Tag: debacle

  • Debacle of Ajekun Iya 4

    Ajekun Iya 4 — what a debacle!  It was scripted and hyped as a box office monster, after its absurdist theatre predecessors.  But lo!  It turned a damp squib!

    Now, that wasn’t because all the raw materials were not there, no!

    A senator of the Federal Republic still insisted on playing juvenile pranks, to raucous applause.  After since July 2018 playing hide-and-seek with the Police, over a routine invitation, he scripted another bathetic drama — perhaps to buy time?  Or wear out his traducers, by playing to the gallery in the media?

    Well, it all ended, in a tragi-comedy or comi-tragedy, wherever your soul perches on that continuum.  After tweeting lies upon lies of not being anywhere near Abuja, talk less of being holed up in his surrounded house, he finally got smoked out like a rat!

    A less adventurous soul would have cut his loss at that juncture, but not Dino!  Maybe he was really winded when they dragged his body, as full and heavy as a packed bag of beans, into the waiting car, en route to the police station.  Maybe, the asthma attack was really severe, as a breathless Dino, seemed to clutch on to life, with a mere straw.

    But who knows?  It was Dino, after all.  If you cried wolf many times when there was none, who would believe you, this time, if indeed there was a wolf?  That is Dino’s personal tragi-comedy!

    But even after that, lay another grim drama.  At the Police health facility, Dino claimed he was ill — gravely ill.  But the Police doctors countered: he was fit.  At least, they claimed, that was what their tests disclosed.  Dino, they alleged, was buying time to thwart being arraigned before a court for an alleged crime.

    But then came the final(?) act, as Dino shunned the ward bed and opted to sleep in the open, outside the DSS facility he was taken to — perhaps to garner sympathy?

    Well, that was “trending” — at least that is what he and his confederates would hope — until a more fearsome scandal broke out — the CJN hurricane.

    The CJN scandal has provided more filling victuals, for a media that thirsted after scandals, sensations and allied fare, and there for blasted away the Dino theatre of the absurd, in a classic case of absurdity trumping absurdity!

    With that, the media had moved on, Dino is left to his fate with the law, and the box office prospects of Ajekun Iya 4 went with the wind!

    Ajekun Iya 4 — what a debacle!  Ajekun Iya 4 — what an ecplise!

     

  • The New Nigerian debacle

    •It’s a shame that 19 governors can’t find suitable closure for a dying newspaper

    The latest save-our-souls cry from staff of defunct New Nigerian Newspaper ought to have been a thing of the past. The inactive mode that the newspaper, which has been one of the icons of Nigeria’s newspaper industry, has been put by governors of northern states has dragged for too long. There have been vacillations on the part of the paper’s owners on whether to liquidate a non-performing newspaper for whatever symbolism it generates or remodel it for survival in compliance with the demands of the time. It is true that efforts in 2015 to turn the newspaper into an online publication seems to have recognized the changing history of newspaper industry, but the governors that should have taken a holistic view of the future of the paper have temporized unduly.

    Regardless of how daunting the red tapes involved in formally liquidating the newspaper to enable the governors sell its assets might be, it is not fair for the governors to fail to save the dignity of staff and their families whose cry for help evokes pity: “Our members have been living in penury and abject poverty. Many have been ejected by their landlords, many could not pay their children school fees and other expenses that are vital to a good life due to lack of salaries.” We urge the governors of the 19 northern states to save the dignity of the staff of a newspaper that had for long served as an exemplar for the mass media industry by paying their back salaries and other entitlements. Afterrecognizing the failure of the newspaper, it is callous to put the staff in hardship.

    The sad story of New Nigerianillustrates some of the failings of the newspaper industry in the country, but the near-incapacitation of the newspaper industry is part of a universal trend that has arisen principally from the creative destruction spawned by new communication technologies. The challenges facing printed newspapers in more developed countries are not different from what had happened to theNew Nigerian and The Champion. It is common knowledge that the traditional newspaper industry is fast facing atrophy, as the economic and business model that had supported the industry; advertisement as a principal source of revenue, is fast passing from the analogue page to the digital screen.

    The experience of the New Nigerian is an effective reminder not only to northern governors but also to other states that had found refuge in government-owned media houses in the past. The model of governments owning newspapers in print or online is now obsolete. There are more profitable undertakings for governments than investing in newspapers, radio, and television. This is a field that should be left to other players ready to compete in the marketplace of ideas. In addition, the ‘hurricane of disruption’ (with apology to Alan Rusbridger) hitting the newspaper industry calls on captains of the industry—state or private—to rethink their methods in face of the reality that they no longer have ‘a near-monopoly on news and the means of distributing news.’

    We urge governors of the 19 northern states to come to terms with the two tasks before them; immediate payment of all entitlements to staff of the New Nigerian and the longer-term taskto end spending of public funds to sustaining newspapers. Further delay is tantamount to callousness to innocent staff that opted for careers in journalism and throwing of public funds that could be used to deliver the common good at vanity projects that government ownership of mass media institutions has become.

