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FG Laments Poor R&D Expenditure, Floats $50m Research Fund
The federal government through the Nigerian Content Development Monitoring Board (NCDMB), floated a $50 million Nigerian Content Research and Development Fund (NCRDF) to boost innovation in the country.
The government noted that the 0.2 per cent currently devoted to Research and Development (R&D) in the was very negligible, noting that developed nations such as the United States, China, Japan, Germany, and South Korea spend between 2.5 to 4 per cent of their annual Gross Domestic Production (GDP) on research.
It also noted that even developing nations such as India, Malaysia and Brazil spend between 0.7 per cent and 1.2 per cent, whereas Nigeria continues to lag well behind by deploying only about 0.2 per cent of its GDP.
Speaking at the second NCDMB Research and Development Fair and Conference in Yenagoa, Bayelsa state, the Minister of State, Petroleum Resources, Chief Timipre Sylva, explained that underfunding of R&D was reflecting on Nigeria’s overdependence on foreign goods and services.
The event also witnessed the formal launch of the NCDMB 10-year R&D roadmap, anchored on eight success pillars, namely: funding, infrastructure, capability, commercial framework, co-llaboration, governance, legal framework and enforcement.
Represented by the Permanent Secretary at the ministry, Dr. Nasir Gwarzo, Sylva argued that the situation remained unsustainable if the country was serious about building a national technological capability that will drive economic growth.
“To put certain realities into context, there is a need to do a comparative analysis. Currently, developed nations such as the USA, China, Japan, Germany, and South Korea spend between 2.5 to 4 per cent of their annual Gross Domestic Production (GDP) on R&D, while developing nations like India, Malaysia, Brazil spend between 0.7 per cent to 1.2 per cent. Nigeria lags well behind by spending only about 0.2 per cent of its GDP on Research & Development,” he stated.
Sylva added that it was important to clear the misconception that funding of research was the sole responsibility of national governments, arguing that rather, big spenders on research and development globally come from the private sector.
“In 2019, private sector practitioners in the ICT hardware and electronic equipment sector, pharmaceutical & biotechnology sector, automobiles and components sector cumulatively spent $528bn on R&D, representing 22 per cent of the $2.3 trillion global R&D spend. In India, the private sector contributed 38.1 per cent of the country’s R&D spend.
“Still on funding and in line with our commitment to provide leadership, I am pleased to officially announce the creation of the Nigerian Content Research and Development Fund with an initial seed capital of $50 million,” he announced.
He explained that the fund was designed for application in the establishment of research centres of excellence, funding support for research commercialisation, funding support for basic and applied research as well as the endowment of professorial chair.
The minister noted that though clearly insufficient, it signified the premium the present administration places on growing the nation’s research and development capabilities. He encouraged the private sector to replicate the global practice by complementing the NCRDF and actively support the government’s drive in upscaling its national research architecture
According to him, with the Petroleum Industry Act (PIA), a governance framework for the industry with clear delineation of roles between regulation and profit-centric business units has now been established.
Members of the newly-constituted NCRDC included Dr. John Erinne, Mr. Ijuwe Albert ,Mr. Rosario Osobase , Dr. Noel Biodun Saliu, Alhaji Aliyu Adamu and Dr. Tandama Abu and will be headed by the Executive Secretary, NCDMB, Mr Simbi Wabote.
Sylva also commissioned the NCDMB Technology Incubation and Innovation Centre, which will provide the platform for idea generation, incubation and acceleration of innovative ideas to the marketplace.
Wabote in his comments, stressed that an analysis of global practices of R&D revealed that the combined spend of just five countries makes up 63.5 or cent of the entire global spend and also account for over 50 per cent of the global GDP.
“Africa, on the other hand, accounted for less than one per cent of the global R&D spend while its GDP is only 3 per cent of the global GDP. You will agree with me that there is a nexus between the spend on research and development and economic prosperity,” he argued.
He stressed that the authors of the Nigerian Oil and Gas Industry Content Development Act (NOGICD) of 2010 recognised the importance of research and development and included key provisions in the Act.
