The Nation Newspaper

Category: Editorial

  • Fayose’s candidacy

    Fayose’s candidacy

    •A new low in Nigeria’s amoral politics

    Whoever a party chooses for an election should strictly be the business of that party. If the market decides on the quality or otherwise of a good or commodity, the voter should decide on the suitability or otherwise of a candidate. He or she is rewarded or punished with votes.

    Even then, there are extraordinary cases that go beyond strict party business, just as damaged or toxic goods do not fall under the strict purview of selling and buying, but becomes the business of the state, to guarantee its pre-transaction wholesomeness.

    Such is the case with Peter Ayodele Fayose, former governor of Ekiti State, who exited government in a blaze of impeachment on October 16, 2006, with 22 out of the 24-member Ekiti State House of Assembly adjudging him guilty of the alleged embezzlement of state funds, in the Ekiti Poultry Project of his government. But now, Mr. Fayose is back as the Peoples Democratic Party (PDP) candidate, for the June 21 Ekiti governorship election.

    Much has been alleged about the March 22 PDP primary that delivered Mr. Fayose the party’s ticket. Many of his opponents claim the process was skewed “from Abuja”; and that it should be cancelled. That claim is neither here nor there.

    On one hand, Nigerian politicians are such notorious bad losers that, were Mr. Fayose to be in the losing camp, he probably would have embarked on similar exercise to discredit the process. On the other hand, you can seldom vouch for the integrity of any electoral process, as the stock-in-trade is to skew it that, you always feel maybe the complainants do have a point. But that is not the focus of this editorial.

    The focus is rather the very nadir Mr. Fayose’s candidacy has plunged Nigerian politics, as soulless, amoral or even proudly immoral. But this is with a huge sense of responsibility and without prejudice to Mr. Fayose, if he is cleared of all the allegations hanging on his neck.

    After his ouster as governor, Mr. Fayose was docked for alleged sleaze and alleged murder. These cases are still in court; and it is trite to repeat that every suspect is presumed innocent until he is proved guilty by a court of competent jurisdiction.

    Still, in most Western democracies, anyone with such a hanging stain would automatically disqualify himself, until at least he clears his name. But should he display the wilful folly to want to run for public office, when by public perception — no matter how legalistically inconclusive — he is judged not fit and proper, public outrage would shellac him at the polls. Even in African traditional society, such outrage was not unusual, as the society moved fast to sanction anyone perceived to have run afoul of mores and values.

    The big question then is: though Mr. Fayose remains innocent until he is convicted, is there any morality in political recruitment? And if law is most times nothing but codified morality, does his PDP party not have any iota of morality in it, thrusting somebody with a highly compromised image to run for the governor of Ekiti, the highest political position in that state? If the court finds the candidate guilty, what happens to his moral authority as governor, if he wins the election?

    Mr. Fayose’s emergence, even if he won the primary fair and square, is bad commentary on the morality of Nigeria’s public space. It is sheer heart of darkness; for with the allegations hanging on his neck, his gubernatorial tenure is disaster waiting to happen.

    If the Ekiti electorate is rational — and there is nothing to suggest it is not — it should show no hesitation with bombing the candidate with nay-votes. But that is beside the point. The point is that no sane system should have presented the electorate with such a bad choice.

  • Alarming inhumanity

    Alarming inhumanity

    •The Soka forest tragedy reflects the savage hunt for wealth and prosperity in Nigeria

    Unquestionably,  the detection of an unlawful place of captivity and death managed by still unknown people in a forest in modern-day Nigeria is a chilling development that not only heightens the danger of insecurity in the land; it also mirrors the depth of depraved materialistic instinct in the society.

    At least 20 decomposing bodies were reportedly found in the forest, while 23 people in various states of disorientation and poor health were rescued from impending elimination. The environment was strewn with human skulls and other body parts, as well as personal effects such as clothes, shoes and necklaces believed to belong to captives who were kept in buildings in Soka forest in Ibadan, the Oyo State capital.