  • The Dapchi debacle

    I was in denial for a long time that 110 young girls were again kidnapped from their boarding school in Yobe State in the distressed and disturbed Northeast. After the spiriting away of almost 300 girls from Chibok in Borno State almost four years ago, this recent event in Dapchi is a national tragedy and humiliating national embarrassment. The way they were physically removed from their school was quite annoying because this was done in flagrant disregard and disrespect of the state of Nigeria. It was like there was no government presence and these hoodlums masquerading as religious fundamentalists simply moved in to fill the vacuum temporarily vacated by security forces and did their ghastly deed of removing innocent children some as young as 10 years old and spirited them away for raping orgies in some God-forsaken hideouts in the crannies of isolated villages in Yobe State.

    I know Yobe State. Certainly it is far from Sambisa Forest in Borno. In fact, there is no forest in Yobe State. These people rode in open pick up vehicles across some local government areas and villages without anybody stopping them or challenging them about their mission. There was no police to ask about their” particulars” or to collect the usual toll. Or perhaps after dropping “something “the police simply waved them on. What for God’s sake has happened to police intelligence department or the “E branch”?

    In an area of military operation and emergency, what happened to agents of Defence Intelligence Agency (DIA)? Was the Department of State Security (DSS), our own internal secret service, out of combat so to say in the area? If as being suggested these unfortunate children may have been spirited out of the country to neighbouring Niger republic, has our Nigerian Intelligence Agency (NIA)  been  totally decapitated by its internal wrangling and executive meddling that it is no longer able to collect useful information in neighbouring Niger? These are questions that easily come to the mind of someone familiar with governance.

    What about the emirate institutions in the area? Was the district head of the area so totally disconnected from the local people that he had no information on what was going on in the place? In any case, these kidnappers operated not clandestinely but openly driving vehicles over tens of kilometres and possibly over a hundred kilometres with nobody calling for their stoppage and interdiction. What does the emirate institution use its 5% local government allocation for? Or perhaps their allocation is being hijacked at the state level that they do no longer see themselves as agents or participants of government to maintain law and order? These are questions that government must interrogate to find out the weak link. I refuse to believe that there is total paralysis in government institutions that would permit this kind of open brigandage and challenge to the police and armed forces of the federal republic. If these people get away with their action, government control will no longer be respected in many parts of the country and our country will become a victim of warlordism. Any group would arm itself and challenge government whenever it feels aggrieved. Of course this is happening in the Niger Delta already and the Boko Haram insurgency and treason leading to purported carving out a portion of Nigeria and putting it under a foreign caliphate ruled by the Iraqi Abubakar al- Baghdadi is the extreme manifestation of challenge to government. This Dapchi episode must not be allowed to linger on indefinitely. Government must move in with violent ferocity to smoke out these people hiding and raping under-age children in some God-forsaken hideout. They must be found out and put away to rot in some isolated jails specially built for them because they do not belong in civilized Islamic community anywhere in Nigeria. The president recently said this is the last time this tragedy will occur. I say amen to his optimism and I hope nobody is sabotaging his efforts because this cannot be ruled out. The danger of dragging on this episode for too long is that copy cats hoping to reap bountiful harvest from ransom money being allegedly paid to secure Boko Haram captives would strike again in a remote region of Nigeria. God knows there are many remote areas of Nigeria where there is absolute absence of government. Nigeria of today does not seem to have enough police to secure every area of Nigeria. In other words the country is under-policed and this is why there is incessant call for state police and community police to work in tandem with the federal police as it is the norm in other parts of the world.

    The question of paying ransom to insurgents may have to be looked at again. Huge ransom payment emboldens the militants and provides oxygen for their movements. They are able to buy more weapons, pay their foot-soldiers and provision them as in normal armies. I know most countries make under-the-table payments to abductors of citizens while openly deprecating the practice. We however have to be careful that wholesale kidnapping of schoolchildren does not become an economic venture as the case of Dapchi seems to be. This is why these children must be rescued even with the possibility of collateral damage.

    It was amusing seeing Nigerian Air Force amassing their planes for operations in the Dapchi area. With all deference to military strategists, I do not see the need of deploying the air force in this instance apart from aerial surveillance that the air force can provide. What is needed is counter-insurgency operations like the one carried out in Indonesia and Malaysia in the 1950s and 1960s against communist insurgents. We also need to rejig the intelligence agencies where there is evidence of underperformance. Intelligence is not necessarily a matter of physical force anymore; it is more of brain than brawn. In recruiting into our intelligence outfits, we must recruit computer and electronic savvy individuals, historians knowledgeable of the various societies and their history and political analysts who can elicit policies from an assemblage of various types of information. This policy prescription is of course not for now, but for the future. Right now we have a battle to fight and win.

    There is nothing new under the sun. We have been here before. In the 1980s, Nigeria witnessed this kind of warped “Islamic” insurgency in the Maitatsine in Kano and its Bulunkutu variant in Maiduguri and Gombe. With combination of military and police force, they were put down. The officer who commanded the military in those operations was Muhammadu Buhari. Of course he is now an old, laid-back politician but he surely knows the terrain. Things are also a little different now. Today, because of the externally-induced collapse of Libya by NATO, there is a proliferation of light weapons and small arms across the whole of West Africa. The emergence of Al Qaida and the Islamic State in Iraq and the Levant (ISIL) and their offshoots in the Maghreb and West Africa has internationalized a local problem. This is why Boko Haram has festered this long. But with the crushing of the so-called Islamic State in Iraq and Syria, the internationalization of our problem is reduced to the Libyan question where all efforts to put together the Humpty Dumpty of the Libyan State have failed. What we must seek is international action to fashion out an effective government in Libya by the same NATO which ab initio was responsible for the destruction of the Libyan State. In the meantime, we must intensify cooperation with the Chad Basin countries of Niger, Chad and Cameroon’s to root out Boko Haram from our country. This military operation would have to be accompanied by political rebuilding of governance institutions and economic development.

