I think you will find this interesting. "Build Operate and Transfer Nigeria.

By Simon Kolawole

Dearly beloved Nigerians, I have a number of proposals today that may interest you. Or upset you. One, I respectfully propose that we concession the Niger Delta to the Netherlands for 17 years. Do not change the revenue allocation formula. Do not increase the derivation formula; retain it at 13%. In fact, scrap the Niger Delta Development Commission (NDDC) and the Ministry of Niger Delta. Just hand over the Niger Delta as it is now to the Dutch and ask them to “build, operate and transfer” the region by 2033. Just a change of leaders. The same followers, the same land, the same water, the same creeks, the same share of national resources and the same 1999 constitution.

Let me fantasise: in just 17 years, the Niger Delta would have a massive network of well-built roads, electricity would shine bright everywhere, schools would be brimming with brilliance, quality healthcare would be within the reach of the people — and the lives of the Niger Deltans would be reformed and transformed. Let me fantasise further: skyscrapers, refineries, power plants and holiday resorts would dot the landscape. In fact, the bridge from Port Harcourt to Bonny Island would finally be built. Just a change of leaders. The same followers, the same land, the same water, the same creeks, the same share of national resources and the same 1999 constitution.

My second proposal. The south-east, in my view, is one of Africa’s most blessed regions in terms of human resources. Hand it over to the Japanese to build, operate and transfer by 2033. Don’t abolish quota system. Retain federal character. Forget confederalism. Don’t stand on any Aburi Accord. Simply hand over the place to the Japanese on a 17-year concession agreement. Just a change of leaders. The same followers, the same land mass, the same palm wine, the same kola nut, the same share of national resources and the same 1999 constitution. By 2033, you would swear you have mistakenly strayed into another country.

Join me in my fantasy. The first thing the Japanese would do is to come up with a policy that would make all south-east councils buy their official cars from Innosons Ltd. All south-east government vehicles would be from Innosons. All lawmakers would use Innosons cars. All official cars would be from Innosons. All contractors would patronise Innosons. You know what would happen? Innosons would be so overwhelmed with orders they would explode! Positive vibration! They would start assembling vehicles for export to Africa and beyond. Innosons would become our own Honda. Soon, Simonsons would spring up to rival Innosons.

What we know as the south-east today would become the manufacturing hub of Africa. Whatever you want to buy would be produced from there: mobile phones, electric kettles, shoes, bags, shirts, TV sets, computers, wallets, fans, air conditioners and photocopiers — all thanks to the Japanese. No, not that the Japanese would set up these factories. It is the same south-easterners (and foreign investors) that would be energised to troop to the region as a result of the leadership the Japanese would offer — easily discernible in clear vision, cohesive and intelligent policies, creative incentives, tenacity of purpose and an unwavering, genuine focus on development.

My third proposal: let us sign a 17-year lease agreement with the Dubai rulers to help us run the north-central. As usual, I am proposing different leadership only. Other variables would remain. The same followers, the same land, the same water, the same yams, the same mangoes, the same share of national resources and the same 1999 constitution. I will not even suggest modernising “our agriculture”. I am talking about travel and tourism. Look at Lokoja, Kogi state, the confluence of River Niger and River Benue. Picture the billion-dollar travel and tourism industry that Sheikh Al Maktoum could engineer there within 17 years!

Imagine what Al Maktoum can do to Jos — that beautiful, temperate city that used to be the home of expatriates! In 17 years, we would be discussing Jos in the same category as Marrakech, Pattaya and Cape Town as preferred tourist destinations. Imagine what Dubai rulers would turn Zuma Rock to in 17 years! This mighty mountain would play host to Nigeria’s own Disneyland. You would soon be seeing “Zoom to Zuma” commercials on CNN across the world, shortly after the airing of “Incredible India”! It would be a destination for local and international fun-seekers. And to think Zuma is just a few kilometres away from the Abuja international airport…

I’m writing just 1300 words, so space would not allow me to discuss concession opportunities for the south-west, north-west and north-east — or what could happen if we lease the federal government of Nigeria to Rwanda for 17 years. Let me now time take questions and observations so that we can close our discussion and shut down. Your first observation is that I’m being too simplistic. You said I make it look like it is so easy to build roads, fix electricity, provide quality health care, improve education standards, develop tourism and create a manufacturing hub. You said I am living in fantasy. Thanks for the compliments, but I am not fantasising.

Pack your bags today and pay a visit to Bonny Island, where the Nigeria Liquefied Natural Gas (NLNG) plant is located. You won’t believe you are in the same Niger Delta. The roads are perfect. Electricity is 24/7. Water flows without inhibitions. The schools, whether conventional or vocational, are of the highest standards. I am not talking about what would happen by 2033 — I am talking of what has been on Bonny Island all along, courtesy the NLNG. If you want further evidence of what oil money can do, you can also visit the Europe-like staff quarters of the multinational companies in the Niger Delta. Yes, it can be done! I repeat: it can be done!
Your second question is that I make it look like there are no ethno-religious and political problems inhibiting Nigeria’s progress, and I talk as if there is no need to change the constitution, ditch federal character, increase derivation to 50%, or break Nigeria to pieces.

No, Ma’am, you misunderstood me. I will never understate the political and ethnic problems plaguing Nigeria. I am not 100% naive. I see, feel and observe the complexities everyday. What I’m saying, Ma’am, is that in spite of these challenges, in spite of our “bad” marriage, we can still make progress! That is why I suggest, in my proposals, that we should change only one variable — leadership.

Your own question, Sir, is why a 17-year concession? Why not 10 years? Why not 50 years? It was deliberate, Sir. We have had an unbroken democratic experience since 1999, and I am saying that if our leaders are actually interested in developing this country, 17 years is enough to go very far. My proposal is for us to have a different kind of leaders for the same period of time with the same followers, the same climate, the same humidity, the same temperature, the same vegetation, and the same share of resources. The concessionaires would still contest elections every four years but no Nigerian politician would be eligible to run until after 17 years.

I can see that professor is unhappy with me. How on earth can I be asking for a re-colonisation of Africa by proposing that we hand over to the Dutch, Japanese and Emiratis? I’m sorry, Prof, I am only speaking in parables. I am saying if the Dutch could build a country on water, if the Emiratis could create an oasis in the desert, if the Japanese could develop without natural resources, then developing Nigeria would be a piece of cake! We are blessed with all the brains, all the resources to develop this country. Our leaders must use their brains — or lease one. Forget oil. Forget FAAC. With proper leadership, the needed billion dollars would flow in from all over the world!

I will take one more question and then go home. A Nigerian who lives in the UK took his family to Dubai for the first time in August and called me from there. “Simon,” he said, “these people have two heads.” We both laughed. So your question is: are you sure there is nothing really wrong with us? If these things are doable here, why are we not doing them? Professor Chinua Achebe famously wrote in The Trouble with Nigeria (1983): “The trouble with Nigeria is simply and squarely a failure of leadership. There is nothing basically wrong with the Nigerian character. There is nothing wrong with the Nigerian land or climate or water or air or anything else."

Fashola’s missteps in power sector

December 7, 2016

#Punch Editorial Board

THE crisis in the power sector will simply not go away. Across the country, darkness reigns and factories and other businesses are in dire straits. Unprepared for a sophisticated business like power, the generating and distribution companies are weighed down by debts, dilapidated equipment and their own glaring incompetence. Amid all this, the Power Minister, Babatunde Fashola, is sounding like a cracked record, repeating his untenable mantra that the fatally flawed power privatisation would not be reviewed. Who will save Nigerians from the tyranny of a dysfunctional power system?

Power supply in the country is beyond pathetic. Last week, power supplied reached 3,927 megawatts at its peak, but averaged slightly less than 3,000MW, according to the Nigerian Electricity Regulatory Commission. For a country with a population of 170 million and Gross Domestic Product estimated at $481.1 billion in 2015 by the World Bank, this is miserable. In a presentation by Funke Osibodu, CEO of the Benin Electricity Distribution Company, at the PwC power forum in 2015, it was revealed that, of the total installed capacity of 12,522MW, some 5,381MW was not available; another 3,626MW was classified as “non-operational”, leaving only 3,789MW operational.

Guesstimates of actual requirements range from 25,000MW to 150,000MW. There is however general agreement that less than 20 per cent of the Nigerian population have continuous access to power and only four million out of the country’s enumerated 32 million households have access to electricity.

Without resolving the mountain of debt afflicting operators, there is no hope in sight for a resolution of the crisis. The DisCos claim that government agencies owe N156 billion. They in turn owe the GenCos over N300 billion. According to the Central Bank of Nigeria, the GenCos also owed the banks about N357 billion by March end, this year. They owe gas companies a further N110 billion for gas supplied to their turbines, while some N402 billion in bank credit to electricity companies is said to have become toxic.

It was never meant to be like this. But three years after the unbundled assets of the former state-owned power monopoly were privatised, Nigeria is no better off than it was in 2013. The hope that privatisation would bring in foreign investment has been dashed; the dream of local banks reaping from an unleashed strategic sector has been drowned in an ocean of bad debts as loans provided to the incompetent local consortia that won the bids have gone bad. Private capital was expected to drive production, reduce the costs of doing business in a country where businesses provide 80 per cent of their power through expensive private arrangements and stimulate job creation.

Unlike Fashola and President Muhammadu Buhari, who unwisely refuse to review the power assets sale of 2013, the organised private sector that bears the brunt of inadequate power supply, has called for a review. This newspaper has consistently called for intelligent policy measures that will evict some of the hopelessly incompetent domestic investors that cornered some of the GenCos and DisCos through official chicanery. They can neither attract the necessary foreign funding, nor do they have the technical savvy to reverse what Fashola identified as over three decades of lack of investment in our power sector. The minister has also exposed the hypocrisy of the DisCos in their repeated claims of being owed without providing documentation.