    It is noteworthy that insight into the mode of operation of the captors, provided by some of the rescued victims, is useful for social awareness. According to Nafiu Shittu, a native of Ibadan and pile medicine vendor who said he was kidnapped four months ago, “After going round the area where I had customers, I felt tired, and decided to rest. It was at the Gate area. Suddenly, a bus stopped by my side and two men came out and rushed me into the back seat. That was all I could remember. When I regained consciousness, I was in a room in the forest, chained to a wall.” Another victim, Titi Adeniyi, a 45-year-old woman and Ibadan resident, said, “Two months ago, I was in front our house when some men grabbed me and said I was under arrest. Before I could protest, I was put in a bus and driven away. We did not go to any police station and I still don’t know how we reached the bush.”

    Not surprisingly, against the social background of familiar ritualism based on human sacrifice, many concluded that the motive of the captors could be linked with desperation for easy money and supernatural power. Indeed, it would be unrealistic to gloss over this mystical dimension, which could well be the driving force behind the alarming inhumanity, especially in a society where many of those at the top worship at the temple of Mammon.

    The disturbing truth is that many members of the country’s political class particularly, by their dazzling display of obscene and often ill-gotten wealth, represent negative examples that encourage extreme and unrestrained materialism in the society. It is a sad and thought-provoking illustration of the dangerous degeneration of values that a band of hooligans reportedly scrambled for human parts uncovered at the site, suggesting that they considered them useful for some purpose, most likely supernatural enrichment.

    In the first place, it is tragic enough that such a horrific space existed, but the tragedy is certainly compounded by the fact that it had apparently been in existence for “over 10 years”.  Furthermore, it is a clear testimony to poor citizen vigilance that such criminal activities went on for so long in the forest unnoticed by the local residents. Interestingly, there are conflicting versions of how the dark enclosure was illuminated, but it is significant that in the end it was the citizens who exposed the evil.

    It must be one of the wonders of the country’s state of development that people with the kind of unprogressive orientation that sustained the despicable activities carried out in the forest are still very much around. In this age of forward-looking advancements in education and science, it is a disgrace that the country still harbours such backwardness, which makes no optimistic statement about its future.

    Nevertheless, it is commendable that the state administration has reclaimed the land from private interests, and the police have arrested six suspects in the ongoing investigation, which should be taken to a logical conclusion.

  • Measured progress on nuclear security

    Measured progress on nuclear security

    Although the summit meeting was overshadowed by the crisis in Ukraine, 53 international leaders in The Hague this week made important progress on securing nuclear materials around the world and keeping them out of the hands of terrorist groups like Al Qaeda. There is still a long way to go to address the challenges of a world awash in nuclear materials and weapons, but many countries are taking constructive action.

    The most dramatic gesture came from Japan, which announced that it would turn over to the United States for disposal an estimated 1,100 pounds of weapons-grade plutonium and highly enriched uranium. That is just a small fraction of Japan’s cache, but, even so, the decision has practical and political significance.

    Japan uses its nuclear materials for power generation and research, not weapons. But its politics has turned more nationalistic, and hard-liners sometimes suggest the country should produce its own nuclear weapons. Meanwhile, security at Japanese storage sites has long been considered vulnerable to theft. Iran, in negotiations with the major powers on its nuclear program, has cited Japan’s stockpiles of bomb-ready material as proof of a double-standard used in evaluating which nations can be trusted. China, too, has denounced Japan’s supply.

    Italy and Belgium also pledged at the meeting to reduce their stocks of highly enriched uranium and plutonium. Since President Obama initiated the nuclear security summit meetings in 2010, 12 countries have completely eliminated their nuclear material stockpiles and 15 others have removed or disposed of portions of theirs. The number of countries that possess enough nuclear materials to build a weapon has fallen to 25 from 39.

