Several senators and
politicians, speaking to SaharaReporters on condition of anonymity, have
revealed how Senate President Bukola Saraki manages to maintain control
over the upper legislative chamber and to keep many senators loyal to
his leadership in the face of mounting evidence of his corruption at the
Code of Conduct Tribunal (CCT). Mr. Saraki is currently facing charges
of false asset declaration and corruption at the CCT. But the sources
explained that some senators may be resisting Mr. Saraki’s intrigues.
Bukola Saraki attending his Code of Conduct Tribunal for corruption
Sahara Reporters Media
One of our sources revealed that a growing number of senators were
becoming alarmed about the extent to which their colleagues had gone to
serve Mr. Saraki’s personal interests. “In Senator Saraki’s absence we
have held three days of closed-door sessions and discussed how to ward
off public outrage against us,” the source said. He added: “It was
decided that the Senate should drop some of its unpopular attempts to
protect Dr. Saraki.” According to him, one of the resolutions was to
back down from the Senate’s decision to summon Justice Danladi Umar, who
is handling Mr. Saraki’s trial, to appear before senators to be
questioned on allegations of corruption against him. The charges against
the judge were dismissed in the House of Representatives when the men
who made them failed to show up to back them up.
“We decided it doesn’t make sense to continue harassing Justice Umar
when the charges against him were never authenticated. In the same vein,
we decided it is counterproductive to pursue amendments of the Code of
Conduct Bureau and Tribunal Act. The public reaction against the
amendment was very fierce,” said the senator.
The amendment would have made it harder for the CCT to prosecute public officials for corruption.
Another senator disclosed that tempers often flared up during the
closed-door meetings. According to him, at one point Senator Dino
Melaye, one of Mr. Saraki’s staunchest allies, threatened to beat up
Senator James Manager from Delta South senatorial district. The source
said Mr. Melaye became incensed after Senator Manager stated that Mr.
Saraki’s maneuvers to use senators to scuttle his trial had caused great
public anger against the Senate.
“Senator Manager did not mince words that the trial of the Senate
President was now creating huge problems for us,” our source said,
adding that several other senators spoke in the same vein during the
closed-door session.
Despite efforts by Senator Melaye and other pro-Saraki hawks, the
majority of senators decided it was time to de-escalate the tension
between the Senate and the CCT. “Nigerians now perceive us as a group
committed to the protection of one man who happens to be the Senate
President. It is time we restore[d] public confidence and support,” one
of our sources said. He added: “In the process, we decided to drop [the]
Ethics Committee investigation of Senator Kabir Marafa, an outspoken
opponent to Dr. Saraki.”
Several sources told SaharaReporters that the decision to end the
targeting of Mr. Marafa infuriated Senator Sani Yerima, a former
Governor of Zamfara State. Mr. Yerima is a controversial political
figure who introduced Sharia law in his state in his first tenure as
governor. Shortly after leaving Government House in 2007, Senator Yerima
triggered national and international outrage when he married a
13-year-old Egyptian girl.
Speaking about Mr. Saraki’s manipulation of senators, two sources
disclosed that the embattled Senate President recently distributed 36
new Toyota Land Cruiser SUVs to his closest allies in the Senate. One
source stated that Senator Manager had received a car prior to his
protests about Mr. Saraki’s image and its effect on the Senate as a
whole.
In a bid to stem the growing dissension against Mr. Saraki, Senate
Deputy President, Ike Ekweremadu, and a few senators organized a
12-member committee with two representatives from each of the six
geopolitical zones to reconcile members. Among other things, the Senate
resolved that all members involved in litigation against the leadership
of the Senate should withdraw such lawsuit. SaharaReporters learnt that a
group of senators led by Senator Ahmed Lawan immediately rejected the
proposal, which would have had them withdrawing a forgery lawsuit they
filed against the Deputy Senate President and the outgoing clerk at the
Senate who assisted him in forging Senate rules that enabled Mr. Saraki
to get elected as President.
Over the course of these three days, the senators also discussed the
controversial issue of budget padding, which led President Muhammadu
Buhari, when he found suspicious allocations, to reject the budget and
call for talks with the Senate leadership.
Senatorial sources disclosed that Senator Danjuma Goje, the chairman
of the Appropriations Committee, did not show up at the meetings, adding
that Mr. Goje was behind the diversion of funds from the Lagos—Calabar
Railway to other areas of the budget.
One senator alleged that pro-Saraki senators also used the budgetary
padding to garner political support for the embattled Senate President.
One source explained that almost every member of the Senate was either a
chair or vice-chair of a committee as Mr. Saraki had intentionally
increased the number of Senate standing committees from 57 to 70. “The
budget was padded in a way that each Committee chairman and vice-chair
would receive at least N2 billion in ‘special projects’ while the Senate
leadership would get at least N4 billion each in such projects,” one
source stated. He added that new Senators who are neither chair or vice
chair of committees were each allocated N400 million in special
projects.
Our source revealed that many senators were reluctant to dump Mr.
Saraki for a new Senate President because such a change would entail the
dissolution of committee assignments and the loss of perks as committee
chairs.
A civil rights source in Abuja told SaharaReporters that Mr. Saraki
had also corrupted some players in the non-government organizations
(NGOs). “Many NGOs that campaigned for openness at the National Assembly
were themselves co-opted into his [Mr. Saraki’s] inner circle,” the
source said. “That’s why several of them have been unable to realize
their objective of getting the public to see the details of the opaque
budget of the National Assembly. And yet Senator Saraki had pledged to
collaborate with these NGOs to bring matters of governance to the public
domain.”
Our correspondent learned that, during the final closed-door session,
the deputy chair of the Appropriations Committee, Senator Sonni Ugbuoji
from Ebonyi South senatorial district, shocked his colleagues by
declaring that he was not aware of the details of the budget that his
chairperson, Senator Goje, sent to President Buhari for assent. Senator
Ekweremadu also disclosed he had not seen the budget breakdown till now.
His admission infuriated some Senators, but he hurriedly appealed to
them to stay united, pointing to those he called the enemies of the
Senate from outside. He then declared the session open and closed to
enable some members to join Mr. Saraki at the Code of Conduct Tribunal.
Saharareporters
The Nation -
Hours after the refusal of the fundamental rights application by Senate
President Bukola Saraki to stop his trial at the Code of Conduct
Tribunal (CCT) by a Federal High Court in Abuja, there were signs at the
weekend that some of his prominent loyalists within the ruling All
Progressives Congress (APC) may be retracing their steps.
There were strong indications that they may be opting to support an
ongoing move by the leadership of the party to unite the party’s caucus
in the national assembly.
Reliable national assembly sources told The Nation yesterday that prior
to the judgment delivered by Justice Abdul Kafarati on Friday, some
frontline supporters of the embattled Senate President have resolved to
withdraw their support for Saraki in his bid to remain in office as
Senate President while his trial at the CCT lasts.
In the meantime, the National Chairman of APC, Chief John Odigie-Oyegun,
has ruled out the possibility of the party losing the senate presidency
to the opposition. In an interview with an online medium, The Premium
Times, he said, “We don’t take anything for granted. As they are
planning, we are also planning. The situation is under control.”
He insisted that the party is not likely to lose the position to the
opposition, but noted that should this happen, it will have to be the
‘price’ for the desired ‘change’.
It was also learnt that some members of the Senate President’s camp in
the national assembly are now of the view that the incessant face-off
between the legislature and the presidency allegedly being generated by
Saraki’s trial at the CCT, is needless and avoidable.
“Hence, some of them are ready to support a change in the leadership of
the senate to save the ruling party from further crises and at the same
time represent the yearnings of their constituents for good governance
by ensuring strict adherence to the provisions of the laws of the
country,” our source, a Senator from Lagos State, said.
