Category: Dapo Fafowora

  • Fiscal federalism at the National Conference

    Fiscal federalism at the National Conference

    This article by me on fiscal federalism was first published in this paper in May. It was a preview of the emerging controversy at the National Conference over resource control. There is now a complete deadlock at the conference between the North and the Southsouth delegations on the issue.

    As was widely expected, and as I observed in my column in this paper a few weeks ago, the issue of fiscal federalism is proving to be a hard nut to crack at the National Conference. It is still being debated at the committee level and it was reported that the committee had agreed tentatively on the reduction of the federal share of the national revenue by some 10 per cent to be distributed among the states and local governments. But there were press reports also last week that the northern delegation had circulated a 47-page position paper at the conference rejecting all claims to oil resources by the oil producing states, particularly in the Delta region. Specifically, the position paper is demanding that all minerals, including oil, should remain under the exclusive list of the Federal Government and that the previous dichotomy on offshore and onshore revenues be restored.

    In effect, the northern delegation is giving notice in advance that it will oppose the principle of derivation as the basis for sharing the national revenue, particularly the oil revenue, which accounts for over 80 per cent of the total national revenue. The North’s position is evidently an opening gambit in what is going to be a very contentious issue at the conference. After all, the oil-bearing states already receive 13 per cent of the oil revenue in partial recognition and acceptance of derivation as a principle that cannot be totally ignored in revenue sharing.

    There has so far been no official response from the oil-bearing states to this northern position paper. But it can be assumed that the oil-bearing states, particularly in the Niger Delta, will vehemently reject the North’s  position on the issue as totally unacceptable. They can expect support from the Southeast. But the position of the Southwest on this issue is not altogether clear. For reasons of political expediency, the Southwest delegation is refraining from taking a position openly. But it should, as a matter of principle, take a position, and not wait for the North and Southsouth delegations to slug it out between themselves. After all, the outcome of the dispute will have  financial consequences for the Southwest too. At the Obasanjo Reform Conference of 2005, the Southwest delegates were willing to support an increase of additional revenue for the oil states from 13 per cent to 19 per cent, but this modest increase was rejected out of hand by the delegation from the Southeast and Southsouth, which insisted on nothing less than 25 per cent of the total oil revenue. It was on that dispute that the 2005 Conference broke down completely.

    The irony of the present dispute over revenue sharing is that until 1966 when the military seized power, revenue sharing among the three regions was based on 50 per cent derivation. This was generally acceptable to all the parties concerned and was in conformity with the principle of revenue sharing in a truly federal system. But all this was before oil revenue became so dominant in the total national revenue. Before independence in 1960, the British colonial power took a great care to ensure that all frictions on revenue sharing were resolved. Between 1946 and 1958, the four commissions set up by the departing colonial power recommended that 50 per cent of total revenue be shared on the principle of derivation, that 35 per cent be shared by the regions, and only 15 per cent to the Federal Government.  In fact, in 1964, after independence, the Binn Commission reduced the allocation of the Federal Government from 20 per cent to 15 per cent. This was the basis of revenue sharing among the federal and regions before the military seized power in 1966.

    Under the military, the share of the Federal Government in total revenue was progressively increased. Oil had become a major factor in national revenue. The process of the erosion of the principle of derivation for revenue sharing began with the military Decree 13 of 1970, which reduced by 5 per cent the revenue shared on the basis of derivation. In addition, the decree transferred all the revenue from off shore oil wells to the Federal Government. Between 1976 and 1979, the military regime reduced by a further 20 per cent, the revenue distributable on the basis of derivation. In 1981, the Shagari regime made a further reduction of 20 per cent on revenue sharing on the basis of derivation. With this, revenue distributable on the basis of derivation fell from 50 per cent at independence to only 5 per cent. When the military returned to power in 1984, revenue sharing on the basis of the principle of derivation was further reduced to 1.5 per cent. It should also be noted that virtually all the leaders of the military regimes, except the Obasanjo regime, who undermined the principle of derivation as the basis for the sharing of the national revenue, were from the North. This further complicated the problem, as most of the oil is located in the Delta region. In 1992 the Babangida military regime decided that the share of the Federal Government in national revenue would be 48.5 per cent, the states 24 per cent, the local governments 20 per cent and the balance of 7.5 per cent was to be held by the Federal Government as special fund. In effect, the total share of the Federal Government in the national revenue, over 80 per cent of which is from oil exports, was 56 per cent.

    Now, this is a massive negation of the principle of derivation and of fiscal federalism. It is totally unacceptable and the oil-bearing states are right in demanding a drastic review of the existing formula on revenue allocation as it hurts the financial viability of the states (37) and local governments (774) very badly. While the Federal Government  gets over 56 per cent of the total revenue, the states get less than 1 per cent each and the local governments even less. The issue is not even about the financial profligacy, or massive corruption of the Federal Government, or its colossal financial mismanagement. The issue is that this imbalance in revenue sharing between the states and the Federal Government has been a persistent source of friction between them, as it places the other tiers of government in the federation in an invidious situation of having to rely on the Federal Government for financial bail outs. This runs counter to the principle of fiscal federalism, which should be based on the recognition that both the Federal Government and the federating states are co-ordinates, equal in all respects to one another.

    It is in the interest of the states for the Federal Government’s share of the national revenue to be reduced so that individually all the states, including the northern states, can get more from the total national revenue. The position of the northern delegation is obviously based on political expediency, on the expectation that power will revert to the North in 2015. If the situation was reversed, and most of the oil was located in the North, there is no doubt that the northern delegation would insist on the principle of derivation as the basis for revenue sharing.

    However, there is one issue on which the littoral oil-bearing states stand on a weak wicket. It is that of their claim to offshore oil as well as onshore oil. These states cannot legitimately claim exclusive ownership of offshore oil, the proceeds of which should be shared by both the states and the Federal Government. This position was affirmed at the UN Law of the Sea Conference of 1982 in which I participated when I was Ambassador at the UN and which the northern delegation referred to in their position paper. The littoral oil-bearing states cannot claim 50 per cent of the revenue accruing from offshore oil as offshore resources belong to the entire country and should be shared equally among them. Neither can the Federal Government claim exclusive ownership of revenue from offshore oil. After all, without the states there can be no Federal Government. There is no provision in the convention agreed at the UN Law of the Sea Conference vesting total ownership of offshore oil in the Federal Government.

    It should be possible for these huge differences over revenue sharing to be resolved at the conference. What is needed all round is compromise and a spirit of give and take on all sides in the overall interest of the nation.

     

  • Ekiti Poll: The ugly face of democracy?

    Ekiti Poll: The ugly face of democracy?

    The stunning but totally unexpected defeat of Dr. Kayode Fayemi, the All Progressives Congress (APC) Governor of Ekiti State, by Mr. Ayo Fayose of the Peoples Democratic Party (PDP), has led many observers and analysts to ask questions. No one gave Fayose any chance to win the election. A former discredited, impeached and disgraced PDP governor, he was still standing trial for all kinds of financial misdemeanours, including the multi- billion naira poultry project that never saw the light of day and murder charges when he was declared the winner of the election.

    Presumably, these legal charges will now be dropped, including the ongoing investigation by the Economic and Financial Crimes Commission (EFCC) of financial misdemeanours. He will claim immunity from prosecution while in office.

    Many observers were initially sceptical of Fayose’s sweeping electoral victory, but were left in a quandary when Dr. Fayemi promptly conceded defeat, congratulating Fayose. This was most gracious of him and reinforces widespread public view of him as a decent person. It was commendable, as this gesture probably saved the state from post-election violence. The scope of Fayose’s electoral victory was stunning and surprising. The turnout in the election was rather low. Of the nearly 800,000 voters validly registered for the election, only 360, 000 actually voted. Fayose was recorded as winning 56 per cent of the votes, while Fayemi could only win 33 per cent. So sweeping was Fayose’s victory that he won in all the local governments, including that of Fayemi. The low turnout for the election may account in part for the scope of Fayose’s victory. Many of Fayemi’s supporters probably stayed away from the election, either because they were confident of his victory, or because they feared an outbreak of violence. This was probably the most sweeping victory in Nigeria’s recent electoral and political history.

