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  • Alowes makes intellectual premium of ‘minorities’ debate

    Alowes makes intellectual premium of ‘minorities’ debate

                                     Book review

    Title: ‘Minorities as Competitive Overlords’

    Author: Jimanze Ego Alowes

    Reviewer: Chuka Nnabuife

     Publisher: The Stone Press

     

    SUCCESS could be as circumstantial as birth location. At least, in Nigeria, the existentiality of place of origin rub off significantly on the trail of successes recorded in crucial industries and strategic enterprises.

    The view runs radically contrary to the ones popular contemporary classrooms of leadership studies where the notion of ‘born achiever’ is often hotly contested by scholars. But while scholars across the globe debate veracity of nature lending helping hand in the fate of successful or unsuccessful people, in business, leadership, scholarship, sports and other areas a few writers such as the author, Jimanze Ego Alowes, are not scared to wade in with clear thought.

    And he makes things clear from the outset of his treatise that in his case study, Nigeria, people of socio-cultural, if ethnic minority roots enjoy competitive edge in some crucial economic sectors. All through an engaging span of 141 pages, in his latest book, ‘Minorities as Competitive Overlords’, Mr Alowes argues his cause that place of origin really pushes up some people while equally limiting the accent of others.

    However, he sets his premise with a hint that despite the fact he has a lot of instances to buttress his ideological position the issue is more about possibilities than of definite stance. In his introductory remarks he states thus: “…in a Nigerian case study, the minorities are not assumed to be more or less talented. The thesis is that they will have natural comparative advantage issuing as it were from the disadvantage or weakness in numbers. The important thing is to deploy the understanding as a strategic asset and comparative tool. There are niche businesses and competitive areas they would be quick to trounce all non-minority, all majority competitors, despite what appears on the face of it as disadvantages.” (p vii)

    Though he dropped the hint, early, that he was merely throwing up issues to provoke serious thought, reading through his three-section book (Part 1 – 3), spread through 10 chapters offers ample instances to establish a conviction. Every chapter features a distinct sector of Nigerian economy in which clusters of enterprises owned by persons from the said ethnic minorities have excelled. His first chapter which kicks off the collection of essays in an engaging taste that runs through all the publication is entitled ‘Why and How Nigerian Media Moguls… are All From the South-south Minority’, captures the minorities in southern Nigeria as adept in excelling in media business. But he establishes that the feat is not achieved by rare or identifiable genetic endowment. Rather planned, steady strategic progression through the corners where majority political groups failed achieved that cluster climb in the area of media entrepreneurship.

    Alowes delves into analyses of the ideological tendencies of Nigerian ethnic aggregations which, according to him, the media businessmen from the South-south understudied and exploitatively tapped into.

    “Since the majority powers all want to be really regional… while pretending to be national just to appear… politically correct, the nearest people to a national and nationalistic group, are the South-Southerners. This is by the logic and irony of being powerless and a highly vulnerable group and not out of their goodness… And here again the minorities of the South-South wins, and this shows up in their media prowess concomitantly.” (p 30)

    He goes on to appraise that the South-south media moguls excelled because of the lack of trust among the majority ethnic aggregations of Nigerians in the South-west; South-east and northern Nigeria. Hence the southern minority media bosses will continue to reign because the rest of the country would rather trust them to be in control of such a vital economic sector as the media than have it in the hands of people from the major ethnicities.

    In the chapter, ‘Why and How the Golden Deltans Dominate Nigerian Banking,’ he once more drummed the “geography” konga. He states “however, that this is not a result of any conspiracy, but a consequence of known and determinable vectors that help shape and fashion market dynamics. Or, one can justifiably say that what is going on is what we may call the sociology of market in action. And it plays out in markets as far apart as Tokyo, New York or Lagos.”

    The sociology of the marketplace at play, as he identified is, the ability of the South-south banking buffs of Delta State origin to tactically play second fiddle consistently until they raked in the clients of bankers from major ethnicities who the populace are afraid of empowering through business. Being an independent social researcher with practical entrepreneurship experience and academic background in accounting and economics, the author should know a lot about what he dubs the sociology of marketplace. Alowes is also a prolific writer with several books in the market. He equally writes weekly columns in national newspapers. Therefore, his pedigree necessitates serious consideration of his views. More so, he has a substantial social and intellectual credential for such serious interrogation.