    While this is undeniably good news, that means 25 countries still have such materials at hundreds of sites, many of which are not sufficiently secure. Moreover, pledges by government leaders to improve security and combat illegal trafficking in nuclear materials may not be fully carried out.

    At this week’s summit meeting, only 35 of the 53 countries agreed to enact into their laws international guidelines on nuclear security like criminalizing unauthorized acts involving nuclear materials. What is needed are binding international legal standards, applicable to all, and a treaty to ban the production of fissile material altogether.

     

    – New York Times

     

  • Curbing ATM fraud

    Curbing ATM fraud

    •We take CBN’s promise seriously, and so should the CBN

    The seeming irrefutable fraud cases perpetrated through Automated Teller Machines (ATMs) in banks across the federation have gladly attracted the attention of the Central Bank of Nigeria (CBN). The apex bank has promised to curb the avoidable act by sanctioning banks that feign helplessness in nipping the crime in the bud.

    The CBN, in a circular to banks, signed by Dipo Fatokun, Director, Banking and Payment System Department and titled: ‘Need to install anti-skimming device at all ATM terminals’ bemoaned the “… upward increase in the number of ATMs-related fraud in the banking system.’ It equally admonished banks to take ‘urgent steps to curb the abuse’ and also pointed out the need for banks to adhere to ‘existing guidelines on card related frauds…’

    The number one bank observed that from now ‘…and in order to guard against card skimming at ATM channels across the country, all deposit money banks (DMBs) are mandated to comply with the provisions of section 3.2 ‘ATM Operations’ and 3.4 ‘ATM security’ of the Standards and Guidelines on ATM Operations in Nigeria and also install risk mitigating devices on their ATM terminals on or before June 1st, 2014.’ The CBN concluded the circular with a stern threat to banks to ‘invoke appropriate sanctions for non-compliance with this circular.’

    We acknowledge that the use of ATMs has considerably led to expansion of banking networks. The ATM, also known as Cash Machine, is a computerised telecommunications device that provides the clients of financial institutions with access to financial transactions in a public space without the help/presence of a cashier. The customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN). Through ATM, customers can access their bank accounts in order to make cash withdrawals, check their account balances, among others. But this commendable initiative has come with its own surmountable challenges that the CBN is seeking to address.

    The adoption of e-payment method is a good development and we are elated that Nigerians are increasingly embracing the machine payment option despite all odds. The CBN’s annual report for 2012 reportedly shows that there were 4,527 cases of fraud and forgery at the end of December, 2011. However, the statistics increased in the industry in 2012 while a considerable chunk of these criminal acts came from ATM frauds. The increasing fraud on ATMs constitutes a potent danger to this technological device and we consider the apex bank’s move to give this ugly trend the necessary attention a good one.

    All banks within the country should take the CBN challenge of eliminating increasing incidence of ATM fraud very seriously. ATMs deployment has proved to be one of the worthy instruments in the chain of bank e-payment processes. The technology has reduced unnecessary queues in banks, especially among customers collecting less than a specified amount, thereby reducing time and costs of transactions and also the provision of reliable audit trails when necessary.

    The country, at this contemporary age, needs to develop an effective global banking management system and one of the means of achieving this is through the use of modern technology such as automated teller machines. If the technology works in other climes, we see no reason why it should not work here if we intend to be competitively at par and to be taken serious in the broad and symbiotic global financial market.

     

  • Beating about the bush

    Beating about the bush

    •President Jonathan’s new approach to terror indicates philosophical confusion

    With just one month left of the six-month emergency-rule extension in Adamawa, Borno and Yobe states, the hotbed of terrorist activities by the inflexible Islamist militia known as Boko Haram, and uncertainty about further elongation, it is predictable that the President Goodluck Jonathan administration must be exploring a range of counter-terror possibilities to achieve a resolution of the destructive five-year-old rebellion which has so far proved elusive.

