Monday, 3 September 2012

World Bank, EU, others worry about power reform.


By .
Nnaji Nnaji
 
The World Bank and other international partners are worried  that Nigeria’s power reform programme may collapse, following last week’s sudden exit of Minister  Barth Nnaji.
Prof. Nnaji was forced to quit as a result of his alleged conflict of interest in the ongoing privatisation of the successor companies to the dissolved Power Holding Company of Nigeria (PHCN).
President Goodluck Jonathan said in Onitsha last Thursday that Nnaji “is a seasoned professional” who is “very competent” and who has “not committed any offence”, but he had to go because he had interests in the ongoing privatisation.
At the weekend, officials of the World Bank, the United Nations International Development Organisation (UNIDO), the European Union (EU) and others met with Minister of State for Power Mr. Darius Ishaku to express their worry about the government’s power programme. 
The UNIDO Country Representative, Dr. Patrick Kormawa, who led others to the ministry, said: UNIDO has been working in concert with other agencies for rural electrification in the country, especially in the renewable energy sector.
The EU Head of Cooperation, Mr. P. Philippe, said “when Brussels (the EU headquarters), got the news, it was alarmed and feared for the continuity of the reforms in the sector,” said. 
The UNIDO Country Representative added: “We have no choice than to continue our support even though we were disappointed at the recent event.”
The partners also sought to know how far the privatisation process had gone and whether Nigeria was still committed to the timeline. 
The World Bank representative, Mr. Erik Feinstiom said he was at the last power summit in Asaba, the Delta State capital, which was presided over by Prof. Nnaji, and were not left in any doubt about the former minister’s focus, passion and direction. 
A statement by a power ministry official Mr. Greyne Anosike, quoted another member of the delegation as saying allowing Prof. Nnaji to go the way he did, is certainly a setback adding that the issue was wrongly handled.
The statement added that Minister of state for Ishaku assured the development partners that the power reform programme was on course. 
Ishaku said: “we are part of the immense institutions Prof Bart Nnaji had made and the structures he put on place. He took us along all the way.
“I want to assure you and reassure you that this government will continue to build on and nurture all the institutions he had put in place”.
“Privatisation is ongoing with all the timelines. Continue to give us all your usual maximum support as we have no choice but to continue from where he stopped”.
On the discussion with labour officials, the Minister said: “we have moved beyond the Nigerian Union of Electricity Employees (NUEE), Ministry of Power and Ministry of Labour level right now. The matter is being handled at the highest level with the Trade Union Congress (TUC), the Nigeria Labour Congress (NLC) and the Secretary to the Government of the Federation working at resolving the remaining one or two issues.
“The Federal Government cannot break its own laws but would continue to bend backwards as it has continued to do in the past, to the workers in the sector.
The focus now is the 100 days mandate. Advise us, give us assistance, nothing will change” Ishaku assured the delegation.
At the meeting were representatives of DFID, JICA, AFD, EU, World Bank AFDB, GIT, UNIDO, UNDP, USAID, among others.

Police Reform: Is The Ministry Of Police Affairs The Scapegoat?