    Since Governor Fayemi has not contested the results of the election, we must consider them free and fair, and a genuine representation of the electoral wishes of the people. We must accept the results in the spirit of democracy in which the best candidates may not win always.

    But in the aftermath of the election, several questions have been raised concerning the unexpected outcome of the election. First, Governor Babatunde Fashola of Lagos State, while acknowledging the right of the Ekiti electorate to vote for a candidate of their choice, in this case Fayose, has expressed concerns that we may now be entering a new phase of politics in Nigeria, specifically one in which financial inducements determine the results of elections. Here, he was referring to media reports that Fayose won the election by giving the voters financial and other inducements. As he  asked in his recent interview in The Nation: “Is it a  logical human behaviour for a land of so many intellectuals to reject so overwhelmingly an incumbent that was a respected family man, a devout  Catholic, a gentleman and an urbane representative, even in his own ward?” He rightly expressed regrets that ‘stomach infrastructure’ has now replaced real development in Ekiti State, which is what is needed. It is the ugly face of democracy.

    Governor Fashola was quite right in raising this pertinent issue as it is crucial for democracy in our country. There has, so far, been no response to this electoral poser by the Ekiti elite, who were probably as much in support of Fayose as the poor in the state. Only Femi Orebe has written in defence of Dr. Fayemi. Other Ekiti leaders appear to be in hiding. Ekiti may be the poorest of the Yoruba states. But its people had a reputation for political doggedness and for fighting for what they considered right. That reputation is now in tatters. The Ekiti vote is a throw back to the horrible days of Adegoke Adelabu and Lamidi Adedibu, both of Ibadan, who used financial inducements and free food to win elections in Ibadan, the so-called Amala politics.

    Governor Fayemi’s immense contribution to the development of the state during his tenure has not been denied even by the opposition. He built roads, schools and hospitals. He left the state with a far better infrastructure than ever before. He ran one of the most competent and effective governments in Nigeria. Under his leadership, there was no financial scandal or scam in the state. He was not being investigated by the EFCC or other anti-fraud agencies. But despite his impressive performance, he was spitefully voted out of office. The only thing he has been accused of is that he did not hand out cash gifts to the voters before the election. But the impressive physical transformation that took place in Ekiti State under his watch is of immense benefit to the public. It will endure long after the cash gifts from Fayose to the electorate must have been spent. That is the road to poverty alleviation and real economic development.

    The second issue concerning the future of democracy in the country was raised recently by the distinguished American scholar, Prof. Larry Diamond, the Director at the Centre on Democracy, Development and the Rule of Law. In his inaugural Freedom House Lecture on Monday, in Lagos, in apparent reference to the Ekiti election, he observed that the electoral process was badly flawed. “You cannot have the police and the military blocking the supporters (not to mention fellow governors) of one party from moving about in a state and campaigning, and call that a fully free and fair election”. In effect, what Prof. Diamond was saying is that the electoral damage to the APC in Ekiti State was done in the weeks before the election when the ruling PDP Federal Government deployed its military, police and other security forces to ensure the defeat of Governor Fayemi, whose supporters chose to stay at home rather than face violence on the part of the security forces. This was no level-playing field. The dice was stacked heavily in favour of Fayose. Actual voting in Ekiti might have been free. But the entire electoral process was badly flawed. It is the tactics the PDP intends to employ in the forthcoming state and federal elections.

    Now, what are the lessons to be drawn from the Ekiti elections?

    First, the APC, and indeed all parties,  must fight against the improper use of financial inducements in elections. Ideally, the INEC must monitor election expenses and disqualify any candidate spending money through cash gifts to the voters to win elections. This is subversive of democracy and should not be encouraged, or even tolerated. The APC should refrain from resorting to this despicable means to win elections. It cannot match the resources of the ruling PDP.

    Second, internal democracy must be strengthened in the parties through the fair conduct of primaries to ensure fairness. The existing rancour in the parties is the perception that unpopular candidates are being imposed on supporters by the leaders. This practice will alienate the majority of those who will normally support the party.

    Thirdly, as a progressive party, the APC must, despite the electoral setback in Ekiti, stand by its principles and programmes to win elections. It must stay the course and fight for what it believes in. The Ekiti defeat is only a temporary setback, a Pyrrhic victory for Fayose. The state can be regained in the next elections.

  • Odigie- Oyegun’s emergence as first APC national chairman

    Odigie- Oyegun’s emergence as first APC national chairman

    Last week, Chief John Odigie-Oyegun, a former UPN Governor of Edo State, emerged by consensus as the first substantive national chairman of the All Progressives Congress (APC), replacing Chief Bisi Akande who, until then, had been the interim national chairman, in which position he succeeded in holding the party together, by no means an easy task. The two other contenders for the post, including Tom Ikimi, a former Foreign Minister, were persuaded to step down for John Odigie-Oyegun. The post had been zoned to the Southsouth. Odigie-Oyegun is Edo from the zone.

    Many local observers will be quite happy with the choice of Odigie-Oyegun as the national chairman of the party. He is a veteran politician. An economist by training, he is highly regarded in political circles and will bring to the party his considerable wealth of experience in administration at both the federal and state levels. After obtaining his A-levels in 1960 from the old Nigerian College of Arts, Science and Technology at Ibadan, where he and I first became acquainted, John Odigie-Oyegun entered the then University College, Ibadan, where he read economics, graduating in 1963. In a bright set, among his classmates at Ibadan, were Chief Olu Falae, Osunsade, who went off to the UN after a brief stint in the federal civil service, and Abangwu, probably the brightest in the set, who died tragically prematurely only a few years after graduating from Ibadan. They were carefully nurtured by the late Professor Ojetunde Aboyade, the former legendary head of economics at Ibadan, who continued to show interest in their careers after leaving Ibadan.

    All four of them started their public service career in the newly established National Planning Commission, where they were spotted quickly by Mr. Allison Ayida, who was then the Permanent Secretary in the federal Ministry of Economic Development. Mr. Ayida watched their progress very carefully and sent them on various training courses abroad to hone their skills in economic analysis. Eventually both Oyegun and Falae, on their professional maturity as sound economists, became federal permanent secretaries. It was in this position that they both first came to the public spotlight and acquired a reputation as first class civil servants and administrators, highly respected in top civil service circles.

    On retiring from the civil service, Oyegun and Falae were drawn into politics, with both of them becoming quite prominent in the circle of progressive politicians dedicated to fighting military rule in Nigeria, which they both detested. Significantly, both of them joined the old Unity Party of Nigeria, now defunct, to which they  made substantial intellectual and organisational contribution. Eventually, John Odigie-Oyegun, who had also been quite active in the National Democratic Coalition (NADECO), a movement hated by the military authorities, was elected the governor of Edo State. But his tenure in office was soon aborted by another military intervention. Since then, he had been on a sort of political limbo, but had stayed with the progressives throughout his entire political career.

    Odigie-Oyegun’s election as the chairman of the APC is thoroughly deserved. It is in recompense of his consistent loyalty and support for liberal and progressive politics in Nigeria. He is a focused, determined, and uncompromising politician, who will fight for what he believes in, and will not be dissuaded by blandishments of material opportunities. As a former high level civil servant and a former governor of Edo State, he has wide political connections in the country that should stand him in good stead as the new chairman of the APC.

    But, as chairman of the party, he faces formidable challenges both inside and outside his party. All the major parties are in a state of flux with constant defections from one party to the other. There have been several defections from the PDP, the ruling party, to his own party, and a few defections from his own party to the PDP, particularly in Edo, his own state, where the leadership of the Governor, Adams Oshiomole, is being increasingly challenged. His first task will be to reunite the party at all levels and make it a more formidable political machine, in preparation for next year’s general elections. If his party loses the presidential election next year, it will be difficult to hold it together again, as many of the supporters of the APC will simply drift to the ruling party, the PDP. As elections are usually won or lost in the North, Oyegun will need to pay very close attention to political shifts and developments in the region. The political momentum and focus must remain on the North where political loyalties tend to be more fluid and unpredictable.

