. They are mostly from civil society and non-governmental organizations. The most popular and most referenced is the Ibrahim Index of African Governance (by the Mo Ibrahim foundation). Nigeria has consistently scored less than 50% and ranks in the bottom 20%, despite it being Africa’s largest economy.

There have been four coups in West Africa in the last two years. A common thread is that governments are not performing for ordinary citizens. Corruption, poor performance, and citizen frustration are common denominators in all of these countries in which the military has seized power. Could a regular self-assessment and holding leaders accountable for why they were elected help prevent coups and lead to development improvements, as it has in Rwanda?

At AUN, I teach a course on development for all our entering students. Last week, I put a table up listing some basic development indicators for Nigeria, South Africa, Ethiopia, and Rwanda. I asked them which country they thought was doing the best in development performance. The data were clear. The student response was Rwanda. While income is not as high there, as the students pointed out, life expectancy was longer and maternal mortality, infant, and child mortality were lower. Their choice was a reasonable one.

Surely it is clear: holding leaders accountable is the only way Nigeria and other countries can make the progress in the human development so needed at this special moment in history. Scorecards, in addition to other fundamental reforms, would seem to be a very useful tool toward that end.

Source: Premium Times


Stanbic IBTC Bank Nigeria PMI: Recovery From Cash Crisis Continues In May



How Stanbic IBTC’s Activities Drive Job Creation

By Moninuola Sulaiman

Latest PMI data indicated that the Nigerian private sector continued to recover from the cash crisis in May as access to money improved and business conditions returned to normality. Output and new orders expanded for the second month running, with the latter increasing at the fastest pace in just over a year. Confidence remained historically subdued, however, meaning that firms continued to operate a cautious approach with regard to hiring. Input costs rose sharply again, with output prices up accordingly. That said, the rate of selling price inflation eased to the weakest since April 2020. The headline figure derived from the survey is the Stanbic IBTC Bank Purchasing Managers’ Index™ (PMI®).

Readings above 50.0 signal an improvement in business conditions in the previous month, while readings below 50.0 show a deterioration. The headline PMI posted above the 50.0 no-change mark for the second month running in May, following the two-month sequence of decline seen around the worst of the cash crisis in the first quarter of the year. At 54.0, up from 53.8 in April, the index signaled a solid improvement in business conditions that was the most marked in 2023 so far. With access to cash improving, customer numbers increased, enabling firms to secure greater volumes of new orders in May.

New business was up sharply, with the rate of expansion the fastest since April 2022. Similarly, business activity rose for the second month running, and at a marked pace. Here, the expansion was slightly softer than in April, however. The activity was up across each of the four broad sectors covered, with growth led by wholesale & retail. Although higher new orders encouraged firms to increase their staffing levels for the first time in four months during May, the rate of job creation was only marginal amid signs that spare capacity remained in the private sector. The weak pace of employment growth also partly reflected relatively softer sentiment regarding the year-ahead outlook for activity. Although business expansion plans and predictions of further improvements in new orders supported positive forecasts, confidence dipped and was the second lowest on record.


More positively, firms increased their purchasing activity at a rapid and accelerated pace, with higher input buying helping companies to expand their inventories. Purchase prices continued to rise sharply, albeit at a slightly softer pace than in the previous survey period. Higher costs for agricultural inputs such as animal feeds, and rising prices for industrial raw materials, were often mentioned. Staff costs were also up as companies offered higher pay to employees to reflect greater workloads. Although output prices rose markedly in response to higher costs, the pace of inflation eased to the softest in just over three years as some firms offered discounts to stimulate demand.

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IFC, Partners Support BUA With $500M Facility To Boost Industrialization, Create Jobs, In Northern Nigeria, Sahel



IFC, Partners Support BUA with $500 Million Facility to Boost Industrialization, Create Jobs, in Northern Nigeria and the Sahel

Rashidat Okunlade Writes

International Finance Corporation (IFC) on Monday made its largest-ever investment in northern Nigeria, providing a financing package alongside African and European partners to BUA Cement Plc to help the company part-finance and develop two new, energy-efficient cement production lines that will create up to 12,000 direct and indirect jobs.


IFC’s $500 million financing package includes a $160.5 million loan from IFC’s own account, a $94.5 million loan through the Managed Co-Lending Portfolio Program (MCPP), and $245 million in parallel loans from syndication partners; the African Development Bank (AfDB) – $100 million, the Africa Finance Corporation (AFC) – $100 million, and the German Investment Corporation, Deutsche Investitions- und Entwicklungsgesellschaft (DEG) – $45 million.


The financing, announced during the Africa CEO Forum in Abidjan, Cote d’Ivoire, will allow BUA, Nigeria’s second-largest cement producer, to develop new production lines in northern Nigeria’s Sokoto State. The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tons of cement annually when complete, serving markets in Nigeria, Niger, and Burkina Faso.


