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  • Do governments have, or have not, business in business?

    Do governments have, or have not, business in business?

    • By Andrew A. Erakhrumen

    Do governments have, or have not, business in business? There are contending perspectival answers to this question. Irrespective of the merits and/or demerits of any of those views, it is constantly said in the public domain that the main purpose of having a government – whatever way it is looked at – is for the security and welfare of the human beings that such government is set up to superintend over. It may, therefore, be assumed that the civil and human rights including legally allowed properties of those people, being so governed, should also be protected.

     In answering the question asked earlier, there is the tendency to take the approaches by the legalists or moralists and/or a blend of both! After all, we are simply talking about humans, here; this is where the issues are, worldwide! What are we trying to say here? As an example, let us use the investments of public resources by the state (we mean government) in business. In Nigeria, what became of such initially-flourishing investments, over succeeding years, are progressively progressive ruination while there are still such similar investments, by the state in some other climes, currently waxing stronger in productivity. As earlier-said, we are talking about human beings, here; same Homo sapiens sapiens.

    It is important that we clarify that every society has its history, and current realities, influenced by past experiences and current priorities. We will not digress far into the roles of followers and leadership types in the whole mix. Simplistically, there are many countries where public assets and investments are perceived as nobody’s and without reliable organic institutional framework/capacity to ensure their future survival. In such countries, the narrative “governments have no business in business” will appear logical, convincing and as an easy-way-out solution, when the cause of the problem (if it is seen as such) is deliberately shied away from. Consequently, several ideologies that clearly point to, and encourage, private acquisitions of public assets and investments, as the solutions to the ruins, we earlier alluded to, are advanced, mostly with inconsideratedness. This is unminding the risks of these acquisitions benefiting only a few; although, some of these ideologies have been positively exploited by countries with the ability to build enduring institutional capacities for protecting their people against an ever-increasing voraciousness for private wealth accumulation.

    To be fair to the capitalists, who are mostly legalists, all they see is statistics and how that is turned to (private) wealth. That is how they are wired or rewired; moralists may fault this attribute. Basically, a moralist tends to be a socialist.

    It is, therefore, a collective responsibility of the people to get their priorities right and work towards ensuring enactment of enforceable laws, be part of, and insist on, supportive systems that entrench moral rectitude without losing sight of the need to encourage and sustainably sustain the protection of public and private properties and investments. These properties and investments (including those resulting from public-private partnerships) are necessary for a forward-looking society that is interested in the security, welfare and development of its members.

    Read Also: Why banks should follow rules in granting loans to governments

    Unfortunately, this capacity is currently lacking in Nigeria not only because of “corruption” but also “poverty”. We do not want to engage in the arguments concerning which of the two is a causative factor of the other. However, we believe that both factors are important for solution-seeking in politico-economic discussions. Of course, the leadership cadre that is very much likely to support and power policies that benefit the majority is the one that is populated or firmly controlled by ‘statesmen/women’ rather than gluttonous politicians only interested in their stomach! As it is commonly said ‘statesmen/women’ think of the next generation while most present-day politicians in Nigeria think of the next election. The latter are strictly into ‘business’; Nigeria’s future does not matter to them! To prevent ambiguity in the use of qualifying terms, statesmen/women – as used here – are also politicians but they think about the possibility of making life better for the next and unborn generations.

    Those in government are most likely a reflection of the society within which they operate; although, that may not be the whole story because the followers may be victims of state capture by those few. These victims may yearn for better living conditions, but without positive actions, that is where it ends! Talk is cheap.

    Now, back to the question earlier asked. It is the experience (even in those countries considered “developed”) that once public assets and investments are left without strong and constantly strengthened sustainable organic institutions that protect them, they are collapsed and ruined! Why will you blame those who come forward to acquire (legally) these ruined inheritances cheaply? Business is business! Well, in many of the ‘deals’ (like the current shameless politics being played in the country), laws and morals do not seem to have intersection, unfortunately! The institutions that are to protect public assets and investments, if available, do get deliberately weakened by successive crooks in public offices and eventually (through their cronies and fronts) they become beneficiaries of the resulting collapse and ruins we have just made allusion to. This is a sad reality! Once the people fail, or allow themselves to be incapacitated in order to be unable, to protect their good inheritances, then the argument “governments have no business in business” will be difficult to defeat! Moralists should take note of this! Nonetheless, “governments do have business in business” – in some ways – even in capitalistic countries!

    For instance, governments in the United States subsidise agriculture and energy in that country. However instead of tackling the massive “corruption” in its petroleum “subsidy” regime, the Nigerian federal government removed it abruptly in May. Who says “corruption” has now stopped as a result of local increases in prices of imported refined petroleum products? To us, it is all about increasing the price! It is now being insinuated that something like “subsidy” on petrol is back through the ‘backdoor’ in Nigeria as a result of the recent unpredictable but never-to-be-unexpected volatility in international crude oil prices! Where are those fictitious “market forces” being talked about in Nigeria? Is there the enabling environment for investments in local refining capacities by private entities? This is about the only crude oil exporting country without any working local refinery, thereby, importing refined petroleum products for its local consumption! This absurdity is supposed to be senseless; but this is Nigeria, a confused contraption, led over the years by groups of people with rentier mentality!

    Sensible Nigerians should be ashamed! We hope that the ongoing Israel-Hamas (Palestine) war will not worsen the current local challenges regarding stability in prices of petroleum products for local consumption. Whichever side anyone belongs to, in this kind of discussion, it should be noted that politics influences the economy. So, if good living conditions are desired by the majority, then their politics must be fixed to achieve this aim.

    • Erakhrumen currently teaches at the University of Benin.
  • Subsidy removal – What went wrong?

    Subsidy removal – What went wrong?

    • By Peter Okediya

    As of this moment, fuel prices have surged towards the N1000 mark, and the dollar to naira exchange rate has surpassed N1000. Palliative measures appear ineffectively sporadic, while the NNPC has once again assumed its role as the primary fuel importer, with assurances of no imminent fuel price hike. This shift raises questions about the previously advocated market-based pricing approach. Some argue that the removal of subsidies is leading to daily savings in the trillions. However, it’s essential to recognize that the concept of subsidy, while not as it was traditionally understood, still persists. This time, it operates in a different context even though fuel prices are substantially higher. This describes the journey thus far.

    In view of the above and the government’s frequent policy reversals, there is a need to have a close look at the management of subsidy removal by the current administration. What factors have contributed to the inconsistencies in subsidy removal? What really went wrong? 

    In the realm of economic policy, both subsidies and their removal represent strategic manoeuvres, and their efficacy is inherently tied to efficient management. These policies yield positive economic outcomes when properly implemented and affordable. Subsidies become problematic when their cost places an excessive burden on government revenue, leading us to question their viability. Likewise, when the promised benefits of subsidy removal fail to materialize for the general population, there is often a desire to revert to the subsidy system. In essence, the effectiveness or inadequacy of both these policy instruments is primarily a result of management decisions.

    A wrong notion that followed the removal of subsidy was that it benefited only the rich and the elite. Curiously, this notion was often perpetuated by some political figures who presented themselves as modern-day Robin Hoods. However, the reality that emerged after the subsidy’s removal shed new light on the situation. It became evident that subsidy removal had far-reaching consequences that extended well beyond merely affecting the wealthy.  Transportation costs surged, the prices of essential food items and commodities skyrocketed, inflation reared its head, and poverty deepened. It was clear that subsidy removal was not a simple wealth redistribution mechanism; instead, it disproportionately burdened the less affluent. While the affluent managed to weather these economic shifts, ordinary citizens found themselves sinking deeper into financial hardship.

    Characterizing subsidy removal as a noble attempt to ‘eat the rich’ obscured the core issues tied to the abrupt announcement by the president. This is fundamentally an economic matter that transcends political rhetoric and calls for a more comprehensive evaluation.

    Read Also: Why Tinubu must allocate gains from subsidy removal to vulnerable health fund, by Reps

    In the context of the government’s approach to subsidy removal, there is a concern regarding the prevailing tendency among public servants to address economic challenges primarily through short-term palliative measures. While cash transfers and palliatives serve as valuable stop gap solutions, they often provide only temporary relief and typically lack the substantial impact needed to uplift the average person facing financial hardship. In July when the Nigerian Labour Congress intended to embark on strike action because of the hardship from high fuel prices, the president addressed them promising to disburse various kinds of money to mitigate the hardship, all without a clear strategy for equitable distribution. The NLC took this as a form of compensation despite being aware that palliatives mostly end up in the hands of corrupt persons. When the government predominantly resorts to addressing pressing economic problems through short-lived remedies, it signals a potential absence of the robust commitment needed to resolve the issue comprehensively.