     Since its inception only a few years ago, the APC has emerged as a formidable party, an alternative government to the PDP, whose legitimacy to govern, it has increasingly challenged. But more grassroots support is necessary if the APC hopes to win next year’s presidential election.  It must intensify its campaign in the country, particularly in the North where most of the votes are. With its enormous financial resources and the electoral advantages of incumbency, it will take a lot of planning and organisation to beat the PDP at the elections. The APC must prime itself to achieve this feat by clearly articulating its alternative programme and party manifesto, and by presenting itself to the electorate as a better party, one that is more committed to resolving Nigeria’s increasing challenges at all levels of governance.

    The number one challenge is the appalling state of insecurity in the country, particularly the unchecked rampage of Boko Haram in Northern Nigeria. Second, it must commit itself to fighting public corruption in Nigeria at all levels. Third, the problem of poor social and physical infrastructure has to be squarely addressed. These are the three main challenges that are dragging the nation down. The APC must seek to convince the electorate that if elected it can and will solve these problems. Odigie-Oyegun has a wealth of organisational experience that should help the party in steering it to victory in the presidential elections, if he leads a united party. Unity in the party is of paramount importance to its electoral victory. It must keep itself above petty religious and ethnic divisions.

      Now that Chief Bisi Akande is stepping down finally from politics, we should wish him well. He is now 75 and has been in active politics for over 50 years, since he was first ‘discovered’ by Chief Obafemi Awolowo in Ila, Orangun. He has paid his political dues, seen many political battles, been jailed by the military several times, and been in the eye of the political storm throughout his entire political career. It is time for him to retire finally from politics. He has fully earned his rest. We all wish him well in retirement.

  • Remembering Amb. Gabriel Oyaletor Ijewere

    It is my great honour and privilege to pay the following tribute to Amb. Gabriel Oyaletor Ijewere, one of our departed former colleagues being remembered today, as always, with a profound sense of loss. Amb. Ijewere and I first became acquainted in 1965 when he entered the Foreign Service as a middle level officer, a counsellor. I had entered the Foreign Service the year before on graduating from the University College, Ibadan. Though he was a senior colleague, we soon developed a good personal relationship. He was one of the few senior colleagues in the Foreign Service for whom I had a great professional admiration and genuine respect. It was he who encouraged me to go to Oxford. After we had both left the Foreign Service several years later, we had more time to socialise, visiting each other at home, and became really good friends. We met often at the Lagos Lawn Tennis Club and dined regularly at the Metropolitan Club. We had a similar academic background and the wide range of social, professional and intellectual interests we shared drew us closer to each other. I found him to be a very engaging personality with a liberal world view.

    Amb. Ijewere was born on April 24, 1931, at Ubiaja, now in Edo State, and died in Lagos on 4th January, 2004. He was one of the finest and ablest career diplomats our country has ever produced. Until he retired in 1984 he served with distinction in various capacities, both in the Foreign Ministry and in some of our major diplomatic missions abroad. He started his public service career in the civil service of the old Western Region on graduating from Oxford University in 1959. He served there for three years as an Administrative Officer, and later as the Assistant Registrar (Academic) at the then University College, Ibadan, for two years.  It was from the university that he joined the Foreign Service.

    Amb. Ijewere entered the Foreign Service with a highly impressive academic background, certainly one of the most formidable among the senior diplomatic staff of the Ministry of Foreign Affairs. He had his secondary school education at the famous Abeokuta Grammar School from 1943 to 1948, where his principal was the legendary Revd. I.O. Ransome-Kuti. Of him Amb. Ijewere wrote several years later that the Revd. Ransome-Kuti taught accountability in the school by example. Amb. Ijewere left the school as head boy in 1948 at 17, remarkably young in those days, coming out with flying colours in his Cambridge School Certificate Examinations. Because of his brilliance, he was retained as a teacher in the school and studied privately for his GCE A levels. It was from Abeokuta that in 1953 he was admitted to the prestigious London School of Economics (LSE) to read Economics on the scholarship of the old Western Region government.

    After graduating from the LSE in 1956 at 25, he proceeded to St. Catherine’s College, Oxford, where he obtained the Oxford post-graduate degree of B. Litt. in 1959. Later, from 1961-62, while serving in the Western Region civil service, he went to Harvard for his MPA. Subsequently, Amb. Ijewere obtained a Ph.D by thesis from the University of London in Economics. Obviously, Amb. Ijewere had prepared himself for an academic career, but found himself instead in the diplomatic service which he grew to love and enjoy. He exemplified professional rectitude and integrity and embodied the best traditions of the old school of diplomacy.

    In the Foreign Service he held many sensitive and important positions. From 1965-66 he served as head of the Economic Division in the ministry and later, from 1970-72, as the Director of Africa Department. It was my distinct pleasure and privilege to have worked with him in both departments.  An outstanding public servant, Amb. Ijewere was one of the most versatile, professional, diligent, inspiring and committed officers it was my good fortune to have worked with in the ministry. His solid academic background was a tremendous asset to the departments in which he served in the ministry. He achieved much effortlessly. His analysis of foreign policy issues and international economic relations was very professional. His advice and recommendations to the government were consistently sound and in the best interest of the country. He had a great sense of duty and fully embraced the virtues of probity, honour, restraint, friendship, humility and generosity that are essential for a good diplomat.

    As the head of the International Economic Relations Department in the Foreign Ministry from 1978-1981, Amb. Ijewere played a major role in the development of the Economic Community of West African States (ECOWAS) and its major economic institutions. Equally under his leadership, the Africa Department acquired a reputation as an outstanding department in the Foreign Ministry. He was head of the department soon after the civil war when, under General Yakubu Gowon, the country began redefining its African policy and strategic interests in Africa. Amb. Ijewere was at the centre of that review process. He worked very closely with General Gowon in the efforts to reassess and review Nigeria’s African policy. General Gowon once told me that he thought very highly of him as a fine and dedicated officer. In many ways, he was one of the unsung heroes of Nigeria’s new African policy. He took his official responsibilities very seriously.

    In the course of his diplomatic career, he served from 1967-68 as Counsellor and Head of Chancery in our Embassy in Washington and from 1968-70 in a similar capacity in our OAU Mission in Addis Ababa. From 1973-76 he was our High Commissioner in Ghana, and from 1976-78 he served as Ambassador to Belgium, Luxembourg and the EEC. His last diplomatic posting from 1981-84 was as Permanent Representative (PR) and Ambassador to our UN office in Geneva. In all these positions he stood out as one of Nigeria’s most accomplished diplomats. After his retirement in 1984 he was appointed a member of the National Electoral Commission and continued to work as a Consultant to several UN agencies where he was highly regarded and held in high esteem.

    In the Foreign Service he was friendly with all his colleagues, fair-minded, decent and righteous, without being self-righteous. He stood above the petty bureaucratic intrigues in the ministry. Though a brilliant officer, he was not intellectually snobbish. He had a hearty laughter which drew all his colleagues to him. Amb. Ijewere was not simply a great technocrat and an outstanding public servant. He was also a great patriot and scholar who cared deeply about Nigeria’s future as a united, democratic, stable and prosperous country. A few years before his death, he published in 1999 his seminal book on “Accountability, Politics and Development in Colonial and Post-Colonial Africa’, in which he made a strong case for public accountability, democracy and federalism in Sub-Saharan Africa. I had the privilege of reviewing the book and consider it as one of the most impressive studies on post-colonial African politics in recent years. It deserves better public attention.

    We, his former colleagues in the Foreign Service, will always remember him with great affection, admiration and respect for his great sense of humour, his sincere friendship and his immense contribution to the development of the Foreign Service and Nigeria’s foreign policy.

    Amb. Ijewere was a good and devoted family man. He gave all his children the best education possible in public schools in England.