He stated that the board commenced the implementation of the 10-year strategic roadmap in 2018, which seeks to increase the level of Nigerian content in the oil and gas industry to 70 per cent by the year 2027.
The ES described R&D as the core of the industrial revolutions the world has witnessed over the ages, saying that it was important that countries deploy means of nurturing home-grown solutions as a means of wealth creation and growth.
In his contribution, Mallam Mele Kyari, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), disclosed that the corporation was happy to incorporate R&D into its processes, adding that as a technology-based industry, the NNPC had revved up research efforts to make it suitable for the future.
The Director, Department of Petroleum Resources (DPR), Mr. Sarki Auwalu, in his comments, noted that the oil and gas industry must begin to see the world with new eyes which also presents an array of opportunities for learning and knowledge sharing.
He added that it was critical for the global oil and gas industry to remain efficient and innovative in responding to the emergence of cheaper renewables to sustain the relevance of hydrocarbon resources to the global energy mix.
“Therefore, research and collaboration from all stakeholders is crucial to remain competitive and to meet safe, clean and sustainable energy demands of the future,” he said.
Questions have been mounting over the House of Representatives threat to order the arrest of the Director-General of the National Identity Management Commission (NIMC), Mrs. Bisoye Coker-Odusote for failure to appear before it to answer charges on refusal to pay for a state-of-the-art software development project executed by a private company, Truid Limited, for NIMC.
The House of Representatives Committee on Public Petitions had invited the NIMC DG, Mrs. Coker-Odusote, to appear before it to explain the commission’s failure to pay for the state-of-the art software development project executed by the private company, Truid Limited for NIMC. However, the NIMC DG has repeatedly failed to honour the committee’s invitation in person.
The Committee’s Chairman, Honourable Mike Etaba, who was angered by the NIMC DG, Mrs. Coker-Odusote’s failure to appear before the committee to personally answer charges on the matter after repeated invitations, last month, issued a stern warning to order the Inspector-General of Police, to arrest the NIMC DG, Mrs. Coker-Odusote if she refused to appear before the committee at its next hearing, which was fixed for March 13, 2025.
However, it has been over two weeks after the Committee’s sitting of March 13, 2025; yet, there are no indications that the NIMC DG, Mrs. Coker-Odusote, honoured the committee’s invitation by personally appearing before it. The committee also appears to have failed to order the IGP to arrest her, leading to many raising questions over the seriousness of the committee to execute its threats. Others wonder why the chief executive of a government agency would refuse to personally appear before the House of Representatives to answer charges on a petition regarding the agency’s activities.
During its sitting of February 11, 2025 the House of Representatives Committee on Public Petitions threatened to order the arrest of the Director-General and Chief Executive Officer of Nigerian Identity Management Commission (NIMC), Bisoye Coker-Odusote.
The committee said it would actualise the threat if Mrs. Coker-Odusote failed to come in person to answer charges on her refusal to pay for the state-of-the-art software development project.
Chairman of the committee, Mike Etaba, frowned at the continuous absence of the NIMC director-general despite several invitations.
In a statement by the Media Head, Public Petitions Committee of the House of Representatives, Chooks Oko, the Chairman of the Committee stated: “If she fails to show up at the next hearing of this case, we’ll have no option than to ask the Inspector-General of Police to bring her.
“How can an official of government treat constituted authority with such levity? We can no longer condone such attitude,” he said.
The News Agency of Nigeria (NAN) reports that the project was installed and deployed to the commission by a private firm, Truid Limited, which was alleging a breach of licence agreement by NIMC.
The statement added that the private company, Truid Limited, which executed the state-of-the-art software development project, is alleging a breach of licence agreement by NIMC, noting that E. R. Opara, counsel to Truid Limited, stated that the contract is premised on an arrangement whereby the Truid Limited funded, developed and deployed the “tokenization system project” without any financial obligation from NIMC.
According to E. R. Opara, counsel to Truid Limited, the agreement is premised on an arrangement that the project would be funded by the firm.
“Truid Ltd was to get returns on her investment through patronage of service providers and the proceeds shared on an agreed ratio. This was to run for an initial period of 10 years, from 2021 when the software was deployed,” Opara said.