Investing in northern Nigeria is integral to IFC’s strategy to promote sustainable development in underserved regions. This includes areas with limited opportunities and a need for increased private-sector engagement. The new plants will provide local developers with a reliable and affordable source of cement, and bolster the construction of essential infrastructure, fostering economic growth and prosperity for the region.

 IFC, Partners Support BUA with $500 Million Facility to Boost Industrialization, Create Jobs, in Northern Nigeria and the Sahel

Left-Right: Samaila Zubairu, President & CEO, Africa Finance Corporation (AFC); Abdul Samad Rabiu, Founder and Chairman of BUA; Makhtar Diop, Managing Director of International Finance Corporation (IFC); Franziska Hollmann, Director Industries & Services, Africa & EMECA at DEG and Solomon Quaynor, AFDB Vice President Industry during the IFC/BUA Group $500 million facility official signing in Abidjan, Cote D’Ivoire.

The project is expected to create about 1,000 direct and 10,800 indirect jobs. Direct jobs include those in manufacturing, engineering, and advanced automation systems. Indirect jobs include those in the cleaning, maintenance, mining, and transportation sectors.


“BUA is delighted to partner with IFC and other esteemed institutions in securing this $500 million facility to develop energy-efficient cement production capacity and strengthen our equipment and logistics capabilities in northern Nigeria. In line with our commitment to sustainability and ESG principles, this investment will create jobs and contribute to economic and infrastructural development within Nigeria and the greater Sahel region. We are particularly pleased to have successfully gone through the rigorous process with IFC, AfDB, AFC, and DEG, which validates our responsible business practices. By focusing on greener fuels and enhancing our equipment and logistics platform, BUA Cement is building a foundation for sustainable infrastructure growth and a more inclusive society,” said Abdul Samad Rabiu, Chairman and Founder of BUA Group.


“We are pleased to join with our partners to support BUA with an investment that will boost industrialization, create jobs and deliver economic growth in northern Nigeria, a region with significant economic potential,” said Makhtar Diop, IFC’s Managing Director.


The financing package announced by IFC and its partners will also allow BUA to replace some of its diesel trucks with vehicles that are run partly on natural gas, over time producing fewer emissions. As part of the project, IFC will also advise BUA on developing a gender-inclusive workplace strategy that creates more opportunities for women across its operations.


“Following an initial $200 million investment in BUA Group in 2021, we are proud to play another key role in this landmark manufacturing project set to transform the construction sector in northern Nigeria and the entire country. Investing in this project will sustainably build Nigeria’s local manufacturing capacity, empowering local communities and creating employment opportunities. AFC is committed to working with our partners to accelerate development impact through infrastructure solutions that support value addition, industrialization, and job creation throughout Africa,” said Samaila Zubairu, CEO & President of Africa Finance Corporation (AFC).


“The African Development Bank is pleased to be partnering with IFC and BUA on this expansion project as it is aligned with our priority strategies of industrializing Africa and improving the quality of lives of Africans through the increase in cement production which will lead to the development of additional affordable housing and critical infrastructure in Nigeria and neighboring West African countries while supporting the use of cleaner energy at BUA’s Sokoto facility,” said Solomon Quaynor, Vice President – Private Sector, Infrastructure and Industrialization of African Development Bank (AfDB).


“DEG’s mission is to be a reliable partner to private sector enterprises as drivers of development and creators of qualified jobs. We are pleased to contribute to this transaction together with our development finance partner institutions. Together we support BUA in its transformation towards a more sustainable production by implementing innovative technology. The significant reduction of CO2 emissions and the creation of decent jobs in a region with many vulnerable households are key factors for DEG’s financing,” said Gunnar Stork, Senior Director at DEG.


The investment in BUA is part of IFC’s strategy to promote diversified, inclusive growth and job creation in Nigeria, where IFC supports the manufacturing agribusiness, healthcare, infrastructure, technology, and financial services sectors. IFC has an active investment portfolio of $2.3 billion in Nigeria.


Know More About IFC: a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in over 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit


Know More About BUA Group: BUA Group is one of Africa’s leading manufacturing, mining, foods, and infrastructure conglomerates with diversified interests in a wide range of sectors, including but not limited to Cement, Sugar, Flour Milling, Real Estate, logistics, and Infrastructure. Established in 1988 by Abdul Samad Rabiu, BUA Group has consistently grown over the years, establishing itself as a leading player in the Nigerian and African private sectors. As an organization, BUA Group places a strong emphasis on operational excellence, leveraging innovative technologies, and nurturing a high-performing workforce to stay competitive. Beyond its business operations, the group is dedicated to contributing positively to the socio-economic development of its host communities, signifying its commitment to sustainable and responsible business practices. For more information, visit








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FBN Holdings 2022 Earnings Rises To N805 Billion; Q1 2023 Profit Grows By 55% To N56 Billion



results for the nine months ended September 30, 2022

Rashidat Okunlade Writes

FBN Holdings Plc. (FBNH) announces its unaudited results for the first quarter ended March 31, 2023.