The long awaited Police Reform report submitted to President Goodluck by the Chairman of the committee, Mr Parry Osayande, recommended that the Ministry of Police Affairs should be totally scrapped based on alleged sheer corruption and non-performance. GABRIEL EWEPU takes a critical look at the implications of this recommendation.
The police reform report submitted recently by the chairman of the Presidential Committee on police reforms, Mr Parry Osayande to President Goodluck Jonathan made salient recommendations in their findings.
A part of the recommendations made by committee was the total scrapping of the Ministry Of Police Affairs, alleging it to be an ivory tower of corruption built over the years which has also permeated into the Nigerian Police Force, whereby the rank and file are not performing to their duty as expected by Nigerians despite the huge funds channeled into the ministry. This has made the committee to call for its total scrapping.
Part of its recommendation reads, “The budgeted fund of the police is unjustifiably domiciled with the Ministry Of Police Affairs.  The result is that some of the projects being executed are not priorities to the police.  This is an aberration which has led to abuse, misapplication and haemorrhage of the limited resources made available to the police.
“The ministry determines police project and award contracts, including organising and running training programmes involving billions of naira with no input from the police who are the end users.”
The recommendation by the committee on the Ministry   Of Police Affairs to be totally scrapped is not in the interest of Nigerians in general.  It is quite understanding that corruption reigns supreme in the ministry as far as funding and equipping the police is concerned. However, calling for its total scrapping is not a panacea to the corruption that has corroded the ministry and the police, because all ministries, departments and agencies in Nigeria are deep-rooted in corruption, and why should the Ministry Of Police Affairs be the scapegoat as recommended by Osayande and his committee members?
It is pertinent to state that the reasons given by the committee in their recommendation to scrap the ministry is not convincing enough, rather it triggers questions and suspicions other than solutions as the committee thought that their recommendation would come to the rescue of the comatose police force.
The recommendation also fails to consider that throwing away the baby and the bath water is doing more harm than good. Critically examining the case the committee is making for its scrapping, the implication that would follow will worsen the remedy the committee is trying to proffer. This is because, many employees will be thrown into the labour market and the affected families will be frustrated with hardship.
Other aftereffects of the dissolution of the police affairs ministry are the sudden unemployment of its staff will cause many of their families to live in poverty and this might cause their children to drop out of school. The health implications that the recommendation will cause could be fatal; many employees could develop high blood pressure, stroke, mental disorder and illnesses caused by poor nutrition.
The social implication is that many employees will not be able to pay their house rent and other bills, thereby they will be thrown of their homes. While others would not be able to pay their loans owed the banks, of which failure to pay will lead to confiscation of their property. Many dependants will be affected.
Scrapping the ministry of police affairs will not succour the police; rather there should be recommendations for the repositioning of the ministry and investigating and dealing decisively with those involved in the corruption, whether serving or retired officers. The role of the ministry should be critically examined to revaluate its purpose, performance and productivity. And also funds should be given directly to the police, but it should be accountable to the ministry of police affairs.
The committee set by President Jonathan to look into the report of the Osayande committee should make its recommendation holistic and rational especially on the issue of scrapping the ministry of police affairs.

North tackles Yoruba leaders on autonomy.

