The Nation Newspaper

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  • Lagos and the nuisance of land grabbers

    Buying a  piece of land in Lagos State and putting up a structure on same is usually a tall order, no thanks to the belligerent activities of land grabbers and land speculators popularly known as Omo oniles who make life unbearable for intending house owners through their frivolous demands. There have been many instances where unsuspecting buyers paid for land only to be told to come and pay again to reclaim their land, or settle some aggrieved family members who were not factored into the sharing formula of the previous payment. Omo Oniles simply have no regard for the law of the land as they have become a law unto themselves charging and fining prospective land owners’ different absurd bills as it pleases them.

    They also ensure the buyers are not free from their strangulating grip as they exact different fines on them, at every stage of the development of their properties. Prominent among such fines are foundation bill, lintel bill, decking bill, roof bill, fencing bill and a whole lot more. The value of such bills could sometimes be equivalent of the total value of the land or a little less depending on their scale of relevance and location of the property.

    In addition, they employ the use of force and threat in collecting these monies from their victims who are at their mercy with no option or defence. Some of their victims have had their structures demolished, as the Omo Oniles storm their sites in commando-like style, wielding harmful weapons and attacking the workers on site. Property owners are often mercilessly beaten up, wounded and forced to stop work until payment is made. Through this trend, land grabbers have successfully stalled the development of many projects.

    Consequently, in Lagos, individuals and organizations planning to put up structures have learnt to factor the cost of Omo Oniles into their expenditure. This has not only hindered development; it has also made individuals and organizations to consider relocating to neighbouring states where the activities of land grabbers are not so pronounced.

    The activities of land grabbers are not only illegal, but anathema to society, development, peace and progress. They speculate on land with little or no recourse to land use laws, as they engage in the illegal sale of government land to unsuspecting individuals. They sometimes even dispossess people of land that are legitimately bought from the government. They also sell lands with no proper planning or cognizance of a mapped out environmental outlay, this is especially so, with new satellite settlements in the suburb of the state. Some houses within such locations don’t have a pathway for movement as other houses have been erected on their path; more appalling, some are built under high tension wires.

    Although some of the notorious Omo Oniles are known but the society is helpless in dealing with them. To stem the tide of Omo Oniles nuisance, there is a need for accurate and efficient record keeping were the history of every property is preserved and conscientiously kept and protected. The courts are congested with land cases because landed properties are not properly documented.

    It is not in doubt that the state has recorded enormous loss to the unlawful activities of these hoodlums, most of whom are layabouts, opportunists and exploiters who go about rubbishing the image of the state. It is in order to decisively tackle this nuisance that the Lagos State Government recently inaugurated a Task Force to check the menace of land grabbers in the state.

    The Task Force is saddled with the task of reducing to the barest minimum activities of individuals or corporate entities that use force and intimidation to dispossess or prevent people or organizations from acquiring legitimate interest and possession of property acquired through the state government or private transactions. The force is also empowered to co-ordinate the efforts of various agencies of government charged with enforcing the state government rights over lands in Lagos; and to work with all security agencies to ensure enforcement of state government and private property rights in Lagos State.

    The state government has vowed to deploy the full force of the state and the law to tackle the issue permanently, noting that the havoc and chaos being caused by land grabbers would no longer be tolerated. Consequently, henceforth any person who uses physical force, threats or arms to dispossess people of their legitimate property will be treated as a criminal in accordance with Sections 52, 53 of the Criminal Law of Lagos State, which stipulates a two-year jail term for any person found to have forcefully entered or dispossessed a legitimate land owner of his property. According to Section 281 of the criminal law, land is part of items that can be stolen.

    A few days back, the Lagos State House of Assembly made good its promise to move against the threat of Omo Oniles in the state. The House passed a bill to prohibit forceful entry and illegal occupation of landed properties, violent and fraudulent conduct in relation to landed properties in Lagos State and for connected purposes into law. If found guilty, by the provisions of the bill, land grabbers, popularly known as Omo Oniles will face a maximum 21 years and minimum of five years imprisonment respectively. The bill, passed at its plenary, after scaling through Third Reading was later sent to Lagos State Governor Akinwunmi Ambode for his assent. The passage of this bill into law is, no doubt, a massive step towards a lasting solution to the activities of the land grabbers in the state.

    It is heart-warming that the state government is coming up with the legal and institutional framework to tackle the menace of Omo Oniles once and for all. A society that thrives on lawlessness cannot attract meaningful development and growth. The citizenry, especially masses who daily struggle to make ends meet would, without a doubt, benefit from this renewed attempt to sanitize the land sector in Lagos State. Meanwhile, it is crucial that the state government demonstrate sufficient political will to follow through this fresh process in order to repose the citizenry’s confidence in the rule of law.

    On its part, the citizenry must brace up to fully support the government in this new bid to restore law and order into the society.

    Aruya is of the Features Unit, Ministry of Information & Strategy, Alausa, Ikeja, Lagos.

  • Using varsities to drive change

    Government policies in Nigeria are rarely informed by rigorous research. More often than not, it does appear that planning is done amid the near absence of hard facts. This aversion for information-based planning partly explains why most incumbent governments overturn the policies of their predecessors while introducing new and often conflicting policies. This practice is not costless as the masses bear the brunt of such policy inconsistencies.  More disturbing however is the origin of the ideas driving these policies. For the most part, indigenous researches are taken to be inferior to imported/expatriate evidences. These imported policies mostly are misfits due to the lack of proper grounding in the peculiar realities of the Nigerian context. The world over, successful countries are typically those that prioritize the researches from their universities and other research institutions. This they do by allocating sufficient funds to these institutions.  In these countries, research outputs are not only critical drivers of their economies but also the harbinger of rapid transformation in technology, infrastructure and the like. Little wonder that our gluttonous politicians run to these places with our stolen money for holidays.

    It is incontrovertible that we can neither grow nor develop without funding policy-inclined researches. There is, therefore, a correlation between research outputs and economic transformation. Evidences of the societal functionality of this important nexus abound with Israel, China, USA, UK among others reaping the dividends from research. The proponents of the “Change” mantra need to drive it beyond mere rhetoric by committing adequate funds to research. Developed countries base their policies on researches which proffer solutions to identified problems. It is the same research that makes technologically advanced societies to develop products like phones with ‘torch-light’, rechargeable lanterns which become major consumption items for our own economy. Through this, they rake in substantial foreign earnings into their countries. Another case in point is the fairly recent ‘Ebola’ episode. Recall that it was easy to transport medical doctors infected with the deadly ‘Ebola’ back to Emory Hospital, USA, where they were treated. Of course, this was a specialized institution where huge financial resources had been invested into researching uncommon diseases. To be factual, Nigeria in particular and Africa in general needs to fund research to understand its economies in order to be able to solve the seemingly intractable problems of insecurity, health, agricultural productivity, low ranking of universities, militancy and the rise in insurgent citizenship.