    Nevertheless, the latest, and perhaps unexpected, angle to the government’s campaign unveiled by an unlikely source, Col. (rtd) Sambo Dasuki, National Security Adviser (NSA), is a mystifying non-military approach to what is essentially a martial challenge, thereby suggesting that the administration may have reached a disappointing  conclusion that this is a situation in which it cannot prevail militarily. If, indeed,  the move constitutes an admission of insurmountable handicap, then not only would it mean that the country’s armed forces have been defeated by a mere internal  militia; it would also indicate the country’s vulnerability and reinforce social insecurity.

    Dasuki’s startling “Roll out of Nigeria’s Soft Approach to Counter Terrorism”, whatever its theoretical merits, represents an ill-defined all-inclusive method. According to him, “The soft approach provides us with a frame-work that identifies the roles and responsibilities of every segment of our society: the governors, local council chairmen, national and state assembly members, political parties, trade unions, the private sector, traditional institutions, ministers and other government officials, academics, in fact, a ‘whole-of-society’ approach that involves everyone vertically and horizontally to confront violent extremism.”  This exaggerated perspective, however, glosses over the fundamental point, which is that, ultimately, confronting and crushing terrorism is basically a military affair.  Playing down the martial dimension as evident from Dasuki’s definition can be interpreted as an abdication of responsibility.

    Furthermore, the new thinking displayed a shaky attribution of the rebellion to economic causes while ignoring the group’s declared religious motive and, perhaps, more potent driving force.  It is no secret after all that the rebels advocate an Islamic theocracy. The NSA said, “Based on our understanding of the economic root causes of terrorism and global best practices in addressing them, we are working with the governors of the six north eastern states to design an economic revitalisation programme targeted toward the states most impacted by terrorism. Working with various stakeholders, we are currently designing a regional economic revitalisation plan.”

    Although the idea of regional economic renaissance sounds agreeable, it sadly mirrors an inexcusable failure of governance in the states under focus. What is more, it is highly unrealistic to present the planned revitalisation as a kind of magic bullet that will arrest the rebellion, without fail. In other words, even if the proposed ambitious programme actually resolves the economic issues, what about the religious undercurrent? So, in the end, there can be no short cut to addressing the questionable faith position that fuels the group’s dissidence. By its latest move, the administration is merely beating about the bush whereas the main point is achieving a decisive victory against the insurgents.

    More to the point, for instance, is the country’s security-related cooperation with France, Cameroun, Republic of Benin, Chad and Niger toward tackling the insurgency in the North-east, particularly the agreement to raise the scale of coordination and exchange of intelligence. It is noteworthy that a Joint Multinational Task Force was among the recommendations by the directors-general of external intelligence services of the six countries, following a meeting in Abuja.

    If the so-called “Soft Approach” is a new phase or face of the government’s campaign, it is deficient in thoroughness, and Dasuki’s presentation appeared to call into question the specification of his role as national security adviser. He seemed to have abandoned his turf.

     

  • Malaysia’s airliner response exposes a ruling malaise

    Malaysia’s airliner response exposes a ruling malaise

    IF YOU are perplexed by Monday’s announcement on the missing Malaysian airliner, no wonder. Prime Minister Najib Razak declared that the flight “ended” in the southern Indian Ocean, and the state-owned airline said that “we have to assume beyond a reasonable doubt” that the plane went down in the ocean, far off its course to Beijing. Both announcements were vague; neither said much about why or how.

    From the moment the plane went missing, the Malaysian government has been ham-handed in its dealings with grieving families and the global glare of attention. It delayed for hours saying anything after the plane first vanished, and over the next few weeks much of the information it disseminated was conflicting, wrong or misleading.

    Such a bizarre disaster would be difficult for any government to deal with, and a fair amount of uncertainty and confusion is expected. But the Malaysian government has shown signs of a deeper malaise that comes from a half century of rule without challenge or transparency. When the prime minister was about to make a statement recently, his spokesperson told reporters there would be no questions. According to Joshua Kurlantzick of the Council on Foreign Relations, writing in Bloomberg Businessweek, when reporters pressed for more access, the reply came back: “Go watch a movie.” When China, no champion of transparency, complains — as it did recently, asking for “more thorough and accurate information” from Malaysia — you know the depth of the problem.