Apart from the Manufacturers Association of Nigeria, leading industrialist, Aliko Dangote, and committees of the National Assembly have aligned with this progressive view, labelling the privatisation a colossal failure. We reject Fashola’s inference that a sovereign state can become so helpless within its own domain when its vital interests are threatened. The United States and European countries have on several occasions blocked the sale of companies to certain foreign entities when over-riding national interests are deemed to be at stake. The British government, through the UK Competition Commission, compelled the Spanish consortium, Ferrovial, which had purchased British Airports Authority, to give up Gatwick, Stansted and Edinburgh airports, citing possible “adverse effects for both passengers and airlines.” The same UK government that triggered modern privatisation has, on occasions, had to step into the rail and water privatisations to protect national interest, the preeminent responsibility of any government. We oppose the continued release of public funds to non-performers such as the N213 billion intervention provided by the CBN for gas issues.

The only realistic way to attract the $10 billion investment that the IMF says the country needs every year for 10 years to reverse the power supply deficit is to review and properly, transparently privatise the power assets. Contrary to Fashola’s erroneous assertion that reversing the flawed sale would scare foreign investors, we assert that it would rather reinvigorate investor confidence. We recall how global enthusiasm for Nigeria’s power sales was scorched by the corruption-fuelled process that eventually had all the 17 unbundled assets acquired by local consortia, save for one that had Kepco, the Korean operator, as technical partner. Genuine investors were simply scared off to pave the way for local misfits.

Since it still holds substantial minority stakes in the privatised entities, the government should creatively apply pressure on the chronically inadequate investors – through aggressive debt recovery, performance targets and regulatory measures – with a view to compelling them to sell or give up their stake. Though some criticised the motive and method, official hostility made Sadiq Petroleum to give up its majority equity purchase in African Petroleum Plc shares in 2005.  The country will remain for long economically shackled unless we are able to evict these interlopers in the power sector.

To resolve the power crisis, the government should urgently and wisely sell the 10 power plants developed under the National Independent Power Projects to major foreign players. No indigenous operator has the track record, technical or financial capacity to deploy and reverse our power predicament. Resolving the 80 per cent dependence on gas-fired plants and harnessing coal, solar, wind and water are crucial. We need a second national power grid in addition to regional grids, instead of the folly of relying on only one.

The first order of business, however, is for Fashola to climb down from his high horse and commence an immediate review of the privatisation or Buhari should compel him to do so.

2019: Overzealous Politicians Working To Destroy APC – Ogiemwonyi

By Patrick Ochoga

— Nov 27, 2016

Chris Ogiemwonyi was an All Progressives Congress (APC) governorship aspirant in the last election in Edo State. He was also a Group Executive Director of the NNPC. He spoke on some national issues in this interview with PATRICK OCHOGA.
National Asset as part of solutions in tackling the current recession?
We hear people talk about selling of national assets and people are pointing at NLNG, I am completely opposed to the sale of our asset, there are alternatives. If you look at the NLNG model today it is a 51% IOC and 49% Federal Government Joint Ventures. Instead of just selling my take is that government should go and borrow with good interest rates. Borrowing is not bad but it should be well utilized. This is where good leadership with clear vision comes in. And that is why we are lucky with President Buhari and his zero tolerance to corruption. With President Buhari we can borrow, and tie the funds to capital projects.

What is your view on the anti-corruption war of President Buhari?
There is corruption everywhere, even the cook you send to the market, driver you send to buy fuel are all corrupt. We allowed it to grow to a cancerous stage; we just have to quickly strengthen the security agencies especially the EFCC. I have also heard that people are saying it is one-sided and only targeted at the opposition. Look at cases of the judges, corruption has eaten into the very fabric of our nation, today, the EFCC is not doing badly, if I have my way I will expand EFCC to be like a ministry and as such have EFCC Czar in all the States just like we have Commissioners of Police, we just have to expand it, the cases before the commission are too many. The Judiciary again is not helping matters; I think there should be legislation where no case will exceed 6 months. And the EFFC boss Mr Magu should be confirmed to immediately give him confidence.
Having spent 34 years at the NNPC how will you described the reform in that sector under the NNPC Boss, Maikanti Baru?
Once the leadership is properly placed, the tendency is that the company will run well. I must commend Mr President for appointing Baru, he is a fantastic Engineer, courageous and fearless, he went through the various sectors of NNPC unblemished. Many of the issue confronting NNPC, like the restructuring, the PIB, JV funding, with Baru we can go to sleep, I see a better NNPC under him; For once, this is a round peg in round hole. What I will urge government to do is to support him and allow NNPC to run as a business outfit. The only issue we are yet to address now is the refineries; government should also have the will power to do a complete deregulation in the downstream, once we do that the issue of fraud and corruption in the downstream could be eliminated. I also think that we should start having local refineries because if you see what we are doing, we take crude out and refine in some neighbouring West African Countries which are brought back as refined products, we need to put in place modular refineries just as it was done in Niger Republic.

You participated in the Edo June 18, 2016 governorship primaries. What lessons did you learn from it?
The APC governorship primary in Edo State has come and gone and I have since moved back to my Oil and Gas consulting business. Talking about lessons learnt from the primaries, one thing was very prominent and that was the role played by a seating governor and I have since realized that the seating governor has an overwhelming influence on who succeeds him. He has about 60% influence. Secondly, looking at the various primaries within and outside Edo State, I can see the high level of opaqueness, that is, the more you look, the less you see. There is a mind-set of who will win the primaries from the onset and that is why today people are clamoring for Independent candidacy and I pray that our politics will evolve to that level so that people who have the capacity can come out as independent candidates.
Some of your party leaders, opposed to the National Chairman of the APC, Chief John Odigie Oyegun are calling for his resignation. What is your take?
You will recall when I joined APC in November 20, 2014; I said two individuals caused me to join the party, that is President Muhammadu Buhari and Chief John Odigie-Oyegun for their respective individual Characters. Chief  Oyegun has been a first all his life. A brilliant and principled public servant, he is well read, an economist from a premier University and spent all his years in the public service. A man who at the tender age of 36 rose to the position of Permanent Secretary at the Federal level, taking charge of key Federal Ministries. He challenged the money bags in the then Edo State and their collaborators in Abuja to become the first Executive Governor of Edo State. This is a man who could have clinched key ministerial position in Gen Sani Abacha’s government but instead opted out as NADECO Secretary in exile. For 16 years that PDP was in power, he was wooed and cajoled to join “the biggest party in Africa” but he refused to budge and abandon his progressive position in partisan politics. So having Oyegun as the national chairman of APC is a blessing, I don’t know what Nigerians want; we have this ‘pull him down syndrome’. Who are the people calling for his removal? They are some over ambitious APC chieftains; some of them are not well read. Odigie-Oyegun is a quiet and amiable gentleman with capacity to work. The Nigeria media must not join this people in flying this narrative; some of them have resorted to all sorts of propaganda so that Mr President will take action against Chief Odigie-Oyegun. We urge President Buhari and APC as a party to be weary of these overzealous politicians that want to destroy the APC. What they are doing today is not really about Odigie-Oyegun, rather they are throwing stones at Mr President and that is because before they get to Mr President they want to get the national chairman out of the way. They see him as a buffer for Mr President and ultimately for 2019. We are barely two years into the Buhari-led administration and they are already fighting ahead of 2019. Their desire is to discredit Odigie-Oyegun so that their plot against Mr President can work. So it is not Odigie-Oyegun that they are fighting, but President Buhari.
There is pressure on President Buhari to reshuffle his cabinet over alleged non-performance, how do you respond to this?
Nigerians are too much in a hurry. Asking Mr President to remove a minister that has served just less than 18 months is unfair. When I was Group Executive Director in the NNPC, I went for a meeting with the Algerians, little did I know that the Algerian minister had a PhD in Gas Engineering and had been there for 12 years, he became an authority when you talk about Gas but we don’t do that in Nigeria. You put a man in office and under one year people starts fighting to remove him. For me, Mr President have a good team, my advice is to realign their portfolios. Today people are talking about many lawyers in his cabinet, what Mr President should do is to look for core professionals and move them to their related ministries, that is square peg in square hole. People are speculating that Oshiomhiole is coming in; he definitely can do well as labour minister considering the fact that he was once a strong unionist as NLC President. People should be appointed in such a way that they can add value. Look at the two Ministers of Health being core medical personnel. So, Mr President can look inward and see how he can rejig and realign ministers to ministries related to their fields of study.
What are your perspectives on the economic recession and possible way out?
Truly, we are in a recession caused by several factors. First, there was poor leadership by the previous government, Oil price drop, Nigeria’s over- dependence on foreign products, corruption, mono-economy (over dependency on Oil and Gas), the activities of militants and pipeline vandals, Unstable monetary policies, Unemployment are contributing factors. Corruption grew like an oak tree and we allowed it to grow. Today, we import all kinds of things into the country including tooth picks. Now, the question is how do we come out of it? On a short term, I recommend to Mr President that we should quickly resolve the Niger Delta issue. Recently, some Niger Delta leaders met with Mr President but I want to differ because I feel the governors should be the arrow head of such meeting because they know the people. Secondly, what we need to do by way of moving our nation forward comprises the following: By putting in place strong institutions that will ensure proper implementation and interpretation of our laws, it must be mentioned that waste must be cut in the government. The security vote must be reduced both at the federal level and at state levels, Promote “Made in Nigeria” Goods; we should encourage new businesses by lowering our interest rates, tackle job creation through agriculture and solid mineral development. We must as a matter of urgency encourage all tiers of government to embark on road construction to ease transportation of goods and services. On the medium and long term, the rail way sector should be developed.
 Leadership

