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Tag: Nigeria

  • Nigeria, others on slavery’s list of shame, says report

    Nigeria, others on slavery’s list of shame, says report

    A new report claiming to be the most comprehensive look at global slavery says 30 million people are living as slaves around the world, cnn.com reports.

    The Global Slavery Index, published by the Australia-based Walk Free Foundation, lists India as the country with by far the most slaves, with an estimated nearly 14 million, followed by China (2.9 million) and Pakistan (2.1 million).

    The top 10 countries on its list of shame accounted for more than three quarters of the 29.8 million people living in slavery, with Nigeria, Ethiopia, Russia, Thailand, Democratic Republic of Congo, Myanmar and Bangladesh completing the list.

    In terms of countries with the highest of proportion of slaves,Mauritania in West Africa topped the table, with about 4% of its 3.4 million people enslaved, followed by Haiti, Pakistan, India and Nepal.

    The index, whose authors claim it contains the most authoritative data on slavery conditions worldwide, is the product of Australian mining magnate and philanthropist Andrew Forrest’s commitment to stamp out global slavery.

    Forrest, ranked by Forbes as Australia’s fifth richest man, with an estimated net worth of $5.7 billion, adopted the cause after his daughter volunteered in an orphanage in Nepal in 2008, coming into contact with child sex trafficking victims. Forrest is a signatory to the Giving Pledge started by billionaire investor Warren Buffett, whose members commit to donating at least half their wealth to philanthropic causes.

    The index, which draws on 10 years of research into slavery conditions around the world and was produced by a team of 4 authors supported by 22 other experts and advisers, is the inaugural edition of what will be an annual report into slavery. It ranks 162 countries according to the number of people living in slavery, the risk of enslavement and the robustness of government responses to the problem.

    Walk Free policy and research manager Gina Dafalia told CNN the report was intended to shine a spotlight on the issue, and quantify the extent of the problem in different countries before programs were put in place to tackle the problem. So far, she said, Walk Free — and its partners Humanity United and the Legatum Foundation — had pledged a total of $100 million to stamp out the practice.

    “When we started working in this area we realized that we didn’t have a good understanding of what exactly the situation of slavery is in the world,” she said. “We needed that information before we started doing any interventions.”

    The index gives a higher estimate of the global number of slaves than other reports — a report by the International Labor Organization last year pegged the number at 20.9 million.

    Dafalia said this was a result of the Global Slavery Index using a broader definition of slavery, which included human trafficking, forced labor, as well as practices such as forced marriage, debt bondage and the exploitation of children.

    “Our definition of modern slavery includes, for example, forced and servile marriage, a concept not included in the ILO estimate, given the focus on ‘forced labor,’” she said.

  • Nigeria: The unavoidable realities

    Many Nigerians underrate the differences between the various nationalities that make up Nigeria. They think that those differences as fragile and can easily be eliminated to build a “united Nigeria”.

    Such people mean well, but they are wrong – very wrong. How seriously wrong they are can be shown from three perspectives: the virtually permanent differences in nations’ cultures; the permanence of each nation in its own homeland, and the certainty that each nation will someday choose a status for itself in the world.

    Countries made up of different nations are many in our world. Nigeria is one. Each Nigerian nation had lived in its own homeland for thousands of years before the British came and included all of us together as Nigeria. Let us take two examples of such countries in Europe. Britain, (the United Kingdom) has contained four different nations, each living in its own homeland, for about 500 years. The four are the English nation of England, the Scottish nation of Scotland, the Irish nation of Ireland, and the Welsh nation of Wales. Because all these nations have been living in one country, under one government, their citizens have been mixing and intermixing for centuries. Yet, today, their different cultures are still different and distinct. The same is true of the cultures of the Spaniards, Basques and Catalonians of Spain who have lived together in Spain for about 600 years. It is true in every old country that contains different nations. What this means for Nigeria is that, even if Nigeria is lucky to live for the next hundreds of years, there will still be distinctly a Yoruba people with their own culture, an Igbo people with their own culture, a Hausa people with their own culture, etc. Anybody who thinks that these peoples and cultures will melt away or melt together in Nigeria is not reading the history of the world correctly.