“Mr. Senate President is currently facing charges that borders on false
declaration of assets … The issue has gone beyond mere accusations as he
has already gone down in history as the first serving Senate President
in the country to be docked in a competent court.
“Sadly, one recalls that there is a way these things have been handled
in the past to save the national assembly, and by extension, the
government, from unnecessary embarrassment. All former presiding
officers of the National Assembly, who were faced with similar charges,
first resigned their positions in order to protect the integrity and
sanctity of the country’s hallowed chambers.”
The senator regrets that what has been happening in the last few months
“were blatant display of disregard for the sanctity of the senate by
some misled and confused senators whose loyalty is not to the country,
but to an individual or group.”
The senator added, “But one is happy today, to tell you that things are
changing for better. For one, I can tell you the APC caucus in the
senate is working towards uniting all. We are healing the divide imposed
on us by self serving individuals. We are all returning our loyalty to
the party and the government.”
The Nation gathered that attendance at the regular and emergency
meetings of the ‘Like Minds Senators’, the group of senators loyal to
the President of Senate, has plummeted in recent times, giving credence
to talks about serious cracks in the ranks of Saraki loyalists.
Senate sources put the reduction in attendance to the activities of a
committee instituted by the APC caucus in the national assembly to unite
the legislators elected on the platform of the ruling party. According
to reliable sources, the committee, that has core Saraki allies in the
likes of Senators Aliyu Wammako, Danjuma Goje, Kabiru Gaya, Ahmed Yerima
and Adamu Aliero, as members, is championing a united APC caucus that
is loyal to the party and government as against the current arrangement
of a divided caucus.
For instance, a meeting called yesterday at the residence of Saraki in
continuation of the one held earlier in the week recorded abysmal
attendance in spite of the fact that it was scheduled early enough and a
text message was sent few hours before the kick off to remind senators.
Not only was the attendance low, the discussion, we learnt, was
unimpressive. Those who attended, it was said, were downcast and
disturbed. The meeting, unlike the one a few days earlier where the
decision to review the laws establishing the CCT was taken, was devoid
of the usual vibrancy, our source added.
The Nation also gathered that the text message reminding Like Minds
Senators of the meeting was, unlike the previous ones, sent by an aide
of the Senate President. A prominent Senator from Kogi State is known to
have sent invites to such meeting before now.
“What we heard was that the Senator who used to do the invite tactically
avoided doing same for the last meeting. To further cause anxiety in
the Senate President’s camp, he was absent at the meeting where he was
scheduled to brief the Senators on certain steps taken to advance the
cause of the group. His action and absence formed the chunk of the
discussion at the unimpressive meeting,” our source added.
It was also gathered that the APC caucus in the lower chamber recently
met to discuss the crises in the national assembly and resolved that
members of the caucus must desist from taking side in the Saraki saga.
“The House caucus took a decision that none of us should drag the lower
chamber into the senate crisis by making inflammatory statements.
Specifically, we are to henceforth toe the party’s line in all matters.
The meeting also resolved that there should be no division within the
caucus.”
Another member of the lower chamber from Kogi State told our
correspondent that effort to unite the APC caucus in the national
assembly is yielding fruit to the detriment of the camp of pro-Saraki
hardliners. According to him, it is only a matter of time before a final
position on the various bones of contention in the national assembly is
announced.
The Nation also gathered that the dwindling fortunes of the Saraki camp
is responsible for its inability to push through the suspension plot
allegedly instituted against the Senator representing Zamfara Central,
Kabir Marafa, an unrepentant critic of the Senate President.
Weeks after the Senate Committee on Ethics, Privileges and Public
Petitions, submitted its report on its investigation on Marafa, the
Senate has failed to deliberate on the panel’s recommendations. Marafa
was accused of granting a press interview to allegedly mislead the
public about the senate.
Marafa, a second-timer at the upper chamber of the National Assembly,
served as the mouthpiece of the Unity Forum, an umbrella of senators
that worked for Senator Ahmed Lawan (Yobe North), the preferred
candidate of the APC for the plum job.
Following the Supreme Court verdict on the appeal of Saraki on his CCT
trial, Marafa demanded the resignation of Saraki. He had said, “What is
happening in the CCT is personal to Saraki and has nothing to do with
his position as the Senate President. It has now reached the time when
Saraki should take a bow to enable him concentrate on his case at the
CCT. I don’t have anything against him as a person.”
Expectedly, pro-Saraki Senators made a huge show of the interview and
demanded the immediate suspension of the Zamfara senator. But following
an unexpected show of support for Marafa by other senators across party
lines, Saraki referred the matter to the Senate Committee on Ethics,
Privileges and Public Petitions. He asked the committee to report back a
week later.
According to senate sources, the Senator Samuel Anyanwu (PDP, Imo
East)-led committee has recommended Marafa’s suspension but the
development has failed to receive the blessing of majority of the
members of the senate as many feel Marafa has not done anything wrong
that would warrant any punishment.
Our source also attributed the new thinking in the national assembly to
both the effort of some party leaders in senate and the failure of
Saraki to stop his trial at the CCT in spite of several efforts to get
competent law courts to declare that he shouldn’t be docked.
Kafarati’s judgement on Friday put paid to earlier optimism that the
Senate President will get a reprieve. The judge held that the reliefs
prayed for by Saraki “are not cognisable under Chapter 4 of the 1999
Constitution”, which lists the fundamental rights of citizens.
Saraki had, for the umpteenth time through his counsel, Ajibola Oluyede,
filed the application challenging the trial at the CCT for falling
short of Article 3 of the African Charter on Human and Peoples Rights
and Section 36 of the 1999 Constitution. He argued that the prosecution
wants to achieve the political objective of the All Progressives
Congress (APC)
Saraki’s counsel, Oluyede has indicated intention to appeal the verdict of the court before the Court of Appeal.
The APC chairman, Chief John Odigie Oyegun has declared that a political
solution may not be in sight for the ongoing Senate President’s trial
at the CCT.
According to him, a purported political solution as is being bandied by a
section of the political class will negate the change philosophy upon
which the President Muhammadu Buhari-led APC government was voted into
power last year.
He said “The President is certainly not the type who will interfere in a
judicial matter,” as that would also negate his straight personality.
“Things must be done normally. And that is part of the change mantra
that we must play by the rule so we don’t truncate the processes.”
Odigie-Oyegun explained that “People don’t seem to internalize what
change is. If the President says “court, free that man”, the same
president can say “court, imprison that man.” Is that the Nigeria you
want? No! Change means allowing the law to take the proper course. I can
tell you the President won’t interfere. The President is straight
definite, straight and firm in all facets.”
On the possibility of the party losing the senate president position to
opposition PDP, Oyegun said, “We don’t take anything for granted. As
they are planning, we are also planning. The situation is under
control.”
He said, “I don’t think we will lose that position. But sometimes, for
change to take place there is price you have to pay. So losing the
position may be sacrifice for change.”
On speculations of in-fighting in the party, Oyegun said this is normal
as there are always different views. “Interests differ. Some feel they
are not sufficiently rewarded or consulted. So, it happens. We are just
barely one year in power.”
On complaints that Nigerians have yet to feel the much-touted change,
the APC chairman said change is a ‘process’ and a ‘progressive’
phenomenon. “When the process fully completes, we will have a totally
new Nigeria.”
Hours after the refusal of
the fundamental rights application by Senate President Bukola Saraki to
stop his trial at the Code of Conduct Tribunal (CCT) by a Federal High
Court in Abuja, there were signs at the weekend that some of his
prominent loyalists within the ruling All Progressives Congress (APC)
may be retracing their steps.
There were strong indications that they may be opting to support an
ongoing move by the leadership of the party to unite the party’s caucus
in the national assembly.