    The foregoing and allied issues took center stage when Leading African Development Economist and Vice Chancellor of University of Ghana, Legon, Professor Ernest Aryeetey delivered the 67th Interdisciplinary Discourse of the Postgraduate School, University of Ibadan on the topic “”Developing Research Universities for Africa: Some New Approaches”. He stressed the need for Nigeria and Africa to invest in university research in order to have globally competitive economies. He noted that low investment in research-focused universities accounts for why many African universities are lowly ranked and cannot be globally competitive. According to him, it is impractical to contemplate competing with Harvard, Cambridge, London School of Economics and other top rated universities if Nigeria, and Africa at large, is not ready to invest massively in boosting the research capacities of its universities. By implication, Africa must therefore consciously and concertedly develop research universities that will help in providing sound knowledge economy for its transformation and positive change. Professor Aryeetey averred that universities must specialize either in teaching or conducting research noting that not all universities should be combining teaching with research. He noted that African universities must collaborate and carry out researches on problems facing the continent. He further noted that some progress is being made along this route with the formation of African Research Universities Alliance (ARUA).

    To quote him verbatim, “Having research focused universities is important but expensive but the end product is total transformation and economic growth. Innovation comes from research which leads to transformation. We need to pay more attention to research in Africa. Our governments complain of low ranking universities and want us to compete globally but can they do what Harvard, Yale and Princeton universities are investing in research? They must invest in research to have their economies change and the continent can be competitive with the rest of the world. We need to change the face of infrastructure in our universities and attract leading scholars through attractive incentives and train more faculties that can conduct transformational research. African problems are of different nature. Our problem is about low productivity in agriculture, health but we must conduct researches that will solve our own problems. We must formulate policies based on researches conducted by African researchers not on imported policy from another clime which is at variance with realities on the continent. It is sad that Africa accounts for a disappointing one percent of world research outputs at present.”

    Since there is a strong and positive relationship between research outputs and economic growth, Nigeria through President Buhari and other African governments must fund research for the transformation of Africa. Otherwise, it will be difficult for the continent to experience transformation. Aside the dismal performance of government on this metric, how many of our industries fund researches? These private sector entities rather sponsor singing competitions, beauty pageants and so on. Some of these musicians, whose songs encourage anti-social behaviours (like rape, cybercrime, kidnapping), get lucrative endorsements deals as brand ambassadors for private organisations. Politicians even enlist these entertainers during electioneering campaigns with those who are called ‘Honourables’ dancing enthusiastically. At the other end of the continuum, one ponders what happens to ‘First Class’ graduates. Except for dedicated newspapers that now conduct interviews with them, there seems to be no deliberate effort to invest in nurturing them. The usual script is that Nigeria waits for you to either waste away or sweat-to-glory and become a global citizen before claiming you as their own (this rings loud in the labeling of the likes of Wole Soyinka and Chimamanda Adichie in federal government advertisement of Nigerians doing well across the globe).

    On the part of our universities, they also need to conduct researches that meet the needs of our environment and thereby build the requisite trust that will attract patronage both from the public and private sectors. Additional government funding will encourage researching alternative sources of power, security, low cost health equipment, ICT among others. This proactive approach should be conspicuous in the intent and actions of government. Such pragmatism is a far better substitute to the present penchant of the ruling class for shedding crocodile tears at convocation ceremonies. They expend ample speech time on low ranking of Nigerian Universities without speaking to funding lapses and the yet-to-be fulfilled N1.3trilion NEEDS assessment intervention fund agreed to with the Academic Staff Union of Universities (ASUU) following the strike in 2013. Close to three years after that agreement, nothing has changed except that the blame game has come in diverse shades. Without a doubt, ASUU strikes have been an integral contributor to the little achievements we can itemize on our campuses. Nonetheless, the lukewarm attitude of the union as well as its reactionary roles on education and other national issues are aspects that require urgent attention by the leadership of the body at all levels.

    Funding research will drive growth and development. President Muhammadu Buhari needs to hire an assistant on ‘Research Monitoring’ who can relate with universities and convert many research projects on departmental, faculty and library shelves to realistic transformational policies. Change by word of mouth is and will perpetually remain theoretical. Only the practical recognition of the role of universities in national development will suffice for the kind of progressive change our nation desperately needs.

     

    • Dr Tade, a sociologist wrote via dotad2003@yahoo.com
  • AMCON: In whose interest?

    AMCON: In whose interest?

    The deteriorating macroeconomic environment as well as some earnings-constraining policies from both the monetary and fiscal authorities has seen a lot of businesses in the country gasping for breath. From banking to oil and gas, down to manufacturing, a lot of firms in have been struggling to record decent profit.

    Clearly, the prolonged slump in the price of crude oil as well as the incessant attacks on oil installations have continued to impact negatively on the economy, with attendant spillage on firms in the country. In fact, going by the present situation, the federal government has hinted that implementing the 2016 budget, a very important fiscal policy document, whose execution a lot of people had thought would help reflate the economy, is now a mirage.

    These, coupled with the foreign exchange crisis, which has seen a lot of volatility in the naira, as well as a looming recession, are all source of concerns.

    Nevertheless, despite the weakening macroeconomic outlook, the Asset Management Corporation of Nigeria (AMCON), a key government agency that was created to be a key stabilising and re-vitalising tool in the economy, has continued to parade itself as an enemy of businesses with overall negative bearing on the economy already reeling and dire straits. The government agency that was set up to efficiently resolve the non-performing loans (NPLs), appears to be working in the opposite as its activities have continue to injure businesses.

    AMCON was set up primarily to address the financial crisis of 2008/2009, with specific respect to what the Nigerian banking system was going through. AMCON was set up to provide liquidity by purchasing the NPLs of these commercial banks. By doing that, it freed liquidity so that they could lend to the real sector. At that time the NPL ratio was as high as 60 per cent and the industry average in the prudential guidelines stated that it should be around five per cent.

    So, AMCON was set up to free the liquidity and reduce the NPLs to five per cent. Secondly, AMCON was also encouraged to provide financial accommodation to some of the financial institutions, including some of the obligors in the industry that were considered strategic. What people try not to understand is the fact that quite a lot of those facilities that were bought from financial institutions were facilities that were bad ab initio. They were facilities that had been restructured severally and some of these banks had already put them in memorandum account. What it means is that they had fully provided for them.

    On Tuesday, August 8, 2015, President Muhammadu Buhari dissolved the executive management team of AMCON and approved the reconstitution of a new team.

    To this end, Ahmed Lawan Kuru was named the Managing Director. Kuru was the Group Managing Director of Enterprise Bank Limited, an institution that was previously owned by AMCON. Kuru had in an interview said when AMCON was set up, quite a number of the facilities it acquired were restructured and in the first couple of years of AMCON establishment, they were able to make some recoveries from those facilities.

    “But five years down the line, with the economic situation that is challenging the global financial system, with the price of crude oil down, obviously a lot of our obligors are having challenges meeting their obligation. Also, we are having challenges regarding the valuation of our assets.