N450b unremitted revenue: FG to drag NCC, NPA, BPE, others to EFCC

by Segun Adebowale on December 1, 2016

The Minister made these disclosures in Abuja while addressing the media on the recovery of revenue‎ from government agencies

The Minister of Finance, Kemi Adeosun, on Thursday disclosed that the ministry would report 33 agencies, which defaulted in remitting over N450 billion revenue into government coffers between 2010 and 2015, to the Economic and Financial Crimes Commission for prosecution.
Adeosun also revealed that the Federal Government generated N272.03 billion in the first 10 months of 2016.
The Minister made these disclosures in Abuja while addressing the media on the recovery of revenue‎ from government agencies.
She named some of the defaulting agencies in remitting of revenue as ‎Nigeria Communication Commission, Nigerian Ports Authority, Nigeria Civil Aviation Authority, Bureau of Public Enterprises, Nigeria Shippers Council, National Pensions Commission, Nigeria Bulk Electricity Trading‎ and National Health Insurance Scheme.
The defaulting agencies also include: Federal Airports Authority of Nigeria, Industrial Training Fund, National Health Insurance Scheme, Nigeria Postal Service, Nigerian Television Authority, Nigeria Export Promotion Council, National Information Technology and Development Agency, Raw Material Research & Development Council, Nigeria Export Processing Zones Authority, Federal Radio Corporation of Nigeria and Council for the Regulation of Engineering in Nigeria, among others.
Adeosun said: “A Recovery Committee chaired by the Accountant General of Federation, Alhaji Ahmed Idris, has been set up to recover the outstanding N450 billion operating surpluses, including holding bilateral discussions with the affected agencies.
“We have been getting positive responses.
“Some Agencies have started making remittances to the Consolidated Revenue Fund.
“The sum of N640 million was received from Nigeria Shippers Council on Wednesday.
“Our duty is strictly auditing and investigating.
“We are not a prosecuting agency.
“We will be reporting some of these defaulting agencies to the Economic and Financial Crimes Commission for prosecution‎.”
The minister stated that demand notices had been issued to affected agencies for the payment of outstanding operating surpluses.
The agencies, Adeosun added, have also been invited to a meeting scheduled to hold on December 6 where they are required to submit a repayment plan or face appropriate sanctions, including deduction of amount owed directly from Treasury Single Account balances, besides prosecution by the EFCC.
She ‎revealed a total N272.03 billion independent revenues generated between January and October this year.
Adeosun added: “Independent revenues are ‎projected to increase to N811.03 billion as we recover amounts owed and drive greater compliance going forward.”
The Recovery Committee has invited the management of these agencies to explain why their operating surpluses have not been remitted as mandated by the Fiscal Responsibility Act 2007.
Sections 21 and 22 of the Fiscal Responsibility Act 2007, specifically states: (1) “The Government corporations and agencies and government owned companies listed in the Schedule to this Act (in this Act referred of as ‘the Corporations’ shall, not later than six months from the commencement of this Act and every three financial years thereafter and not later than the end of the second quarter of every year, cause to be prepared and submitted to the Minister their Schedule estimates of revenue and expenditure for the next three financial years.
(2) “Each of the bodies referred to in sub-section (1) of this section shall submit to the Minister not later than the end of August in each financial year:
a. An annual budget derived from the estimates submitted in pursuance of subsection (1) of this section; and
b. Projected operating surplus which shall be prepared in line with acceptable accounting practices.
“(3) The Minister shall cause the estimates submitted in pursuance of subsection (2) of this section to be attached as part of the Appropriation Bill to be submitted to the National Assembly.”
Section 22 (1) states: “Notwithstanding the provisions of any written law governing the corporation, each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one-fifth of its operating surplus for the year.
“(2) The balance of the operating surplus shall be paid into the Consolidate Revenue Fund of the Federal Government not later than one month following the statutory deadline for publishing each corporation’s accounts.”
Adeosun disclosed that some of these agencies had incurred huge expenses on overseas training and medicals and huge expenses on behalf of supervisory ministries and/other organs of government involved in oversight or regulatory functions without appropriate approval.‎
She also listed other infractions of the agencies to include payment of salaries and allowances to staff and board members, governing councils and commissions, which are outside or above the amount approved by the Revenue Mobilisation and Fiscal Allocation Commission and the National Salaries, Income and Wages Commission.
Adeosun added: “The list also includes unacceptable expenses incurred on donations, sponsorships, etc, unfavourable contract signed for revenue collection by a third party; granting of staff loans that have not been repaid as well as sale and transfer of assets to board members, among others.”
According to the Minister, the overall effect of these practices is that operating surpluses of these agencies are lower than should be.
Consequently, the Minister has directed the Accountant General of the Federation to issue a circular that will limit allowable expenses that can be spent as part of measures to ensure these agencies face strict monitoring.
This development is part of the government’s resolve to ensure that leakages are tackled.

Nigeria Audits 33 Companies, Uncovers N450b Unremitted Revenue

The Minister of Finance, Kemi Adeousun, made the announcement on Thursday in Abuja at a news conference.

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by News Agency Of Nigeria (NAN) Dec 01, 2016

The Federal Government is set to recover about N450 billion operating surpluses that were not returned by 33 agencies from 2010 to 2015.

The Minister of Finance, Kemi Adeousun, made the announcement on Thursday in Abuja at a news conference.
She said that an audit had been carried out on the agencies in compliance with the Fiscal Responsibility Act (FRA), 2007.
The minister said that a recovery committee headed by the Accountant General of the Federation had been set up to recover the money from the agencies.
Mrs. Adeosun noted, however, that some of the agencies had started returning various sums, saying that N640 million had been received from the Nigeria Shippers Council.
“The total independent revenue generated between January and October, 2016 was N272.03 billion but there is a projected increase to N811.03 billion as we recover amounts owed.’’
She said the audit revealed that there was a lot of non-remittances and under-remittances of operating surpluses and that some agencies were operating without an approved budget.
The minister added that there was overstating of budget and spending above budgeted amount, failure to reconcile accounts and existence of irreconcilable differences.
“The audit also showed that there was under-reporting of revenues, failure to submit audited financial statements, payroll fraud and exaggeration of payroll costs, over-payment of staff salaries and abuse of personnel grants,” she said.
The minister said while there was unapproved monetisation of medical and other allowances, there was also non-compliance with the PPA and failure to convert to IPSAS accounting.
IPSAS stands for International Public Sector Accounting Standards (IPSAS).
According to her, some of the agencies affected are the Nigerian Communications Commission, Nigerian Ports Authority and Corporate Affairs Commission.
Others are the Nigerian Maritime Administration and Safety Agency, Nigerian Export-Import Bank, Federal Airports Authority of Nigeria and National Open University of Nigeria.
Also affected are the Nigerian Railway Corporation, West African Examination Council, Joint Administrations and Matriculation Board and the National Hospital, Abuja among others.
Mrs. Adeosun said that some of the audit reports had been sent to the Economic and Financial Crimes Commission (EFCC).
“The financial regulations are very clear, where audit reports have indicted some of the officers, some of these audit reports are going to the EFCC.
“Some of the audit findings were so serious that the decision was taken that some of those particular reports must go to the EFCC.
“Remember that we are not a prosecuting agency, ours is to investigate and then we hand it over to the relevant agencies,” she said.
The minister said that the agencies that defaulted had been asked to come up with their repayment proposals to see how they could be made to repay the money.
“We know that in some cases that money would have already been spent so they will now give us a proposal of how they are going to repay but the money has to be paid.
“We are also looking at their Treasury Single Account (TSA) to understand how much money they actually have because in some cases these surpluses are in their accounts.
“Our plan is not to grind to a halt the activities of any agency but to institute fiscal discipline in all the agencies,’’ the minister stated.
Mrs. Adeosun also said that a circular was issued on November 22, requesting submission of estimates of revenues and expenses for the next three financial years.
Other documents that were requested are the annual budget which must be IPSAS compliant and projected operating surpluses for review and approval.
According to her, a review team has also been set up to evaluate submitted estimates before budget submission to the National Assembly.
She said that failure to comply with the provision of the FRA to review and approve their budgets as advised would be restricted to payment of salaries only until the budget was regularised.
“We have the National Assembly’s support that if an agency does not have its budget approved; it really has no business spending.
“It is wrong for an agency to operate without a budget. It is public money and that means that the agency can do literally anything it wants and that is wrong.
“It is for those agencies who know that they do not want to be in the situation where they can only pay salaries to do the right thing, everybody knows the rule.’’
She said further that a circular on the inclusion of 92 additional corporations, agencies and government owned companies to the schedule of the Act had also been issued.
According to the minister, the exercise is an ongoing process and all agencies will eventually be audited. (NAN)
 
Saharareporters

To Catch The Grandfather By Azu Ishiekwene

We’re really not interested in the debate about which member of the family is more corrupt – Obasanjo or his grandchildren in the National Assembly. We’re fed up with that rotten past and demand answers and accountability, not name-calling and blame shifting.

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by Azu Ishiekwene Dec 01, 2016

Former President Olusegun Obasanjo is used to getting a beating from his children. His son, Gbenga, once tried to strip him publicly with a rather nasty accusation of in-family wrongdoing.