Reliable national assembly sources told The Nation yesterday that
prior to the judgment delivered by Justice Abdul Kafarati on Friday,
some frontline supporters of the embattled Senate President have
resolved to withdraw their support for Saraki in his bid to remain in
office as Senate President while his trial at the CCT lasts.
In the meantime, the National Chairman of APC, Chief John
Odigie-Oyegun, has ruled out the possibility of the party losing the
senate presidency to the opposition. In an interview with an online
medium, The Premium Times, he said, “We don’t take anything for granted.
As they are planning, we are also planning. The situation is under
control.”
He insisted that the party is not likely to lose the position to the
opposition, but noted that should this happen, it will have to be the
‘price’ for the desired ‘change’.
It was also learnt that some members of the Senate President’s camp
in the national assembly are now of the view that the incessant face-off
between the legislature and the presidency allegedly being generated by
Saraki’s trial at the CCT, is needless and avoidable.
“Hence, some of them are ready to support a change in the leadership
of the Senate to save the ruling party from further crises and at the
same time represent the yearnings of their constituents for good
governance by ensuring strict adherence to the provisions of the laws of
the country,” our source, a Senator from Lagos State, said.
“Mr. Senate President is currently facing charges that borders on
false declaration of assets … The issue has gone beyond mere accusations
as he has already gone down in history as the first serving Senate
President in the country to be docked in a competent court.
“Sadly, one recalls that there is a way these things have been
handled in the past to save the national assembly and by extension, the
government, from unnecessary embarrassment. All former presiding
officers of the National Assembly, who were faced with similar charges,
first resigned their positions in order to protect the integrity and
sanctity of the country’s hallowed chambers.”
The senator regrets that what has been happening in the last few
months “were a blatant display of disregard for the sanctity of the
Senate by some misled and confused senators whose loyalty is not to the
country, but to an individual or group.”
The senator added, “But one is happy today, to tell you that things
are changing for better. For one, I can tell you the APC caucus in the
Senate is working towards uniting all. We are healing the divide imposed
on us by self-serving individuals. We are all returning our loyalty to
the party and the government.”
The Nation gathered that attendance at the regular and emergency
meetings of the ‘Like Minds Senators,' the group of senators loyal to
the President of Senate, has plummeted in recent times, giving credence
to talks about serious cracks in the ranks of Saraki loyalists.
Senate sources put the reduction in attendance to the activities of a
committee instituted by the APC caucus in the national assembly to
unite the legislators elected on the platform of the ruling party.
According to reliable sources, the committee, which has core Saraki
allies in the likes of Senators Aliyu Wammako, Danjuma Goje, Kabiru
Gaya, Ahmed Yerima and Adamu Aliero, as members, is championing a united
APC caucus that is loyal to the party and government as against the
current arrangement of a divided caucus.
For instance, a meeting called yesterday at the residence of Saraki
in continuation of the one held earlier in the week recorded abysmal
attendance in spite of the fact that it was scheduled early enough, and a
text message was sent few hours before the kick-off to remind senators.
Not only was the attendance low, the discussion, we learnt, was
unimpressive. Those who attended, it was said, were downcast and
disturbed. The meeting, unlike the one a few days earlier where the
decision to review the laws establishing the CCT was taken, was devoid
of the usual vibrancy, our source added.
The Nation also gathered that the text message reminding Like Minds
Senators of the meeting was, unlike the previous ones, sent by an aide
of the Senate President. A prominent Senator from Kogi State is known to
have sent invites to such meeting before now.
“What we heard was that the Senator, who used to do the invite
tactically avoided doing same for the last meeting. To further cause
anxiety in the Senate President’s camp, he was absent at the meeting
where he was scheduled to brief the Senators on certain steps taken to
advance the cause of the group. His action and absence formed the chunk
of the discussion at the unimpressive meeting,” our source added.
It was also gathered that the APC caucus in the lower chamber
recently met to discuss the crises in the national assembly and resolved
that members of the caucus must desist from taking the side in the
Saraki saga.
“The House caucus took a decision that none of us should drag the
lower chamber into the Senate crisis by making inflammatory statements.
Specifically, we are to toe henceforth the party’s line in all matters.
The meeting also resolved that there should be no division within the
caucus.”
Another member of the lower chamber from Kogi State told our
correspondent that effort to unite the APC caucus in the national
assembly is yielding fruit to the detriment of the camp of pro-Saraki
hardliners. According to him, it is only a matter of time before a final
position on the various bones of contention in the national assembly is
announced.
The Nation also gathered that the dwindling fortunes of the Saraki
camp is responsible for its inability to push through the suspension
plot allegedly instituted against the Senator representing Zamfara
Central, Kabir Marafa, an unrepentant critic of the Senate President.
Weeks after the Senate Committee on Ethics, Privileges and Public
Petitions, submitted its report on its investigation on Marafa, the
Senate has failed to deliberate on the panel’s recommendations. Marafa
was accused of granting a press interview to mislead the public
allegedly about the Senate.
Marafa, a second-timer at the upper chamber of the National Assembly,
served as the mouthpiece of the Unity Forum, an umbrella of senators
that worked for Senator Ahmed Lawan (Yobe North), the preferred
candidate of the APC for the plum job.
Following the Supreme Court verdict on the appeal of Saraki on his
CCT trial, Marafa demanded the resignation of Saraki. He had said, “What
is happening in the CCT is personal to Saraki and has nothing to do
with his position as the Senate President. It has now reached the time
when Saraki should take a bow to enable him to concentrate on his case
at the CCT. I don’t have anything against him as a person.”
Expectedly, pro-Saraki Senators made a huge show of the interview and
demanded the immediate suspension of the Zamfara senator. But following
an unexpected show of support for Marafa by other senators across party
lines, Saraki referred the matter to the Senate Committee on Ethics,
Privileges, and Public Petitions. He asked the committee to report back
a week later.
According to Senate sources, the Senator Samuel Anyanwu (PDP, Imo
East)-led committee has recommended Marafa’s suspension, but the
development has failed to receive the blessing of a majority of the
members of the Senate as many feel Marafa has not done anything wrong
that would warrant any punishment.
Our source also attributed the new thinking in the national assembly
to both the effort of some party leaders in the senate and the failure
of Saraki to stop his trial at the CCT in spite of several efforts to
get competent law courts to declare that he shouldn’t be docked.
Kafarati’s judgement on Friday put paid to earlier optimism that the
Senate President will get a reprieve. The judge held that the reliefs
prayed for by Saraki “are not cognisable under Chapter 4 of the 1999
Constitution,” which lists the fundamental rights of citizens.
Saraki had, for the umpteenth time through his counsel, Ajibola
Oluyede, filed the application challenging the trial at the CCT for
falling short of Article 3 of the African Charter on Human and Peoples
Rights and Section 36 of the 1999 Constitution. He argued that the
prosecution wants to achieve the political objective of the All
Progressives Congress (APC)
Saraki’s counsel, Oluyede has indicated intention to appeal the verdict of the court before the Court of Appeal.
The APC chairman, Chief John Odigie Oyegun has declared that a
political solution may not be in sight for the ongoing Senate
President’s trial at the CCT.
According to him, a purported political solution as is being bandied
by a section of the political class will negate the change philosophy
upon which the President Muhammadu Buhari-led APC government was voted
into power last year.
He said “The President is certainly not the type who will interfere
in a judicial matter,” as that would also negate his straight
personality.
“Things must normally be done. And that is part of the change mantra
that we must play by the rule, so we don’t truncate the processes.”
Odigie-Oyegun explained that “People don’t seem to internalize what
change is. If the President says “court, free that man,” the same
president can say “court, imprison that man.” Is that the Nigeria you
want? No! The change means allowing the law to take the proper course. I
can tell you the President won’t interfere. The President is straight
definite, straight and firm in all facets.”
On the possibility of the party losing the president Senate position
to opposition PDP, Oyegun said, “We don’t take anything for granted. As
they are planning, we are also planning. The situation is under
control.”