    His position on the edge south-south media merchants enjoy from their minority ethnicity routs, for example, has been interrogated by people who previewed his manuscript. Some argued that his conclusion was hasty as it tended to exclude some other newspaper and electronic media men who are not from the minorities that succeed in the industry. Some others reason that it is too early in Nigeria’s media history to conclude thus. Some commentators just faulted his hypothesis, claiming there is yet to be an extensive study. Some urged a deeper probe into Nigeria’s eventful media history to note many non-minority media owners who excelled. While some just cannot stomach the notion.

    Alowes attended to the comments in the publication.

    “I suspect that the concern is from the traditional study of the media as its own existent, whole and entire. Media practitioners are often deluded they are objective almost android-like in the trade. And they make no other concessions. For many of them nothing other than objectivity and market savvy influence the making of great newspapers. In their implied logic the major newspapers… are all doing well because of their professional vision and accomplishment. They cannot imagine any other outsider or outlier force at play. Perhaps they are precociously right before the fact. After this (the book) perhaps, sociology of business analysis will be included as a standard market analysis, just as funds flow analysis currently is,” he stated.

    He further wrote thus: “closer examination tells us media assets don’t grow or flourish in its own world, that it is not one separate world, except in the sense in which it is one mesh of several worlds.”

    Alowes, a prolific writer who writes a weekly column in a national newspaper, is not a stranger to strong ideological positions. He has written two earlier books (all essays) with emphatic postulations on how to advance the social and economic state of Nigeria. But none is as novel in treatise as ‘Minorities as Competitive Overlords’. It is as audacious intellectually as it is revealing and contentious. But the meat of the whole matter is in reading all the essays or at least, most of them, and ruminating on the unifying thrust.

    In a communication to the writer after reading the book, veteran economist, Henry O. Boyo remarked thus: “ I finally had time to read all of it during holidays and I confess that I am enriched by your rare insights which were properly couched in supporting factual information. Nigerians should be proud of your trail-blazing thesis which will no doubt ultimately resonate and command universal attention….”

    On the blurb, a consultant economist, Dr Boniface Chizea remarked is similar enthusiasm thusly: “some of the the assertions had the effect on me as that of coming into a sudden awareness and realization of some facts regarding the existential realities of Nigeria.”

    Sure, Alowes’ new book is one of the most resourceful social study on Nigerian economics’ sociology in recent time. But the publication though rich in knowledge with beautiful cover design suffers from some of the peculiar problems of self-publishing. Ignore the occasional long sentences, poor binding and subediting neglects and you will enjoy the golden throve of knowledge Alowes has dropped in the bookshelf.

     

     

  • Lagos wins debate

    Lagos wins debate

    Miss Grace Ezekiel of Oriwu Senior Model College, Ikorodu, Lagos, has emerged the overall winner in the Southwest Zonal competition of the Nigeria Centenary Inter-Secondary Schools’ debate held at Solton Hotel, Akure, Ondo State.

    This was announced by the state Commissioner for Education, Mrs. Olayinka Oladunjoye.

    She explained that Miss Ezekiel beat other debaters from Osun and Oyo states in the first stage of the competition, and later defeated the representative of Ogun State on the topic: “Is Nigeria ripe for a female president?” to clinch the trophy.

    She noted that Grace Ezekiel was also declared the best speaker for the Southwest zone and as such is billed to represent the zone in Abuja for the national finals at a later date.

    According to Mrs Oladunjoye, other representatives of the state were Adepeju Fatiu of Eko Akete Senior Grammar School, Lagos Island; Adegbulugbe Ayomide of Badagry Senior Grammar School, Badagry; Adekunle Dina of Lagos State Senior Model College, Igbokuta, Oni Damilola of Ajangbadi Senior High School, Ojo, and Kalu Daniel of Birrel Avenue Senior School, Sabo-Yaba.

    The Southwest zonal competition of the Nigeria Centenary Inter-Secondary Schools’ Debate was organised by the President’s Schools Debate Nigeria (PSDN) to commemorate Nigeria’s centenary celebration.

     

  • On the minimum wage debate

    SIR: Recently, the Senate voted unanimously to excise minimum wage from the exclusive legislative list in the 1999 Constitution currently undergoing amendment. The idea is to allow states to determine the wages to be paid their workers. Some observers have described the move as anti-people, discriminatory and tantamount to depriving workers of fair and just remuneration.