    “We are not able to get the true value of our assets because of the economic situation based on the drop in the price of crude oil. If we say we are going to offload our assets based on market realities, we may not get 60 per cent of the value. So, what we are trying to do is to find a way of restructuring some of these facilities,” he had disclosed.

    But AMCON may be doing the opposite of what he promised on assumption of office.

    In an interview with CNBC Africa, he had also promised that AMCON will not in the process of loan recovery allow any company indebted to AMCON go under – a promise he has failed to keep. AMCON has since employed draconian tactics shutting down businesses here and there. From Aero Contractors Limited, Bi-Courtney Limited and Capital Oil Limited, the list is endless. Last month, AMCON sealed the Abuja premises of Silverbird Galleria belonging to Senator Ben Murray Bruce. The galleria currently houses the Abuja studio of the radio and television stations of the senator as well as his other business interests. Apart from Bruce’s companies, the seven-storey building also houses other business interests such as Shoprite, United Bank for Africa, Standard Chartered Bank, Mango boutique, and Etisalat office among others. The building was sealed by AMCON through the assistance of law enforcement agencies around 8am following a court order secured by AMCON. Conspicuously written on the fence of the building as well as other strategic locations was an enforcement notice by AMCON which says, “Possession taken by court order 26/06/16.”

    The same was done to NICON Group which is owned by Jimoh Ibrahim. In this case, the corporation froze the account of the billionaire. But the ruling which empowered AMCON to take the action against AMCON has since been upturned.

    Also, a recent case at hand is that of MRS Holdings Limited, which AMCON claimed is indebted to it. Contrary to AMCON’s claims, the company has maintained that it is not indebted to AMCON.

    In a statement, the company stated: “MRS challenges in the strongest possible terms the false claim by AMCON that MRS is indebted to AMCON in the sum of N81 Billion or any sum at all. The correct position is that MRS obtained a loan from a consortium of banks in Nigeria for a viable project. AMCON took over the loans. However, it became clear to AMCON that MRS was paying down on the loan and agreed to restructure the loan on agreed terms of N74 billion. The said debt has since been fully settled. The terms of settlement was entered as Judgment of Court on 29 June 2015, in Suit No FHC/L/CS/1365/2015.

    “MRS is shocked that in spite of having fully settled the debt, AMCON has decided to re-litigate an already concluded matter. MRS Holdings Limited understands AMCON’s statutory function to recover debts but by no stretch can this mean harassment of companies. AMCON has declared a new aggressive debt recovery drive. MRS has no problem with that but this does not give AMCON a licence to embarrass and harass companies. It is not a crime to obtain loans for viable projects. Execution of viable projects leads to job creation and growth of the economy. However, when companies obtain loans for legitimate businesses are being harassed and embarrassed in the name of aggressive debt recovery, it signals danger for economy growth.”

    Beyond the reputational damage AMCON’s approach has inflicted on companies it claims are owning it, is the larger implication on the economy already heading into recession. This is the worry of many who are concerned that the agency is operating in isolation of its environment. According to an investment analyst who prefers not to be named, AMCON should adopt a new approach that takes note of the current economic realities of the country. “I cannot understand the rush to wind down companies in the name of debt recovery when every businesses and governments across the country are facing difficult times. Now if it winds down these businesses what will happen to the workers? Will AMCON employ them? he asked.

     

    • Ibrahim wrote in from Abuja.

  • My name is Oloyede

    The above title is a parody of Sam Omatseye’s recent novel, My name is Okoro. A work of faction, telling and in other instances retelling the terrifying stories of war and conquest, love and betrayal, murder and pogrom, unequal combats, and unsung heroes and heroines of war. Sam’s misty offering of the debacle and horrors of the 1966Biafra-Nigeria civil war, tragically still mirrors present trepidations, some 50 years after.

    As I raced through the book, I could not help but compare the unequal contest between Biafra and Nigeria with the man-made tragedy that has befallen Justice OlamideFolahanmiOloyedefor daring to take-onOgbeni Rauf Aregbesola, the executive governor of Osun State. Like the landlocked Biafra, JusticeOloyedehad only her memo to the state House of Assembly and few admirers to plead her cause, while Ogbeni has an amalgam of armies of well-heeled professionals and assistants, pretenders to civic causes, interested stragglers and a motely of administrative adjudicators, to push for the jurist’s annihilation.

    Like those who pleaded the murder of the northern premier, as their justification to engage in pogrom, the temerity of Justice Oloyede to dare their belovedOgbeni, is enough reason to put her to the sword.His Lordship was reckless, many have argued. Maybe.  In fact theNational Judicial Council (NJC), was unsparing in taking his Lordship to the cleaners. According to a report: “The petition (by Oloyede) was said to contain political statements, unsubstantiated allegations and accusations aimed at deriding, demeaning and undermining the Government of Osun State”.

    For her intransigence, she was hauled by a motely crowd of so-called Civil Society Coalition, before the NJC empowered by the Third Schedule, Part 1, paragraph 21(d) of the 1999 constitution, to: “recommend to the Governor the removal from office of the judicial officers specified in sub-paragraph (c) of this paragraph, and to exercise disciplinary control over such officers”. To show how powerful the NJC is, they relied on their omnibus empowerment in the constitution, to deal with Oloyede, over a matter that in my humble opinion should have been handled by a regular court, if Ogbeni feels very aggrieved.

    The NJC relied on section 292(1)(b) of the 1999 constitution, and a nebulous rule of conduct. The section provides: “A judicial officer shall not be removed from his office or appointment before his age of retirement except in the following circumstances: in any case, other than those which paragraphs (a) of this section applies, by … the governor acting on the recommendation of the National Judicial Council that the judicial officer be so removed for his inability to discharge the function of his office or appointment (whether arising frominfirmity of mind or body) orfor misconduct or contravention of the code of conduct”.

    In fact the provision looks more like a political noose, given to NJC as a hangman to deal with any Judge for whatever reason it considers appropriate. The report of the NJC showed as much. According to the report, Justice Oloyede is punished because her petition:”put the character of the governor as one who is cruel, a liar and a traitor”. Furthermore: “The petition contained statements calculated to incite the residents of Osun State against the state government and its elected officers”. If I may ask, if Osun people are not incited by the failed economy and its glaring consequences, is it a letterby a judge without a security vote to mobilize that can cause Ogbeniany harm?

    NJC gratuitously held that: “Hon. Justice Oloyede crossed the fundamental right of freedom of speech and created a negative perception of the Nigerian judiciary to the public.” If calling a member of the executive corrupt is a reason to retire a judge, what has happened to members of the executive that have been railing that our judges are corrupt, without bothering to proffer any evidence to back it up? While I concede that Ogbeni may have been wrongly accused by Oloyede, why should the governor not go to court to seek remedies for defamation, as the law entitles him?