    May his soul and those of our other departed colleagues continue to rest in perfect peace.

    A speech delivered by Amb. Fafowora at the Nigeria Institute of International Affairs (NIIA), Lagos, on May 28 at a memorial service for deceased members of the Association of Retired Ambassadors of Nigeria (ARAN).

  • Fiscal federalism at the National Conference

    Fiscal federalism at the National Conference

    As was widely expected, and as I observed in my column in this paper a few weeks ago, the issue of fiscal federalism is proving to be a hard nut to crack at the National Conference. It is still being debated at the committee level and it was reported that the committee had agreed tentatively on the reduction of the federal share of the national revenue by some 10 per cent to be distributed among the states and local governments. But there were press reports also last week that the Northern delegation had circulated a 47- page position paper at the conference rejecting all claims to oil resources by the oil producing states, particularly in the Delta region. Specifically, the position paper is demanding that all minerals, including oil, should remain under the exclusive list of the federal government, and that the previous dichotomy on offshore and onshore revenues be restored.

     In effect, the Northern delegation is giving notice in advance that it will oppose the principle of derivation as the basis for sharing the national revenue, particularly the oil revenue which accounts for over 80 per cent of the total national revenue. The Northern position is evidently an opening gambit in what is going to be a very contentious issue at the conference. After all, the oil bearing states already receive 13 per cent of the oil revenue in partial recognition and acceptance of derivation as a principle that cannot be totally ignored in revenue sharing.

      There has so far been no official response from the oil bearing states to this Northern position paper. But it can be assumed that the oil bearing states, particularly in the Niger Delta, will vehemently reject the Northern position on the issue as totally unacceptable. They can expect support from the Southeast. But the position of the Southwest on this issue is not altogether clear. For reasons of political expediency the Southwest delegation is refraining from taking a position openly. But it should, as a matter of principle, take a position, and not wait for the Northern and Southsouth delegations to slug it out between themselves. After all the outcome of the dispute will have some financial consequences for the Southwest too. At the Obasanjo Reform Conference of 2005, the Southwest delegates were willing to support an increase of additional revenue for the oil states from 13 per cent to 19 per cent, but this modest increase was rejected out of hand by the delegation from the Southeast and Southsouth which insisted on nothing less than 25 per cent of the total oil revenue. It was on that dispute that the 2005 Conference broke down completely.

      The irony of the present dispute over revenue sharing is that until 1966 when the military seized power, revenue sharing among the three regions of Nigeria was based on 50 per cent derivation. This was generally acceptable to all the parties concerned and was in conformity with the principle of revenue sharing in a truly federal system. But all this was before oil revenue became so dominant in total national revenue. Before independence in 1960 the British colonial power had taken a great care to ensure that all frictions on revenue sharing were resolved. Between 1946 and 1958 four separate commissions set up by the departing colonial power recommended that 50 per cent of total revenue be shared on the principle of derivation, that 35 per cent be shared by the regions, and only 15 per cent to the federal government.  In fact, in 1964, after independence, the Binn Commission reduced the allocation of the federal government from 20 per cent to 15 per cent. This was the basis of revenue sharing among the federal and regions before the military seized power in 1966.

     Under the military, the share of the federal government in total revenue was progressively increased. Oil had become a major factor in national revenue. The process of the erosion of the principle of derivation for revenue sharing began with the military’s Decree 13 of 1970, which reduced by 5 per cent revenue shared on the basis of derivation. In addition, the decree transferred all the revenue from off shore oil wells to the federal government. Between 1976 and 1979, the military regime reduced by a further 20 per cent revenue distributable on the basis of derivation. In 1981 the Shagari regime made a further reduction of 20 per cent on revenue sharing on the basis of derivation. With this, revenue distributable on the basis of derivation fell from 50 per cent at independence to only 5 per cent. When the military returned to power in 1984, revenue sharing on the basis of the principle of derivation was further reduced to 1.5 per cent. It should also be noted that virtually all the leaders of the military regimes, except the Obasanjo regime, that undermined the principle of derivation as the basis for the sharing of the national revenue were from Northern Nigeria. This further complicated the problem as most of the oil is located in the Delta region. In 1992 the Babangida military regime decided that the share of the federal government in national revenue would be 48.5 per cent, the states 24 per cent, the local governments 20 per cent, and the balance of 7.5 per cent was to be held by the federal government as special fund. In effect, the total share of the federal government in the national revenue, over 80 per cent of which is from oil exports, was 56 per cent.

      Now, this is a massive negation of the principle of derivation and of fiscal federalism. It is totally unacceptable and the oil bearing states are right in demanding a drastic review of the existing formula on revenue allocation as it hurts the financial viability of the states (37) and local governments (774) very badly. While the FG gets over 56 per cent of the total revenue, states get less than 1 per cent each and the local governments even less. The issue is not even about the financial profligacy, or massive corruption of the federal government, or its colossal financial mismanagement. The issue is that this imbalance in revenue sharing between states and the federal government has been a persistent source of friction between them as it places the other tiers of government in the federation in an invidious situation of having to rely on the federal government for financial bail outs. This runs counter to the principle of fiscal federalism which should be based on the recognition that both the federal government and the federating states are co-ordinates, equal in all respects to one another.

      It is in the interest of the states for the federal government’s share of the national revenue to be reduced so that individually all states, including the Northern states, can get more from the total national revenue. The position of the Northern delegation is obviously based on political expediency, on the expectation that power will revert to the North in 2015. If the situation was reversed, and most of the oil was located in the North, there is no doubt that the Northern delegation would insist on the principle of derivation as the basis for revenue sharing.

    However, there is one issue on which the littoral oil bearing states stand on a weak wicket. It is that of their claim to offshore oil as well as onshore oil. These states cannot legitimately claim exclusive ownership of offshore oil, the proceeds of which should be shared by both the states and the federal governments. This position was affirmed at the UN Law of the Sea Conference of 1982 in which I participated when I was Ambassador at the UN and which the Northern delegation referred to in their position paper. The littoral oil bearing states cannot claim 50 per cent of the revenue accruing from offshore oil as offshore resources belong to the entire country and should be shared equally among them. Neither can the federal government claim exclusive ownership of revenue from offshore oil. After all, without the states there can be no federal government. There is no provision in the convention agreed at the UN Law of the Sea Conference vesting total ownership of offshore oil in the federal government.

     It should be possible for these huge differences over revenue sharing to be resolved at the conference. What is needed all round is compromise and a spirit of give and take on all sides in the overall interest of the nation.

  • A tribute to Professor C.O. Taiwo (1910-2014)

    A tribute to Professor C.O. Taiwo (1910-2014)

    The death was announced a couple of weeks ago of Professor Cornelius O. Taiwo, a former distinguished and accomplished Professor and Dean of the Faculty of Education at the University of Lagos. He was aged 104. A few newspapers carried the news of his death. But since then, I have not seen in the newspapers any public tribute to him. Yet, Professor Taiwo was for many decades one of the most celebrated figures in the field of public education in Nigeria. He certainly deserves tributes from the public, particularly from those who had the privilege of either having been his students or his colleagues in public education in Nigeria. I would expect the authorities of the University of Lagos to acknowledge his leading role and contribution to the development of education in Nigeria.

    The failure to recognise his role in public education in Nigeria is certainly due to the fact that he outlived virtually all his colleagues, even some of his students. A senior media executive to whom I pointed out the lapse told me he had read the news of Professor Taiwo’s demise but that he knew nothing about him and that it did not occur to him that he merited a tribute by the media. He was right, as this particular senior journalist was still quite young when Professor Taiwo retired from the University of Lagos in the early 70s, some forty years ago. Nonetheless, I personally think that he merits some tribute from those who, like me, had the privilege of being acquainted with him, even after he had left the University of Lagos and retired from public life, or his fellow parishioners at Archbishop Vining Memorial Cathedral at Ikeja, where he worshipped regularly.