Not long after that, his daughter, Iyabo Obasanjo, followed with a letter that sold her father down the river at a time when the old man thought his own open letter had dealt a major blow to the broken government of former President Goodluck Jonathan.
This time, the fire is not coming from his biological children. It’s his political offspring, who even call him grandfather, that are giving him the stick.
After Obasanjo’s politically charged speech at the first Akintola Williams lecture, the chairman of the House committee on media, Abdulrazak Namdas, came for the former president.
The lawmaker from Adamawa and 1998 graduate of the Nigerian Institute of Journalism didn’t hold anything back. In response to Obasanjo’s attack that the National Assembly is a den of “unarmed robbers,” Namdas threw the kitchen sink.  “Obasanjo,” he said, “is the grandfather of corruption.”
To support his allegation, Namdas went into the past.
Have we forgotten how Obasanjo paid off the 1999 Senate to get the Senate presidency for Evan Enwerem, instead of Chuba Okadigbo who was the senators’ preferred candidate?
Have we forgotten how Obasanjo distributed bribes in the National Assembly; how he paid the House to remove Speaker Ghali Umar Na’Abba, but failed to buy their support?
Have we forgotten that under Obasanjo’s presidency private businessmen took bags of money to him and funneled the change to build his private library in Abeokuta?
And how can anyone forget the biggest scam of all – Obasanjo’s failed attempt to secure a third term through the backdoor and the billions of naira in bribes lost in the bid?
And the same Obasanjo is accusing the National Assembly of corruption?
I understand how emotional family issues can be. But if Namdas can suspend his emotions for a moment, he’ll find that this is an issue on which many ordinary people outside the comfort of the Green Chambers agree with Obasanjo.
No need to shoot the messenger.
Nothing makes the point about public perception of the National Assembly more clearly than Namdas’ own modest career as a 47-year-old first-time Federal lawmaker and former Adamawa State correspondent of the latter-day Daily Times.
Since he did not deny that he now earns N10m monthly – and no other lawmaker has denied it yet – it is reasonable to assume that he has earned at least N160million or the minimum wage of nearly 8,900 workers in 17 months.
To bring it home to Adamawa where Namdas comes from, what he has been paid so far is 12 percent of the N1.9billion monthly salary paid to civil servants in his state.
And to put it in the language of recession, Namdas’ pay can buy a loaf of bread for the 26,500 civil servants in his state, and he’ll still have change.
Namdas can hang Obasanjo by the next pole, if he wishes, but can he look at Nigerians with a straight face and say what he has done since he left NIJ in 1998, to deserve a monthly pay of N10m?
Sure, the guy deserves his lucky break and those who voted for him to represent them obviously believe in him. But the first time his voice was heard was not during the debate on the Gender Equality Bill or during discussions about the House publishing what members earn.
Instead, we heard Namdas loud and clear during the debate in the House to buy cars for committees, and then again when he said, with great pleasure, that House members had just taken delivery of the first set of new cars worth N3.6billion.
Of course, never in short supply of words when there’s mess to clear, Namdas also spoke to justify immunity for the leaders of the National Assembly at a time they are facing charges of corruption.
When Obasanjo accuses the lawmakers of corruption – and he’s not doing it for the first time – it’s not enough for Namdas and co to ask him to remove the log in his own eyes. They can remove it for him, by shining the light on his tenure.
Unfortunately, Namdas’ reply suggests that the House agrees that it is corrupt, but less corrupt than Obasanjo.
We’re really not interested in the debate about which member of the family is more corrupt – Obasanjo or his grandchildren in the National Assembly. We’re fed up with that rotten past and demand answers and accountability, not name-calling and blame shifting.
If Namdas and co have evidence of corruption against Obasanjo, which shouldn’t be difficult for them to find for a man whose imprints are all over the map, they should bring it on. Nigerians have a right to know and demand that this grandfather should be held to account for what happened on his watch.
But we will not let name-calling deflect attention from the specific charges Obasanjo made against lawmakers. Is it true that a Rep collects N10million monthly and a Senator collects N15m?
Is the National Assembly enjoying remuneration outside what is approved by the Revenue Mobilisation, Allocation and Fiscal Commission?
In short, why have lawmakers refused to publish the full details of their earnings?
Namdas should be particularly interested in helping to provide answers. He’s not just a lawmaker; he was one of the 50 reported by the firmer chairman of the House Committee on Appropriation, Abdulmumin Jibrin, to be collecting “illegal allowances.”
By the way, Jibrin, another Obasanjo offspring, is alleged to have cornered N9billion in constituency projects, which he’s not talking about.
It’s been said, quite often, that the public does not sufficiently understand the difficult and complicated work of lawmakers or the fact that they’re the weakest and most vulnerable link in our relatively young democracy.
That may be true. But the way to strengthen the legislature is not make it another commodity market. It can only earn respect and public confidence by openness.
Namdas can put a nail in the grandfather’s political coffin by leading the campaign to publish what lawmakers earn and asking the House to pass a resolution for President Muhammadu Buhari to act on the Halliburton report, for a start.
This grandfather, like the proverbial beast that grazes in spite of the hunter’s bullets, has seen too many wars on too many fronts to be dented by mere name-calling.
Ishiekwene is the Managing Director/Editor-In-Chief of The Interview and board member of the Paris-based Global Editors Network.


Saharareporters

Senate in flip flop over clearance of NCC Commissioner

theeagleonline.com.ng

Posted by Segun Adebowale

Sabi said: “For the avoidance of doubt, the nomination of Mr. Obla was never confirmed or voted for since no decision of the Senate is said to be approved if not adopted during the consideration of the Votes and Proceedings of the Senate at the next legislative day

Facts have emerged that the report submitted by the Senate Committee on Communication cleared Okoi Ofem Obono-Obla as a Commissioner of the National Communication Commission.
H‎owever, the Senate in letter sent to the Presidency removed the already confirmed nominee from the list.
A statement by the Senate spokesman, Senator Abdulahi Sabi, said Obono-Obla ‎was never confirmed.
Sabi said: “For the avoidance of doubt, the nomination of Mr. Obla was never confirmed or voted for since no decision of the Senate is said to be approved if not adopted during the consideration of the Votes and Proceedings of the Senate at the next legislative day.”
But the last paragraph of the report of the Committee on Communication cited by The Eagle Online said: “‎ Obla-Obono responded brilliantly at the screening exercise and promised to bring his legal experience to bear by collaborating with his colleagues on the board to further enhance the growth of the communications sector if his nomination is confirmed. He has the experience, competence and commitment to discharge the responsibility of a non-Executive Commissioner.‎”
The Committee in its report gave reasons why other nominees such as Aliyu Abubakar (Non-Executive Commissioner/Bauchi/North-

East) and Pastor Ezekiel Yissa (Non-Executive Commissioner/Kwara/North-Central) were dropped by the Senate Committee.
Obono-Obla, who is the Special Assistant to the President on Prosecution, attached to the Ministry of Justice, had protested against his removal in an email sent on Sunday in what he described as back-door removal.
The mail was titled: Can the Senate President unilaterally overrule the confirmation of a nominee by the Senate?”
The nominee, who asked why he was removed after the Senate had confirmed his nomination, simply said: “The entire major electronic and print media organs in the country, on November 17 and 18, 2016, carried the confirmation by the Senate of the Board of Nigerian Communications Commission.
“Surprisingly and curiously, the Senate President, Senator Abubakar Bukola Saraki, in a letter dated November 22, 2016, to President Muhammadu Buhari, titled ‘Confirmation of Appointments,’ falsely stated that the Senate did not confirm the following nominees: Aliyu Saidu Abubakar; Pastor Ezekiel Yissa and Chief Okoi Ofem Obono-Obla.”

FACT CHECK: Nigerian Senate confirmed, then controversially reversed self on Buhari's nominee

The Senate and an aide of President Muhammadu Buhari, Okoi Obono-Obla, on Monday, squabbled over the latter’s nomination as a non-executive commissioner of Nigerian Communications Commission, NCC.

Mr. Obono-Obla, currently Mr. Buhari’s special assistant on prosecution attached to the Ministry of Justice, was one of the seven persons nominated by the president in August for the NCC board, Nigeria’s regulatory agency for the telecoms sector.

Others were Olabiyi Durojaiye, nominated for the position of chairman; and Sunday Dare, Executive Commissioner, Stakeholders Management. Then, like Mr. Obono-Obla, four others – Ifeanyi Ararume, Clement Baiye, Ezekiel Yissa and Aliyu Abubakar – were nominated as non-executive commissioners.

On Monday, Mr. Obono-Obla told PREMIUM TIMES that Senate President Bukola Saraki included his name among those not confirmed by the Senate after the legislative body had cleared and confirmed him.

PREMIUM TIMES obtained Mr. Saraki’s letter to the President, saying that three persons – Messrs. Yissa, Abubakar and Obono-Obla – had been rejected by the Senate.

“This (that he was confirmed) was graphically captured in the Votes and Proceedings of the Senate of the Federal Republic of Nigeria in pages 880-891 of Thursday 17th November, 2016,” Mr. Obono-Obla said.

“Surprisingly and curiously, the Senate President , Senator (Dr) Abubakar Bukola Saraki in a letter dated 22nd November, 2016 to President Muhammadu Buhari titled ‘’Confirmation of Appointments) falsely stated that the Senate did not confirm the following nominees thus: Aliyu Saidu Abubakar; Pastor Ezekiel Yissa and Okoi Ofem Obono-Obla.”

But the Senate through its spokesperson, Sabi Abdullahi, later on Monday rejected Mr. Obono-Obla’s claim that his confirmation was unilaterally reversed by Mr. Saraki.

In its reaction, the Senate said it had acted in error to have initially included Mr. Obono-Obla among nominees that were confirmed as recommended by the Committee on Communications chaired by Gilbert Nnaji.

It explained that it reversed itself the following legislative day by amending the votes and proceedings of the previous day.

The Senate said, “For the avoidance of doubt, the nomination of Mr. Obla was never confirmed or voted for since no decision of the Senate is said to be approved if not adopted during the consideration of the Votes and Proceedings of the Senate at the next legislative day.