    The reason behind this is that each people and culture have taken thousands of years to evolve their own particular characteristics. As a result, the differences are not superficial, they are very deep. And each culture determines how its people respond to situations. For instance, politically, the Yoruba people, living in kingdoms and towns, evolved a political culture in which the ordinary people took part in the selection of their kings and chiefs, and had a lot of say in the affairs of their towns. That is why the Yoruba are so freedom-loving, so confident, and so hostile to election rigging, dictatorial or arbitrary leadership, and corruption, today. Throughout their history, also, they have been used to respecting the religious right of everybody, and that is why they are the most religiously tolerant and accommodating people in Nigeria today. On the surface, one might say that the Yoruba and the Hausa lived under kings (Obas in one case and Emirs in the other). But the Obas were selected by their subjects, could only rule through councils of chiefs, and must respect the families, priests and various organizations, whereas the Emirs, being leaders of a foreign conquering people, ruled at a level far above their Hausa subjects. The differences that these facts created in the political behavior of these two peoples are not likely to disappear in hundreds of years. And the Hausa and Yoruba are very different from the Igbo who, for the most part, never developed states and rulers but lived mostly in rudimentary village and clan settings. The Igbo are proud of the fact that they never lived under rulers, and they are entitled to their pride. However, making these different peoples, with these different cultures, to live in one country is proving very problematic indeed.

    In spite of the mixing and intermixing of peoples in Nigeria also, the various homelands will always be distinct. Yorubaland will always be Yorubaland, Igboland, Igboland, Hausaland, Hausaland, and even small Biromland will be Biromland, etc. In Britain, the English, Scotts, Irish and Welsh have for centuries been intensely intermixing, and yet their homelands remain distinct. Because England experienced the heaviest industrialization in recent centuries, people came in enormous numbers from Scotland, Ireland and Wales to work and settle in England; even so, England is still England, the homeland of the English people. The homeland of even the smallest nation, the Welsh, remains distinct also. Whoever thinks that anything different from this picture will happen in Nigeria is deceiving himself. Nothing different is happening in any country consisting of different nations. Because Yorubaland is the most developed, most prosperous, and most free of inter-ethnic and religious conflicts in Nigeria, large numbers of Igbo, Hausa, and other Nigerian nationals are streaming into Yorubaland today. But, in spite of that, Yorubaland will always be the homeland of the Yoruba nation, even if Nigeria is lucky to exist for much longer. The differences between the various homelands of the various nations of Nigeria are very real indeed, and are virtually impossible to eliminate.

    Finally, nobody can dictate what each of today’s nations of Nigeria will ultimately choose to become in the world. How long will they remain together as one country? And how soon will some become separate countries in the world? One thing seems certain – that some parting of ways will come, one way or other, sooner or later. Worldwide, most nations that are parts of larger countries are breaking off today and becoming separate countries. In Britain, the Irish, Welsh, and Scotts began to agitate for separate countries of their own many decades ago. The Irish were allowed to go and create their own Republic of Ireland. Scotland is planning to hold a referendum in 2014 to become the separate Republic of Scotland. And the Welsh are following close behind the Scotts. That is the trend in the world in our times. The trend has resulted in the breaking up of the Soviet Union into 15 countries, Yugoslavia into five countries, Czechoslovakia into two, India into three soon after independence, Indonesia into three (with more on the way), Sudan into two, etc. It is threatening to break Spain into three, Belgium into two, Sri Lanka into two, Canada into two, etc. The United States, though comprising many nationalities, is different: none of its immigrant nationalities is settled in a separate homeland in the country. The United Nations has bowed to reality and passed a resolution affirming the right of every nation, large or small, to determine its own status in the world. The African Union has done the same.

    Some people think that it is because Nigeria is poorly governed and poverty-ridden that it may break into separate countries. But that is not so. Poor governance and poverty may speed up the break; orderly governance and prosperity may delay it for some time but cannot prevent it. Countries like Britain, Spain or Canada that are breaking up are not poorly governed or poor. It is just that breaking up seems to be, in our times, the destiny of countries that are made up of different nations with different homelands. Nigeria cannot avoid it. The only question is: how, and how soon, will it come to Nigeria? However, while we are still together, we Nigerians should strive to make our country a land of harmony and opportunity.

     

  • Still on Nigeria and MDGs 2015 target

    SIR: September 2000, 189 heads of State and government adopted the UN Millennium Declaration. The eight key goals and 21 targets that were set and agreed to be attained on or before 2015 are eradication of extreme poverty and hunger, achievement of universal primary education, promotion of gender equality and empowerment of women, reduction in child mortality rates, improvement in maternal health, combating HIV/AIDS pandemic, malaria other diseases, environmental sustainability as well to develop a global partnership for development.

    Thirteen years after, Nigeria’s attainment of the set goals has been rated differently from good to bad and to worse depending on who is saying it. What is glaring to all and sundry is that life has not been a bed of roses under the harsh economic climate.