    Malaysia, ruled by the same governing coalition since independence, has enjoyed strong economic growth, and we had hopes before last year’s election that, if the vote was free and fair, the country would be on a path toward a more competitive democracy. Mr. Najib has taken steps toward modernization and reform, but the election fell short. Mr. Najib’s coalition won a majority of seats in Parliament largely through gerrymandered districts, while the opposition coalition led by Anwar Ibrahim won a popular majority and disputed the outcome. Clearly there is rising popular discontent with corruption, authoritarianism and ethnic favoritism of the ruling powers.

    It is especially disturbing that the government has renewed its politically motivated prosecution of Mr. Anwar on dubious charges of sodomy in order to sideline him from politics. On March 7, he was sentenced to five years in prison by a court, overturning a 2012 acquittal. The move had the effect of removing him from eligibility to run in an important by-election. The use of the sodomy charge is shameful and archaic, but as Graeme Reid of Human Rights Watch pointed out this month in Foreign Policy, if upheld, it could effectively remove Mr. Anwar from politics for 10 years. Malaysia should not tolerate this brazen manipulation.

    It is entirely premature to say what happened to the airplane. But it is not too early for Malaysia’s rulers to draw lessons from their unsteady performance of recent weeks and commit themselves to transparency and openness. Their alternative is not working.

    – Washington Post

  • Pot calling the kettle black

    Pot calling the kettle black

    •Mugabe accuses Nigerians of corruption!

    When one corrupt country is calling another corrupt country names, it should call for laughter by the international community. Corruption in Nigeria and Zimbabwe is legendary, the former in West Africa, and the latter in South Africa.

    President Robert Mugabe seized the opportunity of his 90th birthday luncheon hosted by service chiefs and the public commission to castigate Nigerians as corrupt. Comparing Zimbabweans to Nigerians would be offensive to Mugabe who feels that Zimbabweans are now almost behaving like Nigerians who have to take gratification before every service is rendered. Hear him: “Are we now like Nigeria where you have to reach your pockets to corruptly pay for everything”. He added: “You see, we used to go to Nigeria and every time we went there we had to carry extra cash in our pockets to corruptly pay for everything. You get into plane in Nigeria and you sit there and the crew keeps dilly-dallying without taking off as they wait for you to pay them to fly the plane”. President Mugabe’s swipe at Nigeria was followed by a huge laughter from the people at the luncheon.

    Disgraceful as Mugabe’s comments on Nigeria might be, we, in good conscience, find it difficult to defend Nigeria because everything Mugabe said about Nigeria is common knowledge, even to Nigerians. Instances of corruption in Nigeria and Zimbabwe are well documented. The current corruption rating in the world ranks corruption in Zimbabwe a lot worse than Nigeria’s. Nigeria is ranked 163rd most corrupt country in the world while Zimbabwe sits at an embarrassing 170th position, a third from the rear, apart from local and international criticisms of his (Mugabe’s) regime which he enjoys, in spite of his notoriously bad governance, old age and reputation as a sit-tight president.

    We have never hidden our feelings against Nigeria as a corrupt nation. Thus, while we could agree with the observations that led Mugabe to accuse Nigerians of corruption, we can say that there was nothing to warrant Mugabe’s outburst against Nigeria on the occasion of such a celebration like his 90th birthday. But he has said it, whatever the occasion. What should worry us is the fact that Mugabe singled out Nigeria for attack.

    Why is it that he did not accuse Ghana, Ivory Coast, Gambia, South Africa or Lesotho of corruption? It is a pity that Nigeria has given Mugabe the license to say what he said about Nigeria, probably because Mugabe knows that Nigeria is only slightly better than Zimbabwe with regard to corruption. This is however a clarion call for Nigerians and their leaders.