“The Senate also wishes to note that the business of the Senate can only be binding when the votes and proceedings have been adopted and approved without any objection.

“The implication of the directive by the Senate President to the Secretariat is that Senator Garbai’s observation or correction was correct and therefore the votes and proceedings should be amended to reflect the true situation.

“On that fateful day, November 22, 2016, the Chairman, Senate Committee on Rules and Business, Senator Baba Kaka Garbai, objected to the alleged confirmation of the nominee, saying, ‘My name is Senator Baba Kaka Bashir Garbai representing Borno Central Senatorial District.

‘Mr. President, what is actually reported in the votes and proceedings is not a true reflection of what transpired on Thursday with regards to the confirmation of one of the commissioners under NCC, Chief Okoi Ofem Obono-Obla. The decision then was a resounding Nay. So, because of that, it was a mistake.”

Fact-Check

In the report of the committee which screened the nominees, Mr. Obono-Obla was recommended for confirmation alongside Messrs. Durojaiye, Dare, Ararume and Baiye.

PREMIUM TIMES obtained the report.

After the report was presented, Mr. Saraki called for voice votes to approve nomination of each of the five persons recommended for Senate’s confirmation. In what mirrored the cases of other recommended nominees, Mr. Saraki ruled “the ayes have it” that Mr. Obono-Obla should be confirmed.

PREMIUM TIMES witnessed the Senate vote to approve Mr. Obono-Obla for the NCC job and the video is also available online.

But the following legislative day, Tuesday, November 22, the Senate amended the previous day’s votes and proceedings, reversing itself on the earlier confirmation of Mr. Obono-Obla, following concern raised by Mr. Garbai.

However, Mr. Garbai lied when he said “it was a resounding nay”.

“Aye” was more audible and Mr. Saraki indeed ruled the “ayes have it!”

Undercurrents

Mr. Obono-Obla hinted at possible reasons for his rejection.

He said he “reliably” gathered that after his confirmation, “the Senate President was put under intense pressure by two PDP Senators from Cross River State; John Owan Enoh (Cross River Central) and Gershom Bassey (Cross River South) which the Senate President balked.”

The two Senators, he continued, “blackmailed and fed the Senate President with lies concerning Chief Okoi Ofem Obono-Obla who is also from Cross River State. The duo told the Senate President that Obono-Obla is behind his legal travails.”

But he could not be reached, again, to ask why the two Senators from his home state would be interested in seeing him fail the Senate’s consideration.

Mr. Obono-Obla, as the presidential assistant on prosecution attached to the Ministry of Justice, had said the Attorney-General of the Federation, Abubakar Malami, was not responsible to the Senate when the Minister was summoned to explain why he instituted forgery charges against Mr. Saraki, and his deputy Ike Ekweremadu.

FACT CHECK: Nigerian Senate confirmed, then controversially reversed self on Buhari's nominee - Premium Times Nigeria
http://www.premiumtimesng.com/news/headlines/216575-fact-check-nigerian-senate-confirmed-controversially-reversed-se[truncated by WhatsApp]

HARD TIMES FOR THESE TIMES: THE THINK FACTORY GUIDE TO ACTION - Engr. Chris Ogiemwonyi , FNSE, KSC, JP,