    Already, the Nigeria Labour Congress, the Trade Union Congress, the Association of Senior Civil Servants of Nigeria and the Nigeria Employers Consultative Association have all flayed the decision of the Senate.

    Since its passage into law in 2011, the N18,000 National Minimum Wage Act (as amended), has been a source of controversy that has pitted public workers against state governments culminating into several industrial unrest and strife. The position of the governors is that they should be allowed to dictate what they can pay their workers based on perceived disparity in the federation allocation. Apart from state governors, antagonists of the national minimum wage are of the opinion that as the cost of living varies in many parts of the country, there should not be any basis for uniform pay for workers.

    Going by the situation on ground and what operates in other progressive climes, what should really be useful is for each level of government to work out how much it is willing and capable of paying its workers based on revenue reality and priorities.

    This could largely be responsible for why the senators have been accused of yielding to pressure from the governors in kicking against the centralised minimum wage regime as well as the much debated local government autonomy.

    Ordinarily, wages are supposed to be dynamic and not static. They should normally adjust to realities of the day based on price indices and inflationary levels while the power of negotiation by unions and responsiveness of bipartite and tripartite machineries are meant to stimulate wage adjustments including reviews and adjustments to take care of such vagaries.

    Sadly, both bipartite and tripartite structures are almost non-existent due to politicisation, mutual suspicion and inability of government and labour to work harmoniously together with the attendant breakdown of collective bargaining and grievanc- handling mechanisms.

    For this reason and for the fact that government have often reneged in honouring agreements it has voluntarily signed, the NLC is seriously worried that this wage amendment “will unnecessarily expose Nigerian workers, especially, those in the low-income bracket, with grave implications for security, productivity and national well-being, as most state governments if given the latitude, will pay wages as low as N1,000 per month in spite of the relatively enormous resources available to them”.

    Perhaps, with the exception of Rivers, Lagos and and Akwa-Ibom states, whose internally generated revenue runs into billions of naira, it is saddening to note that the internally generated revenue of most states in Nigeria is meagre and is hardly enough to meet their recurrent and capital expenditures. Infact, most states are dependent solely on the federal government’s statutory allocation.

    Therefore, it portends danger in a federal system for all the states to be forced to implement the same minimum wage and unless the present fiscal arrangement is revisited, it will be difficult for many states to pay workers an acceptable minimum wage which would enhance their status and living conditions.

    It is regrettable that many public pronouncements, programmes and policies – though well intended – often fail due to the man-made challenges of sheer politics, insincerity, corruption, poor design and implementation. That is why the idea of decentralising of minimum wage in Nigeria is difficult to embrace.

     

    • Adewale Kupoluyi

    Federal University of Agriculture, Abeokuta

  • Tai Solarin varsity shines at debate

    Mass Communication students of Tai Solarin University of Education (TASUED), Ijagun, Ogun State, have defeated their counterpart from the Lagos State University (LASU) and Lagos State Polytechnic (LASPOTECH) to clinch the first position at the Inter-collegiate Debate and Awards Ceremony organised by LASPOTECH chapter of Mass Communication Students Association (MACSA).

    The Engineering Hall of the polytechnic, where the event was held, was quaking by intellectual fireworks when the representatives of the participating schools argued for and against the topic, Advertising is more cost effective than Public Relations. There was also a quiz contest to test the knowledge of participants on general issues.

    President of the association, Oluwatoyin Fanegan, explained that the event was meant to engender cross-fertilisation of ideas to promote professionalism and to test the knowledge of students on attributes of the two media careers.

    “The event is first of its kind in the history of our department and we felt that there was a need to exchange and generate ideas on best practices in the advertising and public relations arms of the media. More importantly, we also believe that this will serve as a platform to bring ourselves together, so that we can engage ourselves on intellectual issues that can strengthen our knowledge properly and we intend to make this an annual event,” Oluwatoyin said.

    Prizes were later presented to the university that came first and the runners-up.

    Some of the guests honoured for excellent leadership and professionalism included the LASPOTECH Registrar, Mrs Olufunke Ige, Head of Mass Communication department, Dr Ifedayo Daramola, Secretary to Ikorodu Local Government Area and publisher of The Factor, Hon. Japhet Odesanya, The Nation’s Kunle Akinrinade, among others.