  • The Apapa debacle

    The Apapa debacle

    •It’s an emergency and only a Presidential Task Force would do

    Everything was said, everything was written and all manner of graphic illustrations had been deployed. Nothing seemed to sink; nothing worked, it all seemed like water on pumpkin. Then came the mother of all illustrations: the vice president, Prof. Yemi Osinbajo, was last week captured airborne in a chopper looking down at the damning chaos that had become Apapa Ports and environs.

    Great snakes! He must have exclaimed as he gazed at an apocalyptic scene below; what may be described as a huge, long, interminable anaconda of a traffic logjam. It is not only the long stretch leading from Ijora to Apapa Wharf down to Tin-Can Island and on to Mile 2, but the entire precincts of the maritime cum commercial and industrial complexes was on lockdown as the vice president viewed from above.

    It must have been this bird’s-eye view of a long-standing calamity and total breakdown of law and order on this strategic axis of Lagos that prompted both the federal and state governments to swing into action.

    Subsequently, at a meeting of both public and private sectors’ stakeholders at the Presidential Villa, Abuja, the vice president directed the team to adopt a speedy and comprehensive approach to the problem. The attendance register of course testified to the weight of the problem. Among the attendees were Babatunde Fashola, Minister of Power, Works and Housing; Hadiza Bala Usman, Managing Director, Nigerian Ports Authority (NPA); Aliko Dangote, President, Dangote Group; Oba Otudeko, Chairman, Honeywell; Abdulsamad Rabiu of Bua Group. Others included Mansur Dan Ali, defence minister and representatives of the Inspector-General of Police and the Comptroller-General of the Nigeria Customs Service.

    The personages present no doubt underscored both the importance of the meeting and the gravity of the situation at hand. Governor Akinwunmi Ambode of Lagos State was to follow up with a meeting of the reconstituted Joint Committee Task Force to manage the chaotic traffic situation and restore sanity, especially in the Apapa axis. The task force comprised all heads of military, paramilitary and traffic management corps in the state. Their immediate mandate is to make sure that the roads of Apapa are not totally locked down any longer.

    For a holistic handling of a dire situation, the vice president especially directed the Minister of Power, Work and Housing as well as the Managing Director, NPA, to implement clear objectives to tackle the Apapa gridlock. He urged them to “look at all components and find quick solution.”

     

    Holistic solution under way

    Fashola pointed out the processing capacity at the Lagos ports which he claimed rose from 34 million metric tonnes of cargoes per annum initially to 84 million currently. He also bemoaned the poor traffic management along Apapa access roads. Ms. Usman promised a formidable task force to address the issue. But the twain who are the key dramatis personae in the Apapa conundrum assured that a comprehensive solution was afoot.

    Most other stakeholders present pledged support in different dimensions to help unravel the Apapa gridlock, which has lingered for quite some time and defied previous administrations.

    Dangote is handling palliative work and reconstruction of Apapa Road leading into the wharf. Honeywell Group would build trailer parks while Bua would handle construction works on Tin Can roads.

    Further, the NPA pledged to bar fresh licenses for tank farms in Apapa; manage better, trucks and tanker movements in the ports, introduce intermodal transportation for ease of evacuation at the ports, among other measures.

    Would this presidential chopper ride imbue a better view of this crisis and lead to a quick and eventual solution as the vice president envisaged?

    About time we say.

    Apapa is home to two major ports, the Apapa Port Complex and the Tin-Can Island Port Complex; as well as numerous terminals. The lock-down which has prevailed in the last five years is said to cost the ports about N10 billion daily.

    But this is only as concerns earnings from the ports. The cost of what may be described as momentary madness on the entire Apapa community would be incalculable. Numerous businesses and companies in that axis have scaled down or closed shop entirely. Apart from day businesses, nightlife, which was among the most robust in the state because of proximity to seaports  virtually disappeared as human and vehicular traffic came to an almost standstill.

     

    Heavy toll on infrastructure

    There is health hazard from dust, fumes and refuse. Then the near permanent fixture of heavy articulated vehicles on all the bridges in Apapa and environs must have exacted a heavy toll on the infrastructure. Those bridges built during the age of innocence, so to speak, would be difficult to replace today should they become breached.

    We conclude that the Apapa debacle signposts a failure of will, failure of imagination and indeed, failure of the state. Why for instance, should cargoes headed for the east and south south berth in Lagos only to be hauled by road? Why can’t the ports of Calabar, Warri and Port Harcourt be developed to decongest the Lagos ports?

    We wager that what the vice president and the stakeholders have done is mere reconnaissance; Apapa is a deep sore, the shame of our nation. It is an emergency and only a presidential task force may be able to untangle this sustained logjam and reclaim the ports.