    As things are today, President Mugabe knew what he was talking about. It does not matter whether we think Zimbabwe and Nigeria are corrupt, what Mugabe might be saying, and was out to demonstrate might be that the ‘giant of Africa’ called Nigeria cannot lead Africa because of massive corruption in the country. The only sad aspect of it all is that the Nigerian president, Goodluck Jonathan, does not see what everyone else is seeing. To him, things are not as bad as they are being painted about Nigeria and corruption. This is the real tragedy of the whole matter because if the person who is supposed to fight corruption says it is being blown out of proportion, it means he does not see any need to lead the anti-corruption war. This can only spell doom for the country. Anyway, thanks, but no thanks, President Mugabe.

     

  • 25 new judges

    25 new judges

    •It prefigures the tasks ahead

    The appointment of 25 new justices to the Court of Appeal is a welcome development. This is particularly so, considering the expected demand on the judiciary arising from election petitions, with our country primed towards another general election, next year. So it is good that the existing vacancies in the Court of Appeal are filled up, ahead of the election year, so that the new justices will have time to settle down before that circle of assignment, as election petition tribunals, becomes due. According to Mr. Soji Oye, the acting Director of Information, the National Judicial Commission (NJC), the new justices were appointed to fill the vacancies occasioned by deaths, retirements and elevation of some justices to the Supreme Court.

    We join other Nigerians to congratulate the new justices of the Court of Appeal on their elevation, but we quickly remind them that their new appointment is a call to higher responsibility. As justices of the penultimate court of the land, the demand on their professional capacity, integrity, wisdom and work output is a notch higher now. The implication is that their erudition and competence must soar higher than when they were at the High Court.

    Again, there is a higher expectation with respect to their integrity and the rigour in their judgments. As justices of appellate courts, they must always bear in mind that their judgments would henceforth become precedents, and as such guides for lower courts and the legal community.

    With their years of experience at the High Courts, we believe that they are aware of the public perception of the integrity of our judiciary. This is a matter of grave importance to our national wellbeing. Now as justices of appellate court, they own a higher stake in ensuring a better positive image for the judiciary. As individuals, they must strive to be above all genuine reproach, with respect to their professional conduct. As an institution, they must strive to exhibit an impeccable reputation and independence that will convince every fair-minded person that our judiciary is fair and just. In this regard it is our wish to see an austere community of justices who will dispense justice without fear or favour.

    For the new justices as well as the old justices of the Court of Appeal, we wish to remind them that the approaching general elections may rightly be described as a make-or-mar election for our country. If our experience is anything to go by, then they must brace up for the challenges of being ready to fairly and efficiently discharge their responsibilities as impartial arbiters. How well they deal with the election petitions might as well determine the survival and health of our republic. This is unfortunately so, because our politicians see elections as a do-or-die matter, for which they must seek to win at all times.

    While congratulating the judiciary for the increase in the number of justices of the Court of Appeal to 90, we are worried that the budget of the judiciary has been dwindling in recent years. We hope that the authorities made adequate budgetary provisions for these appointments. The constitution envisages a well funded judiciary, which enhances its independence. Unfortunately in recent years, the budget of the judiciary has been on the decrease, instead of increasing. The executive and legislative arms of government must stop the common practice of appropriating more resources to themselves at the expense of the judiciary, which is also a critical arm of the tripod.

     

  • The NLNG paradigm

    The NLNG paradigm

    • Why doesn’t NNPC adopt the NLNG model for refinery and petrochemical complexes?

    It came with so many flaws, including nearly a decade-long delay; monumental graft, notably the bribery- for- contract scam by Halliburton and finally a not-too-transparent modus operandi. But regardless of all these, the Nigeria Liquefied Natural Gas (NLNG) project is probably the biggest thing happening to Nigeria and her oil industry today. It is by far her most ambitious and most successful project.