    In sacking Oloyede, was the NJC heroic? Not in my view. Perhaps with the EFCC prancing all over town, and many judges now scared of pro-corruption and sundry charges, NJC turned the befuddled Udeze in Sam’s novel, who in sympathy shot his war time best friend, Chukwu, so that the enemy army that had encircled him, will not take credit for his death.The Oloyede’s odyssey and her traducers also mimics Sam’s Chief EmekaIwu, who he said: “pranced about with an air of regal hauteur… insisted on being called a chief, and anyone who did not call him Chief EmekaIwu … could be locked up or tortured or disposed of any valuable.”

    Again is it possible that like Okeyin Sam’s book, did in defence of his mother and sibling, when the mob came to annihilate them in Kano that Justice Oloyede had taken on Ogbeniin defence of the suffering civil servants whose salaries are unpaid, even when she knew that it is a war she cannot win? While it is true that Ogbeni is not the only owing governor, could be that a wave of heroism overwhelmed the jurist, just like it did toOkey, even when many may consider her foolish, for taking on a gubernatorial behemoth, like Okey did bydaring a rampaging mob in Kano?

    Perhaps those who stringently plead the governor’s cause unabashedly, are merely as human as Sam Omatseye’s protagonist, Okoro. The poor fellow could not resist the temptation of Clara’s body, and after he ate of her apple, he surrendered: “I plead guilty. It is not my fault that you are so beautiful and so kind”. Like Clara the executive is so beautiful. And the temptation to seek its warmth: “night after night, week after week, month after month”, particularly under this crazy economic weather can be understood. As Sam wrote, such warmth “had no answer to the temptation of unguarded impulse”.

    Like in Shakespeare’s Merchant of Venice, Oloyede like Shylock is now at the mercy of Ogbeni the Antonio,whom she wanted the state legislators to sack, over allegations of mismanagement of the state resources. In a twist of fate,her sack latter is now on Ogbeni’s table. Shylock versus Antonio, and Antonio versus Shylock, one can rightly input.  Will Ogbeniunlike Antonio insist on gleefully signinghersack later, and thereby claiming that he is smelling of roses in the entire saga?

    Leaving fiction for factual, perhaps a test of the limits of the right of free speechfor judges, as provided for every citizen, in section 39(1) of the 1999 constitution, as amended, at the courts may be inevitable. For as M. V. Venkatachaliah, wrote in, Independent India Article at page 49: “The principal preoccupation of Rule of Law is to discipline public power and set standards for the conduct of public men in their exercise of government powers. Evolution of political organization of man has as its recurrent theme the ascertainment and determination of the acceptable limits of the coercive powers of state over its subjects”.

  • Re: Bauchi: Democracy or anarchy?

    Some political agitators in Bauchi State represented by Ahmed Yerima, currently a member in the National Assembly from Misau/Dambam federal constituency, have in recent times resorted to negative publicity about the governor of the state in print and electronic media. I intended to turn a blind eye as well as deaf ears to such mischief as mere propaganda that could equally be ignored by the public, but the intensification of the campaigns, which from the looks of things are beginning to create wrong impressions about the governor, made me change my position.

    It is a common knowledge that the group in question has an overriding ambition to produce the next Bauchi State governor from within its fold. It is not wrong for any eligible aspirant to vie for that seat whether in the ruling party or any opposition party, but what is worrisome and crude is how the group is bent on damaging the reputation of the governor to have its ambition actualized. They see Barrister Mohammed AbdullahiAbubakar as the only impediment that will hamper their plans against 2019 if he goes for a second term. The initial scheme, which at last they realized could not work, was that Mohammed Abubakar would not seek reelection at the termination of his first tenure, failing to understand that this propaganda would not change the views of the electorate about the governor, in as much as the needed development would be adequately provided.

    The Yerima group insidiously hatches one evil plan after the other to make sure the good image of the governor is dented so that getting him unseated in 2019 will be easier. They spread, through their agents on social media, all sorts of malicious rumours and unfounded speculations in order to overheat the polity. The recent of such acts was an article authored by same Yerima, published in The Nation.  Though from the title of the write-up, Yerima was confused to use the word ‘anarchy’ where it didn’t fit, being that the state is well governed with all organs and instruments of power perfectly functional, it was clear that he was trying to falsely blame the government of Barrister Abubakar for not carrying all along. This is untrue. This government is all inclusive, because it involves all strata of the political class and even community, business and religious leaders in most of the decisions it takes. It is only members of the Yerima group, who I can best describe as enemies from within that turned out to be pariahs who for their selfish motives decided to break away, and even in this regard the governor did all he could to extend his hand of friendship and fraternity to individual members of this group in order to allow peace and unity to reign in his government, but it was met with rebuff, because the well-being of the state is not the primary objective of these people.

    I am yet to fathom what Yerima means by ‘‘wanton lack of adherence to norms and international best practices against democratic values’’.

    Yerima has a wrong perception of what politics is all about for dissenting to the idea of hosting Ahmed AdamuMu’azu and Bala Mohammed as citizens of Bauchi State to a dinner in Saudi Arabia. A liberal political affiliation does not prohibit interaction on personal level between members of different political parties. Politics is all about interests, which could be positive or negative. Both the former PDP national chairman and FCT minister have been good friends of the governor for as long as before the PDP and APC came to exist. What is wrong if they met with the governor in the holy land, ate and exchanged pleasantries where politics was thrown aside to unite with God? In whatever way we look at it, the two men are senior citizens of Bauchi State and must, therefore, be treated as such, regardless of what political party they belong to. What if they decide now to come over to the APC as many of their calibre did? This is never an excuse to portray Governor Mohammed AbdullahiAbubakar as being double-faced. After all, in what way did Mu’azu destroy Bauchi State when compared to the succeeding regime in which Yerima himself served and benefitted immensely? Is he part of the destruction? He should allow Mohammed Abubakar to rebuild.

    Yerima and his sponsors take advantage and capitalize on the present economic downturn, a reality that affects not only Nigeria but the world at large, to incite the polity against the government, especially the working class. Inability to pay salaries has become a national phenomenon which doesn’t exempt Bauchi State, and if we keep sentiments aside and assess the situation in the state, we would find  out that much has been done to address the situation, and I can say that 80 percent of the problem is solved.

    Let us consider other states with similar problems which are over 20 in number. Many of them with lesser workforce than Bauchi State could not pay salaries for as long as seven months and even above. Some threaten to pay half salaries if the situation doesn’t improve, and with the growing activities of Niger Delta Avengers, there is no sign of any improvement in the near future. Yet Governor Abubakar did all he could to settle the accumulated salaries to the barest minimum, but the gesture is not being appreciated. Even governors of the Niger Delta who collect higher grants than the rest of the states are paralyzed to pay salaries. We should also take into consideration that Governor Abubakar has come with clean intention and determination to lift the standard of the state higher from where he met it. I heard him mention on many occasions, before and after assuming office that Bauchi State was retarded in terms of development as compared to younger states created much later than Bauchi. He laments the deplorable state of all sectors and other social services including education which was allocated 20 percent of this year’s budget in order to save the sector from total collapse.