  • Still on Kenya’s election debacle

    SIR: Recently the Kenya’s Supreme Court nullified the presidential election in which the Kenya Independent Electoral and Boundary Commission (IEBC) had declared the incumbent President Uhuru Kenyatta as winner. President Kenyatta had scored a total number of votes representing 54% against votes representing 45% scored by his rival Raila Odinga of the opposition party. The election which was monitored by both foreign and local observers including the former U.S Secretary of State John Kerry and former South African President Thabo Mbeki among other eminent personalities was adjudged as free, fair and transparent. Kenya’s Supreme Court saw things differently hence their verdict.

    It is heartwarming that wise counsel prevailed as leaders across the political divide passionately appealed for calm among their supporters.

    As the campaigns for the fresh Presidential election get underway, it is hoped that Kenyans would continue to maintain the peace and stability as they exercise their franchise once again to elect the President of their choice. The world is already watching and it is incumbent on the Kenyan people either to re-confirm their earlier decision to re-elect Uhuru Kenyatta or switch over their votes in favour of Raila Odinga this time around. The Kenyan electorate will definitely prove in the coming weeks whether Uhuru Kenyatta’s victory was a mere fluke or whether Raila Odinga was actually denied victory through the manipulation of the electoral process as he claimed. Whatever happens, the will of the Kenyan people must be respected whenever the outcome of the re-scheduled election is eventually announced by the electoral commission.

    Developing nations particularly Nigeria that is already looking forward to her next Presidential election in 2019 should borrow a leaf from the Kenyan experience and take adequate and effective measures that would guarantee free, fair, transparent and credible election in their various countries. As the countdown to the 2019 General Elections begins in earnest, it is expected that the electoral umpire, INEC should take necessary measures to plug all loopholes in order to checkmate or prevent desperate and unpatriotic politicians bent on wresting power by illegitimate means from carrying out their anti-democratic designs.

    The litmus test already awaits INEC as it prepares for the forthcoming Anambra State gubernatorial election of November 18.

     

    • Nze Nwabueze Akabogu (JP)

    Enugwu-Ukwu, Anambra State.

  • The devolution debacle

    The devolution debacle

    The promise to “initiate action to amend the Constitution with a view to devolving powers, duties, and responsibilities to States and local governments in order to entrench true federalism and the federal spirit” is number one bullet item on the highlights of APC manifesto. This shows the importance that the party attached to this issue.

    The manifesto is the contract between the party and the voters who expect the party to fulfill its promise. However, since the party won the general elections across the nation, it has prevaricated over its declared commitment to devolution of power. Some party leaders have declared ignorance of the meaning of restructuring. And when they were reminded of the party’s position on devolution, which is an important element of restructuring, they replied that it was not a priority because Nigerians needed food on their tables. Apparently, APC leaders have not drawn a direct link between devolution of power and the economic and social welfare of Nigerians.

    Yet, devolution is not an end in itself. Of course, some could insist on the right of self-determination as an end in itself and then argue that Nigeria is made up of different ethnic nationalities which need to be as self-determined as possible without jeopardising the integrity of the unity of the country. Devolution of power to states meets this condition.

    For a good reason, the writers of the manifesto did not go that route. While the ideal of cultural and ethnic self-determination cannot be philosophically second-guessed, the politics of manifesto writing has a logic of its own. Self-determination can be alienating. No political party wants to endanger its electoral interest a politically suspicious language. Therefore, APC avoided that path. The closest it gets to a semblance of self-determination rationale is its linkage of devolution with true federalism and the federal spirit.

    As it turned out, even “true federalism and the federal spirit” can be suspect to segments of the population worried about its impact on bread and butter issues. Writers of the manifesto and defenders of devolution and restructuring have a responsibility to reassure fellow citizens about the practical end of the path they advocate. This is a politically safe route that APC manifesto and, unfortunately, its leaders have not explored. The defeat of the constitutional amendment bill on devolution is an embarrassment for the ruling party. Now it must go back to the drawing board.

    An argument that recognises devolution as means to the end of economic and social wellbeing and political stability is persuasive. Every ethnic nationality and every administrative state would like to advance the welfare of their people. Devolution of more powers from the centre to the states is a viable means to this end. But before we go further in this direction, we need to address the concern of those who plead ignorance of what devolution stands for.

    Truly, there are multiple understandings of what restructuring is. For some, it means modified regionalism. For others, it is using the present zones as federating units. Yet, for some others, it is resource control. For others still, it means return to the parliamentary system of government. In view of the various conceptions of the notion, one cannot dismiss offhand those who plead ignorance of the meaning of restructuring. Advocates have a job to do.

    However, if restructuring has multiple meanings for multiple advocates, this is not the case with devolution of power. No one can deny that APC leaders understood what devolution means when they adopted it in their manifesto. Indeed, devolution is the least common denominator for all advocates of restructuring. They all want more power to be assigned to federating units.

    Devolution means the transfer of power from one entity to another. Family heads monitor their children’s development from infancy to adolescence. In their teenage years, they devolve some responsibilities to them, granting them allowances which they are expected to use responsibly for their needs. We appreciate the fact that they know best their needs while we monitor them.

    Our founding fathers struggled for a federal constitution on one important ground. As peoples of diverse backgrounds and cultures, we have diverse interests which others may not share but which are not necessarily inimical to our union. Each can best promote those interests without the direction or intervention of the central government. On the other hand, there are common interests that bind us and for which the federal government is best placed to promote and advance. The former include our economic interests, educational interests, health interests, and customs and conventions. The latter include external defense, currency, and foreign affairs.