    Another fallacy that began to spread was that the Nigerian economy does not support economic theories. People found it easy to discredit the laws of demand and supply, often treating Nigeria as an exception. They see a bad economic decision and blame the adverse effects rather than hold the decision makers accountable. The subsidy removal initiative initially encompassed multiple components, including a unified exchange rate, the deregulation of the petroleum sector, and the end of NNPC’s fuel importation monopoly. Regrettably, as of today, none of these supplementary measures remain in effect. The exchange rate has surged, impeding importers’ access to foreign exchange, and NNPC has reverted to its role as the exclusive fuel importer. 

    Subsidy removal fails in the absence of prudent and accountable management during the transition towards a market-determined pricing system. While the president’s address may have been perceived as sincere and heroic if fuel pricing were solely a domestic concern, the complex truth is that fuel prices are intrinsically linked to international oil prices. Failing to consider the wider implications of geopolitical factors and global price fluctuations, subsidy removal can impose a significant burden on our citizens, as we are currently witnessing. 

    Subsidy removal fails where inefficiency, leakages, wastes and widespread corruption persist. The original intent behind subsidy payments has often been eroded by systemic corruption and mismanagement. Transitioning from the subsidy era to subsidy removal is hindered when institutional corruption remains pervasive. Additionally, issues like oil theft and cross-border fuel smuggling continue to plague the industry. As a result, Nigeria struggles to meet its OPEC quota of 1.8mb/d and consistently produces below 1.4mb/d. This production shortfall means that the increase in global oil prices doesn’t necessarily translate into higher foreign exchange earnings, and the Nigerian naira remains vulnerable to depreciation. 

    Subsidy removal fails where the Excess Crude Account (ECA) is tapped out. The ECA represents one of the critical accounts where the Nigerian government accumulates surplus revenues resulting from discrepancies between the budgeted benchmark crude oil price and the actual international market prices for a given year. Conceptually, the ECA was conceived as a financial buffer to shield the country from the volatile fluctuations of global oil prices, particularly in today’s turbulent geopolitical landscape.

    However, the current state of the ECA, which stands at a mere US$473,754.57 is indicative of its near depletion. This situation leaves the nation vulnerable to the ripple effects of distant geopolitical events and erratic oil prices. At its core, a robust ECA would help stabilize the national currency, rendering it less volatile, and would alleviate the need for the NNPCL to intervene on a weekly basis in response to price fluctuations. With a well-funded ECA, the foreign exchange market would operate more smoothly, mitigating the challenges faced by fuel marketers in sourcing foreign exchange as market dynamics would tend to self-correct following volatile periods.

    Subsidy removal fails when refineries fail. Refineries are supposed to be available for oil marketers to buy directly and sell to the Nigerian market. However, the current dependence on imported fuel places substantial strain on our foreign exchange (FX) demands, thereby exerting considerable pressure on exchange rates and foreign reserves. It’s evident that foreign exchange rates play a pivotal role in determining the landing costs of fuel. Marketers, quite understandably, cannot buy PMS at a high foreign exchange rate and then sell it at a lower pump price. As the naira weakens, the landing costs of fuel in local currency surge, leading to an increase in the costs associated with subsidy removal, which in turn triggers a corresponding rise in pump prices. Effective subsidy removal strategies are most feasible when our currency is stable, and foreign exchange can be accessed without undue complications. Even when our refineries are functioning optimally, it is important to note that crude oil is still priced in dollars because upstream producers primarily transact in this currency. Implementing subsidy removal before addressing foreign exchange control is like attempting to put the cart before the horse. The sequencing of these actions is essential for an effective strategy.

    Way forward

    Subsidy has to go. However, the current strategy has led to increased fuel prices and uncontrolled hardship, with the state oil company bearing the brunt of the cost to prevent even steeper price hikes. This essentially means that despite the intention to remove subsidies, the current approach has not achieved the desired results and has created fiscal complexities.

    Complete removal of subsidies would indeed result in higher fuel prices than today. However, the implementation of subsidy removal by the current administration was marred by certain missteps. A phased approach, combined with efforts to reduce government expenditures (including political appointments), curb oil theft, and establish effective relief measures for the commercial sector and vulnerable populations, could have yielded a more favourable outcome. Additionally, the introduction of tax incentives such as VAT and personal income tax exemptions, rather than focusing solely on keeping fuel prices low, could have ensured a more sustainable transition. While international factors affect fuel prices, a comprehensive strategy would help prevent us from regressing to the starting point (or a worse situation).

    • Okediya is an energy policy analyst and a sustainable finance thought leader with background in law. 
  • Akpabio and Niger Delta Development 2024 budget

    Akpabio and Niger Delta Development 2024 budget

    • By John Mayaki 

    The election of Senator Godswill Akpabio as the president of the Senate has raised questions about the fate of the budget for the Ministry of Niger Delta Development. With the former governor’s extensive experience in governance and his history of advocacy for the Niger Delta region, many are eager to see how his transition to this new role —from Minister of Niger Delta Development to President of the Nigerian Senate — will influence the ministry’s financial prospects and the region’s development come the 2024 fiscal year.

    A seasoned politician and administrator, we have an “uncommon” Akpabio hails from Akwa Ibom State, a core part of the Niger Delta region whose tenure as the minister was marked by advocacy for more substantial budgetary allocations to address the developmental needs of the region.

    The former “uncommon” minister and now “uncommon” president of the Senate faced a distressing moment in 2020 when he presented the ministry’s 2021 budget proposal to the Senate Committee on Niger Delta. The proposed budget of N26.6 billion for 2021 was seen as inadequate to address the pressing needs of the Niger Delta region.

    In 2022, the ministry received a slightly higher budget of N28.1 billion for Personnel Costs, Overhead Costs, and Capital projects. However, the situation in 2023 is alarming, as the ministry was handed a meagre envelope — dealing with a much smaller budget of N10 billion, which is N16.6 billion less than the 2021 budget.

    It must be noted that back in 2011, at the inception of the ministry, it received a more substantial budget allocation of about N50 billion, but even that amount could only cover limited number of critical road projects. This stark difference raises questions about the decline in budget allocation over the years.

    Today, Akpabio’s new position as Senate President provides him with a significant platform to advocate for increased budget allocations to the Niger Delta Development Ministry. Having personally experienced the challenges faced by the ministry during his previous role, he may be more motivated than ever to push for improved funding.

    As Senate President, Akpabio will have a direct influence on the budgetary process. He can ensure that the budget proposals for the Niger Delta Development Ministry receive thorough consideration and are aligned with the ministry’s mandate as proposed in the eight presidential priorities of President Bola Tinubu and the region’s development priorities.

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    Akpabio’s close ties with his colleagues, such as chairman, Senate Committee on Appropriations, Senator Solomon Adeola, and his counterpart in the Green Chamber, chairman, House Committee on Appropriation, Abubakar Bichi, could lead to collaborative efforts to secure additional funding for the ministry. These partnerships may involve appealing to the presidency and other relevant stakeholders to explore and source budgetary funding for the much-needed infrastructure in the oil-rich region.

    This financial constraint has far-reaching consequences. It disrupts vital programs, hinders opportunities for youth and women, causes project delays, and invites disruptions by local youths. It directly impedes the fulfilment of the ministry’s mandate to meet the yearnings and aspirations of the Niger Delta people.

    It is imperative that we all must act as advocates for the Niger Delta, unite, and raise our voices. We must call for a substantial change in the budget allocations for the Niger Delta Development Ministry. The Niger Delta’s immense potential must no longer be held hostage by financial limitations.

    Stakeholders, from traditional rulers to local communities to government officials, must begin to voice their concerns over this dwindling budgetary allocations and mounting liabilities. We, as advocates, should stand with them and demand additional funding to support the region.

    One of the critical strategies to overcome this financial shortfall is active collaboration between the states and the federal government. It’s a major task, and it’s one that the current minister, Abubakar Momoh, has undertaken through his visits to the region and discussions with state governors for collaboration and partnerships in addressing the region’s infrastructural deficit.

    As advocates for the Niger Delta, good governance and economic justice, we have the power to effect change. It is our duty to raise our voices, call for adequate budget allocations, and promote collaboration to empower the region. Let us be the catalysts for a brighter future, where the Niger Delta flourishes and fulfils its vast potential.