  • Ajasin varsity wins debate

    Ajasin varsity wins debate

    Mass Communication students of the Adekunle Ajasin University, Akungba-Akoko (AAUA) have emerged victorious in the debate organised by the Association of Mass Communication Students (AMCOS), Joseph Ayo Babalola University (JABU), Ikeji-Arakeji, chapter.

    AAUA students defeated their counterparts from the JABU to win the contest held on the host’s campus. Students of Mass Communication from Wesley University of Science and Technology, Ondo (WUSTO) and the University of Ibadan (UI) also participated in the debate.

    AAUA was represented by Akinlolu Ejiranti, 300-Level, Julius Omokhunu, 200-Level and Joseph Onoolapo, 100-Level. The topic of the debate was: “Is sovereign National Conference the panacea for terrorism in Nigeria?”

    Students of the premier university opposed the motion while their counterparts from AAUA supported the view. At the end of the first round, AAUA won by 33.1 to 32.0; JABU defeated WUSTO to make it to the final round.

    Having defeated the UI to move on to the final round, AAUA faced the host institution in what could be described as a clash of the titans. AAUA supported the motion that “Corruption is the root cause of terrorism in Nigeria”, but JABU students opposed it.

    At the end, AAUA came first with 44.3 points, JABU 40.1 and UI got 38.3 to become first and second runners-up respectively. Speaking after the debate, AMCOS president at AAUA, Omodunni Alero, praised the organisers for creating level playing field for the contestants.

  • Babcock shines at private varsities debate

    Babcock shines at private varsities debate

    Babcock University, Ilisan-Remo has emerged winner of the maiden edition of Nigeria Private Universities Debate (NIPUD).

    Represented by Okezi Uwede Meshack (400-Level Law), Nisisi Madu Chibuzor, 300-Level (Computer Technology) and Olusile Christiana (400-Level Economics), the university won with 250.2 points.

    Western Delta University (WDU) Ogharra, Delta State followed closely with 231.8. The team was represented by Edwina Peters, Isreal Christabel Esosa and Igbinobaro Paula.

    Thirteen private universities participated in the competition.

    They debated the topic: “Nigerian’s Vision 20:2020 is only practicable after the present rural urban migration is reversed.” Babcock University opposed the motion while WDU spoke for it.

    Fondly called Obama by his colleague, Meshack, the first speaker for Babcock University, said Nigeria’s rural areas are blighted by poverty. As a result, he said there are no career opportunities for professionals, no access to quality health care, education, technology. He also said rural areas lack the quality of man power needed in the urban centres.

    Babcock University’s second speaker, Christiana said rather than blame rural-urban migration for societal ills, the government should spend time and money correcting factors stopping the country from achieving vision 20:2020.

    The third speaker, Chibuzor said there is no need for the reversal because it will promote the appreciation of landed poverty which helps to develop the economy.

    “No country is free from rural-urban migration. It is a continuous process around the world and not all areas of the country must contribute to the economy of a nation,” she said.

    Supporting the reversal of rural-urban migration, WDU team argued that continuous migration would deplete rural resources.

    Its lead speaker, Edwina Peters said if there is rural-urban migration, villages will go into extinction, there would be an increase in crime rate, increase in poverty, decline in agricultural sector, decline of trado medicine, cultural erosion, and increase in hardship.

    Christabel, the second speaker, said there would be a strain on infrastructure in the various cities they are running to leading to overcrowding of the cities, emergence of ghetto and shanties and epidemics.

    “There should be development in the rural sector too so that businesses can expand to those areas,” she said.

    Paula, the third speaker from WDU argued that migrants usually face social problems so they should remain in their villages and job opportunities should be provided for them.

    “Government should promote agriculture in the rural areas, improve infrastructures, provide security, make land reforms to make them have access to lands, provide credit facility for them, improve communication and transportation system so that they can market their produce,” she added.

    Addressing the students, former Vice Chancellor, Federal University of Technology, Akure, ProfAdebisi Balogun said the debate is a way of transmitting knowledge among people.

    “It brings people together and is an important academic activity. I am happy that the private university is bringing back the debate into the academic culture,” he said.

    Balogun who represented the Executive Secretary, Nigeria Universities Commission (NUC), Prof Julius Okojie said there can’t be a vision 20:2020 if Nigeria does not embrace the knowledge economy.