According to the petition, things were going smoothly until the appointment of the new DG of NIMC, Mrs. Coker-Odusote, who has been trying to truncate the agreement.
When contacted to comment on whether or not the DG NIMC has personally appeared before the committee, Chairman of the House of Representatives Committee on Public Petitions, Honourable Mike Etaba said: “For now, that matter has been stepped down!”
Honourable Etaba explained further why the matter was stepped down: “We are now taking that case on an Alternative Dispute Resolution (ADR) route. That’s where the matter is now,” he said, adding, “the Committee is silent on it (the matter) until they give us the report of the ADR. That is when we will know what next to do.”
Asked when the ADR resolution he mentioned is meant to be concluded, Honourable Etaba stated: “I can’t say for now how and when the ADR will come up. That’s the situation of the case for now.”
The Lagos State Governor, His Excellency Babajide Sanwo-Olu has commended Africa’s leading e-commerce platform, Jumia Nigeria, for its giant strides and in the growth of the country’s e-commerce sector, as well as its unique contributions to its economic development.
He said that Jumia has earned its place as a major brand, with its growth and trajectory in the country’s e-commerce ecosystem over the years which, he said, has made it a household name. He urged the company to not only strive to maintain its excellent service standards, but to also work towards improving them.
The Governor who was speaking during a courtesy visit by the management of Jumia Nigeria to the State House in Marina on Thursday March 27, reaffirmed the strategic importance of the company in the economic development of Lagos State and Nigeria, especially in job creation.
He restated his administration’s commitment in ensuring that Lagos State remains environmentally friendly for businesses to grow.
“Our administration has always prioritized creating an enabling environment for businesses to thrive. Through various initiatives, we have strengthened the ease of doing business, and fostered innovation to drive economic growth, and we will continue to support businesses and create opportunities that will aid in their growth”, Sanwo-Olu said.
Governor Sanwo-Olu said that the Lagos State Government remains open to collaborations with the private sector to enhance service delivery, infrastructure development, and create opportunities for residents, with the aim of building a resilient and sustainable future.
He said the administration recognises the importance of working with the private sector to achieve its goals of improving the lives of its citizens.
Speaking also, the Chief Executive Officer of Jumia Nigeria, Sunil Natraj, thanked the governor for creating an enabling environment in the state for businesses like Jumia to grow. He stated Jumia’s commitment to contributing towards the growth and development of the state, and the country.
Natraj said the company has made tremendous strides from its early days as a tech start-up in Lagos and has grown to become the number one e-commerce platform in Nigeria, with a presence in nine African countries. He said the company presently employs hundreds of Nigerians directly, and thousands more indirectly as independent sales agents and partners.
He restated Jumia Nigeria’s commitment to providing excellent service, focusing on delivering exceptional value and fostering long-term relationships with its customers around the country.
Among other things, he said the company is actively working to enhance customer experience, aiming to simplify the e-commerce process, making it easier for customers to navigate and shop online.
According to him, Jumia aims to transform everyday life in Africa by making it easier for consumers to access goods and services conveniently and affordably, adding that the company is focused on expanding access to retail across the country.
Nigerian National Petroleum Company (NNPC) Limited has announced its readiness for the capital market with an Initial Public Offer (IPO) now in the final stage.
Mr. Olugbenga Oluwaniyi, chief finance and investor relations officer (CFIO), NNPC, stated this at a consultative meeting with partners at the NNPC Towers, Abuja, on Thursday.
He said the move aligned with the provisions of the Petroleum Industry Act, 2021.
He said NNPCL was currently engaging with prospective partners in an exercise tagged: “NNPC Ltd. IPO Beauty Parade” in line with capital market regulations before the commencement of the IPO.
According to the CFIO, the aim of the IPO Beauty Parade is to assess potential partners and determine in what ways they could be of support to the company.
He listed the areas of partnership required to include Investor Relations, IPO Readiness Advisors, and Investment Bank Partners.
He said the company with the best offer in terms of project partnership would be selected for each of the three categories.
The PIA provides for NNPCL to list its shares in the capital market in line with the provisions of the Company and Allied Matters Act (CAMA) 1990.
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