    Together, we can make a difference, and Akpabio’s leadership could encourage a more comprehensive approach to addressing the unique challenges facing the region, including environmental concerns, youth engagement, infrastructure development, and economic diversification.

    Being the Senate President, he has the potential to bring significant changes to the budget of the Niger Delta Development Ministry. With his personal commitment to the region and the increased influence he wields in his new role, we can expect greater advocacy, oversight, and collaboration to address the developmental challenges in the Niger Delta. As the region watches with hope, Akpabio’s tenure as Senate President could be a turning point for the Niger Delta’s development and prosperity.

    • Mayaki is Country Director, Coalition for Good Governance and Economic Justice in Africa.
  • Journalism, truth and invasive trends

    Journalism, truth and invasive trends

    By Sulaiman Salawudeen

    Indeed, digital revolution, in democratising dissemination of news, does instantiate journalism practice as possibility for every living human – professional or not! For a hand-held device to be smart is not just to possess entire aids to information/communication deliveries, but also harness such possession to localise the globe in forms as to assure knowledge of/awareness about conducts, utterances and conclusions, even within superbly physically fortressed recesses. It equally helps deliver audio-visuals about, as well as enable participation in, so-called secrets, such as may be occurring in lands flung as far as the Asiatic or the Icelandic. 

    Journalism cannot know restrictions again all because the phone is around! Anyone with an internet-powered smartphone or tablet can do/damage reports on events as they unfold; a reality that has brought new level of authenticity challenge to the field of news dissemination/reception. Strides of technology, democratisation of content creation, and ever-encroaching tide of misinformation resulting upon free-for-all media space have reshaped the universe of information dissemination, and of the nature and scope of human interactions for good. Ultimately, this affects ensuing accounts that shape common understanding of the human world. 

    From its traditional brief of educating, informing and entertaining, journalism – which has since morphed from familiar paper/electronic – radio/television – delivery modes, to include the new media, has inexorably been endowed with more roles, which often builds better and equally destroys with ease. Tech-soaked journalism of the trends, to be sure, still retains its primary roles, but the incorporation of the internet facility into mobile phone has revolutionised delivery of whatever tripartite goals it has in ways as must now wow. In content of that as served, and in speed and volume of delivery, journalism of a world in motion performs more than just what used to be: it magicises performances! The shrinking of spaces and collapsing of frontiers attendant upon admissible insurrections in information and communication technology are today facts that must grip all with inescapable immediacy.

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    The trend has inexorably birthed the era of citizen journalism in which unfiltered chronicles can potentially and do actually eclipse genuine facts. Indeed, a world of Facebook, WhatsApp, To-Go, Twitter (X), Yahoo, Instagram, Google and others, in serving the news by the second, often eases schemes to slant same to taste! Conveniently balanced in polar oppositions in an infinite eye-popping process today are junk/yellow journalism and data/factual journalism. But, if the phone device can second the trade to confuse and horrify, same process can be actuated to explain and clarify. Within the technology applied to simulate reality, is the technicality to expose the lie. But such certitude does not seem an eternal fixity, as news may often be served in forms as may leave more questions than answers, and fixers of wrongs do not always enjoy the privilege of early arrivals! 

    Until the forensics were summoned to confirm the truth – no more the lie – about the  killing by men of the Nigeria Army of youthful protesters at the now infamously popular Lekki Toll Plaza, the entire world had been meshed up in flamboyant confusions. Did soldiers kill and how many were killed in the late evening confrontation with End-SARS protesters became a subject of exquisite inquisitions, as much for conventional inquisitors as for the unconventional. Undeniably, very pertinent are questions about objectivity and transparency. In this evolving landscape, journalism must be tenored to assert commitments to truth, and device innovative ways to maintain/sustain public trust, even while accommodating the power of narration. The eruption of misinformation, commonly referred to as “fake news,” has emerged as formidable adversary to media practice. 

    Misinformation can be and are being intentionally promoted to determine/misdirect public opinion. In response, journalists must don the armour of fact-checking and verification, a task more demanding than ever amidst the din and flurry of instant news, aided by the invasive techs of post-industrial era. War against the plague of misinformation however extends beyond professional journalists, even as media literacy has become an essential skill for the modern citizen. The public must learn skills to assess credibility of sources, discern reliable information from falsehoods, and navigate quite convoluted tangles of narratives on the World Wide Web. Journalism has journeyed finally away from a commodity to purchase and return home; it now demands active interrogation by its consumers. 

    This reality has brought trust in journalism to a crossroads. Cynicism about media bias and agendas erodes reliance in established news organisations. Rebuilding this is not merely a matter of reaffirming journalistic ethics and integrity; it necessitates transparency in reporting processes. Trust seems a fragile commodity, and it must be carefully nurtured, especially as scepticism has now legitimately unloosened its contents upon the majority. Social media platforms, in particular, have amplified the reach of sheer narratives. Falsehoods go viral in seconds and victims are left to pick the pieces when facts get brazenly distorted and reality blurred.

    Narrative journalism – editorials/opinions/features – often promotes subjective voices of journalists, inviting readers to step into their shoes and assess events through personal prisms. While this can enhance empathy and understanding, it also can and does introduce bias and subjectivity. Striking a balance between both is a challenge that modern journalism faces.

    In a rapidly changing world, media reporting undeniably stands at the forefront of the battle for truth as opposed to twisted bundles. While digital revolution has occasioned the era of immediacy and authenticity, it equally has prompted the phase of misinformation and scepticism. Journalists have to navigate this landscape, combat falsehoods with fact-checks and uphold the highest standards of ethical practice. The future of journalism lies at the intersection of technology, ethics, and narrative, where the quest for truth and the art of storytelling converge. Of note are blows new media has dealt traditional media, particularly the atrophy upon their markets and fortunes of the mercantiles.

    In the final analysis, what may be blamed is the journalism of extreme possibilities, and of limitless attainments – both as contingent upon awesome technologies of our day! Journalism’s eternal relevance derives in its power to partner the public in reaching the truth on developments. While there always are two sides to the truth at any given time, the profession helps in massing up evidence to support accessing the truest of truths – actual factual truth! Doubtless, journalism faces a future which lies at the intersection of technology, ethics, and storytelling, one which will witness sustained onslaughts on traditional media and waning fortunes for traditionalists. 

    While data journalism in a way stands apparently opposed to peace journalism in the sense of favouring releasing facts raw, straight as they are, rather than hoarding to respect sensibilities and maintain so-called peace, safety and protection of emotions on part of recipients, it does something far more – it respects the sanctity of truth and saves the community from needless worries regarding content, depth and magnitude of disasters. Ultimately, it prepares everyone for the worst! DJ Switch may now be recessed in a Canadian nook, just some manipulation followed by a click on a diminutive device by a supposed fugitive had actually unloosened a process that instantly blew the shroud off a bestiality which signposted horrific, even maniacal, underbellies of a disappearing state!

    • Salawudeen, writer/freelance journalist, writes via obastunde@yahoo.com

  • NLC and petrol subsidy protest

    NLC and petrol subsidy protest

    By Mike Kebonkwu

    The Nigeria Labour Congress (NLC) has twice mobilized and demobilized over the economic hardship caused by the removal of subsidy on petrol.  The NLC denied the masses of the opportunity of positive engagement with the government to address and ameliorate the pains and suffering of the masses. Today, the country is gasping for breath as the economy is on free fall.  Crude oil proceeds define the income and expenditure of the country while petrol which has always enjoyed subsidy is the life wire of the economy.  Nigeria has four decrepit refineries that are comatose, maintained at a huge cost with workforce that earns jumbo salaries without production.  The petrol subsidy has also become a huge scam bleeding the country as the behemoth has proved a big monster for any government to tackle. We are jinxed by a cartel in the oil industry and cabal in government manipulating the subsidy regime that have turned vampires sucking the blood of the masses through economic strangulation. 

    The investment figure and payment on petrol subsidy has remained in the realm of speculation; no one can put a fixed figure to it.  Even at that, the colossal sum the government reels off as payment for the subsidy regime is enough to build modern refineries in good numbers across the geo-political zones of the country.  Lo and behold, President Bola Ahmed Tinubu in his inaugural address shot down the subsidy gnome with a silver bullet on May 29: “the petrol subsidy is gone”; no warning, nothing! 

    Since the removal of the subsidy, the economy has been in turbulence and our lives have not remained the same again.  It is not about cutting down on expenses; it is about survival for both the rich and the poor. 