He said, “I don’t think we will lose that position. But sometimes,
for change to take place there is a price you have to pay. So losing the
position may be the sacrifice for change.”
On speculations of in-fighting in the party, Oyegun said this is
normal as there are always different views. “Interests differ. Some feel
they are not sufficiently rewarded or consulted. So, it happens. We are
just barely one year in power.”
On complaints that Nigerians have yet to feel the much-touted change,
the APC chairman said change is a ‘process’ and a ‘progressive’
phenomenon. “When the process fully completes, we will have an entirely
new Nigeria.”
Saharareporters
The Nigerian Senate has suspended the ongoing amendment of the Code
of Conduct Act which was initiated and referred to its committees on
Judiciary and Ethics, Privileges and Public Petitions last week.
The legislative body also resolved to suspend amendment of Administration of Criminal Justice Acts (ACJA).
Similarly, the report of the Ethics Committee on Kabiru Marafa, a
senator known to be opposed to embattled Senate President Bukola Saraki,
was also stepped down.
These decisions were taken during the Senate’s closed door session on Wednesday.
The lawmakers had on April 14 introduced a bill for an amendment of
the Code of Conduct Tribunal and Bureau Act, rushing it through second
reading just 48 hours after it was first read.
In Nigeria’s lawmaking process, rarely do bills get such accelerated legislative action.
The bill, sponsored by Peter Nwaoboshi (PDP-Delta State), passed
second reading and was subsequently referred to the committees on
Judiciary and Ethics, Privileges and Public Petitions.
The committees was to report back in two weeks.
THE AMENDMENT
The bill seeks to amend Section 3 of the Code of Conduct Bureau and
Tribunal Act “to give every public officer appearing before the Bureau
fair hearing as provided for under Section 36 (2)(a) of the CFRN 1999
which provides:
“For an opportunity for the person whose rights and obligations may
be affected to make representations to the administering authority
before that authority makes the decision affecting that person.”
The existing law, Mr. Nwaoboshi said in his lead argument, does not
provide for the Bureau (CCB)to take written statement from concerned
public officers before referring a matter of alleged non-compliance to
the Tribunal (the CCT). More to come…
The PUNCH can authoritatively report that the Senate
President, Dr. Bukola Saraki, has filed another application before the
Code of Conduct Tribunal, to stall his ongoing trial on charges of false
asset declaration.
Saraki whose numerous applications seeking to stall the trial had
been dismissed by the CCT itself and others including the Supreme Court,
through his fresh motion, is asking the tribunal chairman, Danladi
Umar, to disqualify himself.
Our correspondent learnt that Saraki, through his fresh motion
filed before the CCT on Tuesday, asked Umar to disqualify himself from
the trial on the basis that the tribunal chairman is allegedly under
criminal investigation by the Economic and Financial Crimes Commission.
He alleged in the motion that Umar would likely be biased in the
handling of his trial since the EFCC which is allegedly leading the
prosecution of the Senate President before the CCT is also investigating
the tribunal chairman.
The application was filed before the CCT by Mr. Raphael Oluyede, who has not been part of Saraki’s defence team before the CCT.
Oluyede was the lawyer who filed the case seeking to stop Saraki’s
trial but which was dismissed by Justice Abdu Kafarati of the Federal
High Court in Abuja last Friday.
The fresh application has not been served on the prosecution in the case.
Taylor Grazing
Districts in 1937 (Opportunity and Challenge: The Story of
BLM. DOI, BLM, 1988. Washington:
GPO.)
The Taylor Grazing Act of 1934 (43 USC 315), signed by President
Roosevelt, was intended to "stop injury to the public grazing lands [excluding
Alaska] by preventing overgrazing and soil deterioration; to provide for their
orderly use, improvement, and development; [and] to stabilize the livestock
industry dependent upon the public range" (USDI 1988). This Act was pre-empted
by the Federal Land Policy and Management Act of 1976 (FLPMA).
Introduction
Approximately 80 million acres of land valuable for grazing and
forage crops were available to be placed into grazing districts authorized by
the Taylor Grazing Act. To administer these grazing districts, Secretary of the
Interior Harold Ickes created a Division of Grazing with Farrington Carpenter, a
Colorado rancher, at the helm. Carpenter held a series of meetings with ranchers
and state officials to determine grazing district boundaries. The first grazing
district (Rawlins), was established in Wyoming on March 20, 1935; others soon
followed. By June 1935, over 65 million acres had been placed in grazing
districts. All the established grazing districts are still in effect today.
Secretary Ickes fired Carpenter in 1939 and replaced him with
Richard Rutledge. With a new director, the Division of Grazing was renamed the
U.S. Grazing Service. Rutledge wanted to establish an effective conservation
agency. In order to achieve this, he laid out rules of conduct for his
employees. Today, these standards are still the foundation of the Bureau of Land
Management's mission. On July 16, 1946, the Grazing Service and the General Land
Office merged to form the Bureau of Land Management. Following are some of those
principles.
Self Reliance: There is often the tendency upon
receiving a tough assignment to push it aside and wait until you can ask the
boss a lot of questions concerning the way he wants the job done. This results
in procrastination and in a leaning [sic] attitude on the part of the doer.
Stand on your own two feet and take responsibility.
Organizational Attitude: No organization can be
successful if cliques or jealousies exist. These things tend to retard and to
break down the spirit of the organization. Likewise, feuds and personal fights
are extremely detrimental and are bound to react upon someone. Troublemakers
have no place in the organization. Rating officers must take recognition of such
things. The ability to get along with and work with others, and the attitude
toward others, are important factors in efficiency determination.
Public Service: Let's get firmly fixed in our
minds at the outset that we are public servants, employed by the public and paid
by the public from funds provided by taxation in some form. We are responsible
to the entire public and are not bureaucratic bosses to work our will upon the
public as we see fit.
Sharp Practices: There can be no place in the
administrator's thoughts or actions for anything that approaches sharp
practices. Stockmen are usually not as well informed as the administrator. Many
times they are trusting, depending upon the administrator. There should be no
tendency toward scheming or taking advantage of lack of information or
ignorance. Your actions should always be square, with equity and fairness.
Mixing: This is somewhat akin to friendliness,
although it goes farther. It is very necessary that an administrator mix with or
contact all kinds of people, meetings, associations, church groups, and others.
Be a part of the community.
Self-Justification: One of the very worst habits
that an administrator can fall into is that of trying to justify his actions
under all circumstances. If an administrator had made a mistake, the thing to do
is to face the situation and correct the action. An administrator can lose the
respect and confidence of his users very quickly by adopting an attitude of
self-justification.
Capriciousness: The administrator should avoid
actions which might be termed capricious. Any funny notion or foolish idea, or
snap judgement, may take the turn of capriciousness. Keep your feet on the
ground and remember that you are business men [sic], doing business.
Under the current grazing regulations (43 Code of Federal
Regulations Part 4100), there are four differences in BLM's administration of
livestock grazing on section 15 leases and section 3 permits.
Section 3 of the Act
Section 3 of the Taylor Grazing Act concerns grazing
permits issued on public lands within the grazing
districts established under the Act. It gave leasing preference to landowners
and homesteaders in or adjacent to the grazing district lands. Permits were
issued for not more than 10 years.
Base Property Requirements: Base property is
land, owned or controlled by a BLM permittee, which serves as the permittee's
base for a livestock operation. The land must be capable of producing crops or
forage that can be used to support livestock for a specified period of time.
Under a section 3 permit, the base property does not have to adjoin the public
lands being used for grazing livestock.
Domestic Use Grazing Permits: Section 5 of the
Taylor Grazing Act and the grazing regulations made provision for the issuance
of free subsistence grazing permits on public lands inside a grazing district.
There was no similar provision for free domestic use or subsistence grazing on
the section 15 lease lands.