BY CLIFFORD NDUJIHE, SONI DANIEL & HENRY UMORU
… We agree with S-West on six regions — Ohanaeze scribe
LAGOS—NORTHERN leaders, Sunday, spurned Yoruba leaders’ agitation for regional autonomy and a return to the parliamentary system of government, describing the clamour as a recipe for Nigeria’s disintegration.
Yoruba elders under  the banner of Yoruba National Assembly, YNA, had after a meeting in Ibadan last Thursday, canvassed a return to the parliamentary system of government and granting of regional autonomy to the South-West.
They also called for removal of the immunity clause for criminal offences; a new Nigeria consisting of a federal government and six regional governments (based on the current six geo-political zones) operating federal and regional constitutions, respectively; and adoption of Regional and State Police force structure among others.
But responding to the development, some prominent northern leaders, who spoke exclusively to Vanguard, kicked against YNA’s call, saying that the agitation would plunge the nation into incalculable crises and hasten her break-up.
However, Secretary-General of Ohanaeze Ndigbo, Chief Nduka Eya, said the demands of the Yoruba leaders were in tandem with the position of Ndigbo, which had been sent to the National Assembly for inclusion in the on-going constitution amendment exercise.
Former Kaduna State Governor, Alhaji Lawal Kaita, said the call for regional autonomy and a return to parliamentary system of government was self-serving and had the semblance of secession.
Kaita said: “I do not really understand what they mean by regional autonomy. They should be bold enough to say that they do not want to be part of Nigeria any longer and stop talking about what does not make sense anymore in the country.
No longer ideal — Kaita
“Regional autonomy and parliamentary system of government can no longer serve a complex society like Nigeria and our founding fathers were wise enough to jettison the system and adopt the present Presidential system, which to all intent and purposes, remains the best for a country like ours,” he noted.
According to the founding member of the Peoples Democratic Party, PDP, neither the granting of autonomy to any region in the country nor a return to parliamentary system of government would solve the socio-political problems of the nation.
Kaita said that all that was needed to make the presidential system more useful was to strengthen the institutions of government to serve the citizens better and reposition the country as a strong, united nation in the world.
Gen. Mohammed Buhari discussing with National Leader of ACN, Bola Tinubu at a meeting in Abuja
Adding his voice to the debate, National Secretary of the Congress for Progressive Change, CPC, Buba Galadima, described any call for regional autonomy as an invitation to the dissolution of the country.
“If they make the mistake to allow the kind of regional autonomy requested by the Yoruba, it is a recipe for the country’s disintegration because of the kind of politics being played in Nigeria. Our political immaturity would lead to dismembering the country as soon as any region is granted autonomy,” the politician noted.
Galadima warned that the country could disintegrate if urgent steps were not taken to address the growing sense of injustice and marginalisation of sections of the country by the government.
He maintained that demands for autonomy and other issues were borne out of perceived injustice and inability of the administration to provide the basic needs of the people.
It’s retrogressive — Haliru Mohammed
In his submission, immediate past Minister of Defence, Dr. Bello Haliru Mohammed described calls for a return to regional structure as retrogressive.
According to him, states replaced the regions because of demands by ethnic nationalities for self-determination, adding that a u-turn to the old structure would be a repeat of the scenario where major ethnic groups like Hausa, Yoruba and Igbo were in total control of the regions and marginalised other groups.
The former Acting National Chairman of the PDP said rather than advocate regionalism what was required of the country now was to sit down and work out the modus operandi of our federation to accommodate all the ethnic diversities without any section feeling dominated.
His words: “Going back to regional structure is going to be retrogressive because states were created because of the demand by ethnic nationalities for self determination. To go back to regional structure where the major ethnic groups like Hausa, Yoruba, Igbo were in complete control of the regions is dangerous.
“General Yakubu Gowon responded to the demands of the minority groups and created states to allow for some level of self-determination for ethnic nationalities. Going back will make major ethnic groups to continue to dominate the minorities. Now, there is some level of equality between the nationalities regardless of the number and size.
“What Nigeria needs now is to sit down and work out our modus operandi of a federation that would accommodate all our ethnic diversities without one section feeling a sense of domination by others. Federating units should be different ethnic nationalities as we have in states. If there is need for creation of more states like in the case of South-East and also to break some of the larger and more populated states in the North and South, that can be accommodated rather than going back to regions.”
However, a former Senator from Kano State, Usman Kabiru Umar, stated that he would support any political restructuring that would bring about a strong, united and progressive Nigeria, where every citizen would have a sense of belonging. “Now, if they say that autonomy and return to parliamentarism would guarantee the promotion of peace, development and a united Nigeria, so be it,”
Indeed, Eya, who spoke in his personal capacity as a public commentator, said the South-West clamour for six regions was sound.
“Before the Presidential system was introduced, we had four regions. The North accepted the regions and we had Parliamentary system. The presidential system is very expensive; if we continue with it, we will soon go bankrupt. The parliamentary system worked for us. Then, if you did not win an election you cannot become a minister. Now the president appoints ministers from everywhere and they are not accountable to the people.
Noting that Ohanaeze had prepared a document on the constitution amendment, he said: “We agree with the South-West on six regions, which should become the federating units. The Federal Government should have nothing to do with state or local government creation.
“There is constant demands for new states and local governments because the military made them avenues for getting more allocation from the centre. Local governments should be states’ creation; they are not federating units. We stand for equity, fair-play and justice. The military gave North undue advantage and they do not want to relinquish it,” he said.