Selected Financial Summary 

Income Statement  
( billion) Q1




Key Ratios % Q1




Gross earnings 259.5 180.5 +43.8% Post-tax return on average equity5 20.1 14.5
Interest income 179.6 109.4 +64.1% Post-tax return on average assets6 1.9 1.4
Net-interest income 111.8 72.8 +53.6% Earnings yield7 10.1 7.6
Non-interest income[1] 72.3 64.7 +11.8% Net-interest margin8 6.3 5.1
Operating income[2] 184.2 137.5 +33.9% Cost of funds9 3.0 2.0
Impairment charges for losses 16.9 8.8 +93.1% Non-interest revenue/operating income 39.3 47.1
Operating expenses 111.2 92.2 +20.6% Cost to income10 60.4 67.0
Profit before tax 56.1 36.5 +53.6% Gross loans to deposits 54.1 51.9
Profit for the period [3] 50.1 32.4 +54.5% Capital adequacy (FirstBank (Nigeria) 15.6 16.0
Basic EPS (kobo)[4] 1.38 0.89 +54.0% Capital adequacy

(FBNQuest Merchant Bank)

17.4 19.7
Statement of Financial Position NPL/Gross Loans 4.0 6.0
( billion) Q1




NPL coverage11 96.7 68.9
Total assets 11,094 10,578 4.9% PPOP12/impairment charge (times) 4.3 5.2
Customer loans & advances (Net) 3,949 3,789 4.2% Cost of risk13 1.7 1.1
Customer deposits 7,591 7,124 6.6% Book value per share 27.9 25.3


Nnamdi Okonkwo, Group Managing Director commented: “FBNHoldings has sustained its positive performance momentum despite the clearly difficult operating environment. This is a testament to our ability to effectively navigate the challenging business terrain and optimise opportunities. It further demonstrates our disciplined risk management and strong execution capabilities resulting in enhanced revenue generation and improved bottom line.

“Notwithstanding the ongoing progress, we remain focused on innovating and deepening our value propositions and delivery model while optimising operational efficiencies, using technology, to drive sustainable earnings and returns for our shareholders. We are confident that the Q1 performance will be maintained for the rest of the year.”

 Commercial Banking

  • Gross earnings of ₦7 billion, up 44.2% y-o-y (Mar 2022: ₦170.4 billion)
  • Net interest income of ₦110.0 billion, up 50.9% y-o-y (Mar 2022: ₦72.9 billion)
  • Non-interest income of ₦67.8 billion, up 10.6% y-o-y (Mar 2022: ₦61.3 billion)
  • Operating expenses of ₦107.6 billion, up 21.0% y-o-y (Mar 2022: ₦88.9 billion)
  • Profit before tax of ₦55 billion, up 57.0% y-o-y (Mar 2022: ₦34.1 billion)
  • Profit after tax of ₦48.0 billion, up 54.8% y-o-y (Mar 2022: ₦0 billion)
  • Total assets of ₦6 trillion, up 5.1% y-t-d (Dec 2022: ₦10.1 trillion)
  • Customers’ loans and advances (net) of ₦3.9 trillion, up 4.5% y-t-d (Dec 2022: ₦3.7 trillion)
  • Customers’ deposits of ₦4 trillion, up 6.64% y-t-d (Dec 2022: ₦6.9 trillion)

Dr. Adesola Adeduntan, Chief Executive Officer of FirstBank (Commercial Banking Group) commented: “The FirstBank Group delivered an impressive performance in Q1 2023, with significant growth across key metrics. Gross earnings recorded a substantial increase of 44.2% year-on-year, demonstrating the Bank’s ability to generate substantial revenue from core operations. Net interest income saw a remarkable surge of 50.9% year-on-year on the back of optimal asset pricing and effective management of interest-earning assets. Increasing penetration of digital and transaction banking offerings supported our Q1 performance in non-interest income by 15.3% growth. The increase of 21.0% year-on-year in operating expense reflects the high inflationary environment but within revenue growth. Overall, the Commercial Banking Group delivered substantial growth of 57.0% and 54.8% in profit before tax and profit after tax, respectively, for the quarter.

The growth in our performance metrics underlies the strength in the core fundamentals underpinning our business strategy and the sustainability of our business model. This year marks our 129th anniversary and these results clearly demonstrate the resilience of our business model and proven ability to transform ourselves to meet the demands of changing times and seasons. Our transformative and purpose-driven strategy, alongside our strong value propositions, enables us to continue supporting our customers across our chosen markets. We are optimistic about the rest of FY 2023 and these results are a sign of better things to come.”


 Merchant Banking & Asset Management (MBAM) / FBNQuest

  • Gross earnings of ₦85 billion, down 16.4% y-o-y (Mar 2022: ₦10.5 billion)
  • Profit before tax of ₦2.2 billion, down 34.4% y-o-y (Mar 2022: ₦3.4 billion)
  • Total assets of ₦7 billion, up 0.1% y-t-d (Dec 2022: ₦495.4 billion)



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