    All these need huge amount of money to be executed, and in this regard the governor must balance between the interests of the electorate and the civil servants for the dividends of democracy to reach where they are supposed to. Therefore while salaries are being paid, infrastructural provision is equally foremost.

    We all know that the beauty of democracy is the right it gives to all individuals to vote and be voted for. In line this, Ahmed Yerima or any other member of his clique has the right to vie for the gubernatorial seat of Bauchi State provided such a person fulfils the constitutional requirements in that regards. What is unworthy is vilifying the government with no justification, and especially the defamatory remarks about the personality of His Excellency. If they have anything to offer the state, let them express it in the right way and allow our governor to work for us. No matter their urgency and desperation, they have to wait for the incumbency to come to its stipulated end, and it is then they can assess and say whether this government lives up to expectation or not.

     

    • Nata’ala writes from Bauchi.

  • Nigeria, a flawed federation?

    Americans strive for a more perfect union; Nigerians strive to unbundle a federation some of them view with great disfavour. Restructuring is the innocuous term used to describe this endeavour, the effectuation of which, in the form it is presented, will undoubtedly lead to the balkanization the country and endless strife in the successor-statelets. It has been the political talking point this last quarter-century, ever since the late lawyer Alao Aka-Bashorun sought the convocation of a sovereign national conference in imitation of events taking place in neighbouring Francophone West African countries then seeking the dethronement of dictators. The annulment of the June 12, 1993 presidential election provided the fertile ground for the idea to grow, uniting its promoters and the opposition to the Abacha dictatorship. NADECO galvanised the opposition to Abacha, while PRONACO took the lead in the emerging campaign for restructuring.

    The protagonists of restructuring have seized upon both the Independence and the Republican Constitutions as sacred sacraments, the ideal constitutional arrangement for our country, for our federation. It is claimed that those constitutions “allowed regions to retain their revenue, remitting agreed portion to the federal government” and “allowing each region to develop at its own pace” etc, in a false presentation of the past. The Republican constitution had 45 items on the exclusive federal list and 29 on the concurrent list, upon which both federal and regional governments could act. The fact is that leaders of the First Republic were redoubtable characters, visionaries who were aware of the constraints of the constitution and by and large abided by them. When the Premier of the Northern Region ventured into foreign affairs by declaring his non- recognition of Israel, the Prime Minister promptly checked him and went on to receive then Israeli Foreign Minister, the late Golda Meir. The exclusive federal list has since expanded to 68 items in the 1999 constitution against 30 in the concurrent list, mainly because of the challenges the country was facing at that material time. The 1979 Constitution (to which the current one hews closely), especially was drafted by a stellar assembly of politicians and legal luminaries, who could not have simply bowed to the demands of the military rulers, nor could the latter have so tampered with what was presented as to void their fundamental thrust. Nevertheless, save for the power to declare war, the shortened concurrent list still grants states enough powers to deliver the required service to their constituencies.

    The revenue allocation question is the real reason for the campaign for restructuring, not the preponderance of exclusive federal list – as a US president famously declared “It’s the economy, stupid!” And it is in this area that misleading statements are regularly dished out. There was no time the regional governments controlled their “own resources” let alone remit agreed portion to the federal government. The fact was that mineral resources, revenues from which are the issues of current contention, were under the federal government; it is useful to remember that before Oloibiri, tin and columbite were the principal export minerals.

    The revenue allocation formula in operation in the First Republic was the one based on the Reisman Commission Report (1958). It added to the sole parameter identified by earlier Commissions on the issue – derivation – the factors of minimum responsibility, population and balanced development of the federation. It also introduced the Distributable Pool Account (DPA) into which specific percentages from the various revenue heads were paid to give effect to the new parameters.

    A chapter in the book by F.A.O. Schwarz “Nigeria:The Tribes, The Nation or The Race” (MIT Press 1965) revealed interesting details about fiscal relations between the federal and regional governments in the First Republic. For instance, the federal government collected most of the taxes for the country, even as it remitted most of the proceeds to the region as provided for under the revenue allocation formula. Secondly, the revenue so received by the regional governments outstripped internal collection in the fiscal years 1959/1960, 1960/1961 and 1961/1962. Even now that is the case. A most interesting thing in this section was the observation that as oil revenue, derived from mining rents and royalties (50% of which was remitted to the region of origin), became more prominent in the revenue profile of the federation, there was the likelihood of “political controversy” arising from its distribution.

    How prophetic! The Niger Delta has been racked by militancy and pipeline vandalism these past 20 years, to protest neglect and press for increased revenue/ resource control. Resurgence of militancy and pipeline vandalism have more to do with the change of regime than to any negative change in the material condition of the region. A disturbing aspect of the current situation is that both the established leadership elite and the elected leadership have surrendered the initiative to militants who have unleashed economic terrorism on the country, receiving unseemly applause from some media outlets. The plethora of initiatives and institutions brought to bear on the developmental challenges in the Niger Delta have not yielded significant fruits because of non-uniformity in the motivations of the various stakeholders. Otherwise, tangible improvement in the standard of living and the environment could have been recorded in the last 15 years with the unprecedented revenues available for that purpose.

    The centralised police system now in operation is seen as antithetical to federalism. It may well be so, but it must be viewed against the country’s experience in the First Republic when the local (N.A.) Police were used to oppress opposition in the regions. Nothing precludes local/state police being similarly used in the current dispensation; it’s worth recalling the case where an Assistant Inspector-General of Police (ordinarily under the command of the IGP) connived with local godfathers to kidnap a sitting governor in order to force his resignation. Local knowledge and flavour could be injected into the policing system by ensuring that at least 50% of personnel deployed to any state are indigenes. Under the current climate, it is difficult to envision an apolitical state police force which will maintain law and order without interference from state authorities.

    Neither the National Political Reform Conference (2005) nor the National Conference (2014) passes the test of purity of motives. Obasanjo hoped to achieve the removal of presidential term-limit, while Jonathan’s was to galvanise his support base and tempt the South-west politicians who live by the idea of “a Sovereign National Conference.” Besides, most of the recommendations have been in circulation like for ages and could be put into effect by administrative action or through outright constitutional amendment(s). Like the position of derivation factor in the revenue allocation formula; it is an issue that could be legislated upon, not requiring constitutional amendment. That it has hung fire ever since is evidence of legislative malaise and ineffective networking. It is a good sign that the House of Representatives will adopt the National Conference Report as a working document in its constitution review. A determined and serious effort on its part would see the National Assembly effect necessary amendments to the Constitution that will reduce areas of dispute.