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    The Nigeria Labour Congress (NLC) and the masses have kicked, asking for palliatives to assuage and soothe the pain as we cut down even on essential lifelines of the most basic nature, food and medicine as coping mechanism.  The economic woes of Nigerians have increased and our local currency, the Naira has plummeted and is at all-time low amongst the weakest in global reckoning. The take-home basic national minimum wage of N30,000 can no longer take an average worker home round the month.  Even at that not every worker under the public sector is covered under the scheme as most state governments are not paying.  With subsidy removal, some states have cut down from five to three working days per week, and introduced shift system to reduce hardship without consideration of such reduction of man-hour on production and productivity of the workforce. 

    However, let it be known that petrol subsidy removal is not a declaration of trade dispute.  It is not an industrial action that belongs exclusively to the domain of labour union; it is an economic issue that touches on the lives of every Nigerian, rich or poor.  The falling Naira value and hyperinflation with a high probability of recession is not a labour dispute or industrial action of any sort; it is an issue of economic survival of every Nigerian.  While it is true that the NLC has always played a historical role in the struggle of the masses of this country, it has always done that in conjunction with other mass movements and professional groups with overwhelming support of the people.  Today, under its present leadership, the NLC has frittered away the gains of labour and the masses of the people through opportunism.

    To digress a little, the year 2023 did not start like any other year for Nigerians; it was an election year with great expectations to break from the ugly past.  Labour had always taken sides with the masses against harsh economic and political issues that touch on the survival of the country not on partisan platform.

    What many people do not probably understand is that those successful struggles of yore were not the brainchild of the NLC.  The Congress was only used as rallying point to galvanize support and carry those in public and formal sector along.  The masterminds were always the students’ movement, the National Association of Nigeria Students (NANS), the Academic Staff Union of Nigeria Universities (ASUU), Civil Society Organizations, Human Rights groups and other Nongovernmental Organizations (NGOs) who mobilize the masses round a common cause. 

    These organizations were led by ideologically driven and committed activists carrying the trade unions along for a common cause of the Nigerian people even at the detriment of their personal safety and comfort.  It was a great sight to see activists like the avatar, late Chief Gani Fawehimi, Beko Ransome-Kuti, Femi Falana and even an Olisa Agbakoba at barricades of NLC protests addressing Nigerians while inhaling teargas from the police.  They were hounded, persecuted and incarcerated by the state because they dared to struggle with the masses. However, successive NLC leadership have gradually compromised the position of labour and became sell-out, doing business with government.

    The labour union went into comatose after Adams Aliyu Oshiomole’s leadership and has been lying prostrate ever since. Suddenly, NLC appears to jerk into life with the last presidential election with partisan posturing with the Labour Party (LP). Due to naivety, desperation and lack of ideological clarity and dynamics of change, that revolution was sacrificed on the altars of religion and tribalism. 

    Comrade Joe Ajaero, current president of the NLC, is a controversial labour activist.  He had always wanted desperately to lead the labour movement but his ideological garment appeared not well laundered and clean, and therefore suspect. That is what the labour movement has become lately anyway after the exit of its crème of tested leadership schemed out of the congress by Adams Oshiomhole.  Now, the NLC has fallen into the hands of a diminutive ideological and intellectual dwarf that does not understand popular struggle of the people. Comrade Ajaero once led a breakaway faction and a splinter group he called United Labour Congress (ULC) out of the NLC for obvious personal reasons.  During the period he also sabotaged NLC protest against petrol subsidy removal when he went into deal with government in 2015.  He has no appetite to engage and sustain a progressive struggle because he is a deal maker.  Whenever you have a wheeler dealer in labour leadership you cannot embark on a successful struggle. This is what we have seen of the NLC mobilizing and demobilizing for strikes and protest and manipulating the misfortune of Nigerians for personal gains. 

    To him salary award to workers is the ultimate solution to the subsidy removal.  Again how many workers earn salary under the public sector?  Palliative of salary award to workers is an invitation to deeper economic crises that will engender hyperinflation, making nonsense of the salaries.  We are a consuming economy with importation not determined by unit of our own currency but the United States Dollars.

    Protest across the globe for the soul of a country is not built around labour union but the people and citizens. It is organized like a moving theatre and carnival with everyone on board, the young, old and elderly; it is not left for charlatans.  Ghana recently embarked on protest against the rising cost of living; it was the Ghanaian people not Ghana Federation of Labour giving ultimatum, mobilizing or demobilizing at the same time. 

    Given the pedigree of the current NLC leadership with a mercantile profile, Nigerians should look another direction to mobilize for change.  This is a wakeup call for Civil Society Organizations, Non-Governmental Organizations, Human Rights and other interest groups to organize, unite and take the destiny of Nigeria from the hand of failed labour. 

    The NLC meddlesomeness in the affairs of the Labour Party leadership at the build up to the election gave the silver bullet to the opposition to shoot down the mass movement; by donning the NLC with the garment of partisanship and decorated with the crown of ethnicity which fitted well.  The NLC have become blacklegs and since lost its bite as a union that had always enjoyed the goodwill of Nigerian masses; no thanks to opportunistic leadership with mercantile mentality. 

    They are hiding under the cloak of extracting N35,000 palliative as gain; to how many Nigerians?  The NLC will be overreaching itself to contemplate any strike or threat of nationwide strike in 100 days because the union has lost face with Nigerians after demobilizing the masses for a popular struggle.

    • Kebonkwu Esq is an Abuja-based attorney.

  • Obaship institution at the crossroads

    Obaship institution at the crossroads

    By Oluwole Ogundele

    Talking a load of rubbish and weakening the old domain loyalties of the institution of obaship in the south western region as elsewhere in Nigeria, have their deep roots in the colonial past. That is to say, that the old social order began to crumble away as from the tail end of the 19th century. The popular but inglorious invasion of Benin in Edo land in February, 1897 by the acting Consul-General of Nigeria (James Phillips) cannot be forgotten in a hurry. This was during the reign of Oba Ovonramwen who succeeded Oba Adolo in 1892. Indeed, this was an assault on the country’s collective kingship system.

    After a polite reply to the Consul-General’s letter not to visit him (Oba Ovonramwen) because he was performing Ague ceremony for his late father, James Phillips, including his entourage came to Benin. Visitors were forbidden from entering the community to see the king during that festival. However, most members of the group were killed by the Benin soldiers who were lying in ambush. The brutal expedition that followed was a manifestation of the hidden agenda of the Consul-General to enter the city with a view to looting the Benin world-class court art pieces.

    One great lesson from this incident was that the monarch (Oba Ovonramwen) took his courage in both hands. This was an attempt to defend the culture and tradition of his community. Today’s obas need to have the courage of their convictions at all times.   Monarchs must be ready to take the bull by the horns in the interest of cultural sustainability and general human progress.

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    Despite the inevitable, but ontologically ethnocentric judgements across the global village about cultures and traditions, every serious, development-oriented society respects its age-long heritage. This is within the confines of critical transformation or change. It is common knowledge, that European and Asian geo-polities among others, necessarily allow their cultures to occupy centre stage in the scheme of things. Their kingship systems are still being respected despite the challenges and sensitivities of modern global politics. They are not moronic at all!

    Obas in Yoruba land have to maintain their terrestrial and extra-terrestrial statuses as “living” ancestors. Their palaces are major political, cultural, and social powerhouses. In actuality, palaces are sources of inspiration to the people. Therefore, those overbearing former and current political leaders, who lack the capacity to domesticate “international” protocols, must begin to do a rethink.  Those who treat obas, emirs, and obis like a bunch of trash need to go back to school. Traditional rulers represent the hearts and souls of their communities. Such an existential reality is a global language. Despite the dynamic character of culture, certain salient facets must be preserved for the sake of social stability and robust humanity.  Preserving our cultural originality or authenticity is a collective responsibility of all Nigerians.

    However, the kings should not have unbridled extroverted minds. They have to be reserved humans in order to earn maximum respect and/or honour. Obas are supposed to socialise with people within the framework of moderation or decorum.  In other words, some reasonable amount of seclusion is of the essence. Kingmakers in Yoruba land always make it compulsory for an oba-designate to be inside ipebi (a secluded, sacred space) for some days. This is part of the training process. Surprisingly, some obas-designate try to avoid this stage, although at their own peril. This may account for some of the reasons why a few of them occasionally cast caution to the winds.