    For instance, President Goodluck Jonathan, at the Water Summit, held recently in Abuja stated that Nigeria needs over N350 billion annually to meet its water and sanitation targets while Vice President, Mohammed Sambo, at a stakeholders meeting in Abuja also said that “Although Nigeria has made significant strides in reducing maternal mortality from figures that were above 1000/100,000 live births in 1990 to 545/100,000 live births in 2008, attainment of the health MDGs still remain a challenge in Nigeria, as the current annual reduction in under-five mortality of 4% is far below the 13% annual reduction needed to bend the curve to attain Goal 4 by 2015”.

    To the United Nations Food and Agricultural Organisation (FAO), Nigeria is among the 38 countries that have already met the internationally set hunger eradication targets ahead of 2015! According to the Director-General of FAO, José Graziano da Silva, “these countries are leading the way to a better future. They are proof that with strong political will, coordination and cooperation, it is possible to achieve rapid and lasting reductions in hunger”.

    On-track are the MDG 2 goal of achieving universal primary education; MDG 3 of promoting gender equality; MDG 6 of combating HIV/AIDS, Tuberculosis, malaria and other diseases; and  MDG 8, centered on global partnership for development.

    Off-track targets are MDG 1 that covers the eradication of extreme poverty and hunger; MDG 4 – reduction in child mortality; MDG 5 – improvement in maternal health; and MDG 7 – ensuring environmental sustainability.

    The status of MDGs in Nigeria indicates that the country is unlikely to meet most of the targets. The incidence of poverty is reported to have increased from 54.4 percent in 2004 to 65.1 percent in 2010 while about 10 million children of school going age are out of school.

    In the 2011 elections, women representation at the National Assembly was found to have declined and the national average is about six per cent which is one of the lowest in Africa while climate-related shocks, as manifested by extreme harsh weather conditions, claiming livelihoods and exacerbated Africa’s food insecurity, resulting in a high incidence of strife, widespread hunger, underweight children and extremely low dietary consumption patterns in which the World Bank says over 70 per cent of Nigerian adults are poor.

    The post 2015 development agenda should recognize the changed context of the world, the changing geography of poverty and the need not only to improve the content but also put in place an accountability framework. Additionally, it must recognize the changed demographics of the world, youth issues and the challenge of terrorism.

    • Adewale Kupoluyi,

    Federal University of Agriculture, Abeokuta

  • Nigeria lags behind in agriculture financing

    Nigeria lags behind in agriculture financing

    In spite of the government’s seeming focus on the development of agriculture, Nigeria is among the African countries lagging behind in the World Bank’s projected funding of the sector.

    It emerged at the Agriculture and Finance ministers’ from sub-Sahara Africa meeting during the just concluded World bank-IMF meeting in the United States, that Nigeria’s investment in the sector that employs 70 per cent of Africa’s population is less than the World Bank-dictated 10 per cent of public expenditure.

    “In Africa, even more so than in other regions in the world, agriculture growth is hugely important for any effort to end poverty and promote shared prosperity,” Makhtar Diop, World Bank Vice President for Africa, told the Ministers.

    He added: “Economic activity in agriculture typically accounts for 30 to 40% of GDP, and there is global evidence showing that productivity improvements in agriculture can have a poverty impact close to three times that of other sectors of society.”

    The participants discussed “Sustaining the Comprehensive Africa Agricultural Development Programme (CAADP) Momentum.” Launched by African leaders in 2003, CAADP seeks to encourage governments to increase investments into the agricultural sector and allocate 10 per cent of their public expenditures to the agriculture sector.

    “Since 2003, CAADP has demonstrated that African institutions can come together to address the critical challenges facing the continent. Already, Burkina Faso, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger and Senegal have met or exceeded CAADP’s 10% target,” said Sari Söderström Feyzioglu, Senior Manager for Sustainable Development in the Africa Region.

    “On our side it has been a win-win opportunity as well. CAADP has helped to align the Bank’s strategic focus and strengthen its strategic partnerships for optimal development impact.”

    Since 2003, 32 countries have created national agriculture investment plans that lay out priorities for meeting the CAADP goals. On average, public agriculture expenditures have risen by over 7 per cent per year across Africa (more than 12% per year in low income countries) and have more than doubled since CAADP’s launch, signaling greater recognition of the agricultural sector as an engine of growth and poverty reduction.

    Abebe Haile Gabriel, the African Union Director for Rural Economy and Agriculture, noted that the Commission had designated 2014 as AU’s Year of Agriculture and Food Security. The AU will launch its new plan for CAADP called “Sustaining the CAADP Momentum.”