    The geopolitical zonal structure is another step advocated in aid of restructuring. A charitable view of this construct is that it is a reaction to the mindless state-creation exercises of the 1990s. Otherwise, the political class are its only “beneficiaries.” They have used it to build party bureaucracies that would be the envy of Communist Parties of old: Zonal Vice- Chairmen, Secretaries, Publicity Secretaries, Legal Advisers, Treasurers, etc. The practical effect of the geopolitical zonal structure however will be the creation of ethnic laagers. Regional government will just add another layer of administration to a country some would consider over-administered.

    Nigeria has been badly served by the various elite groups, few of whom are batting for the country. They have articulated no vision for the country; rather they work its many fault-lines to satisfy personal ambitions. A country that consistently receives negative ratings from its own ruling elites cannot hope to survive, let alone prosper. Nigeria is in that unhappy position today.

     

    • Usman lives in Kaduna

  • In memory of Nigeria’s future!

    The future comes slowly, the present flies and the past stands still forever. – Johann Friedrich Von Schiller.

    Barring any unforeseen circumstances, Nigeria’s journey to 2019 has already started and one can only wish the country well!

    Having run its first full-circle four year-term,  2019 will put to test the capacity of the ruling All Progressives Congress (APC) to renew its contract with Nigerians as well as the opposition’s ability to reassess itself, especially, in the light of significant challenges of poverty, unemployment and ethno-religious fundamentalism currently confronting the country.

    Well, while some of us on this side of the divide may not be seeing what others elsewhere are seeing in terms of the epileptic existence, structural weakness and economic vulnerability that have unfortunately-yet-understandably taken the shine off this administration, that Nigerians are hungry  and that President Muhammadu Buhari needs to put some smiles on their faces before the situation gets out of hand is no longer in doubt.  As it stands, there is too much anger, which typifies the frustration of the people; and there’s too much capability to deliver violence in the midst of little or no tolerance. Perhaps, the more reason there are so many deaths in the land.

    With the benefit of hindsight, the 2015 presidential poll was a battle fought, largely, between a “populist appeal” and an “outlandish profligacy”. In that election, Nigerians saw in Buhari a clear, credible, reliable, forward-looking and development-oriented leader who would not only give the arrogance of office and insolence of power that had taken the better part of former President Goodluck Jonathan’s government arun for its money, he was also seen as the preferred brand who possessed an enormous amount of political capital to take key transformative decisions that would positively affect the fortunes of the downtrodden. Little wonder the former president was bent on capturing power by any means and at all costs. Though the rest, as it is often said, is history, the reality in this widely-diversified, ceaselessly-varying, half-organized and half-conscious society of which the electorate forms a part, is that Nigerians are always at home with “the concept of change in the metaphysical sense but not in any way that hurts them and their families or friends”.  This is where the problem lies and this is why the government has to do more in terms of communicating well with the citizens if it is indeed interested in retaining the electorate’s confidence in 2019.

    So far, so fair for the tragedy of victory which is much more than its defeat! Key indices have so far attested to how the worst of Buhari’sgovernment could be preferred to the best of Jonathan’s. But that is not what we are saying here! The rate at which Nigeria is going is very worrying and something needs to be done to salvage the precarious situation. Precisely, the naira is in bad shape, revenue generation is proving to be pressingly challenging even as the country is seeing a lot of household and international debts. Oil production recently sank to as low as800,000bpd  even as government revenues have declined by more than half of what it used to be, pre-Buhari era. While it cannot be denied that this government has done some good job in its anti-corruption crusade, it needs to be noted that less than 10% of our collective patrimony can actually be attributed to this socio-economic malaise while a greater percentage of the rest is siphoned out of the country by multinational companies with little or no effort by the government to remedy the situation.

    In the first quarter of 2016, Gross Domestic Product (GDP)was said to have contracted by 0.36%, the first negative growth in many years. During this period, unemployment rate stood at 12.1%; underemployment, 19.1%; and youth unemployment, 24%. Even, in crime rate, Nigeria ranks ‘high up’ there, Boko Haram terrorists and Niger Delta militants are her ‘prized’ jokers! As a matter of fact, Nigeria was said to have had the highest case of kidnapping in 2013 and 2014, after equally-endowed countries like Mexico and India. Threateningly too, she’s found a ‘comfortable’ seat among world’s most dangerous countries like Yemen, Afghanistan, Iraq, North Korea and Libya. And, as if these are not enough, the murderous activities of Fulani herdsmen have ‘spiced’ our broth as world’s fourth most deadly terrorist organization!

    In his remarkably personal book, How will you measure your life? Clayton Christensen describes management as “the most noble of professions, if practised well”. Christensen might be right, at least to the extent that “no other occupation offers as many ways to help others learn and grow, take responsibility, be recognized for achievement, and contribute to the success of a bigger team and a bigger purpose.” But then, I doubt if those who contended that Buhari was too old a warhorse to lead a country as vastly endowed as Nigeria on the road to socio-economic recovery were not too enmeshed inthe intricacies of inanity to have realized that the major contenders for Barrack Obama’s throne are also drinking from the same cup of age with our president. On the other hand, while other candidates were unadulterated lightweightswho merely wanted the electorate to learn how to pronounce their names, those who opposed the emergence of Buhari as the preferred choice in the last election have so far fallen short of telling Nigerians in what garb an alternative to Jonathan would have appeared.

    Yes, Buhari did inherit a past laced with selfish whims and inevitable traumatization.  Still, he can explore the womb of his party’s deliberate strategies, even the unanticipated alternatives that have so emerged, to create a future of opportunities and prosperity for Nigerians! The bitter truth is that a government that fails to adequately cater to the needs of its citizens will sooner than later provide space for the people to go haywire. So, the earlier the president realizesthat the honeymoon on Nigeria’s Qadesh-Barnea adventure is over, the better for Nigeria.  To the best of my understanding, the people are not asking for too much from this government. Their only demand – and, a legitimate one at that – is some relatively strong amount of confidence, happiness, and self-esteem, not dissatisfaction, frustration or ingratitude.

    Ours need not be like that popular actor who decided to apologize to her ‘big auntie’ for not being with her in her time of need only after her ‘big auntie’ has accessed afterlife! If Singapore could rise above the vagaries of a developing country to become one of world’s great success stories in one generation, that it is achievable in Nigeria is already conceded!

     

    • Komolafe writes in from Ijebu-Jesa, Osun State.

  • Turkey and the rest of us

    Uncivilianised societies, sovereignty belongs to the people and is only entrusted to whoever is in leadership, or whoever seeks to be there. That is amessage the latest experience in Turkey reinforces. The country presently is in search for inner peace after a failed army coup penultimate Friday left some 250 persons dead and more than 1,500 injured. Since that misadventure, PresidentTayyip Erdogan has unleashed a frenzied crackdown on whoever was faintly suspected of having any link to the plot. At the last count, more than 50,000 people have been rounded up, sacked or suspended from work, including hundreds of judges that were disrobed and 21,000 teachers who had their licences withdrawn. A three-month Emergency that would allow the president to by-pass parliament in enacting laws and suspend basic human rights has also been imposed on the country.