Tinubu for US Democratic Party convention.


Asiwaju Tinubu Asiwaju Tinubu
 
National leader of the Action Congress of Nigeria (ACN) Asiwaju Bola Ahmed Tinubu, is to attend the three-day National Convention of the United States Democratic Party that kicks off today in Charlotte, North Carolina.
Tinubu, who was invited to the convention by the party in recognition of his political activities as leader of opposition in Nigeria, will be at the ring side to watch the nomination of President Barrack Obama as the party’s presidential candidate for the November election.
The Republican Party at the weekend confirmed the nomination of Mitt Romney as its candidate.
A statement by Special Adviser on Media to the former Lagos state governor, Mr Sunday Dare, reads: “Tinubu receives a gold card invitation which is prime and with this, he will be joined by three other eminent personalities - Governor Kayode Fayemi of Ekiti state, Speaker Lagos state House of Assembly Adeyemi Ikuforiji and former Commissioner for Information and Strategy in Lagos state, Mr Dele Alake.
“On Thursday, at Bank of America stadium, President Obama and Vice President Joe Biden will deliver their nomination acceptance speeches.
Four years ago when President Obama was inaugurated, Tinubu also enjoyed a ring side seat at the event in Washington.
Tinubu’s invitation to attend the convention comes after a successful one week lecture tour, town hall meeting and book launch in Washington and Chicago.
He delivered a lecture at the prestigious Wilson Center for International scholars on the challenges facing Nigeria’s democratic experiment and offered solutions to problems of under development facing the country.
Similarly at a town hall meeting in Chicago with Governors Rauf Aregbesola  and Abiola Ajimobi  on hand, Tinubu spoke extensively on Nigeria’s search for true federalism and highlighted the fault lines in the country’s practice of federalism.
At the convention, Tinubu  is expected to discuss how to entrench true  federalism in Nigeria in his private discussions with the leading figures of the Obama administration and  seek the US support for Nigeria to hold a free and fair election in 2015.
The Nation.

FG may arrange loans for refinery investors.

 by Stanley Opara.

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke
President Goodluck Jonathan has directed the Ministry of Petroleum Resources and the Ministry of Finance to set up an inter-ministerial committee to fashion out modalities for raising financial support for indigenous oil companies to bring in modular refineries.
 This support will be for firms that are ready to invest, not only in production but also in refining to add value to the crude oil and gas produced  locally before exporting in order to generate employment for the youth and earn more revenue for the country, the Minister of Petroleum Resources, Mrs. Diezani Alison- Madueke, has  said.
Alison-Madueke, who stated this at Aguleri-Otu during the inauguration of Orient Petroleum Plc’s Anambra River Production Facility in Anambra State, the first oil production from an inland basin in Nigeria, pledged government’s support for indigenous oil companies  willing to invest in every area of the value chain of the oil and gas sector.
She expressed satisfaction with the project, explaining that the significance of the event was not just in the discovery and production of oil from an inland basin but in the fact that the feat was achieved by an indigenous company.
The Petroleum minister said, “This shows the way we want to go in the industry; we want to encourage more indigenous oil companies to emulate Orient Petroleum Resources in investing not just in production but also in refining.
“We are working with the Ministry of Finance to set up an inter-ministerial committee to work out ways to give financial support to indigenous companies to bring in modular refineries.”
The Managing Director of Orient Petroleum Resources Plc, Mr. Nnaemeka Nwawka, who spoke earlier, had explained the challenges the company faced in raising funds for the projects, adding that banks had not been too keen in funding the refinery project, which is capital intensive.
He said it was the financial challenge that drove the company into developing its Oil Prospecting Leases 915 and 916, first to guarantee crude supply to the refinery, which he said would be completed by 2013.
In the same vein, Reuters had quoted the Chairman, Orient Petroleum, Chief Emeka Anyaoku, as saying that, “Our expectation is that the refinery will be up and running by the end of next year.
“We expect that by the end of next year, we should be refining 20,000 barrels of oil every day and gradually after that we will build up to 35,000 then 55,000 and possibly higher.”
Nigeria is among the world’s top 10 crude oil exporters but has to import most of its refined product needs due to the dilapidated state of its refineries. Previous efforts to build new refineries had often been delayed or cancelled.
The country currently has a  refining capacity of 445,000 bpd from its four plants but the refineries process around 30 per cent of this amount.
Orient is exploring for oil in Anambra state, which sits north of the main oil producing Niger Delta region, but there have been no official oil reserve figures published.