Distribution of Grazing Receipts: Receipts from
grazing on section 3 lands are distributed three ways: 50% goes to range
betterment projects, 37½% remains in the US Treasury, and 12½% is returned to
the state. In Wyoming, the 12% is administered by thegrazing advisory boards
established under Wyoming Statutes 9-571 and 9-572.
Section 15 of the Act
Section 15 of the Taylor Grazing Act concerns issuing grazing
leases on public lands outside the original grazing
district boundaries. It states that "The Secretary of the Interior is further
authorized, in his discretion, where vacant, unappropriated, and unreserved
lands of the public domain are so situated . . . . to lease any such lands for
grazing purposes, upon such terms and conditions as the Secretary may prescribe
. . . ."
Base Property Requirements: As described under
"Section 3" above, base property is land, owned or controlled by a BLM permittee
or lessee, which may serve as a base for a livestock operation. The land must
have the capability to produce crops or forage that can be used to support the
livestock authorized for a specified period of time. The base property
supporting a section 15 grazing lease must adjoin the leased public lands unless
no applicant owns adjoining lands. In most cases, the base property for a
section 15 lease adjoins, surrounds, or is intermingled with the leased public
lands.
Preference Lease Rights of Isolated Tracts: The
Taylor Grazing Act and the current regulations provide for giving a preference
to applicants having base property which adjoins or corners the public lands
they apply to lease. The preference right to lease the whole tract is given
where the public lands consist of isolated tracts embracing 760 acres or less.
This lease preference is available for a period of 90 days after the tract has
been offered for lease.
Domestic Use Grazing Permits: Under Section 15,
no provision for free domestic use or subsistence grazing on the section 15
lease lands is made.
Distribution of Grazing Receipts: The receipts
from grazing on section 15 public lands are distributed two ways: 50% goes to
range betterment projects and 50% is returned to the state. In Wyoming, the
portion returned to the state is distributed back to the counties in which it
originated under state statute 9-570.
From 1934 to 1968, grazing use on the 16 million acres of Section
15 public lands was authorized under 10-year leases. Grazing fees were assessed
on an acreage basis. Lessees were required to pay the lease regard-less of
whether or not they actually had livestock on the leased lands. No provisions
were made for refund or nonpayment due to drought, fire, or other factors.
In August 1968, regulation changes were implemented to place the
Section 15 public lands under "multiple use management" (43 CFR 4125.1-1). Key
changes made to the regulations are as follows.
Allowed for joint use of the leased area by two or more
lessees.
Prohibited locked gates or other actions by the lessee to
prevent or interfere with lawful public use of the public land.
Established a framework for cooperation between BLM and lessees
to develop allotment management plans aimed at improving resource
conditions.
Established construction standards for fences and other projects
constructed by the lessees to assure multiple use objectives were met.
Changed grazing fee charges from an acreage basis to payment for
forage consumed as measured by animal unit months (AUMs).
Federal Land Policy & Management Act of 1976
The Federal Land Policy and Management Policy Act of 1976 (FLPMA)
was passed to establish policy for managing BLM-administered public lands. To
ensure long-term stability and use of BLM-administered public lands by the
live-stock industry, FLPMA authorized 10-year grazing permits and required a
two-year notice of cancellation. The Act also directed grazing advisory boards
(formed under the Taylor Grazing Act) to guide the BLM in develop-ing allotment
management plans and allocating range betterment funds.
Unlike the Taylor Grazing Act, FLPMA did not distinguish between
grazing permits and leases. In sections 401 through 403 of FLPMA, which deals
with grazing management on the public lands, the term "permit or lease" appears
over 25 times together and never as only "permit" or "lease." The clear intent
of Congress is that BLM's grazing administration on all public lands be
consistent for both permits and leases.
The BLM's grazing regulations were changed in July 1978 to
eliminate separate sections addressing admin-istration of section 3 permits and
section 15 leases. This made the regulations consistent with the language of
FLPMA in that no distinction is made between permits and leases.
Selective Management Policy
The BLM's selective management policy is used extensively in
administering grazing leases. The selective management policy requires that BLM
apply its limited workforce and budget to those lands providing the greatest
potential for improvement and public benefit. Grazing allotments are separed
into three management categories: "I" (improve), "M" (maintain), and "C"
(custodial). Generally, leases consisting of small, iso-lated tracts of public
lands are managed custodially. BLM's major emphasis on the custodial leases is
with var-ious administrative actions such as billings, lease renewals, and
transfers. On the larger blocks of public land that offer the best opportunity
for multiple use management initiatives, BLM works with the grazing lessees to
take actions or authorize uses to achieve various resource management
objectives. In other words, the BLM's management and administration of custodial
or "C" category allotments is similar to the old (pre-1968) section 15 leases.
Administration of grazing on the larger blocks of public land in the "I" and "M"
categories is similar to administration of section 3 permits.
Standards & Guidelines
Standards for Healthy Rangelands and Guidelines for Livestock
Grazing Management became effective August 21, 1995 in accordance with the
Department of Interior's final rule for grazing administration. The development
and application of these standards and guidelines are to achieve the four
fundamentals of rangeland health outlined in the grazing regulations (43 CFR
4180.1). Those four fundamentals are: (1) watersheds are functioning properly;
(2) water, nutrients, and energy is cycling properly; (3) water quality meets
state standards; and (4) habitat for special status species is protected.
Standards address the health, productivity, and sustainability of
the BLM administered-public rangelands and represent the minimum acceptable
conditions for the public rangelands. The standards apply to all resource uses
on public lands. Guidelines provide for, and guide the development and
implementation of, reasonable, responsible, and cost-effective management
practices at the grazing allotment and watershed level. The guidelines are
management practices that will either maintain existing desirable conditions or
move rangelands toward statewide standards within reasonable timeframes.
The standards for Wyoming were developed in cooperation with the
Wyoming Resource Advisory Council, the State of Wyoming, and BLM staff. The
BLM's current selective management policy serves as a base for the allotment
review along with other allotment priorities. Over time all grazing allotments
will be addressed for standards and guidelines.
Grazing Regulation Changes
Other changes that became effective August 21, 1995 that occurred
with the Department of the Interior's final rule for grazing administration
are:
Management of the public lands in section 3 and section 15 are now the same.
The distribution of grazing fees remains the same as it was
under the Taylor Grazing Act.
Leases are issued for section 15 and permits are issued for section 3.
Livestock being leased from/or pastured for someone else are
subject to a surcharge.
Nigeria
is ranked seventh among gas nations in the world and number one in
Africa. Oil and gas experts believe that Nigeria could even earn more
from full utilisation of gas resources with a sound investment policy.
ExxonMobil one of Nigeria’s biggest oil and gas companies recently
appointed Alhaji Sadiq Adamu as Executive Director and General Counsel.
In this interview with May Agbamuche-Mbu and Tobi Soniyi, the lawyer,
author, poet and playwright expounded on a wide range of issues
including Nigeria’s untapped gas potential, renewable energy resources,
why the PIB is not the panacea to Nigeria’s oil and gas problems and
ExxonMobil’s Corporate Social Responsibility Initiatives and local
content policy.
Congratulations on your appointment as
Executive Director and General Counsel of ExxonMobil. How do you intend
to combine these roles effectively?
Accept my gratitude for your kind wishes.
Up North in Wukari Taraba State my hometown, the people are celebrating
the appointment. The combined roles of General Counsel and of Executive
Director not just in one, but three different companies would, on the
face of it, look daunting. The responsibilities will require me to play
the lawyer-entrepreneur roles at the highest levels of corporate
governance. I have been nurtured in the ExxonMobil culture of
self-reliance, self-improvement and calculated risk-taking for more than
twenty years; enough time for the process to reconstruct me for the
job. The companies say I am ready and I have rolled my sleeves ready to
evolve. I am a true seeker of knowledge, my seniors on the Boards are
consummate teachers and the environment is conducive.