    The compromise that the founding fathers reached was a federal constitution that gives many responsibilities to the regions. But this was not seen as an end in itself. They were convinced that with each focusing on those areas of economic and social life that it alone knows best, national interest would be advanced. It worked in the first republic.

    Undeniably, due to human nature, healthy competition gave way to unhealthy rivalry. But the military misread the cause of the fall of the first republic and threw the baby of federalism out with the bath water of crude partisanship. The later was the culprit, not the former.

    The nation advanced socio-economically in the first republic because power was devolved to the regions. Now the center has taken over many of the responsibilities that used to belong to the regions. In education, the federal military government took over state universities, including the University of Ife. It delved into primary education through the Universal Free Primary Education decree. It got into secondary education with the creation of unity schools. The federal government has continued to create more federal universities around the country despite the glaring evidence of inadequate facilities and financial support for the existing institutions.

    What will devolution of power mean in the case of education? Based on the proven assumption that states know best the educational interests of their citizens, the federal government will shift the responsibility of educating citizens to each state of the federation. But since the federal government still controls the largest portion of the resources of the country, it will give block grants to states for the purpose of education. With appropriate guidelines from the federal government, the states will design and pursue their educational policies and use the federal grants for same. The Federal Ministry of Education will be the policy writing and monitoring authority on behalf of the federal government.

    With regard to health, the federal government will devolve the responsibility for basic health centers to the states. This is long overdue. There have been reports of basic health centers overgrown with weeds and serving as refuge for reptiles in the remote areas of the country. This is what can be expected from an overreaching and overbearing state. Devolution of power and responsibility in respect of health means that state governments will take better care of their citizens with block grants for health from the federal government.

    Employment creation and poverty alleviation programmes have been implemented with limited success because they have not paid attention to the importance of local buy-in. Political parties controlling the center have always seen such programmes as political hand-out for supporters. In sane environments, such programmes will go to needy citizens. It would not matter which political party controls a state, every state will receive its block grant for the purpose of benefitting its citizens while the federal grant-making agencies provide the guidelines.

    In short, devolution of powers is not necessarily resource control because in the model that I have advanced here, the federal government still controls the purse-string. If we are really serious about righting the wrong of a lopsided federal bureaucracy, devolution is the least that the APC ruling party can adopt right away while we clarify the meaning and requirements of full restructuring. I would have thought that it was because of its simplicity and limited political danger that the party adopted devolution in the beginning. That it still generated so much resistance that the North voted as a block against it is a failure of leadership.

  • The Etisalat debt debacle

    The surreal tale surrounding a $1.2 billion (about N541billion) loan given to a foreign-owned private company by a consortium of 13 Nigerian banks is staggering.

    The syndicated loan was given to Etisalat Nigeria in which Emirate Telecommunications Group Company (Etisalat Group) of United Arab Emirate (UAE) has the controlling shares of 45 per cent; followed by Mubadala Development Company also of UAE, which has 40 per cent; and a third firm, which represents the entire Nigerian shareholders and has only15 per cent. Etisalat Group secured the seven-year facility some time in 2013 to refinance a $650 million loan and fund the network expansion of its outpost, Etisalat Nigeria. Like others before it, the contractual relationship has gone awry and the N541 billion debt has become a subject of controversy.

    Following its inability to repay since 2016 and the failure of restructuring talks, the Abu Dhabi-based parent company of Etisalat Nigeria cleverly latched on takeover threats by the lender banks to repudiate its legal obligations. It promptly transferred its 45 per cent stake and 25 per cent preferential shares to a loan trustee. To make it more insulting, the foreign firm declared that it has no further obligations under the contract as its stake now has a zero value in its books. All seven directors of Etisalat Nigeria – the six representing Etisalat Group and Mubadala, all UAE nationals; as well as the chairman, Hakeem Belo-Osagie – have resigned.  An orphaned Etisalat Nigeria is now making frantic efforts to have the loan written off as non-performing.

    The question which this sordid transaction raises is: should our banks be subsidising the so-called foreign investors with depositor’s money? And what benefit accrues to the nation from such economic decisions? This is more so as the mission of these foreign firms is not social service but to make profits which get repatriated to their home countries soon after. At the end of the day, their economies receive a boost, ours shrinks.  Their local currencies get further strengthened against the Naira, and Nigeria continues to lose respect among the comity of nations.

    A N541billion credit for a foreign company is by all standards outrageous; particularly in an ailing economy like ours. That the transaction has become controversial is calamitous. It reflects the poor business decisions that have helped to crumble our economy and plunge the nation into recession. The broad consequences of this debacle are far reaching. Among these are its negative impact on the balance sheet of the affected banks, the bleak prospects of dividends to shareholders, and the uncertain future of the employees of the banks. Of course, the worst hit in event of bank failures are those who took their monies to these financial institutions for safe keeping.

    Granted that banks are into the business of lending funds, but should they not devote depositors’ money to grow local firms?  Several industries owned by our country men and women are in crying need of finances but no financial institution in Nigeria looks their way.  Workers in these local firms are being retrenched daily in the face of recession inflicted on the country by such poor business decisions. Indeed, many local companies have closed shop for want of funds, further worsening our situation as an import-dependent nation with the attendant negative impact on economic indices.