External reserves rise again, hit 25-month high.

 by Ademola Alawiye.

Coordinating Minister for the economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala
Foreign exchange reserves rose to a 25-month high of $38.62bn by August 29, and were 5.81 per cent up on the previous month, driven by rising crude exports.
The Nigerian National Petroleum Corporation said about 85 per cent of increase in reserves was from crude oil. Nigeria’s crude oil production hit a record high of 2.7 million barrels per day on August 1.
The forex reserves stood at $36.5bn on same date last month and at N37.18bn on August 25 last year, the closest available comparable figure.
Reserves had risen by 5.71 per cent month-on-month to $38.51bn at August 28, 2012, from $36.43bn recorded a month earlier.
It showed that forex reserves rose to a two-year high of $38.51bn. The reserves have not been as high as this since August 10, 2010 when they stood at $38.59bn.Forex reserves had fallen by 1.4 per cent month-on-month to $36.40bn at July 25, from $36.93bn recorded a month earlier.
The $53m decline, according to analysts was attributed to falling oil prices and strong dollar demand.The reserves had plunged in the month of June, dropping by $1bn to $36.768bn on June 28, from $37.768bn it stood on June 6, 2012.
Forex reserves had risen to their highest in 21 months to $37.02bn by May 14, from $36.66bn at the end of April.The CBN had reportedly said that the nation’s external reserves had continued to grow since the August 1, 2012. Consequently, the Minister of Finance and coordinating minister for the economy, Dr Ngozi Okonjo-Iweala, stressed the need for the country to shore up its external reserves. At a meeting with the Organised Private Sector in Lagos recently, Okonjo-Iweala said that there was the need to build up the reserves to $50bn before December. She said that this would help the country to stand on its feet in the event of any global economic recession. The CBN sold a total of $10.18bn at the Wholesale Dutch Auction System in the first half of this year.The CBN had sold and offered a total value of $14.85bn at the WDAS in the first quarter of last year. Forex sales were less than forex offered by $285m by half- year 2012.
Half year WDAS forex supply for 2011 was $14.85bn, as against $10.45bn in 2012, representing a decrease of 29.70 per cent.

Oby Ezekwesili: Corruption, national development, the Bar, and the Bench – Part 3.