    The NLNG platform on the Bonny Island offshore from Rivers State was in the news recently when it marked its 3000th LNG export cargo milestone. According to its elated managing director and chief executive officer, Mr. Babs Omotowa, Nigeria has earned over $50 billion from the export of liquefied natural gas in the last 15 years. This huge earning, according to Omotowa, grew from a meagre investment of about $2.5 billion at inception in 1999.

    The NLNG is a star project of the joint venture between the Federal Government as represented by the Nigerian National Petroleum Corporation (NNPC) and international oil companies. Nigeria owns about 49 per cent equity while firms like Shell, Chevron and Agip own majority shares. The NLNG, which is developed in trains is now at its sixth. The seventh train is in the making and upon completion, NLNG will control 10 per cent of the world’s liquefied natural gas market.

    It is the single largest oil and gas project since oil production started in Nigeria over 50 years ago (perhaps only to be matched by Shell’s Bonga) and NNPC’s assets in the project have grown to $14 billion over 15 years. Nigeria has earned about $13 billion in dividends and another $11 billion earned in the sales of feed gas while more than $10 billion has been injected into the Nigerian economy by way of goods, services and emoluments to thousands of staff. NLNG has also been rated among the companies that have adopted best practices in social responsibility to its communities and corporate governance in managing its affairs.

    This is especially so after it rose from the ashes of a macabre scandal involving its contractors and Nigerian government officials which spanned various regimes. With the culprits convicted and punished in the United States, NLNG introduced fresh set of strict ethical conducts in all its transactions at all levels and benchmarked against the best corporate governance practices in the world.

    Though the earnings over 15 years may seem meagre considering the magnitude of the project, the bigger gains lie in providing quality jobs and affording world-class training to thousands of Nigerian youths, especially its technical staff. NLNG’s corporate social responsibility (CSR) activities span almost all spheres of life but most notable is providing free electricity to its immediate communities of Bonny and Finima. The NLNG Annual Award for Science and Literature for Nigerians is among the most rewarding and most prestigious in the world today. But most important of all is that the NLNG has been able to reduce gas flaring in Nigeria by some fraction. It has been able to put into lucrative use, gas that otherwise would have been flared. Nigeria is second only to Russia in gas flaring in the world and she is said to lose aboutN286.24 billion to it.

    We wager that if the NNPC had adopted the NLNG template for the development of Nigeria’s refineries and petrochemical projects, the country would not only have been a major exporter of petroleum products but it would have long overgrown her perennial fuel and energy crises that still continue to dog her. The country would have also developed ancillary industries in the oil and gas sector as well as deepened her local content, technical and technological expertise. The NLNG is a success story and we applaud it as it celebrates this milestone. It remains an oasis in an ocean of rot and despondency.

     

  • Let the subsidy be

    Let the subsidy be

    •Nigerians should not carry the burden of govt’s inability to tame corruption in the downstream sector

    Why would the Federal Government – after inflicting the latest round of crippling fuel scarcity – turn round to exploit it to ramp up its jaded idea of removal of subsidy on petrol and kerosene?

    It seems an inevitable part of the strange ways of the government and the Nigerian National Petroleum Corporation (NNPC) that the drumbeats for the removal of subsidy hit high octane levels in the last one week or so. After confessing to their complicity in the making of the latest round of fuel scarcity that paralysed economic activities across the country, perhaps only the insensitive duo would dare to broach the idea of removing the subsidy at this time.

    But then, it is not only the Federal Government that wants the subsidy removed. If reports are anything to go by, the body of states’ finance commissioners in the 36 states has since enlisted in the remove-the-subsidy orchestra. The position of the latter would seem understandable – most of them have fallen on hard times in the last one year, courtesy of the shrinking accruals into the federation account, hence their need for additional sources of finance – earned or unearned – to bridge financing gaps in their budgets. So, where else to look if not in the direction of the subsidy, with its seduction to revenue without sweat?