BENIN — FORMER Honourable Minister of State for Works, Engr. Chris Ogiemwonyi , FNSE, KSC, JP, was clearly the star attraction at the 42nd Founder's Day Lecture at the University of Benin where he presented a paper Entitled : HARD TIMES FOR THESE TIMES :THE THINK FACTORY GUIDE TO ACTION were he spoke on Corruption, Niger Delta and the way forward, also made some suggestions and Recommendations on the way out of hard times. Concluded by saying "Our Nation like most nations in the word have experienced, or are experiencing recession. This is not the first time we are faced with this kind of monumental challenge. Winners don't quite and quitters don't win. We need to apply wisdom and come together as a nation to focus and develop appropriate strategies to the economy on sustainable path of economic recovery and growth. "
HARD TIMES FOR THESE TIMES: THE THINK FACTORY GUIDE TO ACTION
The Visitor, University of Benin
His Excellency Muhammadu Buhari GCFR
President, Commander-in-Chief of the
Armed Forces of the Federal Republic of Nigeria
The Chancellor
His Highness, Mai Martaba
Muhammad Sanusi II CON
Sarkin Kano
The Pro Chancellor and Chairman, Governing council
Senator Effiong Dickson Bob
The Vice Chancellor
Professor F.F.O. Orumwense, FNSE
The Deputy Vice-Chancellor (Administration)
Professor Lawrence Ikechukwu Ezemonye
The Deputy Vice-Chancellor (Academic)
Prof. Abiodun Falodun
The Deputy Vice-Chancellor (Ekehuan Campus)
Prof. S. E. O. Aduwa-Ogiegbaen, JP
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The Registrar
O.A. Oshodin (Mrs)
The Bursar
Dr. Baba Bila, FCNA
The University Librarian
Dr. (Mrs) Evelyn Omoluabi Idiodi; CLN, MNIM
Members of senate
The Provost, College of Medicine
Deans and Directors
Heads of departments
Distinguished guests
Gentlemen of the Press
Parents and Guardians
Ladies and Gentlemen
Greatest Uniben students.
The Vice-Chancellor sir, I feel delighted to be accorded the honor of being the Guest Lecturer for this 42nd Founders’ Day Lecture. Honestly speaking, I consider it a rare privilege and I am indeed very grateful for this gesture of goodwill from you to me.
1.0. The Concept of the Title
The lecture is entitled “Hard Times for These Times: The Think Factory Guide to Action”. We all know that the Nigerian Economy is in grave peril. The implication is that in these times, we are facing economic hardship – hard times – which tend to put our lives in serious peril. It is therefore timely for us to brainstorm and pull ourselves up by our bootstraps in order to power out of the current National Economic Recession. No doubt the Universities constitute a think tank –factory – comprising people who research into areas to find solutions to problems and come up with new ideas. It is indeed part of the objectives for setting up Universities. Consequently, for times like these, I mean the hard times in which we are, we need to fall back on our citadel of education to generate new
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ideas that would free us from the claws of Economic Depression and recession plaguing us as a nation at present. Such ideas emanating from experience, Research and Teaching, should be robust enough to help solve the grave economic problems we are beset with. I humbly feel that this lecture, as it’s entitled, is quite apt for these times of great hardship – Hard Times.
During Victorian era (1837–1901) in Britain, there was a similar period of economic hardship; economic cycle with a thorough and such economic situation motivated Charles Dickens to write a novel entitled “Hard Times”, the novel that was published in 1854. In the book it is said that those who cannot learn from history are doomed to repeat it; it’s a guide to navigation in perilous, hard times as these times. History proves nothing because it contains everything. It is a great dust heap. It appraises the past to enable us judge of the future.
1.1 Introduction:
1.1.1 Brief History of the University of Benin
On November 23, 1970, the Mid-West Institute of Technology (MIT) was founded. The Institute was situated at Ekehuan Road, in the very location of the present Ekehuan campus of the University of Benin. There were relatively few Universities in Nigeria at that time. With rapid growth in population, the then Bendel State Government recognized the need to establish a full-fledged University. Prior to this development, effort was made in 1967 to set up a University as a University campus of University of Ibadan, but it was frustrated by an act of God - the Nigerian civil war.
After the civil war, the then Midwest Government, led by Col. S.O. Ogbemudia, in March 1970, promulgated an edit establishing the Mid-West Institute of Technology (MIT) with three faculties namely: The Faculty of Medicine and Pharmacy, The Faculty of Science, and the Faculty of Engineering. The temporary site for the MIT was former Mariere College – a teacher training college. The Iyaro campus accommodated the Faculty of Science. The first Rector of MIT was
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Prof Glyn Philips (1970-1972). On July 1, 1971 the Midwest Institute of Technology was accorded the status of full-fledged University by the National University Commission (NUC). The University was established vide edict No. 3 of 1975 which took effect in December 1974. It may interest you to note that the first Dean of Faculty of Engineering was Prof. Smith. The first Dean of Faculty of Medicine was Prof Hardock; an Englishman and the first Dean of Faculty Science was Prof Wright, also an English man. More importantly, the first Vice-Chancellor of the University of Benin, Prof Kenneth Hill, was appointed in 1972. Further , Late Chief D.R Oduaran was the first Registrar of the University of Benin and the first Bursar was Mr G.A. Aghahowa of blessed memory.In 1973, the substantive Vice-Chancellor took ill and went home for treatment but died there. In his position, Prof. John Harris, the then Librarian, who hailed from New Zealand, was appointed as
the next Vice-Chancellor, being the most Senior Professor in the University at that time.
From the above, it is evident that November 23, 1970 was a Monumental Moment for the University of Benin; that the Institution had a humble beginning. It is particularly interesting to note that the oxygen of sustained academic research and excellence in teaching has really breathed life into the University, leading to turnover of graduates that are well fitted for the Nigerian economy. Sure, it’s in reminiscence of the experience of time long past that the Management and Council of the University of Benin resolved to establish the Founders’ Day on which occasion distinguished Alumni would always be called upon to give a lecture on a subject matter that echoes back the great transport of joy felt when the University was founded. As I give this lecture today, that historical defining moment that took place several years ago is being reenacted. The Vice-Chancellor sir, distinguished ladies and gentlemen, today marks 46 years of the existence of this great University. – the implication being that the University was established exactly November 23, 1970 albit as Mid-West
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Institute of Technology at the outset. In the 46 years of its existence, as it were, it is marking the 42nd Convocation anniversary. We and the generations yet unborn will ever commemorate the University of Benin Founders’ Day. It may interest you to know that I, Chris Ogiemwonyi, entered the University in 1970 as a pioneer student and left in 1974 with a Bachelor’s degree in Applied Physics. I am proud to say that I have applied the knowledge gained in this University to serve our nation in several capacities, culminating to being appointed a Minister of the Federal Republic of Nigeria. This happened after 34 years of meritorious service to the Federal Republic of Nigeria. I therefore encourage the graduands who will be convocating on Friday, November 25, 2016 to adhere strictly to the motto of the University – “Knowledge for Service” – in all their future endeavours so that they can help to remodel the Nigerian political economy. It is
a great responsibility you owe this University, your Alma Mater and to our great country, Nigeria. You all will be accountable for this onerous responsibility.
Clearly, the motto of the University of Benin – “Knowledge for Service” – should depict the character of our alumni.
In 1952, China enacted an educational policy to the effect that all courses taught in their Universities should find usefulness in their industries; otherwise such courses should be jettisoned. After about 50 years of its implementation, China has become the 2nd biggest global economy next to the United States of America.
Thus the Key Question Here is How Do We Translate Classroom Teaching to Deal with the Problems of Our Economy?
We are already neck deep in economic recession and still tethering on the brink of economic depression. We therefore need to follow a well, thought-out educational policy that will foster a total departure from excessive emphasis on memorizing and cramming. The situation on the ground calls for thinking outside the box as the NUC Secretary advised in a colloquim held on Tuesday,
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November 1, 2016. Consequently, the solutions to the “Hard Times for These Times” lies in the synergy among the Think Tank [University], and the Government, and the business communities in the country.
By and large, the economy is adrift, whirling through recession towards the brink of depression even without our full realization. One of the key indicators of depression is lingering unemployment and steady decline in real Gross Domestic Product (GDP).
1.1.2 What is Recession?
Recession is defined as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Again, recession has been defined by Oxford Dictionary as “a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters’’. It is generally an economic decline and is typically accompanied by a drop in the stock market, increase in unemployment rate, and a decline in the domestic market. Recession can also be viewed as an economic decline in Gross Domestic Product (GDP) for two or more consecutive quarters. GDP is the market value of all goods and services produced within a country in a given period of time.
In economics, a recession is a negative growth for two consecutive quarters. It’s also a business cycle contraction which results in a general slowdown in economic activity. Macroeconomic indicators for recession negatively affect GDP, investment spending, capacity utilization, household income, business profits; and generally result in high inflation, increased unemployment rate, and so forth.
1.1.3 Types of Recession:
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Four types have been identified which include:
1. Boom and Bust Recession
This kind is often preceded by previous economic boom. It’s short-lived most times.
2. Balance Sheet Recession
This sort is often characterized by profound decline in balance sheets arising from firm’s assets and poor liquidity. It often lasts for a long time.
3. Depression
This variety is a prolonged and deep recession. It is characterized by very sharp fall in output and high rate of unemployment.
4. Supply or Demand Side Shocks
This category is frequently marked by sudden rise or fall in commodity prices e.g. crude oil can cause this type of recession. In the Nigeria’s case, we are
experiencing sudden low revenue. In addition there has been shortage in supply of oil due to the activities of the Niger Delta Avengers (NDA).Again, a country is said to be in recession when there is 1.5-2% points rise in unemployment within 12 months. No doubt, Nigeria’s unemployment indicator has exceeded this mark.
2.0 Nigerian Political Economy Nigeria is a middle income, partially mixed economy and emerging market, with potentials to expand in finance, service, communications, technology and entertainment sectors. It is ranked as the 21st largest economy in the world in terms of nominal GDP, and about the 20th largest in terms of Purchasing Power Parity. Last year, it was the largest economy in Africa. The Nigerian economy has been adversely affected by external shocks, particularly in the fall of global price of crude oil. Growth slowed down sharply from 6.2% in 2014 to an estimated 3.0% in 2015. Also, Inflation increased from 7.8% to an estimated 9.0%. The sluggish growth is mainly attributed to a slowdown in economic activity which has been adversely impacted by the inadequate supply of foreign exchange and aggravated by the foreign exchange restrictions targeted at a list of 41 imports, some of which are inputs for manufacturing and agro-industry.
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The 2016 Nigerian economic outlook shows very slow economic recovery as some of the reforms newly implemented begin to take effect and measures are being put in place in order to boost the economy. One of such measures include increased spending on infrastructure. Some specific reforms pursued by the new administration to lay a foundation for renewed growth are commendable; some of the key reforms include: 1. enforcement of the Single Treasury Account to block financial leakages. 2. the rationalization of the public sector in order to cut the cost of governance; 3. enforcement of tax compliance; and 4. preparation for zero-budgeting that started in 2016; and increasing the ratio of capital to recurrent expenditure. Security remains another major challenge, especially in the North east part of the country and the Niger Delta area. While the military has stepped up the fight against the Boko Haram insurgency, the humanitarian situation has continued to deteriorate. The number of internally displaced persons is estimated at over 2 million. Concerted efforts have been made by the Government and concerned international bodies have continued to explore additional ways of improving the situation in all affected areas. As it were, some of these measures are good in themselves but they appear to be type of crisis management introduced when we are already in recession. We should look forward to preventive measures as soon as we come out of the present recession. Factors that caused Recession in Nigeria. Various factors may give rise to recession. They can be enumerated as follows: 1. Poor leadership (Inability of the previous administration to save). 2. Oil price drop 3. Nigeria’s over-dependence on foreign products. 4. Corruption 5. Mono –economy ( over dependency on Oil and Gas) 6. The activities of militants and pipeline vandals 7. Unstable monetary policies 8. Unemployment I will briefly discuss them one after another.
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1. Poor Leadership:
Good leadership entails ensuring that the existing structures within the Government Agencies and Parastatals are adequately well equipped. Empowering as well as building such institution within the system and not within individuals.
Having a prudent financial and saving culture. This is most eminent in terms of Nigeria’s foreign reserve which has been poorly depleted over the past years especially. 2. Oil price drop: The dwindling oil price in the international market over the past few years have caused panic all over the world. At one point this price fell by more than 70 percent compared with June 2014 levels (when it was at $160 per barrel). Although Prices have recovered a few times since the last year, and now appear to be bound by a range of $40 to $50 a barrel. It caused a lot of economic imbalance in the Nigerian economy which is currently a Mono- Economy since Nigeria depends mainly on revenue from petroleum for her Economy sustainance. 3. Nigeria’s Over-Dependence on Foreign Products: Nigeria’s over dependency mostly on imported goods and services for survival has direct negative impact on its economy. We also observed that Nigeria rarely exports even primary unfinished products, solid minerals, agricultural products; but largely imports most finished goods. However, the ideal thing is to export processed products. These lopsided foreign trades have a lot of negative effects on the Nigeria economy, which include: i. increase in unemployment. ii. Widening of disparity between our current and those of advanced economies. iii. growing national debts. iv. over dependence on foreign markets, and technical known- how. 4. Corruption:
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The need to be accountable to the responsibilities assigned to government officials, political appointees, public and civil servants which require that they follow due diligence in managing our funds, rather than siphoning the funds for individual benefits has been brazenly disregarded. Incidentally, these corrupt practices ruined the economy. 5. Mono –Economy (Over Dependency on Oil and Gas): The discovery of Oil led to the neglect of other economic products. Various successive administrations since 1960 have been relying on this product, to which they pay much attention at the expense of other natural resources. Agriculture that used to be the main stay of the nation’s economy before the discovery of petroleum was relegated to the background and has been unable, to date, regain its lost glory even with several programmes initiated by some of the past Administrations.