    In his own remarks and speaking on behalf of the National President, NIPUD, Prof Femi Ajayi, Pastor Agape Sunday Dominic, NIPUD national treasurer said that the theme: “Nigeria’s Vision 20:2020 – The Farce, The Facts and The Figures” was chosen for season one of the debate due to its relevance to the Nigerian polity.

    He lamented that some graduates from the Nigerian tertiary institution were apologies to the country’s education system, as they cannot communicate in the simplest of English language.

    Prof Ajayi noted that the NIPUD Challenge initiative is aimed at empowering the Nigeria University undergraduate outside the structural academic learning that was confined to the lecture room.

  • Public debate: ACN welcomes Amaechi’s challenge

    The Action Congress of Nigeria (ACN), Rivers State chapter, has described as a welcome development, the public debate challenge by Governor Rotimi Amaechi.

    The ACN in Rivers, through its Publicity Secretary, Jerry Needam, yesterday in Port Harcourt, the state capital, stated that the debate should be anchored by either the Nigeria Union of Journalists (NUJ) or the Nigerian Bar Association (NBA).

    Rivers, main opposition party said: “We feel delighted that the Rivers State governor has at last accepted to be joined in a public debate, a forum we have over the years advocated.

    “We commend the governor for taking, even though that long, the bold step in offering himself for the public debate, but we wonder why officials of the ruling Peoples Democratic Party (PDP) shy away from engaging in such forum, giving the impression that there are skeletons in their cupboards.

    “The beauty of democracy is about the availability of the leaders to the people and the people always having access to their leaders and resources in terms of knowledge and making decision on the utilisation of the resources.

    “The leaders function as custodians and managers of the peoples’ resources and are bound to at all times report and give explanations of their activities to the people.”

     

     

     

     

     

  • School holds maiden senior debate

    School holds maiden senior debate

    The Reverend Payne Memorial College, Ijebu-Ode, Ogun State, has held its maiden senior secondary schools Literary and Debating Group Day.

    Various activities ranging from debate, dance session, news casting, quiz and many other competitions featured.

    The debate was between the host school represented by Deborah Payne, Akinlosotu Ronke, Abdul Akorede, and Salami Oyinkesola, while Teens International School was represented by Ogunpitan Festus, Oladele Lekan, Adefulu Ahmed and Jaiyeola Precious.

    At the end of the competition, Reverend Payne Memorial College emerged winner in the former. In the latter, however, both shared 55 points but the host conceded the victory to the visiting school for honouring the invitation.

    Contestants were asked to show their creativity on the motion: The Menace of Corruption in Nigeria: Who is to blame without speaking either in support or against the motion.

    Speaking during the debate, Festus said the government is responsible for the menace in the country.

    He said: “They (governments) use public funds for personal purchases, and increase tax thereby pushing people into corruption. They are also responsible for the incompetence in our electoral processes.”

    Ronke said parents are responsible for the corruption in the society. “They buy their children’s way to school, when the children get to school they also rely on buying their way through school.”

    She didn’t leave lecturers out of it. Ronke accused them of failing students who refuse to buy their textbooks or hand-outs. “The menace of corruption can be traced to every single individual,” she argued.

    Speaking at the event, President, Academic of Letters Prof Segun Odunuga, told the pupils to always participate in debates and quiz competitions, as it will help them develop their confidence, and perform well in exams. Speaking on the topic of the debate, Odunuga said the society is responsible for the corruption.

    The proprietor of the two-year old school led Mr Babatunde Payne, counsel the participants on tips to academic success.

    He said: “You have done well but put in more effort next time. Some of you may be chosen later in life to go and represent your school. Therefore, you need to research more on any given topic.”

    He said that their teachers are hard on them today, because they want them to succeed in future.

    Mrs Doni Otukelu, a former principal, who was also in attendance advised the pupils to face their studies, noting that is the only thing they can use to appreciate their parents’ efforts.

    She noted that it is possible for the children to define their future now.

    “Start working towards whatever you want to become in future. Don’t relent on whatever you are doing. Put to good use whatever you learn in school. It is how you lay your bed that you will lie on it. Always prepare ahead of every competition,” she urged.

     

  • Civil society to engage Lagos on budget debate

    The Lagos Civil Society Partnership (LACSOP) has created a platform for stakeholders to engage the government on the state’s 2013 budget to further promote accountability.