    Professor Taiwo was born in 1910 in Oru, near Ijebu-Ode, and had his primary school education there. He taught in the school for a couple of years after which he proceeded to the famous St. Andrew’s College, Oyo, for his teacher training course. At St. Andrew’s, he established himself as one of the best students. It was from St. Andrew’s that he entered the new Yaba Higher College, where he read mathematics, coming out with flying colours. On graduating from Yaba Higher College, he joined the staff of the CMS Grammar School, Lagos, the oldest secondary grammar school in Nigeria, in 1940 as a tutor in mathematics and assistant master of the boarding house. At the time, the Revd. (later Bishop) Seth Irunsewe Kale was the principal of the school. The era of Kale at the school was one of the best, turning out many brilliant students, many of whom went into engineering later. This was no doubt due to the diligence of Professor Taiwo as a tutor in mathematics in the school.

    It was from the school that Professor Taiwo was awarded a colonial government scholarship in 1944, or thereabouts, to read mathematics at Trinity College, Cambridge, a rare feat in those days. Among his contemporaries at Cambridge were Chief Rotimi Williams and the late Justice Fatai Williams, both of whom read law. On graduating from Cambridge in 1944 with his honours’ tripos in mathematics, Professor Taiwo proceeded to the Institute of Education of the University of London for a post graduate diploma course in education. He was one of the first Nigerians to have done that course in London.

    On returning home, he was offered appointment as an Education Officer in what later became the old Western Region. There, he equally distinguished himself and taught in several government secondary schools in the region. He eventually became the first Nigerian to head Edo College, Benin, a government secondary school. This was also a rare feat as, in those days, only expatriates were thought fit to be appointed as heads of government colleges, even though Dr. Henry Carr had been appointed by the colonial government as the Chief Inspector of schools in the 1920s, and the late Sir Samuel Manuwa, the Chief Medical Adviser to the colonial government in 1947. It was from Edo College that Professor Taiwo returned to the Ministry of Education in Ibadan as the Chief Inspector of Education, an assignment he carried out with much aplomb and distinction. He was one of the brilliant administrators carefully groomed by Chief Simeon Adebo, then Head of Service in the Western Region. As premier of the region, Chief Awolowo soon discovered and was determined to give these dedicated and brilliant officers greater administrative responsibility. The others were Chief I.O. Dina (administration), Dr. Arbisala (agriculture), Dr. S. Franklin (health), Professor Taiwo (education), and Dr. T.M. Aluko, the veteran novelist (works). They were all professional heads of their various departments, but were eventually appointed by Chief Awolowo, against tough opposition from the administrative class, as permanent secretaries of their various ministries. It was a decision that was unprecedented, but which opened up the appointment of permanent secretaries to all men of talent. They did not disappoint him. In the case of Professor Taiwo he played a critical role in the establishment of the University of Ife.

    But when Chief Akintola came to power in 1960, these men became disillusioned by unjustified suspicion about their loyalty to the new premier and were obliged, one by one, to leave the services of the Western region. Dr. Aribisala went off to the FAO in Rome, and Dr. S. Franklin to the WHO in Geneva. Dr. T.M. Aluko and Professor Taiwo sought academic refuge in the University of Lagos. In fact, at an advanced age, Aluko went to the University of Strathclide in Scotland to complete his Ph.D, after which he was appointed a Senior Fellow in Engineering at the University of Lagos. Professor Taiwo was first appointed a Fellow in the Faculty of Education and was thereafter promoted to a full professorship in the faculty. While in the university, he studied privately and obtained a law degree from the University of Lagos and was called to the bar. It was after he had retired from the University of Lagos that he wrote his seminal work on fifty years of education in Nigeria.

    When, after graduating from the University College in 1964, I entered the Western Region civil service as a young administrative officer, Professor Taiwo and his colleagues had already established a formidable reputation for themselves as first class administrators. But I was not privileged to work directly under any of them and only knew of them by their reputation. I admired all of them immensely. They were immensely confident and ran their various ministries very competently.

    In fact, it was not until the mid-1990s that I became acquainted personally with Professor Taiwo. I had just been elected President of the Old Grammarians’ Society, the old boys’ association of the CMS Grammar School, Lagos, and received a note from Professor Taiwo that he would like to come and see me in my residence. I called him immediately and told him, out of respect, that I would instead like to call on him at his Ikeja residence, to which he agreed. That was how my association with him began. For years, I visited him quite often at his Ikeja GRA residence. It is said that old men forget and Professor Taiwo was already over 80 years old then. But his memory of events, particularly of his days as a teacher at the CMS Grammar School, Lagos, was quite remarkable. He was very proud of the school and told me a lot about it which, even as an old boy, I did not know. He fully supported our efforts to get the Lagos State government to return the school to its private owners, the Anglican Diocese in Lagos. Later, the school honoured him as an honorary Old Grammarian. He told me later that it was a memorable event for him.

    Professor Taiwo was predeceased by his wife, but is survived by many accomplished children who will carry on the enviable legacy of their father.

  • Confab: Good start, but bumpy road ahead

    Confab: Good start, but bumpy road ahead

    Contrary to widespread scepticism and apprehensions, the National Conference in Abuja got off to a good start. The initial hiccup over voting procedure on the decisions or resolutions of the conference has been amicably resolved by consummate tact and diplomacy, with both sides accepting a compromise. Instead of the 75 percent of minimum votes that Northern delegates had asked for to block decisions they may not like, and the two thirds that most of the Southern delegates had demanded, the conference settled for 70 per cent of delegates voting on any contentious issues on which a consensus cannot be reached. This is a fair deal.

    The plenary session has also gone quite well. The Chairman of the Conference, Justice Kutigi, has earned the confidence and respect of the delegates at the conference, essential for its success. With the exception of the controversial speech at the plenary by the Lamido of Adamawa threatening secession, which was denounced by many delegates, including some Northern delegates, most of the other interventions at the plenary have been forthright, responsible, and sober, reflecting the mood and hopes of the public that this conference will be successful. It has to be as it may well be the last chance for Nigeria to secure its future as one united and prosperous nation. The selection of committee chairmen and vice chairmen caused some sharp disagreement. But this too has been resolved. There has been no real threat so far of secession, although the idea is never too far from the surface.

    A bumpy road ahead.

    However, the road ahead of the conference is likely to be bumpy. It will require a display of statesmanship on all sides to resolve some of the thorny issues that will emerge at the conference. Both at plenary and at the committee level, where the really important work and trade offs will be done, great tact and diplomacy will be needed to move the conference forward and avoid its total collapse, with some regional delegates walking out of the conference. Among the contentious issues likely to emerge as the conference progresses are the formula for the sharing of the national revenue, state control of natural resources, the demand for state police, federal/state relations, presidential vs. parliamentary system of government, the future role of ethnic nationalities in the nation, the demand for the restructuring of the country into six regional zones as the basic unit of governance in the country and the demand for the creation of more states in the federation. Some of these issues are more contentious and important than others.

    Resource Control.

    Of these, the most difficult and contentious is the sharing among the centre and the states of the federally collectible revenue. Currently, the federal government gets about 51 per cent of these national revenues, while the 36 states, plus Abuja, and over 700 local governments together receive the balance of only 49 per cent. By any standards, the federal share is much too large and has been a sore point with the Southern states where there is a strong demand for a significant reduction in the federal share of the national revenue. Although there is really no regional or party consensus on this among the delegates, most of the Southern states would prefer that revenue allocation be based on the principle of derivation, as was the case in 1960 when Nigeria became independent. At that time, the annual budgets of the Western and Eastern regions of the country were both bigger than those of the federal government, to which the three regions made financial contributions. It was during the long period of military rule in Nigeria that the federal share of national revenue increased dramatically to the point now where its share is more than that of all the other governments of the federation combined. But most Northern delegates are not too keen on any radical change in the formula for revenue allocation. It suits the Northern states.