Being the text of a paper presented by Obiageli “Oby” Ezekwesili On August 28, 2012 @ the 2012 Nigeria Bar Association Conference, Abuja, Nigeria.
Part 1 of this Series
Part 2 of this Series
Corruption is found all over the world – in both rich and poor countries. However certain distinctions are empirically established in various studies by economists over the last two decades. Measures of corruption and poor governance are correlated with per capita income and with the United Nations Human Development Index (HDI). Richer countries, on average, have less reported corruption and better functioning governments. The same holds true for countries with high levels of the HDI.  But it particularly thrives where institutions are weak and national integrity systems are soft resulting in absence of transparency and accountability the propensity for corruption is higher. The global dimension of corruption is best exemplified by the Demand and Supply theory of corruption which shows that the malignant act takes two to close their illicit deal and often has a supplier from the more advanced economies seeking advantage in international trade and a public official from a poorer nation making the demand. We also know through research that certain sectors are more prone to corruption such as infrastructure, public and private procurement, construction and health care are often affected by corruption. We know as well that there are two types of corruption – Grande and Petty Corruption- and that they become intertwined in a vicious cycle of reinforcement until the entire fabric of a society becomes systemically infested with the disease of graft, pillage and all other manners of criminality.
There is always a tendency for anecdotes to trump empirical evidence in people’s assumptions on corruption. However, it is the wave of rigorous analysis on the malaise that has providedimportant findings to help shape global and national reforms and anti-corruption programs to tackle it more effectively. This is where I stop and hugely celebrate my very dear friend, Professor Johann Lambsdorff of the University of Passau who has devoted his academic career to the study of economics of corruption, (Johann was also the chief architect of our TI Corruption Perception Index). In one of his seminal research, he summarized a number of empirical evidence on the causes and consequences of corruption as follows and I quote him copiously:
“In a recent wave of empirical studies the causes and consequences of corruption have been investigated at large. It can be concluded that corruption clearly goes along with a low GDP, inequality of income, inflation, increased crime, policy distortions and lack of competition. The direction of causality for these indicators, however, is controversial. Corruption may cause these variables but is at the same time likely to be their consequence as well. This suggests that countries can be trapped in a vicious circle where corruption lowers income, increases inequality, inflation, crime, policy distortions and helps monopolies at the expense of competition. These developments in turn escalate corruption. There is a heavy burden placed on instrumental variable technique in trying to disentangle these mutual dependencies. There is strong evidence that corruption lowers a country’s attractiveness to international and domestic investors. This reduces capital accumulation and lowers capital inflows. Also the productivity of capital suffers from corruption. There is equally strong evidence that corruption distorts government expenditure and reduces the quality of a wide variety of government services, such as public investment, health care, tax revenue and environmental control. This corroborates that large welfare losses result from corruption.
With respect to the causes of corruption, not all empirical results were consistent with our expectations. For example, the disciplining and motivating effect of higher official wages was found to be rather limited. Also the impact of colonialism on corruption was ambiguous. Press freedom and the (de facto) independence of the judiciary and prosecutors appeared to be important elements in reducing corruption. Increased corruption also resulted from complicated regulation of market entry and tariffs. Corruption was found to increase with the abundance of natural resources and with the distance to the major trading centers. However, these two latter results provide no direction for reform. The same is largely true of cultural dimensions. In particular, a mentality of accepting hierarchies was found to increase corruption.
But it was observed that some variables are so highly intertwined with corruption that they might just as well be the cause, and not only the result. Just to name a few, GDP per head, inequality, inflation and crime were among those variables. It was also shown that levels of corruption had an impact on flows of bilateral trade and donor assistance. This gave rise to the argument that the large exporting countries and donors in question exhibit a different propensity to pay bribes, and to accept illegitimate payments. This, in turn, suggests that these international actors cause corruption. But, without doubt, there also exist a variety of domestic causes for corruption.”