After the global recession new corporate
governance codes emerged placing more emphasis on stricter compliance
with reporting standards, this has led to the general counsel playing a
more central role in compliance and risk-management in many companies.
In your opinion how can the General Counsel meet with these high
expectations?
This is already a norm in ExxonMobil. We
are glad that global corporate governance culture has evolved to align
with the ExxonMobil legal compliance traditional demands. Our hope is
that the compelling need for what the company has preached for so long
will become more and more manifest and gladly embraced as to be
normative in all business environments. The GC is traditionally the
company’s chief compliance officer. Whoever holds that responsibility
ought to be primed to rise to the occasion, if for nothing, to justify
the significant investment in his training both formal and on the job.
There are no two ways about it. Daily work life in ExxonMobil is an
experience in consistent continuous improvement.
Usually tensions exist between General
Counsel and External Counsel due to a difference of objectives and
organisational orientation. How would you advise General Counsel to
overcome this challenge?
I believe it should be second nature for a
GC to communicate effectively. That should be his/her first tool of
trade. He/she has to be a good listener, one who listens more than
he/she speaks. When you listen, you encourage defences to be lowered,
and when you communicate clear appreciation of the other’s viewpoint,
you affirm the relevance of the other’s contributions and both help to
engender productive engagement. Communicating expectations in an
atmosphere protected by attorney-client privilege should be relatively
simple. Effective communication has done wonders for us. Ask the law
firms that work for ExxonMobil. That’s what makes us different and it
should work for everyone.
The non-passage of the Petroleum Industry
Bill (PIB), is a major cause of concern for stakeholders in the oil and
gas industry. The Minister of State for Petroleum Resources and Group
Managing Director, NNPC Dr. Ibe Kachikwu, recently stated that the
country was losing over $15bn annually as a result of the non-passage of
the PIB. In your opinion what other consequences does the Nigerian
Economy face as a result of the non-passage of the PIB?
Is the problem really with the PIB? I
think it is time for Nigerians to ask one fundamental question – what is
wrong with the existing laws that the PIB is intending to replace? I do
not think anything is fundamentally wrong with the current legal
regime. But let’s take a look at what investors require in order to
invest in any country and these are things we take for granted in this
country. Investors need stability in policies and laws to evaluate
opportunities and make investment decisions. They also require respect
for contract sanctity. Investors require security of lives and property.
Many factors are taken into account before making any investment
decision and if you change the rules midway, this will cause problems to
the investor and his perception of the country as a hospitable
investment destination. If an investor comes into the country and
partners with any person, be it a private company or a government
corporation, the expectation is that the partner will be able to respect
commitments made, pay its own share of the cost of doing business. If
this does not happen, you create an unnecessary burden on the other
party. The perennial JV funding gap means that a significant number of
viable projects cannot go ahead. The consistent JV funding gap is
constraining the growth of our industry. These are issues we need to
address and this can be done without necessarily having to pass a new
law. Speaking personally, the often touted idea that the PIB is some
kind of magic wand, the panacea of all of the industry’s challenges
appears overrated.
The dwindling oil prices indicate that
Nigeria has to develop a strategy to attract foreign investment into the
Nigerian economy. What can the government do to encourage foreign
investors?
It is about what I talked about earlier.
We need to devote energy to creating an enabling business environment in
this country. We must be conscious of the fact that investment funds
are scarce and there are many destinations competing for investment. So
we must offer an investment proposition that is attractive to the
investor. The starting point is by asking ourselves the question why
should an investor come to invest in the country instead of going
elsewhere? This question, should, in my opinion, be of topmost priority.
We should then put in place sweeteners that will attract investors to
come to Nigeria instead of going to other competing countries. The
common traits shared by jurisdictions that successfully attract foreign
investment are stability of fiscal regime and the strong observance of
the rule of law. Long term investments require long term planning and
these require clear and stable fiscal regime, laws that are enforced and
a business culture that defends sanctity of contracts. We must learn to
do the things that others like Singapore, South Korea and Brazil have
done. There are no two ways about it. This is more so in the face of
evolving global economic trends; low crude oil prices, the bourgeoning
cost of deep-water operations (Nigeria’s prime opportunities at the
moment), the emergence and the appeal of alternative energy sources and
so on and so forth. We must put forward investment policies that will
attract new investors while encouraging those that are already here to
stay.
Nigeria has a clearly defined Renewable
Energy Program, under the direction of the Federal Ministry of
Environment, however these energy sources are far from being
proliferated on a commercial level by any means to near becoming
alternatives to the use of Petroleum Energy sources. At what point do
Oil producing countries like Nigeria, Venezuela and Angola need to begin
to focus on renewable energy sources? What is the future beyond oil for
Nigeria?
The global dependence on oil is quite
broad and general; it traverses every facet of known economic activity.
The alternatives are increasingly gaining traction. Nigeria has huge
potential for renewables. It will interest you to know that Nigeria is
essentially a gas domain; our crude oil potential is relatively
minuscule when compared to our natural gas resources. The government’s
investment in natural gas is so paltry. Countries like Qatar are
significant global players. Everyone else in OPEC has integrated its
hydrocarbon industry reaping considerable earnings from the economies of
scale and the abundant multiplier economic effects like ample
employment opportunities and industrialisation. Natural gas development
is a low hanging fruit for Nigeria. With the kind of international oil
companies presence in Nigeria all that is needed is very attractive gas
development terms and the country will open up. All the big players are
already here.
Specifically, a large part of the
advantage Nigeria obtains from working with International Oil Companies
such as Exxon Mobil is the knowledge and expertise that they bring to
host nations. The transfer of knowledge and capability to Nigerian
workers and the Nigerian labour force serving these IOCs is an
imperative for the future growth and development of the industry, so
what specific programs do IOCs operate to enable such transfer of
knowledge and capabilities in support of the Oil and Gas industry?
The company has a global program for this
initiative and it is very helpful to Nigeria and other countries.
Currently, most of the workforce in Nigeria are Nigerians trained by
ExxonMobil. The expatriates are paired with Nigerian understudies as
required by Nigerian law. These are candidates to replace the
expatriates when they are sufficiently trained for the required skills
set. And we have been hugely successful in doing this. About 96% of our
work force here are Nigerians who are trained by a small percentage of
expatriates that have been brought in for that purpose. There are also
many Nigerians posted to various ExxonMobil affiliates throughout the
world either on development or work assignments to broaden their
experience. I was a beneficiary of this initiative having worked with
the company in the US, Qatar, Saudi Arabia, United Arab Emirates and
Kuwait before returning to Nigeria in 2000. I and other Nigerians were
also part of the Global Leadership Development Program, a program for a
select few employees from affiliates all over the world handpicked for
global leadership positions. Any person working for ExxonMobil in
Nigeria is trained for capacity to work anywhere within the ExxonMobil
world. That is a practical reality that many of us are privileged to be
part of.
In spite of efforts by past governments
to address the restiveness in the Niger-Delta, the crisis remains
unresolved. How would you advice government to handle this issue?
The Federal Government of Nigeria and the
relevant state governments are doing what they can to address the
issues of the Niger Delta region. These are complex issues and there are
no easy solutions. Initiatives such as the amnesty program is intended
to assist in addressing the problem. But like all things, there is room
for improvement. As a servant of the law, I am inclined to prescribe
adherence to the law on occasions where responsibility and entitlement
jostle for prominence. But I also remain mindful of the political
dimension of conflicts such as this. In societies where adherence to the
rule of law is normative, the law would compel governments to address
the excuses that led to the insurgency. Ours is a fledgling democracy
and like all fledgling democracies we need time to grow our feathers.