    It is too easily forgotten, that obas are deities as the crowns sometimes, cover their faces. In the past, community members see the faces of their kings only on special occasions. An extremely extroverted mind or prince is not fit to be an oba/king. The phenomenon is beyond the idea that it is my turn to rule. The chagrined world, watch some post-colonial political leaders as they defecate on the public space due to power-drunkenness. They have to liberate themselves from the bondage of superiority complex-a relic of savagery.  However, those kings desperately pursuing contract awards here and there cannot have their cake and eat it. But there are some extremely fine minds who double as obas in our communities. Others should start emulating them.  Kingmakers should help us in showcasing the best candidates when searching for new obas. In this regard, a considerable degree of de-materialisation of their minds (kingmakers) is very critical. Good character and readiness to serve a given community with justice and fairness are of the essence. This is how we can begin to gradually craft a new obaship institution enshrined in integrity. The lost glories must be reclaimed at all costs.

    If caution is not taken, some megalomaniac individuals among us would soon start whipping our obas either inside the palaces or in the public space. Nigeria is on the edge of a precipice. There is fire on the mountain!

    In my opinion, the modern political class seriously needs the traditional rulership institution more than hitherto. Thus, for example, the high crime rate in today’s Nigeria can be reduced to the barest minimum with the collaboration of the obas, obis, and emirs. We seem to quickly forget that these maligned traditional rulers, are the best surveyors and security officers of their domains.  They can easily identify strangers coming into their communities. They also can get intelligence reports about them. These rulers need to be motivated so that they can begin to collaborate much more than hitherto with the police and other security personnel. Therefore, state governors cannot succeed without these obas.

    No rural development projects can be sustainably executed without networking with our community leaders.  Obas and other categories of local leaders across the board, remain a force to reckon with. Flexing muscles with them is counter-productive in a plethora of ways. It is very worrying, that after more than six decades of independence from Britain, most of our political leaders have failed to grow up. Their numerous trips to overseas countries are like a mere jamboree. They have failed to critically incorporate some of the best values from the Western world into the Nigerian socio-economic and political culture. Indeed, the country can be compared (to a large extent), to an animal kingdom. Travelling on our roads is now a nightmare scenario. This reflects cumulative governmental failure. As a matter of fact, our dilapidated/demonic roads are consuming tires like pounded yam as if nobody is in control.

    The kingmakers need to start selecting new obas on the basis of merit including fairness. Corruption de-humanises in the long run. Indeed, corruption is a world away from wisdom. It is at variance with happiness and progress on a sustainable scale. Once again, Nigerians should not join the former colonial overlords and their sympathisers in ridiculing critical facets of the country’s time-tested cultures and traditions. Suffice it to say, that Brazil, Spain, Portugal, France, Britain, and Italy among others, do not bastardise their kingship systems under the guise of modernity.

    • Prof. Ogundele is of Dept. of Archaeology and Anthropology, University of Ibadan.

  • Parents in our frightening new world

    Parents in our frightening new world

    • By Falilat Adetoun Olaoye

    It was 34 years ago during my national service that I first encountered what I hadn’t realised then was an incipient malaise.  A secondary school class 3 student was stalking one of our flat mates. Dude was handsome and taught the girl’s class one of the core courses. We thought it was juvenile infatuation and that she would outgrow it.

    The girl was probably 15; but already a real seductress. For a couple of months, it was a cat and mouse game between the awkward two.

    Friends and flat mates observed discreetly as dude dodged, hid and ran from the teen! He had the self-control and common sense to sustain the resistance, I had assumed. Until I learnt later that he had fallen!

    Those were days before the internet and social media came to take control of our lives. Now we are faced with a social epidemic of enormous proportions.

    Everything under the sun is available on the net and can be accessed with small data. Drugs, attention, fame, no matter how damaging, and oh yes, sex, a variety of it. Pornography is at the fingertips, or at the press of a button and it is consuming our children.

    Questionable characters in entertainment and so-called influencers have become their role models. Pictures and videos of half-clad or totally nude young women are posted on social media to trend and attract traffic. Hugh! And the “contents” are unending, with new innovations arriving daily and the next person bent on outdoing the last.

    And yes, the old are in the game too. Dignitaries openly patronize aphrodisiacs and sex toys shops. Married people are on dating sites, sharing nude videos with friends their children’s mates.

    Hardly a month goes by now without the appearance of a leaked video of a so-called celebrity. My ‘old school’ mind tells me many of these things are connected to drug abuse but I may be wrong.

    We have all heard about Mohbad. The name has been trending globally for weeks on the internet. His story of abuse by the people around him is tragic and the authorities still have to get to the roots.

    However, without the drugs and cultism, which he picked from bad association, his trajectory might have been different. It breaks my heart as a mother to think that with some attention, he could have been pulled out of the morass that consumed him and eventually truncated his life.

    In the perilous new world of this generation where the norm is to conform, only the grace of God keeps children sane. The world, real or virtual, pulls them hard even when parents build around them moral protection.

    Drugs, cultism, and sex have no class or gender. From the lowliest to the mightiest societies, vices bring people together. School children, artisans, professionals and politicians are all involved.

    And they defy age too.

    Three months ago, I was part of a meeting on business investments. We realised that guest houses and hotels now top investments in our cities and towns. A particular middle class estate valued for its serenity now has about 303 hotels and guest houses, many of them deliberately obscure with no signboards.

    Even residential buildings are being converted to brothels because they offer better returns on investment. The patrons stroll in without shame because it is trendy to do so.

    Among those providing “service” at the facilities are secondary school students, some of them kitted in school uniforms with the skirts worn loose and the blouses zipped open to bare their breasts.

    Among their patrons are dignitaries who drive them away in flashy cars.   Our children have lost their innocence and our society is now a moral wasteland!

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    And the consequences are all around us.

    Every day, we see scary headlines of heart-rending stories of gruesome murder and fetish killings. Boys murder their girlfriends so they can ‘blow’. Girls are drugged, killed and mutilated by their patrons. A boy killed his father and harvested his organs for money rituals. Teenagers gang-rape neighbours’ children. The stories are endless. All of them connected by drugs and money!

    Some time ago, a young female doctor was nabbed for peddling cake laced with drugs on the internet. In another video that trended recently, a group of girls was rounded up at a party after a fight broke out. Found on the girls were weeds packaged in Milo sachets. Each faced the camera and told her story with big smiles. Weed had robbed them of shame.

    It would now seem that the lord spirituals mount the pulpits in vain. Bloggers who haven’t managed their own lives are the new priests of the internet, giving the world direction. They draw better attention than priests are given at worship centres. The pastor preaches unity in families; the bloggers spread the gospel of division, their own alternative truth. Many marriages are on the brink because of these ones.

    Their followers spread their messages. Videos spread that depict wives as Jezebel and men as Lucifer. No one seems to notice that the family structure is being assailed.

    Do parents even have the power to nurture their children?

    Correcting a misdemeanour is now termed as judgmental. Do not judge! And so we keep mum and watch promising children turn to Yahoo yahoo, drugs and cultism, or lining the streets at night or hooking up in real time on the internet. In some parts it is either banditry or terrorism. Kidnapping for ransom has become a national shame.

    ‘You don’t know their story,’ is a popular refrain.

    The story was told of a 16-year-old girl who told her older sister she was looking to date a yahoo boy.

    But it’s not just about the adolescent.

    Illicit liaisons between married neighbours appear now to be tolerated. Married co-workers fight over married male colleagues. Some would swear that the same is happening in worship centres, and between teachers and their students.

    Motivational speakers say we should live the way they want; one person’s happiness should not depend on another’s.

    And so well-behaved youths are now the butt of jokes. It is no longer trendy to be God-fearing. Children are losing their souls and parents are helpless.

    But you cannot give what you do not have. We have seen young couples giving their toddlers Shisha and liquor – to make them belong early enough.

    Like the preacher who has a duty of redirecting lost sheep, parents must not wait for their wards to fall in the pit just to allow them to make their own mistakes. Parents must reprimand bad behaviour.

    The family system is failing. Each of us must now do what we can to recreate the version of the world that we love.

    Parents must return to the old ways of raising children. It should still take a village to raise a child. Neighbours and teachers should be able to correct children with assurance of the parents’ support. There is nothing we can do about the internet; it has come to stay. But we can give more attention to our children rather than worldly things.

    We must be firm rather than pamper, we must pay close attention to what our adolescent children engage in, who their friends are, what they bring home, what they put on.

    We can raise them to know that strangers should not dictate their lives. That not all that glitters is gold. That the race is not always to the swift. That to be calm and cool headed is not bad. To be respectful is not old school. That God’s way is still the best way.