    For failing to properly weigh the costs and benefits of this decision, the lending banks and the arrangers have now found themselves in a deep mess. They have realised they have been taken for an unpleasant ride. And that Etisalat Nigeria merely served as a conduit for the foreign firm to skim off depositors’ money as there is no proof that the fund was applied to the desired end. The banks are said to be seeking to enlist the support of the Economic and Financial Crimes Commission (EFCC) rather than considering how to get the International Police (Interpol) to investigate the trans-national crime. The Central Bank of Nigeria (CBN) also shares in the blame for failing to detect this rot early enough and nip it in the bud.

    Also difficult to fathom is, whether or not the loan to Etisalat Group was guaranteed. The lender banks should have insisted that such a huge credit be guaranteed by the government of UAE or that of Abu Dhabi State given their interests in the controversial firms. The UAE government owns 60 per cent of the shares of Etisalat Group while the rest were publicly traded.  Mubadala Development Company is an investment company of the Abu Dhabi State government. It is surprising that leaders of both UAE and Abu Dhabi State have done nothing to stop the management of these companies from defrauding Nigeria

    Our kith and kin out there in UAE are treated no better than criminals. They neither can own nor operate bank accounts following government’s fiat, let alone secure a bilateral loan. The excuse for precluding Nigerians from operating bank accounts there is the activities of a few unscrupulous elements.  But here, we literally shut down our banks to fund just one UAE company run by those that lack respect for a contract which they voluntarily entered. The N541 billion credit extended to Etisalat Group can set up well over 20 banks in Nigeria. The capital base of banks in Nigeria is still N25 billion.

    The Etisalat debt saga is only a microcosm of how foreign investors rip our nation off and leave our economy in distress. Rather than bring in the much sought after Foreign Direct Invest (FDI) to shore up the economy, the so-called foreign investors come with the intention of defrauding the country and exploiting its populace. They all arrive on the Nigerian scene with empty suitcases. Then, with the aid of a Nigerian arranger, who has a personal stake; they go cap in hand to our local banks asking for depositors’ money, which they readily get.

    The local deposit banks will hurriedly pool resources together to meet their outrageous demands as in the case of Etisalat. More often than not, the credit advanced to the foreign firms disappears without a trace. When the fund is applied here, the populace is exploited and the proceeds repatriated to the various home countries of the foreign investors.

    Indeed, this incident portrays the disservice the Nigerian financial institutions and CBN are doing to the country. These institutions have a penchant for turning foreign firms that are worth nothing in their respective countries into instant successes as soon as they step onto Nigerian soil using depositors’ funds. And with the billions of Naira or Dollars secured from the banks, juicy and inflated contracts get awarded to them by corrupt public officials entrusted with public procurements.

    Those dubbed celebrities fall over themselves to act as their ‘ambassadors’ or whatever they call them. The mass media will follow up and brand the companies ‘giants’. Most of the so-called telecoms giants, construction giants, and what have you were all pigmies before arriving here. They achieved greatness through local deposit banks and contracts in which due process is circumvented.  In turn, these foreign companies reward Nigeria by enslaving her people. Their contribution as corporate citizens of Nigeria does not go beyond turning the country into a nation of dancers, singers, and clowns through all manner of reality shows targeted at youths, who represent the future of our country.

    There is absolutely no reason those involved in this latest show of shame should not be arrested and tried for economic sabotage. The board and management of the 13 financial institutions as well as the arranger of the N541 billion credit   should be clamped into detention. In civilised societies, such characters will not be walking about as free men. They certainly will be in detention waiting to face the highest penalties for financial crime in the land.

    It is time Nigerian banking laws are strengthened to bring intellectual resources to bear in the management of these institutions. The credentials of those aspiring to run our banks or head certain departments of banks including Treasury, Foreign Exchange, Risk Management and Legal must meet internationally accepted standards to reverse the negative consequences of their decision on our economy. Otherwise, we will continue to grow other economies at our own peril.

     

    • Dr Nnadi, a former editor wrote from Owerri, Imo State.
  • The IDPs debacle

    •If Boko Haram was a debacle the resulting IDPs matter is turning out a catastrophe

    We have been treated to different sordid tales about the internally displaced persons’ (IDP) camps in the country. We have been regaled with news of inadequate facilities; medical care, food, clothing and even the congestion in those places. We read about how those who were supposed to get food across to the IDPs divert the items. If we thought that was the height of the anomalies in the camps, we were wrong. Reports emanating from the Bakassi camp in Maiduguri indicate an even more inhuman treatment of the IDPs.

    Of all basic human needs, food is key. When people are hungry, there is no limit to the extent of their desperation. This is what is playing out at the Bakassi camp, as some of the female IDPs are now forced to befriend the social workers serving them food so as to have access to enough rations for them, and particularly for their children. One of them is Amina Ali Pulka. The 30-year-old lady said she had to befriend a man who himself had been displaced by Boko Haram but was now fortunate to be working in the kitchen at the camp: “I did it because I had nobody to feed me or clothe me,” she told Thomson Reuters Foundation on telephone. According to her, the man also gives her money to buy soap and other items.