    The truth of the matter is that the nation is no less hung on the old debate on the fuel subsidy now as it was some 10 years ago. Clearly, to the extent that the views credited to the Minister of Petroleum Resources, Diezani Alison-Madueke at the Oil and Gas Conference in Abuja last week represents the latest thinking at the highest levels of government, nothing appears to have changed. It was the same old arguments about the hefty subsidy payout (on imported Premium Motor Spirit and Kerosene) to fuel marketers being unsustainable; the usual argument about the deregulation of the downstream sector of the petroleum industry being overdue; the current regime of petroleum pricing not just unsustainable but discourages investment and benefits the rich and not the masses in the society for which the policies were intended.

    Now, they are so wearisome.

    In vain did this newspaper struggle to detect any shift in the position of government – on a subject on which the government and the governed have been in diametric opposition all these years. It is as tragic as it is unfortunate.

    Now, to start with, the very idea that the Federal Government has the monopoly of knowledge – or that it could do no wrong – is not only absurd but baseless. However, in this case, conceit appears not to be the only affliction suffered by the government; as far as the issue of the subsidy goes, the government has opted to be so blind in its fixation with an outmoded paradigm – to the extent that it now elevates the debate on the subsidy above everything else.

    What do we know about the subsidy arithmetic or economics? Given the revelations at the various subsidy probes, it would appear that not even the government is in a position to deny that a huge chunk of the figures bandied around for the purpose of claims payment do not even qualify. Unfortunately, rather than concentrate on measures to reduce graft in the fuel supply and distribution chain, the government would seem content to punish its innocent victims – the fuel consumer.

    Contrary to what the Federal Government prefers to think of Nigerians’ attitude to the subsidy issue, Nigerians are neither dumb nor stupid as to believe that the annual payout to the merchant club of marketers is sustainable either now or in the long run. In the 2014 budget for instance, N971 billion was voted for the subsidy. Perhaps more than the government would care to admit, the citizens appreciate the massive distortions foisted by the subsidy regime, the vicious spiral of negative macro-economic waves indicated in the annual outflow of the foreign exchange on the importation reckoned in billions of dollars and exchange rate pressures, and, not least, the dangers that these pose to the economy in the long run.

    But they also understand these to be the direct effects of the current regime of importation.

    It seems that the main issue is government’s narrow interpretation of what the policy of deregulation should be. For sure, citizens have nothing to choose in the current laisez faire, all-comers policy of unbridled importation, or its twin, the hollow, incoherent policy of abdication conveniently encased in some jaded policy mumbo-jumbo. Citizens surely know enough to recognise deliberate, guided policy to usher in multiple players in the refining sub sector when they see one.

    And if we may well add, this is where the difference between the throng opposed to subsidy removal and the government comes in bold relief: the former see the subsidy as a symptom of a troubling malaise – if you like, an opportunity cost for the road not taken; for the latter it is a terminal disease that citizens must put up with – a folly of tragic proportions that must be shunned.

    To allow government to have its way on the subsidy is to expose the economy to the risk of macro-economic instability of hyper inflation. Moreover, in a nation where the cost of doing business is humongous, and where no forms of social protection exist for the poor, it seems the surest path to further constriction of business and impoverishment of Nigerians.

    This is where, unlike the Federal Government, we find no pleasure in framing the debate in terms of the option of either retaining the subsidy with its dire implications for the national treasury, or shifting the burden from the treasury to the motorist. To the extent that both do not come close to being palliatives in the context of the aspirations of OPEC’s sixth largest producer of crude, we consider them to be at best, false choices. At this time, the question we ought to be asking the Federal Government is how further we have to wait before the three promised Greenfield refineries come on stream. What about the billions poured into the Turn Around Maintenance (TAM) of the four refineries – including those from SURE-P; shouldn’t the funds have put them to work?

    In the meantime, the government should let the subsidy be.