    • Mrs Olaoye writes from Ilorin, Kwara State.
  • ENSG’s N170 billion loan: A demand for fiscal responsibility

    ENSG’s N170 billion loan: A demand for fiscal responsibility

    By Frank Nweke II

    With an alarming internal and external debt profile of approximately N183 billion, it is baffling to see the Enugu State government attempt to borrow an additional N170 billion. In effect, this administration seeks to open its loan portfolio with an 182.79% increase above the N93 billion domestic debt accumulated over the eight years of the Ifeanyi Ugwanyi administration. It is also interesting to note that the loan amount exceeds the 2023 total budget presented in December 2022.

    This will take our state above the stipulated borrowing limit by the Debt Management Office by 226% and will place Enugu State as the 4th most indebted state in the country.

    The Ugwanyi administration closed with a domestic debt of N93,197,207,627.52 and an external debt of $120,667,083.51. The prospect of further increasing our debt profile is not in the best interest of our economy.

    At present, Enugu State’s debt per capita ratio, which represents how much debt the government owes on behalf of each citizen, stands at N23,907. This additional N170 billion will double and triple our debt per capita ratio over the next year. This means that the government will owe an estimated N67,500 on behalf of each citizen, which is a far cry from the zero per cent poverty headcount index promised by this administration. To put this in perspective, the state spent N3,506.84 per capita on education and N1,559.1 per capita on health in 2022. Enugu is currently the 10th poorest state in Nigeria and the second poorest in the Southeast with a poverty rate of 58.13% behind Ebonyi State.

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    The stagnant economic situation in the past decade begs the question of what the previous debts incurred were spent on. Roads, hospitals, and schools are in deplorable states. Teachers’ salaries and pensions remained unpaid for several months despite the huge sums quoted through the years.

    While I am not against borrowing for development purposes, it should be consistent with the Open Governance Partnership requirements for transparency and accountability, per the provisions of the Debt Management Office for fiscal responsibility, and with the citizens apprised of the purposes of these facilities.

    This recent development raises several concerns.

    According to the provisions of the Debt Management Office, for Domestic Capital Market borrowing, States and FCT are to ensure that their total amount of loans outstanding at any particular time, including the proposed loan shall not exceed fifty (50) per cent of the actual Total Revenue for the preceding year. (Investment and Security Act, 2007, Part XV, 223 (1b) quoted in the provisions of the DMO).

    With Enugu’s reported actual total revenue for 2022 being N128 billion, the acquisition of a domestic debt of N170 billion which takes our total debt profile up to approximately N354 billion will exceed the stipulated limit by 226%.

    The Act also provides that “The DMO shall conduct a Debt Sustainability Analysis to ascertain that the Monthly Debt Service deduction of the State or FCT, including the servicing of the proposed bank loan being contemplated, does not exceed 40% of the Total Monthly Revenue (FAAC and IGR) of the State or FCT for the preceding 12 months, and make a recommendation to the Minister as appropriate.”

    First, the government is in breach of the law and intentionally jeopardising the economic health of the state and ultimately, the welfare of the people. Concerning the stated percentage allowed for debt servicing, what is the viability of maintaining a monthly debt service deduction below 40% of our revenue when the state’s total liabilities are consolidated? If it technically falls below the threshold, how will this reflect on the economy in real terms? Unfortunately, the figures and terms of our indebtedness are not readily available for public evaluation. The government must shun the practice of opacity in managing the state’s accounts and embrace transparency.

    Secondly, the financial institutions offering these facilities will also be acting in breach of the law and liable to sanctions as provided.

    All banks and financial institutions shall request and obtain proof of compliance with the provisions of this Part before lending to any Government in the Federation. Lending by banks and financial institutions in contravention of this Part shall be unlawful. (Fiscal Responsibility Act, 2007, Section 45).

    Thirdly, how does the ENSG propose to circumvent the provisions of the FRA and the DMO to get approval for these loans?

    Moreover, the speed of approval by the Enugu House of Assembly is noteworthy. A loan request of this magnitude should be rigorously vetted and analysed before a decision is made. The legislative arm must provide a buffer to avoid executive excesses.

    I must also question the proposed use of a portion of the loan for salary payments. Beyond the breach of the provision in the FRA that the government at all tiers shall only borrow for capital expenditure and human development, it is a sad reality that we have joined the league of states which borrow to service recurrent expenditure.

    With regards to the proposed “infrastructural developments”, they must be clearly outlined and published along with the cost-benefit analysis detailing the economic and social benefits (FRA, 2007, 44). What specific projects will be executed and in what ways will these attract investments as promised by the government?

    Another key area of concern is the repayment plan as stated in the letter of request signed by the Secretary to the State Government, Professor Chidiebere Onyia. The government stated that “The loan will be repaid via Irrevocable Standing Payment Order (ISPO) on consolidated Enugu State IGR accounts, which would be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.”

    This is a blatant encroachment on the fiscal autonomy of the Local Government which was one of the major challenges to development under the previous administration. It is undemocratic and will not be prudent of this present administration to adopt the behaviour of its predecessors.

    Additionally, the sustainability of these debts and the proposed repayment plans are questionable considering our current revenue and liabilities. What is the plan to astronomically grow the IGR without placing a heavier tax burden on the already depleted pockets of citizens?

    Finally, and most importantly, is the question of transparency and accountability. We need to see a detailed plan for expenditure, and stringent measures for monitoring and evaluation of the proposed projects.

    On September 4, I noted that no further discussion had been raised concerning the 2023 budget after the previous administration’s presentation in December 2022. Neither had the federal allocations to the state been made public, even though an estimated N21 billion had been disbursed to the state’s coffers from the Federal Allocations Accounts Committee (FAAC) at the time.

    This situation remains the same today and we also do not know our Internally Generated Revenue since the new government was sworn-in in May. While the House of Assembly reportedly approved a N58 billion supplementary budget, the document is not available for the public to review, nor has any clear plan been communicated for which these humongous borrowings are being effected.

    We must elevate the place of accountability in our governance. Every sitting government in Enugu State must commit to providing information and ensuring transparency in managing the state’s account. Appropriate mechanisms must also be emplaced in place to track the deployment of these resources.

     Enugu State faces the heightened risk of economic meltdown if fiscal responsibility, transparency, and accountability are not prioritised.

    • Nweke II was APGA Gubernatorial candidate, Enugu in 2023 election.

  • The fire this time

    The fire this time

    It’s always been a hibernating tinderbox environment waiting for the slightest spark to flare. The latest spark occurred early at dawn on 7th October when Israelis at an overnight party in southern Israel were barnstormed by a horde of fighters from the Palestinian militant group, Hamas, who had breached the heavily fortified border with Gaza Strip to infiltrate the Jewish state. That assault was facilitated by a barrage of rockets fired from Gaza, which blew out homes in Israel. The hailstorm of rockets triggered the Israeli system of siren alarm blaring to alert sleepy citizens, but belatedly so. At the party, the Hamas militants fired indiscriminately at frolickers, leaving no fewer than 260 dead. Militants also fanned out into the communities where they attacked Jewish habitants and abducted about 150, mostly civilian hostages, across the border back into Gaza.

    The Israeli government rallied to respond to the ambush attack. Prime Minister Binyamin Netanyahu went on air to declare that the country was at war. “Not an operation, not a round (of fighting), but at war,” he said. Israel has since replied with thousands of rockets fired into the Palestinian enclave, besides a rain of airstrikes – many hitting civilian homes. The Jewish state reinforced her blockade on Gaza and called up an unprecedented 300,000 reservists, amid indications it may soon or late stage a ground assault. Israeli media said Hamas fighters killed some 900 people in the weekend attack, including the 260 at the music festival. Gaza authorities put the death toll in Israel’s retaliatory strikes at 770, but Israel said bodies of some 1,500 Hamas fighters were found in her territory. Other countries that reported their citizens dead in the Hamas attack include Thailand, Argentina, the United States and Britain. Tel-Aviv said it had ordered a “complete siege” on Gaza, cutting off supplies of food, water and electricity to its roughly two million residents.

    Founded in 1987, Hamas is both a political party and militant group that holds sway within limited autonomy allowed under Israeli control in Gaza – a small strip of roughly 140 square mile that is considered one of the most densely populated spaces on earth. The group is backed by Iran and is deemed a terrorist organisation by many nations. Its defining ideology is its refusal to accept the statehood of Israel, and a radical militancy in pursuit of the destruction of the Jewish nation – an approach differing from the more sober quest for Palestinian statehood by Fatah party in West Bank. The 7th October attack coincided with the 50th anniversary of the 1973 Yom Kippur War – a grim reminder of the deep roots of the Israeli-Palestinian conflict that anyone who would make sense of the vicious cycle of violence must consider.