    Gabriel also announced that new funding for CAADP – a second Multi-Donor Trust Fund (MDTF) – managed by the World Bank, will be sought The MDTF fund provides grants to African institutions and finances technical assistance to the CAADP process. In its next phase, CAADP will focus on implementation, Gabriel said. “We would like to use this opportunity to call on our partners to support the next phase of CAADP which is going to be very exciting,” he said.

    CAADP’s next phase will put a new emphasis on issues such as creating stronger platforms for agriculture policy formulation, encouraging private sector development in the agriculture sector, support for climate smart agriculture, education, food security and improved nutrition.

    “We are seeing the build up of institutions in countries throughout Africa, which has been made possible by the support from CAADP,” said Estherine Fotabong, Head of Programme Implementation and Coordination Director, NEPAD. “This has been a very positive program and we want to see a continuation of financing. It has made it possible for us to have programs in gender, climate change and the role of women in agriculture,” she said.

     

  • Guide to investment

    Guide to investment

    Book review

     Title: Title: Investing in Nigeria (A Country Business Guide for Multinationals and Entrepre neurs)

    Authors: Oluremi Oyekola, Kofoworola Joseph, Okanlawon Olalekan and Olaleye Bisi

    Reviewer: Joseph Jibueze

    Pagination: 226

     

    Nigeria is Africa’s most populous country, and therefore a haven for investors. With a population of over 150 million, there is no shortage of market for any business.

    With immense opportunities for investments in power infrastructure, transportation, aviation, communication, agriculture, among others, Nigeria remains a country of choice for any discerning investor.

    However, not many potential investors know enough about Nigeria, the commercial climate, its people and what it takes to go into business in the country. There had been a gap in such knowledge.

    To bridge this knowledge gap, the book: Investing in Nigeria (A Country Business Guide for Multinationals and Entrepreneurs), compiled by a team of experts led by the Managing Partner, Oak Chartered Accountants, Mr Oluremi Oyekola, will be launched in Lagos next Wednesday.

    Investing in Nigeria is a 226-page book, with 14 chapters. The first chapter entitled: An Introduction to Nigeria, contains hands-on information about the country, such as location, constitution, postal and courier services, currency, holidays and festivals, religion and language.

    Among the sub-topics in Chapter One is the question: Why invest in Nigeria? Answering the question, the authors said: “In recent times, focus is being directed at non-oil exports and agriculture, which at present account for 30 per cent of the Gross Domestic Product (GDP), to diversify the economic base.

    “Opportunities exist for the exploitation and export of natural gas, bitumen, limestone, coal, tin, columbite, gold, silver, lead-zinc, gypsum, glass sands, clays, asbestos, graphite, and iron ore, among others…

    “Nigeria has enormous resources, most of which are yet to be fully exploited. They include mineral, agricultural and human resources.

    “It also offers the largest market in sub-Saharan Africa, with a population of about 150 million. The Nigerian market potential also stretches into the growing West African sub-region.”

    Among the first concerns of a first-time visitor is how to easily obtain entry permits. Chapter Two of the book provides answers. It discusses requirements for procuring visa and permits, as well as immigration requirements for new companies.

    There is a treatise on gratis (courtesy) visa, visitor and transit visa, business, education and transit visas, temporary work permit, employment visa, return or re-entry visa, among others. The procedure for obtaining them is discussed. Immigration requirements for new companies are also treated, as well as multiple entry visa and alien registration card.

    Businesses do not exist in a vacuum. The authors, in the third chapter, explore legal and regulatory framework, examining institutions such as the Nigerian Investment Promotion Council (NIPC) and their roles.

    The book explains a unit of the NIPC, the One Stop Investment Centre, which provides coordinated and streamlined services for investors. OSIS is said to function with 26 other participating agencies, which are all explained.

    The chapter further discusses the Coporate Affairs Commission (CAC), its structure, processes and functions, as well as cost and other requirements for company incorporations.

    The money market and its institutions; discount houses which intervene in mobilising funds for investments in securities in response to the liquidity of the system; universal banking, commercial banks, community banks, among others, are also discussed.

    Not every investor would want to start a business from the scratch. The fourth chapter, titled: Acquisition of Businesses in Nigeria – Major Legal Issues, discusses the steps for establishing new companies in Nigeria with foreign shareholding, and appointment of directors.

    The fifth chapter: Basic Tax and Exchange Control Issues Relevant for Investment in Nigeria, is an eye-opener. It discusses no fewer than 25 sub-topics on types of taxes payable, as well as issues related to investment taxation. Nothing less is expected from tax experts.

    Having set up or acquired a business, the need for standard accounting practices is crucial. Chapter Six dwells on Accounting Record and Reporting.