Other areas that require urgent attention includes: 1. Solid Minerals 2. Power 3. Infrastructures
As a matter of fact, there is an urgent need for the Federal Government to begin looking into diversification of various sectors of the economy so as to attain solid economic growth. The fallen price of crude at the world market has orchestrated the devaluation of the Naira and given rise to increased inflation. 6. The Activities of Militants and Pipeline Vandals. Pipe line vandalization by militants has led adverse effects on daily oil production. It also caused production downtime because damaged pipelines and facilities have to be fixed up or repaired. There is also the problem of breach or poor implementation of agreements between Oil companies and their host communities. These international Oil companies (IOCs) entered into memorandum of understanding (MoU) with host communities as part of corporate social responsibilities on their side. These MoU’s cover policies on employment, students scholarship, skill acquisition programmes, provision of basic amenities such as: roads, water, electricity , schools, clinics, markets, training, and empowerment programmes for farmers. 7. Unstable Monetary Policies:
The Central Bank of Nigeria should provide condusive monetary policy that will attract both domestic and foreign investors. Polices that would ensure that genuine manufacturers can easily access foreign exchange; and encourage others
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to source raw materials locally.
Nigeria can only come out of the recession if the Naira is truly devalued, and there is no longer dependency on the Bureau de Change (BDC). 8. Unemployment: Unemployment contributes sparingly to the economy because unemployed persons spend less. Consequently, making the government to borrow more money because of low revenues and high spending. Rise in unemployment rates correlates highly with increase in crime rate, poor living standards and suchlike.
3.0 Strategies for Triumphing over the Hard Times. The fact that the Nigerian Economy has collapsed is no longer news but the news is how to revive this ailing economy. The Federal Government needs to urgently implement a combination of short, medium and long-term solutions to reflate the economy because the current harsh ship has caused so much hunger and anger in our country and the prompt nature of these solutions are very key. Short Term Economic Solutions.
1. Conflict Resolution: As it is commonly said, in the absence of peace there can’t be any meaningful form of development. The Federal Government should as a matter of urgency intensify her dialogue with people of the Niger Delta region using the Governors as the arrow heads.
2. Government Borrowing: Support Government borrowing effort with a proviso that borrowed funds be tied to Economic Developments via viable projects that would yield Long Term cash inflow to the Nation’s economy. Medium Term Economic Solutions.
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1. The medium term solution should be targeted towards growing the economy by diversifying products that meet international standards so that they can be stable in international markets. In so doing, there must be intervention funds to entrepreneurs while the fund must be well monitored to avoid the kind of ailing scenarios we have experienced in the past. Diversification of the economy is a necessity if we must experience economic revamping. When the economy is diversified, Nigeria’s growth will no longer be determined by the prices of crude oil. The frail nature of the Nigerian economy can be attributed to its being petroleum based. The instance the global oil price plummets, the economy of Nigeria begins to wobble. This nub can be corrected by the development of other sectors.
2. Encourage the export of Nigerian products and strengthen the manufacturing sector, this will not only create employment for the unemployed but will also go a long way in helping the economy.
3. Encouraging acquisition of skills will go a long way in solving Nigerians unemployment challenge. Both the government and the individuals should work hand in hand to reduce unemployment. Another alternative to solving unemployment issue in Nigeria is through self-actualization. Embracing the
opportunities offered by the internet is a welcomed idea in solving Nigerians unemployment challenges. Long Term Economic Solutions: This should border on how policy and investment environment can encourage investors noting that though the present economic situation is gloomy it is believed that things will work well if we all can make sacrifice, reduce cost of governance to enhance development. What we need to do by way of moving our Nation forward comprises the following: 1. Strong institutions: The biggest problem that bedeviled our economy is corruption and one of the ways to tackle corruption is by putting in place strong institutions that will ensure proper implementation and interpretation of our laws. 2. Devaluation of the Naira: Why is there a black market BDC in Nigeria? Why does the country have two dollar rates? This is supervised corruption and main reason why the Naira remains in free and turbulent fall. Central Bank continues to play games with Nigeria, refusing to fully devalue the Naira. A rate duplicity is maintained with the current interbank dollar rate at N305 while the parallel market sells this at N425. This dual rate is corruption and set up to favour
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the cabal who have been dashed billions of dollars via CBN subsidized dollar sales. The dual rate also maintains a competition for dollars which hikes the price at the parallel market with rebound effects on the interbank rate. Nigeria can only come out of the recession if the Naira is truly devalued, and there is no longer pressure on the Bureau de Change (BDC).
3. Reduce security vote: It must be mentioned that waste must be cut in the government. The security vote must be reduced both at the federal level and at state levels.
4. Scrap Import Ban List, Open the Market
The CBN’s import ban list has been described as impartial to the economy. The import ban lists have always been set up in Nigeria’s history to promote the monopolies.
4.0 Some Imperatives.
In what follows, I outline and briefly examine the imperatives
4.0 Some Imperatives.
In what follows, I outline and briefly examine the imperatives for revamping the economy.
1. Promote “Made In Nigeria” Goods
There are reasons why Nigerians do not patronize made in Nigeria goods. These include reliability. The Federal government must update the standardization boards. All manufactured goods must have warranties that are enforced, with customers being 100% protected by the government.
2. Strengthen and Decentralize The Police
Insecurity has cost Nigeria billions of naira in economic loses from the northeast, now a humanitarian catastrophe and a drain to the economy, and continues to do so in the Niger Delta. The fastest and best solution to the continuous breakdown of law and order is stronger and local police. The establishment of Local Police Force is becoming an imperative.
3. Re- define a Vision for Nigeria
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I do not know the vision of Nigeria so far and one wonders if the current government has one. What does Nigeria want to be? We know the vision of Dubai and Dubai took itself there. Does Nigeria want to become a tourist center? Does Nigeria want to become the West and Central Africa central manufacturing capital? Does Nigeria wish to become the food basket of Africa? Does Nigeria wish to become the information technology capital in the world? Or does Nigeria wish to become a combination of these or some of them and others.
4. Niger Delta and the Way Forward
Various avenues and platforms have been put in place to develop oil producing communities and the region. Such measures include the establishment of the Niger Delta Development Commission (NDDC), which has its headquarters in Port Harcourt, the Ministry of Niger Delta Affairs, 13% oil derivation fund paid monthly to oil producing states, social corporate responsibilities to host communities by Oil Companies, and the Niger Delta Amnesty Programme. These intervention platforms have done little to address the economic and developmental challenges of the region. Consequently, it is important that the following measures be adopted:
a) the Federal Government should put an action plan in place to address the problems of environmental pollution and gas flaring in the region;
b) the Federal, States, and Local government councils in the region should site viable and meaningful infrastructural projects in oil producing areas and the region. This will help address the anger the people have towards the government;
c) the Federal Government should work out a political solution to increase the current 13% oil derivation fund;
d) the Federal Government should vigorously pursue its economic diversification efforts;
e) The NDDC, Ministry of Niger Delta Affairs, and the Niger Delta Amnesty programmes should be repositioned to fulfill their mandate. Corruption should be eliminated from their operations;
f) the 13% oil derivation fund should be judiciously used by the state governments to bring meaningful development to oil producing areas of the states’ and
g) Oil Companies should be alive to their social corporate responsibilities in their host communities, MOU'S should be properly implemented. Host
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community leaders should put their people's interest above personal financial gains, they should work for the implementation of signed MOU' S.
5. War on Corruption.
The establishment of the Independent Corrupt Practices and other
Related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC) as well as the Code of Conduct Bureau and its Tribunal is a laudable start on the war against corruption.
Indeed, an effective war on corrupt Economic Policies has to be fought on, at least, the three axes of:
(a) Prevention,
(b) Detection, and
(c) Sanctions and Restitutions.
A law compelling all banks to report to both the appropriate Federal and State Boards of Inland Revenue/Tax Authorities, as well as the law enforcement agencies any deposits, transfers or withdrawals of funds in excess of a specified amount (e.g. N5 million) by any individual. Such a law should provide for the automatic State confiscation if it turns out that the sources of such funds are proved in a court of law to be illegitimate or are connected with illicit money laundering.
All schools should return to the teaching of moral education to instill in our children the spirit of stewardship, while adults live exemplary lives, reflecting truth, kindness, dignity of labour, and integrity. Furthermore, our education institutions should include in their curriculum courses that would enhance Financial Education and Financial IQ Growth and Development
6. Role of our High Institutions:
High institutions should establish consulting units managed by outstanding professors cum professionals. Universities/Polytechnics should aspire to changing lives through the opportunities that they provide and the knowledge they produce. They must be empowered to providing access to everyone with the ability to benefit from a higher education, regardless of their background or means. There must be collaboration between our Academic Institutions, Private and Public Institutions in order to ensure Effective Knowledge Transfer to uprising future generation.
7. Provision of Infrastructure: The government should as a matter of urgency prioritize the provision of infrastructure i.e. be very concerned with infrastructure that will generate mass employment and job opportunities.
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Examples are power, construction of roads, railways, and housing and finally stable electricity in the country.
8. Leadership: The previous federal Government was weak and the MDA’s displayed high level of opaqueness. For the economy to wake up we need strong leadership in the various arms of Government- Executive, legislative and Judiciary.
9. Low crude oil price and Low oil Production output : These two factors contributed significantly to where we are today.
10. Huge appetite for foreign products: This unfettered appetite for foreign products is a huge drain on our foreign reserves. We need to quickly grow local substitutes
5.0 Recommendations
Given the high level of economic hardship being currently experienced, the University and other institutions need stimulus policy that would revive the system and reposition the nation back to its status as it was 16 months ago. It should be noted that the fall in oil price and production are not the only cause of Nigeria economic recession. Yes! Oil only account for 15% of Nigeria GDP. An economic recession is measured on the basis of GDP growth.
There are other external factors to be taken into consideration:
1. We must start building bridges between the academia and the relevant sectors of our economy. Synergizing our high institutions and the government and non-Government sectors is vital to our economic development.
2. Government overdependence on foreign consultants should be reduced. To begin with, we should encourage Nigerian consultants to have joint venture relationship with foreign consulting firms. The period for JV relationships should be defined. It should not exceed 3-5 years.
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3. One major factor that caused our “Hard Times” is corruption. Are we on track or is it still growing?
4. Crude price: Fall in price of crude oil has caused a decline in oil revenue. As a holistic approach, there is need to summon courage to do the needful by passing the petroleum Industry Bill (PIB).
5. Judiciary: our judiciary, like the other segments is sick. May God help us out. Is the sting operation a wakeup call?
6. Diversion of Nigerian economy. The ill of the single economy is a lesson. We must grow other sectors.
7. Looted funds: a special account to be established. Today there is no transparency in what is being returned and who has returned. There is so much secrecy.
8. On budget consideration, we should strive to have more on capital than re-current. Move from 20%/80% capital /recurrent to 40%/60% and eventually 80% CAPEX and 20% OPEX.
9. Put in place and ensure implementation of better Macro-Economic policies.
10. Ensure transparency & Accountability in both public and private sector of the economy.
11. Government agencies that are potential cash cows should be properly funded and more effectively managed.
12. Sales of national assets should be discouraged.
13. Reduce cost of governance in all ties of government.
14. .Curb our unfettered spending on unnecessary programmes and initiatives that are being funded by the use of foreign loans.
15. Check the excesses of economic predators trying to buy up government economic assets.
16. Create employment for our disenchanted youths and graduates.
17. Make refineries to work in full capacity.
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18. Improve our tax collection system as obtained in developed countries .
19. Encourage and promote export oriented businesses.
20. Reduce Security Vote.
21. Get the right minded individuals to manage key areas of our economy.
22. Promote made in Nigeria goods.
23. That NDDC should be under the Ministry of Niger Delta for effectiveness.
CONCLUSION
Our Nation like most nations in the world, have experienced, or are also experiencing recession. This is not the first time we are faced with this kind of monumental challenges. Winners don’t quit and Quitters don’t win. We need to apply wisdom and come together as a nation to focus and develop appropriate strategies to reposition the economy on sustainable path of economic recovery and growth.
6.0 Bibliography
1. Shi’skin, Julius (1 December 1974) the Changing Business Cycle
2. What is the difference between recession and a depression. Saul Eslake Nov.2008
3. Kesselman, Mark, et al
Introduction to Comparative Politics. Houghton Mifflin Company Boston 2004
4. Olson, Mancur. Power and Prosperity. Basic Books: New York 2000
5. H. Craig Petersen and W. Cris Lewis, economics, South-Western Publishing Co. 1988, P.99-109
6. Foucault, M (1991), Governmentality, trans. Rosi Braidotti and revised by Colin Gordon, in Graham Burchell, Collin Gordon and Peter Miller (edj), The Faocault Effect: studies in Governmentality, pp87-104.
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Oyegun’s Traducers Are Plotting Against Buhari In 2019 –Ogiemwonyi