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    We can only accommodate a summary here. The Zionist movement of the early 20th Century had mobilised Diaspora Jews to what is deemed their historic homeland in Palestine. That initiative climaxed with the 14th May, 1948 creation of the State of Israel, which was preceded in 1947 by the United Nations (UN) approval of the partitioning of Palestine into Jewish and Arab states and a proposal that Jerusalem, the birthplace of three Abrahamic religions of Judaism, Christianity and Islam, be placed under special international administration. On the heels of Israel’s declaration of Independence, Arab nations joined with Palestinians in an offensive that was the first Arab-Israeli War. That war ended the following year with Israel emerging victorious, and with the territory carved into three regions namely State of Israel, which after the war occupied 60 percent of the area proposed as a Palestinian state under the UN plan; West Bank along the Jordan River, controlled by Jordan; and Gaza Strip under Egypt’s control. It was in this war, which made thousands of Palestinians stateless, that Israel annexed the western half of Jerusalem. After the war, the Jewish state refused to grant Palestinians the right to return, thereby seed-bedding a nationality driven by passionate aspiration for self-determination.

    In 1967, Israel waged a preemptive six-day war against Egypt, Syria and Jordan, resulting in her annexing West Bank and East Jerusalem from Jordan, Gaza Strip and Sinai Peninsula from Egypt, and Golan Heights from Syria. The Jewish state emerged from this conflict with territory four times its original size, and more than a million Palestinians coming under Israeli rule in occupied lands. Egypt and Syria staged a surprise reprisal attack in 1973, leading to a 19-day war that again ended in Israel’s victory. This conflict known as the ‘Yom Kippur War’ because fighting started on Yom Kippur, the holiest day in Judaism, brought humiliation to the Arab world, weakened Arab unity, and by extension united Arab backing for the Palestinian cause, and eventually led to the Camp David Accords of 1978 – Israel’s first ever peace treaty with an Arab nation by which she agreed to restore Sinai Peninsula to Egypt in return for Cairo’s formal recognition of, and normalisation of ties with Tel-Aviv. Although the treaty had a framework for Palestinian self-rule in Gaza and West Bank, implementation was elusive.

    The years 1987 to 1993  witnessed the First Intifada (Arab for ‘shaking off’), a Palestinian uprising characterised by stone-throwing mass protests and acts of civil resistance against Israeli occupation in West Bank and Gaza Strip, and the start of the Oslo peace process. The historic Oslo Accords of 1993 established the Palestinian Authority in West Bank and Gaza, thereby providing Palestinians some degree of political autonomy towards fulfilling the right of the people to self-rule. There was, however, disagreement among the Palestinians, with those who believed only armed resistance could free their land from Israeli occupation considering the treaty a betrayal. The Second Intifada erupted in 2000 in response to then far-right Israeli Opposition leader Ariel Sharon’s provocative visit to the contested Temple Mount, the third-holiest site in Islam. In 2005, Israel unilaterally withdrew from Gaza Strip, dismantling Jewish settlements and ending its military presence in the enclave in a bid to burnish its image. But this also marked a complex turning point in the conflict, as it raised questions about the feasibility of unilateral actions in resolving the broader territorial and political disputes between the two sides.

    Palestinians held elections in 2006 in which Hamas won majority seats in the Palestinian Legislative Council, defeating the secular Fatah party, and was set to administer the occupied territories of Gaza, West Bank and East Jerusalem. But having been designated a terrorist group, much of the international community refused to recognize Hamas rule. A civil war soon after broke out between Hamas and Fatah, with Hamas gaining control of Gaza while Fatah held onto West Bank. Citing security concerns, Israel and Egypt in 2007 both imposed a blockade on Gaza, restricting movement of people and goods in and out of the strip in what has created severe economic and humanitarian challenges for the population. Human rights groups likened conditions in the enclave to that of an “open-air prison.”

    That is the general situation of Gaza over which flare-ups have recurrently erupted between Israel and Hamas, often resulting in significant casualties amid quest by the global community for a lasting ceasefire. Only that the quest falters at every turn owing to perennial aggression mode of parties concerned. Israel is fundamentally a ‘war state’ because not only was her birth secured by aggression in the first Arab-Israeli War, she has had to hold up amidst enveloping enmity of Arab neighbours. Some of these have signed peace treaties with the Jewish state, though, the latest being the 2020 Abraham Accords by which Tel-Aviv normalised relations with the United Arab Emirates, Bahrain, Sudan and Morocco. Moves by the U.S. are currently underway to forge ties between Israel and Saudi Arabia. But implacable enemies remain: besides Hamas in Gaza, there is Hezbollah in Lebanon that is also sponsored by Iran. The two-state solution proposed by the UN hasn’t flown with Israel because it involves giving up annexed East Jerusalem to Palestinians. The Jewish state says the ‘City of David’ is its historical territory that can’t be divided.

    Hamas was beyond bestial in its latest attack on Israel. In the raging conflict, however, even where Israel is the aggressed and not the aggressor as in the latest case, she comes off as a monster in her reprisal that puts Palestinian civilians in way of aggravated harm. Humanitarian agencies say the present siege has created acute shortages of food, water and medicaments for hundreds of thousands of Gaza residents. Israel must find a way of responding to Hamas without so severely hazarding the civilian Palestinian populace. But let’s be clear: the conflict is all about territory and has nothing to do with religion. Nothing.

    • Please join me on kayodeidowu.blogspot.be for conversation.

  • Xpricewaterhousecoopers; Xdeloitte; Xkpmg; and dark side of accountancy profession

    Xpricewaterhousecoopers; Xdeloitte; Xkpmg; and dark side of accountancy profession

    • By J.K. Randle

    Let me start by acknowledging the presence in our midst of his Excellency Dr. Peter Mbah the Governor of the Enugu.  Before I proceed further, I must commend the Matriach  of the Etiaba family and her late husband Barrister B.M.C. Etiaba for the excellent children they have brought up with sterling  qualities.  Our host Ben is only one of them but they all share the same attributes of integrity, diligence, trustworthiness and humility.

    Let me pause for a while and reflect on the accountancy profession which is what brought Ben and I together.

    Unfortunately, accountancy has its own dark side.  A case in point has been provided by PricewaterhouseCoopers (PWC).

    “PriceWaterhouseCoopers (PwC) director Tonderai Luwisi  has been sentenced to 20 years simple imprisonment for the murder of his wife. Luwisi, who pleaded not guilty, murdered his wife Palegia Muregwi, on December 10, 2022. In his defence, Luwisi narrated to the court how he stabbed his wife with a knife several times. Luwisi said on the material day, he had a heated argument with his wife after she told him that their two children were not his and that she was in love with another person who was better than him. When the matter came up for judgement yesterday, Justice Mbewe said Luwisi had a chance to walk away when his wife became angry and confrontational…….”

    Deloitte

    “Deloitte is planning to cut more than 800 jobs in the United Kingdom, a source told Reuters on Wednesday.

    The company is proposing some targeted restructuring that would result in the reduction of 3% of its workforce of 27,000 in the UK, a person familiar with the matter told Reuters.

    The move comes as Deloitte, one of the “Big Four” accounting firms, plans to focus on cost-cutting due to the slowdown in the second half of the current financial year as clients are being more cautious in their spending, the person said.”

    We also have the front page of “The Nation” newspaper of September 16, 2023.

    KPMG

    “Nine people, including six former KPMG LLP partners and the former deputy chairman of the firm, face criminal charges in the largest criminal tax case ever filed in the United States. In addition, the company has admitted wrongdoing and has reached a deal to pay US$456 million in fines, restitution and penalties to defer prosecution in the multi-billion-dollar tax fraud case.

    Details of the settlement were released today by the U.S. Department of Justice and the U.S. Internal Revenue Service. According to a series of charging documents unsealed today, the fraud relates to the design, marketing, and implementation of fraudulent tax shelters.

    KPMG admitted it engaged in a fraud that generated at least US$11 billion dollars in phony tax losses which, according to court papers, cost the U.S. at least US$2.5 billion dollars in evaded taxes. In addition to KPMG’s former deputy chairman, the individuals indicted include two former heads of KPMG’s tax practice and a former tax partner in the New York, N.Y., office of a prominent national law firm.

    The criminal information and indictment together allege that from 1996 through 2003, KPMG, the nine indicted defendants and others conspired to defraud the IRS by designing, marketing and implementing illegal tax shelters.