    There is no justification for this gross financial imbalance between the federal and the states at all, and the states are right to demand a larger share of the federally collectible revenue. It may be argued that Nigeria needs a strong central (federal) government and that this requires adequate financial resources at the centre to successfully run the country. But over the years, the federal government has not really succeeded in doing so despite the huge financial resources at its disposal at the expense of the states and local governments. Instead, the nation is in a far worse state now than it was at independence, when the share of the federal government in the national revenue was less than 30 per cent. Besides, the reduction of the economic activities of the federal government, through the strategy of privatisation and withdrawal from state sponsored commercial enterprises, should also lead to a reduction in its financial commitments. These should now be confined to security and the improvement of social and physical infrastructure in the nation. It is in the states that more funds are needed to improve the standard of living of the people. That is where new jobs, in huge demand, can be created, not at the federal level, where there has been a colossal financial recklessness and mismanagement. Less federal funds should also lead to less corruption and financial profligacy at the centre.

    The Southern states, particularly the oil bearing states, want to be in control of their oil resources and will, as usual, ask again for not less than 50 per cent of the federally collectible revenue, as they did at the 2005 national political reform conference in which I participated as a federal delegate. The Northern delegation will oppose this as it did in 2005, offering 19 per cent instead, which the South -eastern delegates rejected. It was on this issue that the 2005 conference broke down completely. This scenario of the wide divergence between the Northern delegation and the South- eastern delegation over revenue sharing is likely to repeat itself, unless the two sides in the dispute are able to work out a suitable and mutually acceptable compromise. This will be difficult to achieve and may lead to the total collapse of the conference.

    State Police.

    The creation of state police is another controversial issue. Many of the states, particularly in the South, want state police to check the extensive coercive powers of the centre, often used to harass and intimidate the opposition parties. The recent conflict between the Governor of Rivers State, Rotimi Amaechi, and Mr. Mbu, the former Commissioner of Police in the state, shows what use the federal authorities can make of the Nigerian Police which it controls exclusively. Thinking of a reversion of political power to the North in future, Northern delegates are not keen on state police. But Nigeria is the only federal state that runs a single federal police. The police should now be de-federalised so that states that want to create their own police force can do so. There will no doubt be some abuse of the state police by governors. But such abuse will be no worse than the current abuse of the Nigeria Police by the federal government. But here again, there is a conflict between the Northern and Southern delegations that could end in a deadlock. I think Nigeria will be better policed by a multiple police force instead of a single police that has become corrupt, inept and incompetent. The creation of state police will enable the federal police focus better on the current and increasing internal security threats to the nation.

    Though still contentious, it should not be too difficult to reach a consensus on most of the other issues, such as the creation of more states (unlikely), the replacement of the existing presidential system by a Westminster model or the cumbersome restructuring of the country into six administrative zones, for which there is little support in the country. The fact of the matter is that whatever the attractions might be, these proposed changes are no longer feasible. The states are here to stay. It will be difficult now to dissolve them. And responsibilities for the creation of new local governments should be turned over to the states. It should not be a federal matter at all. There is a limit to how far and how often the Constitution should be amended or changed. The problem of Nigeria is not really the Constitution but an inept, incompetent and corrupt leadership, a drag on the nation.

  • How really bad is corruption in Nigeria?

    How really bad is corruption in Nigeria?

    There is growing and justified local and international concern about public corruption in Nigeria. But how deep is corruption in the country? Most Nigerians, including public officials who are at the centre of corruption in the country, know it is pervasive and that, to a large extent, it is directly responsible for poor service delivery and mass poverty in Nigeria. Public corruption polarizes the state and constrains economic growth. But President Jonathan pretends it is not all that bad. While addressing the Nigerian community recently in far away Namibia, he said media reports about corruption in Nigeria were exaggerated, and that his government was tackling it. The Nigerian community in Namibia will not believe him. It has easy access to the internet and is well informed. Most of our nationals President Jonathan met in Namibia left Nigeria in the first place to escape the crushing poverty at home, brought about by mass corruption in Nigeria. In fact, President Jonathan’s rebuttal of the full extent of public corruption in Nigeria was in direct response to the damning comments by President Robert Mugabe of Zimbabwe the week before about widespread corruption in Nigeria.

    The Nigerian public too will find President Jonathan’s denial of the full extent of corruption in Nigeria bemusing, if not downright irritating. Internationally, Nigeria is notorious for its massive corruption. The global anti-corruption organization, Transparency International has, in its annual reports, consistently ranked Nigeria among the lowest in the global country league of transparency. It is estimated by respected financial experts that corruption accounts for over 40 per cent of public expenditure in Nigeria. Vital public projects cannot be completed because of official corruption. All branches of the government are hugely corrupt. Of three high court judges recently sacked one, a female, owned over 20 properties and other assets. If it were not for its vast oil resources, very few foreign investors will seek to do business in Nigeria where, because of public corruption, the cost of doing business is one of the highest in the world. As Mr. Yakubu, head of the NNPC confirmed last week, even the international oil majors, the biggest investors in Nigeria, are getting less enthusiastic about making further investments in the Nigerian oil sector. They see Angola, which is less corrupt, as a better investment destination than Nigeria.

    The fact is that, on a daily basis, Nigerians are made to live with horrendous massive corruption in all facets of their lives, ranging from the corrupt police, the pensions scam, to the petty and corrupt local and states government officials. Issuance of official licenses, permits, approvals for land and property development require the payment of bribes to public officials. Houses and markets built by the state for the poor are corruptly snatched from them and sold to the rich. President Jonathan cannot pretend not to know this. The Grandmaster of this cesspool of corruption is the federal government, the biggest spender and controller of the largest financial resources in the country. It is at the centre that corruption takes place on a scale that cannot even be imagined by the Nigerian public. Public corruption in Nigeria was rife before President Jonathan came to power. But it has since grown worse during his tenure as President. It is now systemic, and the President appears unwilling, or unable, for reasons of political expediency, to tackle it effectively. Recently, the Minister for Finance, Ngozi Okonji-Iweala, was reported as saying that Nigeria’s vast oil resources had become a curse to the nation. She was badly misunderstood and sharply criticized for her comments. But she was right. If we did not have so much oil, we would be compelled to manage our resources better, like other African countries such as Botswana that are not so richly endowed with natural resources. Nigeria would be less corrupt. The truth is that our oil wealth has fuelled corruption in the country. It has made the rich richer and the poor poorer. It has polarized our nation.

    A few days after President Jonathan downplayed the extent of corruption in Nigeria there was a stampede in Abuja and other cities in Nigeria over recruitment by the Immigration Services. Nineteen people died in the stampede. But as it turned out the recruitment exercise was unauthorized by the Board of the Immigration Services. The candidates, over 700, 000 of them, were made to pay N5,000 each as so-called ‘processing fees’ for 4,000 jobs that did not exist or, if they existed, had already been filled by the same authorities that advertised those jobs, and stood to make N3.5 billion, or more, from the fatal recruitment exercise. The collection of N5, 000 as ‘processing fees’ by a consulting firm was plainly illegal and fraudulent. Application for recruitment into the civil service is free. The Minister of Internal Affairs, Alhaji Abba Moro, who masterminded the massive and fatal fraud of which he would have been a beneficiary, was aware of this. But he has neither resigned as Minister, nor has he been fired by President Jonathan. He was not even remorseful over the loss of 19 innocent lives during the Immigration recruitment exercise which he blamed on the victims. How callous can Nigerian officials be? It is the impunity with which public officials are treated that accounts for their brazen corruption.