Conflict in the Niger Delta, incessant
attacks on Oil pipelines, and whole regions contaminated by oil spills
or destroyed by fires from Gas Flaring are all symptoms of failed
collaboration between IOCs, the Government and local communities
affected by the exploitation of Petroleum Crude. It goes without saying
that the successful operation of IOCs’ activities in these affected
areas requires the support and cooperation of local communities and so
how should IOCs approach the delicate balance involved in the
exploitation of crude oil and its harmful environmental effects on host
communities?
I think we need to debunk the widely held
misconception in this country that oil production is synonymous with
environmental despoliation. That is far from the truth. Oil companies do
not set out to damage the environment. Indeed, oil development is
carried out in line with applicable environmental laws and standards and
international best practice with close monitoring of the regulatory
agencies.
Now to be honest, we do have some
challenges in the process. There can be facilities upset or other
challenges that may happen in the process of oil production. Our company
is set up with processes and capabilities to manage those upsets and
challenges in such a way that will limit impact on the environment.
For us in ExxonMobil, commitment to
environmental protection is of topmost priority irrespective of where we
operate in the world. We consider this as a licence to operate issue.
We will rather not carry out an operation if it cannot be done safely.
We comply with Nigerian laws and international best practice in our
operations. Every employee knows the importance attached to the
environment and safety and the reminders are so common place and
frequent it is imbibed and has become second nature. So it is not
correct to assume that oil development is tantamount to environmental
damage. That point must be made clearly. To the other question, I must
say that we recognise communities as important stakeholders in our
operations. NGOs and other stakeholders are advocating corporate social
responsibility and operators are listening. Significant resources are
deployed to host communities’ development with appreciable results. The
improvement in derivation funds, the creation of the Niger Delta
Development Corporation and the Ministry of the Niger Delta are positive
government initiatives to enhance government’s presence in the region.
Hitherto, the only government the communities saw were the IOCs and
their contractors in their midst. We need a collaborative approach in
addressing community issues. Both the government and the IOCs need to
engage more with the communities for dialogue and grassroots buy-in to
programs. Such engagements will create an opportunity for host
communities to better understand our operations and present a feedback
opportunity to assist in planning and coordinating future programs. As
they say, “Jaw-jaw will always help avoid war-war.” Concerning
operational safety and environment, the regulatory agencies need to
focus more on enforcing compliance with standards of the law
particularly in those areas where those standards are flouted.
Good Corporate Social Responsibility
initiatives are necessary to boost, the relations between oil companies
and the community in which they operate. What are your company’s
corporate social responsibility initiatives?
ExxonMobil is a pioneer in corporate
social responsibility in Nigeria. In fact we are very proud of our
record of achievements in corporate social responsibility. I will just
mention a few; Since 2005, we have spent N2.5Bln Naira on Nigerian women
in initiatives such as Global Women in Management and Women in
Management Business and Public Service; We have spent over N19Billion in
the fight against malaria which has benefitted over 105 Million
Nigerians, including 30,000 pregnant women. The company has been
actively supporting host community development from the inception of its
operations in Nigeria. It is one of the company’s key policy
objectives. Over the years, the company has built primary and secondary
schools, sponsored thousands in Nigeria and overseas through tertiary
education scholarships, and has youths’ apprenticeship programs for
technical skills acquisition. These are in addition to building
infrastructure such as roads, drainages, hospitals, community centres,
sporting and recreational facilities, and providing access to portable
water in many rural and urban communities. Corporate social
responsibility is an annual budget item for ExxonMobil in Nigeria. Just
visit any of our host communities you will see physical evidence dotting
the landscapes. As you will know, our effort in this respect has been
widely recognised in the country. Just last year, ExxonMobil affiliates
in Nigeria were voted the 2015 Best Company of the Year in CSR by the
Social Enterprise Report and Awards (SERAs). The Company also received
the awards for Best Company in Poverty Reduction and Best Company in
Infrastructure Development. We are the first Oil and Gas company to have
achieved this feat in Nigeria!
Nigeria is estimated to have about 188
trillion standard cubic feet (SCF), of gas reserves, making Nigeria the
nation with the seventh largest gas reserves in the world and number one
in Africa. What reforms should be introduced to the gas regulatory
framework to enable us effectively harness our natural gas potential?
Like I said before, Nigeria is
essentially a gas country. The government needs to incentivise natural
gas development to attract the required investment. Similar to crude oil
development, natural gas monetisation is capital intensive. You need to
attract the guys with the big pockets. To do that you need to create
the right investment climate. For example, the Joint Ventures have gas
development terms. That may be why we have huge revenue earning ventures
like the Mobil NGL project in Bonny Island and the like. These are
developing associated gas produced with crude oil that would have been
flared. Actual gas fields onshore, in shallow waters and giant fields
deep offshore are all ready for development. The government needs to
create development terms and the time for it is now. As you may be
aware, natural gas is the energy source of the future. In fuelling
electricity alone, it is a product with universal demand. Just imagine
the existing global demand for electricity and its exponential growth
daily. The demand is there and it is huge. Natural gas has other uses
not commonly known like fertilizers manufacturing, polyethylene for the
manufacture of plastics, insecticides and other pesticides,
pharmaceuticals as well as additives in the manufacture of many things
like cell-phone parts, automobile parts, aeronautics, cosmetics,
electrical appliances and so on and so forth. To crown it all, the big
players in the global industry are already here. Just roll out the drums
and the dance will begin. So what we need here are some catalysts to
kick start a revolution in the sector. Also, we need gas terms for PSCs.
Billions of cubic feet of gas are locked in there simply because there
are no gas terms to monetise them.
The Nigerian Content Act was passed to
increase the participation of indigenous oil companies in the oil and
gas industry. Despite this development indigenous oil companies still
struggle to navigate the challenges that exist in the oil and gas
industry. How do we ensure that indigenous companies are given the
opportunity to grow?
To my mind, the Nigerian Content Act
creates the best opportunity for Nigerians to participate in the oil and
gas industry more than any other legislation in recent times. It
provides local companies an opportunity to participate in the sector and
helps them develop the necessary skills to service the industry. The
intent of the law is laudable, but may require tweaks here and there.
One critical issue is access to capital by smaller companies. In our
particular case, we are committed to the promotion of local content
development. In the last couple of years, we awarded contracts worth
over N230Bln with Nigerian content value exceeding N120Bln and provided
local contractors access to over N1.4Trn. We remain committed to
pioneering feats in local content development and this feat was
recognised by the award to ExxonMobil as the Best Company in Local
Content in Nigeria from Businessday Newspaper last year. In my view, the
opportunities are there, low hanging fruits to be plucked. Nigerians
can also look to other jurisdictions with similar legislation like Saudi
Arabia to borrow a leaf on how to maximise the opportunity. There must
be significant focus on building capacity in terms of support
infrastructure and skilled manpower. Both cannot be wished away if
success is the ultimate objective. Nigerians must hunker down and build
capacity. They must attract foreign partners with proven performance
records and surround them with Nigerian understudies, approach things
with the humility of the true seeker of skills, the mechanic apprentice
and allow for a significant gestation period for the skill sets to
mature. I mean both the skills in enterprise management and the
technical knowledge. We have no option but to sweat it out like others
in the developed world did. That penchant for instant gratification must
be thrown out the window. This is a multibillion dollar industry with
globally established safety and performance standards.
Analysts predicted that oil prices would
drop to as low as $20 per barrel. Could this mean we have not seen the
worst in terms of dwindling oil prices?
This is anybody’s guess. But I know that
oil is a fungible commodity, an international product whose price is
influenced by geopolitics, economics, weather, war, shipping and simply
by periods of contango and backwardation. In my view, looking at the
last thirty years of prices of oil, the current price phenomenon may be
cyclical. It appears to happen every ten years or so. The prices may
recover but not even a seer can tell you precisely when this would
happen.