    According to the charges, KPMG, the indicted individuals, and their co-conspirators concocted tax shelter transactions, together with false and fraudulent factual scenarios to support them. These were targeted to wealthy individuals who needed a minimum of $10 million or $20 million in tax losses so they would pay fees that were a percentage of the desired tax loss to KPMG, certain law firms and others instead of paying billions of dollars in taxes owed to the government. To further the scheme, KPMG, the individual defendants, and their co-conspirators allegedly filed and caused to be filed false and fraudulent tax returns that claimed phony tax losses. KPMG also admitted that its personnel took specific deliberate steps to conceal the existence of the shelters from the IRS by, among other things, failing to register the shelters with the IRS as required by law; fraudulently concealing the shelter losses and income on tax returns; and attempting to hide the shelters using sham attorney-client privilege claims.”

    Read Also: Tinubu pulls FCTA out of Treasury Single Account

    Headline: “ALLEGED N1.07 BILLION, $975K FRAUD: COURT REFUSES LADY ACCOUNTANT BAIL”

    “The Federal High Court in Lagos yesterday declined to grant bail to an accountant, Omafume Augustina Ayinuola, who is standing trial on an alleged fraud involving N1.07 billion and $975,102.58.

    Justice Akintayo Aluko turned down Omafume’s bail application on the grounds that she was a flight risk.

    Omafume, alongside her mother, Lydia Abosede Ehrievuyere, and their firm, Patridia Resources Limited, are standing trial before the judge on a 15-count charge of alleged conspiracy, obtaining by false pretence, forgery and fraud.

    The charge was brought against them by the Force Criminal Investigation Department (Force CID) Annex Alagbon-Ikoyi Lagos.

    Mother and daughter were arraigned on August 16.  Prosecution counsel Morufu Animashaun told the court that they perfected the alleged offences between 2017 and 2021 at Trailer Park, Agbara, Lagos.

    The court heard that the defendants committed the alleged fraud against several firms, including Oritsetimeyin Logistics Limited, Pine Petosan Limited, Grace Capital Limited, RsL International Limited, RsL Ventures Capital Limited, Grace & Mercy Capital Limited and Grace Assets Limited.

    The funds were said to be meant for the purchase and supply of consumables for the office of the firms listed above.

    The prosecutor alleged that first defendant, Omafume, while working with the firms, used her position to illegally convert to her personal purse various sums of money amounting to N1,072,254,411 billion and $975,102.58.

    He alleged that the second defendant Ehrievuyere and her firm, Patricia Resouces Limited, concealed the origin of the funds that they received from Omafume.

    The court heard further that Ehrievuyere used part of the alleged illicit funds to purchase and develop her family  house located at 14, Irawodidia Street, Obadore, off LASU Road, Igando, Lagos.

    He told the court that the defendants’ alleged illegal acts contravened Sections 8(a); 7(1) (b)(i); 1 (3) of the Advance Fee Fraud and Other Related Offences Act 2006 and were punishable under Sections 1(3) and 7 (2)(b) of the same Act.

    Both defendants pleaded not guilty.

    Their counsel, J.O. Oladeji, applied for their bail.  But Animasaun opposed him, arguing that they could flee.

    He alleged in his counter0affidavit to the bail application that the Accountant committed perjury (to lie on oath) in securing another international passport in order to escape prosecution.

    According to him, the accountant told the Nigeria Immigration  Services (NIS) that she lost her travel passport whereas the passport was the police as part of her administrative bail conditions.

    When the case came up for ruling yesterday, Justice Aluko agreed with the prosecutor’s submission.

     He held that there was a high possibility that first defendant, Omafume, if granted bail, would flee.

    The judge granted bail to the second defendant in the sum of N500 million with two sureties in like sum, among other terms.

    Justice Aluko ordered that the case file be returned to the Administrative Judge for reassignment.

    He remanded the accountant in Nigerian Correctional Services (NCoS) custody till the determination of the charges.

    He also remanded her mother in correctional services custody till the perfection of the bail terms.

    We also have the front page of “ThisDay” newspaper of September 15, 2023.

    Headline: “UMAHI:  I INHERITED 18,000 KM OF ROAD CONTRACTS WORTH N14.1 TRILLION.

    ·Says N431 billion currently available for immediat payments.

    “The Minister of Works, David Umahi, yesterday said that the Bola Tinubu-led administration inherited about 18,000 kilometres of roads, with a contract sum of about N14.1 trillion.

    The minister who disclosed that out of the N14.1 trillion, N4 trillion had been paid, made the remarks while meeting with all contractors handling road ‘dualisation’ projects and all zonal directors of the ministry at its headquarters in Abuja.

    “Umahi told the contractors and stakeholders that the current administration has 18,000 kilometre of roads and inherited a contract sum of about N14.1 trillion and out of which N4 trillion is being paid in all those projects,” a statement signed by the Director of Information, Press and Public Relations Unit, Blessing Lere-Adams, stated.

    Stressing that some of the projects had lasted between 10 to 20 years, the minister noted that some contractors had jerked  up the contract sums by up to 100 percent, explaining that it accounts for why some of them had not been paid.

    We are going back to the original concept of the projects and the necessity of any additional works and also see how we get a fair deal.  Expecting an endorsement from the ministry for what is not acceptable to the Nigerian Society of Engineers (NSE) is not possible,” the minister said.

    Umahi also said that President Bola Tinubu understands how road infrastructure works.  “If I come before him with a contract of N44 billion contract sum, I must be able to provide details of how the cost came about,” he maintained.

    The minister further announced the ministry’s intention to focus on most of the “dualised” roads across the country.  “Why we are here now is to announce our intention to face most of the dualised roads in the country,” he declared.

    He added, “I want to remind you that the Nigerian National Petroleum Company Limited (NNPC) is funding 50 percent of the contract sums and that funding goes up to 2025.

    “We have N431 billion of money  that is ready for contractors to clear but there are no certificates for it.  If you are doing a job under Phase I, make effort to make claims.

    If your job involves augmentation, go back to your regional director for understanding before I sign the certificate.  Any certificate I sign now, I have to take account for it, even when I have left office,” he maintained.

    The minister tasked the contractors to move to one lace if their job had not gone up to 50 percent completion, stressing that he had also come up with performance bond, meaning that all new projects must be guaranteed for 10 years.

    He urged all contractors that had built roads that he said cannot last up to 10 years to write to the ministry to either stop work or rebuild the road to last a decade.

    He warned contractors that he would not listen to stories of failures on the roads due to overloading, enjoining them to cooperate with him to build roads with concrete technology as it is done in India and Singapore.”

    However, there are many who would argue that darkness is not the exclusive prerogative of the accountancy profession.  There is darkness everywhere !!  Here are a few examples:

    (i)            Front page of “Saturday Vanguard” newspaper of September 16, 2023.

    Headline: “FEAR GRIPS CALABAR RESIDENTS OVER ‘DISAPPEARANCE’ OF MALE GENITALS”

    “There have been several reports of the disappearance of male reproductive organs in parts of Calabar and this is causing apprehension and anxiety in the city.

    In the past two weeks, there have been several cases of male organs disappearing by some male residents at handshake or body contact with strangers.

    Over ten cases are said to have taken place with some organs being returned to the victims by perpetrators while some are said not to have been restored.

    “An organ was said to be sold for six hundred thousand naira last week but owing to market forces and high demand the price has gone up to one million per organ” Chibuike, a spare parts dealer told Vanguard.

    He said the organs are used for ritual purposes to make money and more people will fall victim if nothing drastic is not done by the authorities to stop the ugly state of events in the city.

    “People now put bitter kola in their pockets or hold their private organs tightly while walking on the street or inside commercial vehicles”.

    Cases of organ disappearance are said to have occured at Atimbo, Ekpo Abasi, 8 Miles, Watt Market, Atakpa street and some other places in the city.

    “It happened in my area, State Avenue by Afokang this morning. Someone lost his penis and it took severe beating of the snatcher before he returned the organ” Blessing Ngi, a resident of Calabar South said.

    The Cross River Police Command Spokesman, Ms Irene Ugbo said there is nothing as such thing as stealing of private parts in the city.

    “Have you seen anyone whose private part was stolen? Bring him here for medical examination. People should discountenance the rumours and go about their normal businesses” She stressed.

    Bashorun J.K. Randle is a former President of the Institute of the Chartered Accountants of Nigeria (ICAN) and former Chairman of KPMG Nigeria  and Africa Region. He is currently the Chairman, J.K. Randle Professional Services

    • (Address delivered at University of Nigeria at the Conferment on Mr. Ben Etiaba on 20th September, 2023