    By the middle of last week, 99 generals and admirals – a significant lot of Turkey’s top brass – were formally charged; amidst indications that the country was contemplating restoring capital punishment that it dumped in 2004 to shape up for desired membership of the European Union. The EU has since warned that such revisionism would not be acceptable to the bloc.Erdogan’s crackdown has so beenfierce that an alarmed global community spoke up against using the failed insurrection as a blank cheque to uproot opposition in disregard of the rule of law.

    But it was an unarmed Turkish populace that took back their country when renegade soldiers assayed penultimate Friday night to topple the civilian order. In some counterplay to the 2010-2011 Arab Spring, ordinary Turks defied a curfew order to face down and thwart the coup attempt by rifle-wielding soldiers in armoured tanks. They threw themselves in front of approaching tanks and climbed atop military carriers to resist the attempted take-over, overwhelming the soldiers and compelling them to surrender. Strategic locations in that country were scenes of dramatic power play. Outside Ataturk airport in Istanbul, civilians lodged themselves under the wheels of tanks to stop the soldiers from advancing; and on the strategic Bosphorus Bridge in Istanbul, some 100 rebel soldiers laid down their arms and gave in to advancing civilians and police officers loyal to the government.

    The renegade soldiers, who calledthemselves the ‘Peace Council,’ had said they were trying to overthrow the government to ‘protect human rights’ and restore democracy that had been bastardised by Erdogan’s Justice and Development Party(AKP). The five hours of chaos began when two busloads of the soldiers barged into the headquarters of the state-run TRT news agency, took news off the air and replaced it with a stream of weather forecasts.After launching the coup, the Turkish military imposed a curfew, telling civilians to stay indoors. But the people defied the curfew, hit the streets and rolled back the coup.

    On the back of the showdown, Erdogan,who was on vacation in the resort town of Marmaris when the army struck, urged the people to stay the course. On Saturday morning,the president used Twitter to call on his supporters to prevent any additional military action, saying: “We should keep on owning the streets no matter at what stage, because a new flare-up could take place at any moment.” He surfaced in Istanbul some hours later, blaming the doomed coup on a “parallel structure” – a familiar reference to FethullahGulen, an Islamist cleric and longtime foe of the president who lives in self-imposed exile inPennsylvania, United States.Erdogan warned that members of the military behind the plot to oust him would “pay a heavy price for their treason.”Prime Minister BinaliYildirim subsequently elaborated, saying though the death penalty was abolished in 2004, the country may consider legal changes to deter such coup happening again.

    President Erdogan isn’t by any stretch an exemplary model of a democrat. He has been in power for decades: he was the mayor of Istanbul from 1994 to 1998, and he served as prime minister of Turkey from 2003 to 2014, when he became president and immediately began pushing for constitutional changes that would confer the hitherto ceremonial office of president with executive powers. He is reputed for intolerance of opposition and faces repeated criticisms by rights groups and Western allies over brutal crackdowns on anti-government protesters. Under his sleigh of hand, the liberal media space in Turkey, including the social media, is effectively endangered. But regardless of serious imperfections in the Turkish electoral system, Erdogan is a legitimate custodian of the people’s mandate, which it is the people’s prerogative to withdraw or preserve through the ballot box under a constitutional arrangement.The attempt by soldiers to abort that mandate was completely off mark and simply unacceptable,and the Turkish populace accordingly thwarted it.

    It is a universal moral that military intervention is no longer acceptable under any conditionfor effecting a change in constitutional order. That much point was wellmade by President Muhammadu Buhari in his statement on the Turkish coup when he said: “The removal of a democratic government by force is no longer acceptable… The ballot box doesn’t require violence to remove any government perceived to have lost its popularity and public support.” In any functional democracy, it is the people’s prerogative to post and depose from power. There is no difference even for our context here in Nigeria. Military intervention is no more a viable option, and it was quite laughable when some Niger Delta militants raised the alarm recently that they were being approached by some military elements for collaboration in a putsch. That alarm, for all it is worth, might really be false; but it bears saying that such an idea is invariably doomed, and anyone faintly contemplating it should just perish the thought.

    The Nigerian democracy is gradually coming of age. With the experience of the 2015 general election, the average Nigerian now knows that it is within his remit to appoint or disappoint politicians in powerif his vote is made to count. Now, the vital catch is: if his vote is made to count. The Independent National Electoral Commission (INEC) must continue to build on its processes for delivering credible elections, and be held fullyaccountable for infractions detracting from that end. But the political class must as well grow out of its historic disreputable mould. Political players must realise that the true path to power lies no longer in abuses or skillful manipulation of the electoral system, but in convincingly baiting voters whose ballots add up to a legitimate mandate. That is the kind of mandate that people would keenly rise to defend against military interlopers.

    Feedback – Re: The Power Crisis

    Hi, Robert. Just read your piece on the power crisis. I agree, like most Nigerians, that the present situation isn’t good enough. But hopeless? I think not. Fact is, nearly 70% of our present generation capacity is gas powered. Some old PHCN hands had recently criticised this, but I also disagree. If we have gas in abundance, doesn’t it make economic sense that we use what we have for our benefit?

    Now, coming to the ‘Avengers.’ Recall that we hit the 5000mw mark sometime before they began their reckless binge? An upbeat Fashola had then promised that the nation ’ll be doing 7000mw by December!

    Bottom line: the media should assist in the fight against the prodigals who are bent on destroying their own country, and also help educate the ever yelling crowd who are either ignorant or are just plain political hecklers. Regards.

    —Olu.

  • Re: Rawlings and Abacha’s blood money

    As one who spent his early years in Ghana in the period prior to and during J.J. Rawlings’ first coming, I’m of the generation that idolised him, not just for his revolutionary fervor but also for his commitment to return power to the people. Therefore, I feel a profound sadness at the truth you have highlighted in your lovely piece. For me, it simply conveys the truth of Abraham Lincoln’s assertion that ‘No man is good enough, or wise enough, to rule his fellow man without his consent.’

    Austin Inyang

    I was at the Ground House reception in Night Shift Colliseum where Ken Calebs Olumese hosted Rawlings some years ago. Rawlings made a fantastic speech but when he spoke about Nigerian Corruption I felt ashamed but told my friend that Nigeria and Nigerians deserved the opprobrium the Former President and Head of State poured on us that night. Movers and shakers of business and politics of Nigeria were seated and indeed wined and dined with Rawlings and his family that night. His daughter even took the mic and sang with the band of Sunny Nneji. Little did I know the very same Rawlings had been a beneficiary of the corruption he so rubbed on Nigeria’s face. And the beautiful daughter and wife didn’t know their murderer-dad and husband was a very black pot calling the kettle black! I read the disgraceful interview in The Guardian. And I wept. When he referred to Ayi Kwei Armah’s “The Beautiful Ones Are Not Yet Born”, his five fingers were inexorably pointing at himself and the fact that he spoke as if he did not know that the joke was on him was more pathetic. I had thought Rawlings was a fallen angel, but I have just realized he is a shameless hypocrite! At the Colliseum that night at Ikeja, our very own Reuben Abati was the Master of Ceremony and he acquitted himself the way only himself knows best to do. I am expecting his take on this disgraceful interview that Rawlings wanted to use to launder his image but which has backfired so badly like a faulty dynamite belt on a misguided suicide-bomber. An area for further intellectual analysis by the media and forensic exploration by EFCC is the gamut of un-receipted transactions of presidential colouration which should span a few regimes backward than the present circumscribed horizon. It is very interesting to know that there are some special messenger jobs in Nigeria where 60% of largesse is kept by the messengers while the designated recipient gets 40% and the transaction is recorded as 100% delivered! That’s what the $5m sent Rawlings but $2m delivered means. Don’t ask me. If you asked me, because “I no know book o.”