    As I write this, the riddle over the missing $20 billion oil revenue, which is more than the annual budgets of most African countries, remains unresolved, with both the federal ministry of finance and the NNPC blaming each other and trying desperately to cover up the massive financial leakage and fraud involved. It will probably be swept under the carpet by the authorities in the end, after a perfunctory and inconclusive investigation. Instead of fully probing the allegation the whistleblower, Lamido Sanusi, the loquacious former Governor of the CBN, has been effectively fired by the President. Sanusi has since claimed that the charge of ‘financial recklessness and mismanagement’ made against him by the Financial Reporting Council regarding the intervention funds was baseless, as the President himself had often requested for such interventions by the CBN and had approved them. The President has not denied this and was aware of it as far back as March last year when he first received the FRCN report indicting the Governor of the CBN for ‘financial recklessness’. He waited nearly a whole year before acting on such a scathing report about the sleuth and sleaze in the CBN. Some of the so-called beneficiaries of the intervention funds, a veritable source of massive corruption, have denied receiving from the CBN the funds allegedly donated to them. So, the CBN, the major financial institution in the country, the so-called ‘bank of last resort’, has proved to be a major source of corruption as well. In effect, all major public institutions in Nigeria, including the major financial institutions, are corrupt. The fact of the matter is that very few, if any, public institutions and agencies in Nigeria can stand a vigorous audit of their financial operations. Many of them have not been audited for years.

    Nigeria loses about 20 percent of its oil production and exports to massive oil bunkering and theft. President Jonathan is fully aware of this, but he appears unwilling or helpless in tackling the problem in spite of the massive loss of revenue involved. The NNPC is known to be a cesspool of massive corruption, but the president is under some inexplicable constraint that makes it difficult for him to tackle the problem headlong. It is as if he is simply overwhelmed by the vast scale of public corruption in the country. How about the Abacha loot, the allegations regarding the private jet of the Minister for Petroleum Resources, Mrs. Allison Madueke, and the prevarications in sacking the former Minister of Aviation, Ms Oduah? How about the fraud and scam discovered in the oil subsidy in which companies that did not even import oil received in 2012 subsidies, unbudgeted for, totaling N1.3 tr. from the federal government, or the NNPC? How about the issue of unresolved discrepancies in the funds of the SURE-P which the government has simply swept under the carpet? These are only a few of the reported scams that President Jonathan has refused to tackle expeditiously. In the circumstances, how can he be taken seriously, either here, or abroad, when he says media reports on corruption in Nigeria are exaggerated and that he is fighting it? Where is the evidence that he is doing so, when he has been hesitant to move against public officials facing charges of corruption? Instead, the President has become increasingly hostile to public criticism, threatening that Governors of states that criticize him on corruption should not expect federal projects in their states. But he is president of the whole country.

    Now there is talk in official circles of removing the so-called oil subsidy. The federal government says it is not sustainable. But the high cost of imported refined oil is also due to the massive fraud in the oil sector. Public resistance to the proposed removal of the oil subsidy is justified in the circumstances. But whatever one’s reservations might be about the oil subsidy, it is better to remove it, once and for all, as it has for long, been another veritable source of massive corruption in the country. It was not the public that was benefiting from the oil subsidy, but the fraudulent oil importers, and the fat cats in the Ministry of Finance and the NNPC. Let us close this window of massive fraud and scam in the Nigerian oil sector.

    So, Mr. President, public corruption is alive and well in Nigeria. It is, in fact, becoming increasingly acceptable socially. Denial by the president of this fact, known locally and internationally, will not do him or our country any good at all, as it will dent both the image and credibility of our president and the entire country.

  • APC’s Vision for Nigeria The Development of a Welfare State

    APC’s Vision for Nigeria The Development of a Welfare State

    Last week, the All Progressives Congress (APC), the main opposition party, unveiled its manifesto in Abuja. As I have not yet seen or read the full document, my comments on it are limited to media reports on the manifesto that highlighted a social welfare vision of the party for Nigeria. This includes the party’s strategies on job creation, the fight against rising public corruption, the poor and deteriorating social and physical infrastructure, the creation of state police, widespread insecurity in the state, and greater transparency in government. It is definitely time for change in Nigeria and the urgent resolution of these long standing challenges is critical to Nigeria’s future progress and stability. The manifesto is wide ranging and should enjoy mass electoral appeal in the country.

    But there are some inexplicable and puzzling gaps in the manifesto. Omitted from it are such contentious but crucial issues as fiscal federalism, a parliamentary versus a presidential system of government, federal-state relations, and the frightening rot in the energy and oil sectors of the economy. The manifesto is also silent on the need for the political restructuring of the country and on the need for a review of revenue allocation between the centre and the states. Evidently the party could not reach a consensus on these controversial issues. We eagerly await the manifesto of the PDP, the ruling party, which has been in power since 1999, during which its performance has been less than satisfactory, and well below the expectations of even its own supporters. But the APC manifesto remains only a promise of what the party will do if it wins next year’s general elections. This promise cannot be fulfilled if the APC loses next year’s presidential election.

    In states controlled by the APC in the Southwest, most of the strategies outlined by the party in its manifesto are already being implemented with positive results. The physical transformation in those states, particularly in Lagos and Edo, is quite impressive. There can be no doubt that in those states there is a far greater commitment to developing a better infrastructure and laying a solid foundation for the future economic progress and social welfare of the people of the states. Outside the Southwest, a few other states have shown a similar commitment to promoting economic growth and the welfare of the people. Northern governors announced recently, but somewhat belatedly, that secondary education in their states would now be free. It should have been made free long before now. A greater spread of this commitment by the states is necessary for the overall development of the nation.

    However, the leaders of the APC still have a lot of work to do on their manifesto to make it more credible. The cost implications of the political agenda have to be carefully worked out to ensure that it is sustainable and that the resources for implementing the social aspects of the programme are available. All the governments of the federation are facing a severe cash crunch caused by declining oil revenues, massive scams in the critical oil sector, and colossal financial management at the centre. A few weeks ago, Governor Fashola of Lagos State complained publicly that, due to the fall in the revenue of the states, specifically the federally allocated revenue on which virtually all the states depend, he was short of funds to continue with some of the social and economic programmes of Lagos State. Virtually all the states governments find themselves in this situation and, regrettably, have had to cut back on their public spending, even for laudable projects. Some states have already cut their wage bills by half.

    There is a high probability that this deplorable financial state of affairs will continue for some time. The nation depends mostly on its revenue from oil exports. But some twenty percent of this possible revenue is currently being lost to oil bunkering and other scams in the oil sector. The NNPC has remained largely unaccountable. So, revenue from oil exports is not meeting the set target, despite the rise in global oil prices. Though commendable, the APC will need to look carefully again at some aspects of its social welfare programme to ensure that the financial resources to implement them are available. Specifically, I refer to the plan of paying the poorest 25 million people in the nation a monthly allowance of N5, 000, and the payment for a whole year of ex-Youth Corp members who are unable to find jobs. Together, this will cost the nation over N2 trillion or nearly half of the total federal budget for 2014. These are quite impressive proposals which have some electoral appeal. But the cost involved will be quite staggering and unsustainable. The APC will need to review this proposal more carefully.

    Of course, it will be argued that the resources are available, that the economy is growing, and that what is required at all levels of government in Nigeria is less public corruption and a better and more prudent management of our financial resources. But the same objective of reducing the prevailing mass poverty in the country through the proposed financial handouts can be realised by promoting economic policies and strategies that will lead to the creation of more jobs in the private sector, through increased foreign investment in the country. This can be achieved by improving the woeful infrastructure, and by promoting a greater transparency in governance in the country. The same objective of reducing the widespread mass poverty in the country can also be achieved by reducing the widening income gap in the nation between the rich and the poor, particularly in the public sector where income disparities are immense. The ratio of minimum and maximum wage in the public sector is as high as 1: 1,000. And this does not even include the opportunity for graft and unearned income to which highly paid public servants and the rich have easy access. In the rich countries the ratio is 1:5.

    At less than US$3 per day, minimum wage in Nigeria is very low. Fresh University graduates get a little bit more. Unemployment is estimated at over 30 per cent. There is no moral or even economic justification for this huge income gap. Governments in poor countries tend to deliberately keep labour costs low in the expectation that this will lead to increased demand for labour and attract more foreign investment. But experience in poor countries where labour is generally cheap does not support this view. Cheap labour is just one of several other factors that attract foreign investment into a country. In fact, such a strategy constrains productivity. It leads to frequent labour strikes and these impede economic growth. The APC should pursue an alternative strategy on public wages. It should increase the minimum wage and reduce the remuneration of highly paid officials in the public sector, particularly the pay of those in the executive and legislative branches of government. Better pay for the workers will increase their spending and stimulate the economy.