    Using the social media tool, Twitter, it will run a live dialogue programme with relevant government agencies.

    It is supported by the Department for International Department (DFID) project known as State Accountability and Voice Initiative (SAVI). LACSOP is made up of a network of civil society and community-based organisations.

    The organisers said the programme, the first of its kind in the state, will feature key government officials to answer specific questions on the budget proposals and will enable citizens to understand what is expected of them as regards state budget.

    LACSOP Co-ordinator, Mr Ayo Adebusoye, a lawyer, said the citizens have the right to ask questions as to how government runs their affairs using tax payers’ money.

    “We understand the Lagos State’s vision is to be Africa’s model megacity and a financial hub that is safe, secure, functional and productive. We also appreciate the fact that for this vision to be achieved by 2025, the smaller steps towards its realisation include its annual policy targets.

    “For example, in 2013, the state government’s policy thrust is being made towards strengthening infrastructural renewal in the power, agriculture and agro-allied, transportation and housing sectors.

    “All these can happen only when the citizens are fully engaged in its implementation. It is the reason for the debate to get the people to understand what they should do at different stages of development.

    “What we intend to do during the conferencing is to open a dialogue channel. It is going to be a two-way communication debate where citizens will ask questions directed to government officials who will be expected to respond.

    “They may want to find out what specific initiatives are expected in the agriculture sector, how much is to be committed, time-frame, expected results and role the citizens should play’ he explained.”

    SAVI’s state team leader, Mr Felix Obanubi explained why his organisation is sponsoring the dialogue.

    “SAVI is concerned with giving voice to the people. Through our Advocacy Partners like LACSOP we build the capacity of the people to enable them understand their role as citizens and educate them on how they can participate in the process of governance and demand accountability from government.

    “Where citizens lack adequate knowledge, it has often led to under-development because no one has engaged them nor have they demanded accountability from the government.

    “Therefore, the entire process is aimed at empowering the citizens by giving them a voice to speak on issues that concern them.”

     

  • The needless debate on 2013 budget benchmark

    The needless debate on 2013 budget benchmark

    President Goodluck Jonathan recently presented N4.92trillion Appropriation Bill to a Joint Session of the National Assembly (NASS), in Abuja, Nigeria’s Federal Capital Territory. Indeed, as the Executive arm of Government, which is constitutionally saddled with the ultimate responsibility of implementing the fundamental deliverables of a national budget and taking responsibility for same at the end of a fiscal year, the ensuing outburst over the proprietary or otherwise of the $75 oil benchmark in the budget is quite unnecessary.

    Earlier in his presentation of the budget tagged: “Fiscal Consolidation with Inclusive Growth”, before the Federal legislators, President Jonathan had informed them that next year’s budget actually accords priority to “our concerns for security, infrastructure, food, security, and human development sectors” of Nigeria’s economy. Describing it as one with series of innovative features, the President and Commander-in-Chief stated that the budget is a “push in the right direction borne out of our well thought-out and articulated developmental policies.” The upcoming financial plan is said to be a deliberate attempt by the Government to continue with the medium-term theme and interventions that are consistent with the objectives of the Transformation Agenda of the Jonathan Administration.

    He equally explained to the NASS members the basic principle behind the 2013 Appropriation Bill. The President related the core mandate of his Administration, saying “the task of transforming these opportunities into real, tangible outcomes which all our people can experience and call their own.”

    While appreciating the meaningful contributions, cooperation and oversight functions of the National Assembly members in discharging the Government collective responsibility to build a virile and improved Nigerian economy of our dream, he took the opportunity to remind the lawmakers of the need for their continued collaboration on the assignment of growing the economy, creating jobs for the generality of Nigerians, delivering the much-expected dividends of democracy, and improving the people’s standard of living.

    Conversely, just days after the presentation of the 2013 Appropriation Bill to NASS, the Presidency’s recommended crude oil price benchmark has sparked another disagreement between the Legislature and Executive. Of course, the Presidency previously, had broached to the Federal legislators, that though the $75 per barrel oil benchmark quoted in the budget is less than what currently obtains in the international oil market, the former certainly has provided a veritable background to and rationale for its proposal of $75 benchmark in next year’s budget.