Stakeholders in the oil and Gas Industry
have stated that the decline in oil price provides Government with a
unique opportunity to diversify its revenue base and reduce dependency
on oil. What other viable sources of Public revenue do you believe are
as yet untapped?
There are many. I can reel out the
numbers; natural gas development, hydroelectricity, solid minerals,
agriculture, the education industry. Take the last one for analysis. If
the government grows the courage to make primary and secondary education
free and compulsory, domicile a portion of government export receipts
in Nigerian banks to support University study loans for all eligible
Nigerians, all the major Universities in the world will have campuses in
Nigeria. A huge percentage of the population will be educated.
Everything in the country will change; our politics, respect for the
rule of law, universal economic empowerment, even the way we appreciate
each other. The opportunities are varied and attractive. Again, to make
this happen, one cannot emphasise enough the importance of adopting
appropriate investment policies and laws that will make the economy
investor-friendly and open all of these to very active participation by
both foreign and local investors and entrepreneurs.
The President Muhammadu Buhari stated at
the 6th African Petroleum Congress and Exhibition that it was
unacceptable for Nigeria to be responsible for 23 billion cubic meters
of the 40 billion cubic meters of gas flared annually in Africa, and
promised to partner with the legislature to ensure the signing of the
United Nations Agreement of “Zero Routine Flaring by 2030”. What steps
should government and stakeholders take to achieve this goal?
The government must invest in natural gas
monetisation the way it has invested in crude oil development. Indeed
the development of the gas sector should be made a national priority.
There are salient issues that must be addressed here. Nigeria must set
attractive gas development terms for both the backbone infrastructure
that support gas, resolve the lingering JV funding issue, provide
efficient and effective regulatory framework for timely, transparent and
efficient approval of projects, ensure contract sanctity as well as
independent and fair dispute resolution mechanisms. Right now, the price
of gas is being regulated. There will be need to deregulate the sector.
These will help energise the sector for investments. The resources are
there. So are the big players and the thirsty markets. Flared gas will
turn to cash gas literally tomorrow. The only missing puzzle is the
appropriate enabling environment. It may interest you to note that the
ExxonMobil companies in Nigeria have achieved a less than 10% flare out
rate within the past 10 years.
The Federal Government has repeatedly
stated that it plans to remove fuel subsidy. What is your view on the
removal of fuel subsidy?
I fundamentally believe that prices are
determined by market forces. Having said that, I also recognise that
there are more complex issues at play in this instance, and that the
government will, ultimately, make the right decision.
Corruption is often blamed for our
inability to use revenue generated from the oil industry to develop the
country. This is referred to as the “Resource curse”. How can we
introduce accountability and transparency in the use of national revenue
to overcome this curse?
To me, we need to deal with the issue of
integrity in this country from a very basic level. We need to preach the
importance of integrity from the family level to our schools and to
every strata of our society. Any society or institution without
integrity and ethics is doomed. If we want to get out of our present
quagmire, we have to go back to our roots, the values of integrity,
ethics and hard work. These are fulcrums which the founders of our
nation held dear. This will percolate down to every strata, be it in the
management of our national resources or any other thing. There is no
other way. Also, we must show that those who go against these values are
punished to serve as a deterrent to others.
International Arbitration is favoured by
stakeholders in the oil and gas industry because of its speed and the
confidentiality of proceedings. However parties including Nigerians
choose London and Paris as seats for arbitration. Being a Director at
the Lagos Court of Arbitration, what steps can be taken to make Nigeria
an attractive seat for arbitration?
For starters, we all need to encourage
enhanced respect for the rule of law. That is a general statement that
dovetails into the issues of insecurity, judicial interference with
arbitral awards and processes, greater respect for sanctity of
agreements, easy enforcement of awards, just and fair consideration of
arbitral disputes and so on and so forth. On the specifics, ADR is a
global phenomenon that is gradually but surely outstripping litigation
in the settlement of commercial disputes. Nigeria needs specific focus
on ADR through concerted investments in support infrastructure, training
for arbitrators and support staff and above all a cultural shift that
encourages ready acceptance of the finality of arbitration awards. Lagos
Court of Arbitration is a bold statement in that direction. The
facility is state of the art, affiliation is widespread in Lagos, Abuja,
Kano and Port Harcourt. Recently, judges from Ghana and South Africa
came snooping around for membership. Very soon the quality of services
will further advertise the facility globally and that will attract the
kind of attention London and Paris have coveted for so long. We will get
there. I am certain of that. LCA is a starter; an excellent foundation
for ADR in Nigeria and sub-Saharan Africa as a whole.
You were the President of the
Contemporary Literature Society of Nigeria and Writers’ Drama club and
also authored many books including “The Man Alone”, “The Way of the
Mustard Seed” and a play “Were I to Surrender”. You are also a
distinguished poet and your sonnet “Muffle the Nightingale” was
published in the contemporary edition of the English Pageant of Longer
Poems and your other poem “Walking between Raindrops” was well-received.
Being a successful lawyer, what inspired you to venture into the arts?
What is your opinion on the relationship between law and literature?
Law and literature are conjoined twins.
Literary artists and lawyers sculpture arts on the canvass of words.
Relying on the power of superior argument, an advocate creates and
defines reality in a perspective that did not exist before. He creates a
lurid picture, sells it to an audience and persuades acceptance. That
is his trade. A literary artist uses creative imagination to fashion a
reality that his audience appreciate profoundly. He uses the power of
words to evoke an imaginary reality that captures perception and
persuades acceptance as real. Both are artistic users of words to
persuade. Let me use one example each from Lord Denning, MR a beacon of
the Law and William Shakespeare the doyen of the arts. Denning said this
about literature, “Of all the things in which the wise excel, nature’s
CHIEF MASTERPIECE is writing well”. Permit me to paraphrase Shakespeare
playing the lawyer in the words of Portia (Merchant of Venice) – ‘mercy
drops like gentle rain from heaven upon the place beneath it. It has
double blessings. It blesses him that gives and him that receives it. It
is a finer ornament of a King than his crown for it is the quality of
God Himself. Earthly power comes nearest to God’s when mercy is mixed
with justice. As we pray for mercy, that same prayer should teach us
show mercy’. Therefore, where the artist is meshed in a lawyer, you have
convergence. Both the lawyer and the literary artist are in the trade
of NATURE’S MASTERPIECE.
You are also actively involved in the
activities of various associations and clubs such as the Harvard Club of
New York, the Harvard Alumni Association of Nigeria and the
International Bar Association and the Nigerian Bar Association (NBA).
What can the NBA do to encourage the participation of its members at all
levels?
The Military did their things and passed
Decrees the whole nation was compelled to abide by, with no contribution
from anybody. We have a democracy now and the Constitution allows
citizens’ contribution to legislation. The NBA should take that
opportunity to develop Legislative Advocacy as a practice field. There
is no reason why the NBA should not contribute position papers on every
legislation before all legislative houses in Nigeria. Social media
presents a veritable tool for promoting social change. The NBA should
harness its potential maximally, joining issues with other stakeholders
on issues such as ethics, good governance practices, promotion of arts
and culture and general awareness on the workings of the Constitution.
We need to actively participate in our democracy, sponsoring bills and
representing interest groups in advocating legislation over things that
matter to the common man. The NBA also needs to spearhead the
development of indigenous commercial agreement precedents as guides to
legal drafting. Lawyers must also learn to give back to the society;
social responsibility – endowments in support of education; support for
girl-child education, sponsoring chairs in law faculties. We need to be
more visible promoting national integration, patriotism, and encouraging
debates on topical issues that emphasise a common faith in the Nigerian
enterprise. We have played backbenchers for too long, encouraging
persons at the bottom of our social pyramid into positions of leadership
and then we sit back and complain how bad things are in Nigeria.
Bukola Saraki attending his Code of Conduct Tribunal for corruption