Some of the economic data on corruption both globally and nationally can be staggering andoften these days become the trigger for credible and results driven action by wise governments orin other cases for forging of coalition of the outraged citizenry organized to demand for action.  In one study by my former institution, the World Bank, a data modeling revealed estimates thatannual worldwide losses due to corruption amount to between one and four thousand billion US dollars or twelve percent of the world’s gross economic output. The Global Financial Integrity estimated that between 1970 and 2008 Africa lost more than $854 billion in illicit financial outflows, an amount which is far in excess of official development inflows for the same period.Another report of TI put the amount of bribes companies paid politicians and other public officials in developing and transition economies annually at $40 billion in 2009 and consider that Africa would constitute a major part of since we know the continent’s ranking on Governance in the lower regions of the TI’s Corruption Perception Index. Imagine the amount of public good that may have been traded off by these officials as they made choices that compromised the aggregate social outcome by subordinating the good of the larger number to their extremely narrow personal gain. We also know through studies that corruption is considered equivalent to a 20% in tax rate by foreign direct investors.
So what kind of data do we have on Nigeria and how do they explain the monumental scale of our missed opportunity to drive the vision of our long hoped for greatness since our independence? Could it be that our lack of any discernible economic progress after many barrels and billions of dollars for can easily be explained for by the study of the World Bank (in 2000)which asserts that corruption is the single greatest impediment to economic growth in developing countries. A study by a team of two Nigerian economists Shehu Usman Rano Aliyu and Akanni Oludele Elijah titled “Corruption and Economic Growth in Nigeria: 1986-2007” empirically captures the link between corruption that has bedeviled the country unleashing the mediocreeconomic performance. They did so by building on the study by Mauro (1995) which examined the effect of corruption on growth rates of per capital GDP of sixteen countries from 1960-1985 and revealed that one-standard deviation decline in the corruption index leads to an increase in annual growth rates of GDP per capital by 0.8 percent. His other study revealed that the size and composition of government expenditure is significantly affected by corruption and that corruption tends to make public expenditure neglects education and health in favor of sectors where corruption might not be perceived easily.
They similarly quoted the influential economics of corruption work of Rose-Ackerman (1997) which found that corruption aggravates the problem of poverty through the following channels.
a. The poor will receive a lower level of social services.
b. Infrastructure investment will be biased against projects that will aid the poor.
c. The poor may face higher tax or fewer services.
d. The poor are disadvantaged in selling their agricultural produce.
e. Their ability to escape poverty using indigenous small-scale enterprise is diminished. Also their study picked up on Gupta et al (1998) found that corruption increases income inequality and poverty by lowering economic growth, promoting a biased tax system in favor of the rich few, lowering social spending, reducing access to education and reducing the effectiveness of targeting social programs.
So how did their economic analysis of Nigeria’s own systemic corruption challenge bearing in mind all of these other relevant findings? Oh yes, it did! In the words of the authors “In fact our results reveal that as much as 20 percent of the entire capital expenditure may end up in private pockets” annually. Summing up, the paper discovers that corruption exerts both direct and indirect negative effects on economic growth in Nigeria. The negative effects of corruption is starkly demonstrated by the fact that based on current track record, Nigeria will miss all the MDG targets set in 2000 despite the richness in its natural and human resource endowments.
There is no doubt that at the heart of any progress towards meeting these Goals is the quality of governance at all levels of government and yet the general perception since validated by the revealed large scale corruption in the petroleum sector (especially but not limited to the management of the subsidy scheme by all the relevant agencies of government) is that poor governance of public resources and assets in Nigeria is worsening at every level of government, across our institutions of state, the private sector and fast engulfing the wider society. It is not unusual these days to be inundated with public denunciation of what some now call “Nigeria’s corruption crisis”.  In an embarrassing special report on Nigeria in 2010, the National Public Radio (NPR) of the United States declared as follows; “But the other and perhaps more significant way corruption hurts is its impact on the government’s bottom line — and those teacher-less, desk-less schools only hint at the extent of the problem in Nigeria. An estimated $400 billion of the country’s oil revenue has been stolen or misspent since the country’s independence in 1960. That’s a sum approaching all the aid the West has pumped into the whole of Sub-Saharan Africa during the same period. And while oil accounts for about 90 percent of the value of Nigeria’s exports, 80 percent of that money ends up in the hands of one percent of the population, according to the World Bank.”
A society that rewards corruption has perverted its incentives system and structure and deforms the bedrock of effort and hard work that helped economies we envy to grow rapidly.. You get rewarded but for the wrong kind of conduct. It is no wonder that since the cost of corrupt behavior is extremely low and the profit or benefit is visibly and extremely high, many have chosen to join the fast accelerating express train of corruption.  For such that join, they rationalize that a society which punishes those who seek to do the right with hardship while incentivizing the corrupt left them with little choice. Regrettably, that ignoble choice having been made by too many who have ,  had or will have the opportunity to lead in our public space has robbed us all of the greatness . What Nigeria is today – a giant embarrassingly trapped in dwarfish heights that are symbolized by pitiful economic, political and social outcomes; ails the heart of even eternal optimists.