    According to Presidency, such background information that apparently informed the benchmark, as it is the oil-price based fiscal rule, especially as contained in the Fiscal Responsibility Act 2007. It further argued that this instrument informed its choice of “a prudent oil benchmark price of $75/barrel for the 2013 period”. More so, since the beginning of 2008 when the global economic downturn started manifesting and dislocating many an economy across the globe, world oil prices have been largely unstable ever since then. Thus, based on moving averages of the global oil prices and government’s simulations allowing for possible uncertainty in world oil price movements, it really adopted the contentious benchmark as “a standard technique commonly used by commodity-dependent countries to protect them against the volatilities of oil.”Incidentally, the bulk of Nigeria’s wealth is derived from the same floundering oil earnings.

    There were supposedly considerable, previous consultations with various stakeholders, including state governors and the National Assembly, where the $75 benchmark was purportedly agreed that “the benchmark price should be further rounded up to $75/barrel to meet pressing needs and prevent delays in the budget process.”

    Despite the Presidency’ resolve that the $75/barrel price, of course, represents an upper limit from its model towards the country’s attainment and sustenance of a stable macroeconomic environment for next year, since the beginning of their considerations of the Appropriation Bill, the Senate is holding out for $78 per barrel. Whereas the House of Representatives, which is the Lower House of NASS, also has constantly maintained that the oil benchmark should be $80 per barrel.

    Characteristically, it is by and large appreciated by all when the National Assembly critically examines and possibly makes meaningful and useful inputs into a budget before final approval in a fiscal year. However, it is now a matter of concern to well-meaning Nigerians that the debate on the $75 oil benchmark in the 2013 Budget has depreciated to a point of resorting to name-calling cum abusive language between the NASS leadership and some of President Jonathan’s aides. This needs not be so.

    The NASS members should realise that if any unrealistic expectations are suggested and ratified in respect of the oil benchmark, the aggregate of which will fund the budget, an overly high benchmark price may lead to higher inflation, decline in the value of the Naira, lower savings, and reduced investment in the face of troubled worldwide economic outlook.

    The Government, again, has informed Nigerians that based upon current economic realities of the time, either $78 or $80 benchmark would lead to an increase in liquidity, leading to an increase in money supply chasing few goods and services. In other words, any sudden snap in oil prices will be detrimental for many of the Government’s macroeconomic forecasts.

    Besides, the current Administration has said the exchange rate would come under intense pressure, leading to a depreciation of the Naira. High inflation would result in higher interest rates. Certainly, a combination of high inflation, interest rate and an unstable exchange rate is not beneficial to proper economic planning, both for the government and private business managers.

    It should equally be realised that the current world oil price is really not based on certifiable economic fundamentals. Rather, uncertainties, e.g. conflict in the Middle East are said to be responsible for the seemingly enticing high prices of crude oil in the world oil market. The question then is, can Nigeria truly base its economic plan on the expected misfortunes of such crisis-ridden regions and enclaves around the world and still achieve enduring transformation in key aspects of its national life?

    In spite of its latest recommendation that the Excess Crude Account (ECA) be scrapped forthwith, while not minding its cushioning effects on the survival of the nation’s economy in recent years, the increased savings in ECA are yet consequential in mitigating adverse economic impact on Nigeria, in case of a sudden global economic shock, or an unanticipated slump in world’s oil prices.

    Consequently, instead of insisting on varying oil benchmarks outside of the Presidency’s $75 benchmark recommendation in the 2013 Appropriation Bill before it, the NASS rather should reach a consensus with the Federal Government in coming up with realistic estimates that will enable it to focus on cutting recurrent expenditure to sustainable levels. This could be accomplished through reduction of waste, corruption and duplication in the functions of government agencies.

    The Federal lawmakers ought to realise that even while discharging its constitutional mandate of examining the components of the budget, it is yet far better to allow the Government Ministries, Departments and Agencies (MDAs) to come forward and freely defend their various budgets, as contained in the 2013 Appropriation Bill, based on the recommended $75 oil benchmark.

    In fact, any undue, excessive inputs into the estimates from the NASS members may trigger yet another round of impractical budget leading to poor implementation. It is much better to allow the Executive to take responsibility for the estimates it believes can work for the well-desired turnaround in the economy. After all, Nigerians will not turn around to blame the National Assembly for poor budget execution if any unrealistic projections are included in the Appropriation Act emanating from the Legislature at the end of the day.

    • Rotimi Smith is an Estate Surveyor in Ibadan.