    This is not simply a moral issue. Better wages for workers will improve productivity in all sectors of the economy. Economic growth in Nigeria will be even faster. A prosperous, stable and secure state cannot be built on the foundation of such economic injustice. It is this injustice that accounts for the high crime rate in the country, and why our homes and streets are no longer safe. It is the source of murders, kidnappings, and armed robberies in our country. In a way, even Boko Haram is a manifestation of this social injustice. It is no accident that it is in the North East of Nigeria, the poorest part of the country, that it has had some appeal and success. Religious extremism feeds on wide spread poverty and income inequalities. These tend to attract the poor. Religious fanatics and extremists use these social and economic inequalities in the state to foster social grievances.

    A national consensus on the need for the creation of state police has emerged. This will improve state security and reduce the coercive powers of the federal government. This is an agenda item that the APC should encourage its delegates at the National Conference to pursue vigorously in concert with the delegates of other states in support of the idea of a state police. As I write this, the APC has not yet nominated its two delegates to the Conference. But it is well represented by APC delegates from the states controlled by the party. They should not compromise on this issue. Whatever it may think about the prospects of the national conference, the APC, as the main opposition party, should seek to be more actively involved in its deliberations. It should be at the table when critical issues on the new Nigerian Constitution are being debated.

    As a blueprint for social and economic development, the APC manifesto is sound. But as the leaders of the APC should know from Nigeria’s recent political history, party manifestoes do not necessarily win elections in Nigeria. If it is any guide, the experience of Chief Awolowo and his UPN is instructive. Given the ethnic character of Nigerian politics, local issues, even at the state level, as well as political alignments, are far more critical in winning elections than a manifesto, no matter how appealing and promising it is. That is where elections are won or lost.

  • True meaning of freedom

    True meaning of freedom

    Continued from yesterday

    There is another freedom, only recently recognised-economic freedom, not less valuable than any of those mentioned. It is the freedom of the whole people from the oppression of poverty, of illiteracy, of hunger, of hopelessness, of ignorance, of a degrading environment, destructive of happiness, prolific of misery. As Adam Smith, the great British classical economist once observed, ‘No society can flourish and be happy, of which the far greater part of its members are poor’. In Nigeria today, 70 per cent of its citizens live below the poverty line of two USD per day. It is the love of power, the extension of state power, the abuse of power, the greed and avarice of the ruling class, that is the source of wide spread poverty, misery and social abuse in Nigeria. In general, the strong have a tendency to abuse their power, particularly in a poor country, such as Nigeria. All governments have a tendency to extend their power, a hidden hankering after absolute power, which all political progressives must resist. They must seek to protect the weak against the strong, and the subject against the ruler. In other words, the political progressives, or liberals, have a duty to lead the resistance against any form of absolutism or personal rule. Where there is corruption in public life, the people cannot be truly free as freedom will cease to have any significance for them.

    Now, how has Nigeria faired in maintaining or promoting these freedoms? First, let us consider the idea of freedom from foreign control. We are rid of colonial rule, but this has been replaced by indirect rule by foreign big businesses, the corporate behemoths, and the ubiquitous foreign creditors which, with the active support and connivance of the World Bank and the IMF, now determine the economic fate of the poor countries. In other words, formal colonialism has been replaced by the informal one of globalisation under the direction of the old colonial Western powers. And the global economic objectives of these powers are being actively promoted by local agents tied to the WB and IMF, who also retain in the poor countries so-called ‘country directors’ to ensure that western economic interests are fully protected, and that they override local economic interests. So, our freedom from foreign rule has proved illusory. The foreign powers are still in charge through their foreign economic agents and their local collaborators. Our impressive statistical economic growth has not translated into more jobs or a better quality of life for the poor. It is our rulers and the rich, like the foreign predators, who garner the material reward of any economic growth.

    Then, how have we faired with regard to constitutional freedom? The truth is that since independence in 1960, there has been a massive erosion and decline of personal freedoms in this country. For nearly half of the post-independence era, Nigeria was under military rule during which all personal freedoms were simply abrogated. Under duly elected civilian governments personal freedoms have not faired any better. General elections are blatantly rigged, thus denying the electorate of its freedom of choice. Even the political parties lack internal democracy. Their candidates are usually selected, not elected. State power, through the security forces, particularly the police, has been used to curtail personal freedoms in this country. The police often act outside the constitution to harass, intimidate, demonise, and terrorise citizens even when they have not broken any laws. The security agencies have become the instruments used by the state to deny its citizens of their personal freedoms. The freedom of association is being denied the people by the police for partisan political reasons and objectives. The right of the citizens to full protection and security by the state has been under massive assault by religious extremists, often with the connivance of the local authorities.

    As for economic freedoms, the right to employment, to equal economic opportunities, to a decent environment, to a good infrastructure, to such social services as access to good education and health care, Nigeria has faired very badly, way below its full potential. It is the reason that a large number of skilled Nigerians emigrate abroad, to escape poverty at home. The prevalent massive public corruption has undermined the economic and social rights of the people. Every kobo of public funds stolen by public officials makes the people poorer and deprives them of their inherent right to a decent standard of living, to security, the main purpose of the state. Except the rich, every man, woman, or child in Nigeria suffers from such massive public theft.

    How have we faired with regard to religious freedom? This is a delicate question, as religious freedom is both the most fundamental of all freedoms and the most difficult to defend. It is the most fundamental because all other freedoms depend ultimately on religious freedom. In our religion, whatever it may be, we express out total being, our reaction to the universe. In its essential nature, it defines our world-view, and determines our values. This is why people cling tenaciously to their religion; it is their way of life, the only spiritual succour they have. If asked to choose between dying for their religion or their nation, most people, except those with no religion, will prefer to die for their religion. Abandoned by the state and out of desperation, the poor and needy in Nigeria flock to the mosques and churches where they are again ruthlessly exploited by unscrupulous clerics who control their lives completely in the name of religion. Down the ages, people have fought and died for their religion, whether Islam, Christianity, or Judaism. In Nigeria, there have been some direct and indirect efforts to use state power to promote one religion or the other. But as we have seen in the Arab world, where sectarian conflicts even among the Moslems have erupted, it is a futile effort as no people will accept any attempt by the state to force them to change their religious way of life. Nigeria is a multi religious state in which the freedom of all religions must be guaranteed and respected by the state to avoid future religious conflicts. The state must be even handed when dealing with religious affairs.

    What, then, can we as a people do to re-gain our freedom, our fundamental human rights? The German philosopher, Karl Marx, once stated that man was born free but was everywhere in chains. The fact is that man has always and everywhere had to struggle for and maintain his freedom. In Nigeria, some people have openly called for a revolution. But it is these same people, some of whom have worked for and profited materially from corrupt governments, who, by their action, actually make a populist revolt unlikely. It is they who have made our people poor, docile, servile, and indifferent to the assault on their freedom. At the moment, despite the prompting, there is little or no sign of the willingness of the people to enter into such a struggle. The people are already tired from the strains of social and economic deprivations imposed on them by their rulers and their collaborators. As a result of this weariness and poverty, they are inert and not inclined to go looking for more trouble. Besides, it is the middle class that can trigger off such a rebellion. Historic revolutions in France, Britain, the United States, Russia, China, and Cuba were led by the middle class in all those countries. But where is such a middle class in Nigeria today? If it exists at all, it is part of the problem and not the solution, for it has no soul. It has compromised itself and abandoned its moral responsibility to the people for the good life.

    All the freedoms outlined in this article are vital for the stability and future harmonious progress of the nation. They must not be trampled over. It is the primary duty of the state to protect them. That is not the case now. These are some of the basic issues that the forthcoming National Conference should address itself to. Writing a new constitution for Nigeria will not necessarily make it a better country. What will make it a better country is the respect of the state for the freedoms I have outlined in this article.