    Austin Isikhuemen

    The new world order is a continuous process, hence the emergence of the calibre of Mrs. Catherine Agba and Mrs. Yemi Keri (YK). We should not be waiting till after their death before appreciating the golden ones, especially the ladies. A writer recently asked, “How distinguished are our Senators?” Mrs. Agba and Keri are really distinguished Nigerians. Not like our distinguished treasury-looters. Edo State or Nigeria should lure their likes into service in order to rekindle our ailing institutions and not into politics to be corrupted. Brexit must have been divinely ordered for quiet women’s revolution. From Merkel to May to Hillary. “Male and female, He created them” (Gen. 1:27). “then God blessed them.”

    Elder L. O. David, Econ Alaaye, Ekiti: 08059096244

  • Sukuk and Aregbesola’s education story

    Osun State raised a sukuk bond worth N10 billion (some $62 million) from the capital market to fund educational development – the first of such by Africa’s biggest economy. Governor Aregbesola is aware that Islamic financial instruments such as sukuk have been used to finance infrastructure projects in countries like Malaysia and Indonesia, and in the Middle East, and could attract investors from such countries. The governor knows that Islamic finance requires a clear link with real economic activity and transactions have to relate to a tangible, identifiable asset, which comes in handy in the case of infrastructure financing.

    After the recent trend of Eurobond issuance by African countries, the Osun’s offering was sowing the seeds for more African sukuk.  Prior to Osun, only Gambia and Sudan had issued local-currency short-term domestic notes (Sudan sold local currency sukuk worth $160 million in 2012).

    Aregbesola had worked hard to introduce a sustainable framework, including training quality staff destined for Islamic finance industry. “The huge demand for Islamic finance products had prompted the Osun government to introduce new bond laws with provisions to establish Sharia-compliant bonds. Aregbesola believes that the potential of Islamic finance can also attract investors, operating in Middle East market to come and invest in Osun. By introducing Islamic bonds in finance market, Osun will be favorably positioned to become a hub of resilient and robust Islamic finance in Africa.

    In March 2013, the Securities and Exchange Commission (SEC) approved new guidelines for the issuance of sukuk bonds to Osun State only months after new guidelines were also approved for the operation of takaful (Islamic insurance). A local credit ratings agency, Agusto and Co, was given the note – to be listed on the Nigerian Stock Exchange – an A rating. The seven-year bond was issued through “a book-building process,” which would earn returns for sukuk holders through a semi-annually paid rent structure called the Ijara.

    The funds were used to finance construction of education projects, among other development initiatives with which Governor Aregbesola hopes to lay a solid foundation for the future of the state. Eleven High Schools with a total of 720 classrooms are at various stages of completion across the state. Two other High Schools are proposed for construction in Osogbo to accommodate the total population of high school students in Osogbo metropolis. There are 11 schools in all to be financed by the sukuk bond.  The bond is exclusively for high school development.

    The High Schools are: Wole Soyinka High School, Ejigbo, Ataoja High School, Osogbo, Fakunle Unity High School, Osogbo, Oduduwa High School, Ile Ife, Ila High School, Ila-Orangun, Adventist High School, Ede, Iwo High School, Iwo, Akinorun High School, Ikirun and  Ayedaade High School, Ikire.

    The planned seven-year paper would be the first sukuk bond to be issued by Africa’s largest economy. Aregbesola’s story is that Osun State was pioneering the alternative and less burdensome financial service in Nigeria. Ìcun State’s planned multibillion naira sukuk fund for education represents Nigeria’s most innovative and ambitious attempt thus far to promote Islamic finance. The move came within the context of ongoing efforts to attract Middle East investors and consolidate Nigeria’s latest foray into alternative financial services. It is a very commendable step in our drive to buy into alternative financial services, which will in turn attract investors from the Islamic world and Asia.

    Aregbesola believes that globally, the sukuk market has experienced tremendous growth. Though sukuk market issuances declined in 2008 as a result of global market turmoil, long-term prospects for the sukuk market remain strong.  Global sukuk outstanding rose to more than USD231.4 billion at the end-2012.

    This decade has witnessed the accelerated development of the global sukuk market. The global sukuk market which has now reached USD$270 billion outstanding is evolving to become a distinct platform for fostering greater international economic and financial linkages. The success of the sukuk market reflects its ability to meet the changing and differentiated demands of the modern economy, to develop innovative and cutting edge structures and products, and to achieve such issuances at competitive pricing.

    Aregbesola has exposed Nigeria to the sukuk market which has drawn increasing interest from sovereigns, multilateral institutions, multinational and national corporations both from developed and emerging economies to finance investments in a wide range of economic activities and development projects. The geographical reach of the sukuk market has also become more extensive, with the global sukuk outstanding now being domiciled in more than 20 countries, while the investor base that spans from Asia, the Middle East and Europe.

    There is clear indication of the growing relevance and importance of the sukuk market in Osun State, with the growing interest from both emerging and developed jurisdictions and the strategic approaches taken to diversify the funding sources through the sukuk market by Governor Rauf Aregbesola.  The overall direction and potential of the global sukuk market are certainly well recognised, particularly in its role in contributing towards greater economic development of Osun State. There is significant potential for the sukuk, in particular to fund infrastructure projects. This is particularly relevant for the Osun State and African region given the infrastructure needs going forward. This would contribute towards building deeper and more liquid, efficient and effective global sukuk market. The dynamism of the sukuk market also contributes towards strengthening financial stability and in facilitating the expansion of inter-regional investment flows. As we move towards increasing this internationalisation of Islamic finance, and thus towards greater global financial integration, it will contribute towards a global growth process and financial stability that will be mutually reinforcing.

    When Governor Aregbesola adopted Sukuk, an Islamic bond to help the state execute it projects, his critics were calling for his head. Many said it was part of his ploy to islamize Osun. Not quite long, the government of United Kingdom also stated its resolve to obtain Islamic bond, Sukuk to execute government projects.

    With this calibre of governments following suit to obtain Sukuk, it is now crystal clear that Aregbesola is not just a leader, but a leader that set positive pace globally.

     

    • Donald, a public affairs analyst writes from Benin City.