— Nov 24, 2016 Chris Ogiemwonyi is a chieftain of the ruling All Progressives Congress (APC). The seasoned Engineer retired after 34 meritorious years as Group Executive Director of the NNPC. The politician who contested the Edo APC Governorship ticket broke his silence on many national issues in this interview with PATRICK OCHOGA
You participated in the Edo June 18th, 2016 Governorship primaries.What lesson did you draw from it?
The Edo Primary of June 18 th has come and gone and I have since returned to my Oil and Gas consulting business. Talking about lessons learnt from the primaries, one thing was very prominent and that was the role played by a seating governor and I have since realized that the seating governor has an overwhelming influence on who succeed him. He has about 60% role influence. Secondly, looking at the various primaries within and outside Edo State, I can see the high level of opaqueness, that is, the more you look the less you see. There is a mind-set of who will win the primaries from the onset and that is why today people are clamouring for an Independent candidacy and I pray that our politics will evolve to that level so that people who have the capacity can come out as an independent candidate.

Like you said earlier, the primary election has come and gone. What should be the focus for the new governor, Obaseki as a stakeholder in the Edo project?
It will be difficult to talk about the new government that is barely two weeks; the only thing one can say is to wish the governor good luck, and a good tenure. To access the state therefore is to look at what is on ground today, we must look at the last eight years of Adams Oshiomhole, in doing this we look at the various projects he embarked upon, including the Red Roof schools, the Benin Water Storm project, Roads etc. But I strongly feel that it is not sufficient for a state that is so endowed like Edo state, one had expected that wealth and job creation, industrialization, sports, Agriculture, solid minerals exploitation etc will be given much attention but today we don’t have much of those. Youth unemployment is very high, hunger is everywhere. During my campaign, I visited Afuze for example and what I saw there was pitiable.  Again, another issue about the previous government was that most of the big projects were hardly advertised. I come from an industry where we believe in value for money (audit), big contracts are usually advertised. But in Edo State, am told contracts are hardly advertised, cost of projects are hardly disclosed and these are some of the things bothering the minds of Edo people. The issue of education is very pertinent, I have heard the opposition saying we have only five Physics teachers, 10 Chemistry teachers in Edo state. What is more important is not the frame but the content; no matter the numbers of Red Roof buildings what is important is the content. So in that situation students can do well. We believe that these are areas Godwin Obaseki will address and I have no doubt at all that Godwin will do a better job, realizing his noble family background and the industry he is coming from.He is well read, we hope the ills of the previous governor will be on the front burner in the Obaseki’s administration.

Some of your party leaders opposed to the National Chairman of the APC, Chief John Odigie Oyegun are calling for his resignation. What is your take?
You will recall when I joined APC in November 20, 2014, I said two individuals caused me to join the party. The two being Gen. Buhari and Chief John Oyegun for their respective individual characters. Chief John Odigie – Oyegun has been a first all his life. A brilliant and principled public servant, he is well read, an economist from a premier university who spent all his years in the public service. A man who at the tender age of 36 rose to the position of Permanent Secretary at the Federal level, taking charge of key Federal Ministries. He challenged the money bags in the then Edo State and their collaborators in Abuja to become the first Executive Governor of Edo State. This is a man who could have clinched key Ministerial position in Gen Abacha’s government but instead opted out as NADECO Secretary in exile. For 16 years that PDP was in power, Chief John Oyegun was wooed and cajoled to join “the biggest party in Africa” but he refused to bulge and abandon his progressive position in partisan politics. So having Oyegun as the national chairman of APC is a blessing, I don’t know what Nigerians want; we have this ‘pull him down syndrome’. Who are the people calling for his removal? They are some over ambitious APC chieftains; some of them are not well read. Oyegun is a quiet and amiable gentleman with capacity to work. The Nigeria media must not join these people in flying kites; some of them have resorted to all sort of propaganda so that Mr President will take action against Chief Oyegun. We urge President Buhari and APC as a party to be weary of these overzealous politicians that want to destroy the APC. What they are doing today is not really aimed at Oyegun, rather they are throwing stones at Mr President and that is because before they get to Mr President they want to get Oyegun out of the way, they see him as a buffer for Mr President and ultimately for 2019. We are barely two years into the Buhari-led administration and they are already fighting ahead of 2019. Their desire is to discredit Oyegun so that their plot against Mr President can work, so it is not Oyegun after all they are fighting but President Buhari.

There is pressure on President Buhari to reshuffle his cabinet over alleged non-performance. How do you respond to this?
Nigerians are too much in a hurry, asking Mr President to remove a minister that has served just less than 18 months is unfair. When I was Group Executive Director in the NNPC, I went for a meeting with the Algerians, little did I know that the Algerian minister had a Ph.D in Gas Engineering and his been there for 12 years, he became an authority when you talk about gas but we don’t do that in Nigeria. You put a man in office and under one year people start fighting to remove him. For me, Mr President has a good team, my advice is to realign their portfolios. Today, people are talking about many lawyers in his cabinet, what Mr President should do is to look for core professionals and move them to their related ministries, that is square peg in square hole. People are speculating that Oshiomhiole is coming in; he definitely can do well as labour minister considering the fact that he was once a strong unionist as NLC President. People should be appointed in such a way that they can add value. Look at the two ministers of Health being core medical personnel. So, Mr President can look inward and see how he can rejig and realign ministers to ministries related to their fields of study.

What are your perspectives on the economic recession and possible way out?
Truly, we are in a recession caused by several factors. Firstly, was poor leadership by the previous government; Oil price drop, Nigeria’s over-dependence on foreign products, corruption, mono –economy (over dependency on Oil and Gas), the activities of militants and pipeline vandals, unstable monetary policies, unemployment are all contributing factors. Corruption grew like an oak tree and we allowed it to grow. Today, we import all kind of things into the country including tooth picks. Now, the question is how do we come out of it? On a short term, I recommend to Mr President that we should quickly resolve the Niger Delta issue. Recently, some Niger Delta leaders met with Mr President but I want to differ because I feel the governors should be the arrow head of such meeting because they know the people.
Secondly, what we need to do by way of moving our nation forward comprises the following: By putting in place strong institutions that will ensure proper implementation and interpretation of our laws, it must be mentioned that waste must be cut in the government. The security vote must be reduced both at the federal level and at state levels, promote “Made in Nigeria” goods; we should encourage new businesses by lowering our interest rates, tackle job creation through agriculture and solid mineral development. We must as a matter of urgency encourage all tiers of government to embark on road construction to ease transportation of goods and services.
On the medium and long term, the rail way sector should be developed.
Do you subscribed to the sales of our National Asset as part of solutions in tackling the current recession?
We hear people talk about selling of nation asset and people are pointing at NLNG, am completely opposed to the sale of our asset, there are alternatives. If you look at the NLNG model today is a 51% IOC and 49% Federal Government Joint Ventures. Instead of just selling my take is that government should go and borrow with good interest rates. Borrowing is not bad but it should be well utilized. This is where good leadership with clear vision comes in. And that is why we are lucky with President Buhari and his zero tolerance to corruption. With President Buhari we can borrow, and tie the funds to capital projects.
What is your view on the anti-corruption war of President Buhari?
There is corruption everywhere, even the cook you send to the market, driver you send to buy fuel are all corrupt. We allowed it to grow to a cancerous stage; we just have to quickly strengthen the security agencies especially the EFCC. I have also heard that people are saying it is one-sided and only targeted at the opposition. Look at cases of the Judges, corruption has eaten into the very fabric of our nation, today, the EFCC is not doing badly, if I have my ways I will expand EFCC to be like a ministry and as such have EFCC Czar in all the States just like we have Commissioners of Police, we just have to expand it, the cases before the commission are too many. The Judiciary again is not helping matters; I think there should be legislation where no case will exceed 6 months. And the EFFC boss Mr Magu should be confirmed to immediately give him confidence.
Having spent 34 meritorious years at the NNPC how will you described the reform in that sector under the NNPC Boss, Maikanti Baru?
Once the leadership is properly placed, the tendency is that the Company will run well. I must commend Mr President for appointing Dr Baru, He is a fantastic Engineer, courageous and fearless, he went through the various sectors of NNPC unblemished. Many of the issue confronting NNPC, like the restructuring, the PIB, JV funding, With Baru we can go to sleep, I see a better NNPC under him; For once, this is a round peg in round hole. I will urge government to do is to support him and allow NNPC to run as a business outfit. The only issue we are yet to address now is the refineries; government should also have the will power to do a complete deregulation in the downstream, once we do that the issue of fraud and corruption in the downstream could be eliminated. I also think that we should start having local refineries because if you see what we are doing, we take crude out and refine in some neighbouring West African Countries which are brought back as refine products, we need to put in place modular refineries just as it was done in Niger Republic.

Leadership