    Medical charity International Medical Corps (IMC) and Nigerian research group NOI Polls said Pulka is not the only female IDP that is selling sex in exchange for food, toiletries and money. “At times, the food is not enough so the women resort to giving themselves for food and money,” said Hassana Pindar of the IMC, which runs support centres for women in the camps. Particularly distressing is that it is not only the adult females that are involved in this sexual abuse. Many teenage girls in the camp are also said to be sleeping with men for the same reason, said IMC volunteer Fatima Alhaji. “Some go out to beg on the streets, others go out of the camp to look for menial jobs, while others use their bodies to get food and money. Everybody is talking about it.”

    We should be alarmed at this unfortunate development, more so when aid agencies had warned earlier of an impending humanitarian crisis due to the dwindling food supplies for the displaced in Borno State. Management of the IDPs has been a long-running debacle. The situation becomes more deplorable by the day that it demands a more strategic and methodical response. We do not believe that the National Emergency Management Agency (NEMA) and its states’ counterpart, SEMA, have the capacity to resolve the IDPs palaver. They need a bit of help.

    The situation may require that government constitutes a committee of eminent persons/visitors who would pay frequent exploratory visits to the various camps and report back to the presidency. The IDPs problems should be taken a notch beyond the bureaucratic ambit of NEMA and SEMA.

    We also suggest that another committee should work on fast-tracking the resettlement of victims back to their homelands.

    We urge NEMA and other agencies on the field to rise to the occasion and mitigate the current global odium that Nigeria’s IDPs have become. While at it, every effort must be made to fish out the people, including its staff, exploiting hapless women and let them face the consequence. The trauma of being compulsorily sent out of one’s home by insurgents is bad enough; to now compound it by demanding sex from the hapless victims takes the inhumanity to an unconscionable level.

    The Federal Government must realise that the world has keen interest in the activities in the camps and should therefore move fast to stop the embarrassment.

  • Revisiting the Ekiti debacle

    •In the light of Dr. Tope Aluko’s testimony on how the 2014 Ekiti governorship election was rigged, a full probe should be instituted

    The expose by Dr. Tope Aluko on how the June 21, 2014 Ekiti governorship election was rigged should be critically reviewed by the Federal Government, the Independent National Electoral Commission (INEC) and the security forces. It is a reminder that the reform of the electoral process must be revisited by the legislative and executive authorities at the federal and state levels.

    Dr. Aluko who was at the material time the state secretary of the Peoples Democratic Party (PDP), said the victory of Mr. Ayodele Fayose who was the flag-bearer of the party was aided by the presidency, heavily funded from the national treasury. Dr. Aluko who had appeared before the Ekiti, Osun Elections Military Board said he was speaking out of a new-found conviction that the public deserves to know all that happened, since he was privy to it all. He was the chairman of the party’s security and intelligence committee, as well as chief agent for Governor Fayose.

    While we acknowledge that the verdict of the Supreme Court on the matter is final, the electoral commission ought to institute a thorough probe of the role played by its personnel in perverting the course of justice. All those found guilty should be prosecuted.

    The police and Department of State Security (DSS) whose personnel have also been indicted should follow the step taken by the army. The General Adeniyi Oyebade-led board has shown that the military had no interest in shielding anyone from the blind eyes of the justice system. We commend Capt. Sagir Koli whose evidence went a long way in ensuring that the guilty were exposed. But, the end should not just be punishing the guilty. All loopholes identified by the findings of the military board should aid the National Assembly in amending and strengthening provisions of the 1999 Constitution and the Electoral Act. This should be done well ahead of the 2019 elections.

    Dr. Goodluck Jonathan who has been accused of authorising the release of 37 million dollars for the Ekiti poll should speak up now. What does he know of the alleged perfidy? What role did former oil minister Diezani Alison-Madueke play and how well did the finance minister, Dr. Ngozi Okonjo-Iweala, play her part in all the transactions.  Nigerians want to know all of these and probably more.

    The order by a chief magistrate’s court in Ado-Ekiti for  the arrest and prosecution of Dr. Aluko for alleged perjury is not unexpected, especially as he had testified before the election petition tribunal in the state that the PDP won the election fair and square. Why is he singing a new tune now? Similarly, all those he mentioned as participating in the political corruption that the perversion of the people’s will in an election amounts to should be prosecuted, if only to deter others.

    The electoral commission’s dereliction of its political parties’ finance monitoring duty is unfortunate. Had the commission been alive to its responsibility, the monumental fraud in funding of political campaigns would have been checked. There are laws guiding how much a party may expend during campaigns, how much a candidate is allowed to expend, preparation and audit of parties’ accounts and limits to the contributions that individuals could make to a political party. All these have been willfully flouted without sanction.

    Professor Mahmud Yakubu, Chairman, Independent National Electoral Commission (INEC)  should realise that there is no time to waste in preparing for the 2019 General Elections. He should meet with the critical stakeholders now and take firm decision with regards to making proposals to the National Assembly and the federal attorney general on grey areas in the electoral laws. The weak points should be addressed now, personnel trained on their effective use and the electorate adequately sensitised so that never again would we have a repeat of the Ekiti scenario.

  • Minimum wage debacle

    The kite flown by state governors on their inability to pay the national minimum wage may soon snowball into an unprecedented labour crisis. A fortnight ago, the governors had after their meeting, announced they could no longer pay the N18, 000 minimum wage regime that has been in force since 2011. They called for a downward review or alternatively they will have to reduce their workforce.

    They contended that the poor state of the nation’s economy and the sharp drop in the price of oil from $126 to $41 per barrel had rendered the wage regime unrealistic. Expectedly, the idea attracted a barrage of negative reactions especially from the NLC which blamed the governors for mismanaging the affairs of their states only to turn round and find scapegoat in the suffering workers.

    But a lone voice came from Edo State where, Adams Oshiomhole dissociated himself from the retrogressive proposal by his colleagues. He had argued that the subsisting minimum wage regime was a product of elaborate agreement between labour and the various governments and was not imposed on the governors. In view of this, Oshiomhole said the issue was already time barred.

    Oshiomohle was living up to his bidding as a former president of the NLC. He could not understand why his colleagues should, five years after and in the face of very excruciating economic circumstances, contemplate a downward review of the minimum wage. Given this background, it would have been inconceivable for the Edo State governor not to align on the side of the workers. If his position is prompted by the desire to gain cheap popularity, so be it. Even then, he has support from the Rivers State governor, Nyesom Wike.

    No doubt, the biting living conditions and spiralling inflation have added up to take the shine off the real value of the N18, 000 pay. As the governors spoke, the naira had fallen to an all time low making it nigh impossible for the average worker to eke a living under the subsisting minimum wage regime. A further reduction would have amounted to consigning them to their early grave.

    But as the dust raised by the governors’ ill-advised position is yet to settle, the NLC has come up with a fresh position on the matter. This time, it is seeking an upward review on the grounds that the timeframe for the extant wage regime has elapsed. Its’ president, Ayuba Wabba said a new minimum wage will soon be presented to the government for approval.

    He accused the governors of floating the reduction idea as a deliberate ploy to frustrate the demand for upward review which is now due. But the governors have come out again to insist the wage regime will have to be reduced or they would trim their workforce. Chairman of their forum, Abdulaziz Yari of Zamfara State restated this after a meeting with President Buhari.  As things stand, we may be heading for a standoff with organized labour. The equation is now looking complex given the new angles introduced by the NLC and Yari.

    Both sides are tenaciously holding on to their positions with varying degrees of merit. The NLC cannot be faulted in its strident opposition to either a reduction of the minimum wage or pruning down the workforce. The challenges of survival currently faced by workers coupled with a high unemployment rate make each of those options very scary. This is even aggravated by the fact that our governors are not known to be prudent managers of public funds. Acceding to those options would amount to holding the workers responsible for the inefficiencies of their leaders.

    The governors are also not entirely out of order when they cite the parlous state of the economy following the sharp drop in federal allocations as part of the reasons for their inability to pay. Many of them owe workers arrears of salaries and pensions running into 10 months or more. Of late, the federal government had to bail them out even as the situation has not substantially altered.

    We are here confronted with a challenging decision issue that comes with three options. The first option is to have the minimum wage regime reduced or alternatively lay off workers. The second, as thrown up by the NLC, is to review the wage upwards. There is also a third possibility nay, a compromise position to maintain the status quo.

    Decision theorists are concerned with the rational option presented by the situation given the conflicting positions of the two parties. Of interest is that choice that will best protect the overall interests of workers given the above circumstance. The challenge is to situate the workers within the three game matrixes and determine how best they would fare in each of the situations.

    If salaries are reviewed downwards, they will suffer seriously given that even with the current regime they can hardly meet their basic needs. This option will not help matters. Neither will its concomitant of layoffs in the face of a high unemployment rate. The second option of an upward salary review as canvassed by the NLC also comes with serious problems. For now, the governors are unable to pay the current regime as is evident in the mounting arrears of salaries and pensions. To further increase wages under this situation will amount to adding salt to injury. This presents a remote possibility.

    That is where the third option comes into play. This option instructs that the current wage regime should remain as it is. Its corollary is to bury any idea lay off. That is the most rational thing to do. There is no point increasing salaries when the governors are unable to pay their workers. But they must find ways of not only paying the subsisting salaries but retaining the present workforce. That is the challenge before them. Those who find themselves unable to manage the current situation can as well throw in the towel.

    Given the lifestyles of some of them; their penchant for ostentation and unbridled appetite for material acquisition, there is little doubt they can do better if they exercise more discretion in the management of resources.

    They need to show by example and not precept the reality of the hard economic situation by cutting down on areas of wastage. In some of the states, the embarrassing flamboyance of the governors, the number of cars in their convoy and properties owned by them and members of the families which are of public knowledge, make a mockery of any idea of cutting down what is paid to the worker.

    Last week, Cross River State governor, Ben Ayade announced the appointment of about 28 commissioners. A perusal of the list showed obvious duplication of ministries. At a time the governors are claiming inability to pay the minimum wage, 28 commissioners for a state are rather over bloated.

    There is also the case of Imo State, where the governor has not considered it fit to constitute a cabinet. He prefers running the state through task forces. Yet workers last week grounded activities in the state protesting non-payment of salaries running into several months. These instances underscore the point that other options abound if the governors realistically seek to get out of their seeming financial predicament.

    The minimum wage debacle brings to the fore the imperative of creativity and imagination in exploring alternative revenue sources without overburdening the masses through sundry extortionist task forces. It also reinforces the inevitability of restructuring the over-centralized federal order. Maybe that restructuring will commence with the current dilemma over minimum wage payment by state governments.