    It also explains the Corporate and Allied Matters Act (CAMA) requirements, the annual financial statements and what it must contain.

    Chapter Seven, the heart of the book, gives in-depth analysis of the priority areas of industrial investment and procedure for obtaining relevant licenses.

    They include agriculture, manufacturing industries, export manufacturing, mining and mineral extraction, electric power production, among others.

    The free trade/export processing zone schemes (such as Calabar, Onne Oil and Gas, Kano, Maigatari, Banki and Lekki Export Processing zones) are also discussed, as were the import prohibition order, grant of special licenses, among others.

    Several countries are known for tourism, which largely sustains their economies. Nigeria has huge tourism potentials, but investment remains low. Chapter Eight, on Tourism, notes that many of the country’s tourist attractions “are still largely untapped and even in their raw state, are still being enjoyed…”

    It highlights the investment opportunities in transportation, hospitality, tour operations, as well as the regulatory framework, incentives and concession of land. Tourist sites and festivals are also identified. Pictures of interesting places follow, such as a spectacular lagoon front, the first storey building in Nigeria, etc.

    Infrastructure is the theme of the ninth chapter, which highlights investment opportunities in coastal, inland waterways and maritime transportation (as well as shipping and numerous port services); rail, aviation; energy and information and communication technology, etc.

    No business succeeds where the operators do not recognise and respect local customs. With pictorial illustrations, Chapter Ten explains local customs and traditions, language, religion, national pride, the family, communication style and business meetings/etiquette.

  • Ahmed, ex-Rep: pray for Nigeria, leaders

    Kwara State Governor Abdulfatah Ahmed has urged Muslims not to allow the Nigerian project to fail.

    In a message by his Chief Press Secretary, Alhaji Abdulwahab Oba, on this year’s Eid-el-Kabir celebration, Ahmed urged Muslims to pray for peace and success of the nation.

    He said: “Our existence as a country is God-ordained. We must entrust its success on to Him. This celebration is another opportunity to pray for the strengthening of the good neighbourliness and nation-building through sacrifice and selfless service.”

    The governor noted that for Nigeria to realise its potentials, followers of all religions must work collectively and submit to common religious doctrine of being their brother’s keeper.

    He said: “The 1434 A.H Eid-el-Kabir celebration provides another opportunity for us to reflect on the essence of sacrifice and humility as the fulcrums for the promotion of harmonious relationship in our polity.”

     

  • Modernising legal practice in Nigeria: Challenges and prospects

    (ii) Reduced practicing fees.
    (iii) Reduced Nigerian Bar Association Conference registration fees.
    (iv)Sponsorship by the Bar for Continuing Legal Education.
    (v)Sponsorship by the Bar for regular, beneficial workshops where skills like advocacy and drafting are taught.
    (vi) Support from the Bar in the event of accidents.
    (vii) An allowance which the young lawyer receives even when he/she is unemployed.
    Young lawyers deserve these and more. They pay practicing fees from their meager salaries and wait patiently for the promised riches. While I am aware of the need to ensure that Young Lawyers work hard and pay their dues before they make money, I also believe they deserve a basic welfare package.

    (e) Merger of firms
    This is definitely the hardest solution for my learned friends to accept. The truth is that we have too many small law Firms in Nigeria doing basically the same thing. Many of such firms contain only one lawyer but give the impression that there are several lawyers. They are mostly land speculators who can barely run themselves, talk more of a Law Firm. Most of our true law Firms have no international outlook whatsoever and certainly do not allow for specialisation. Some Firms in developed countries have between 2000 and 3000 lawyers. It is my suggestion that more law Firms enter into partnerships. The smaller ones can be absorbed by the bigger ones. With such mergers, the following will be immediately discerned:

    (i) The Firms will have more Lawyers;
    (ii) There will be more departments, thus leading to specialization on the part of Lawyers;
    (iii) More funds, meaning the Firm can be properly run;
    (iv) There will be stable electricity and stable internet supply;
    (v) Better decisions will be taken due to broader consultation;
    (vi) Bigger salaries and allowances for lawyers;
    (vii) Lawyers can be assisted financially and academically;
    (viii) The Firm can manage its lawyers’ welfare better;
    (ix) The Firm has more branches in Nigeria and abroad;
    (x) The Lawyers in these larger Firms can compete with the best in the world; and
    (xi)The Firm can offer services to clients in different countries, operating different time-zones.
    In the United States of America, the National Law Journal’s 2012 list of the 350 biggest firms in the United States (the “NLJ 350”) listed the Firm of Baker & McKenzie LLP which had 714 Partners, 2,453 Associates and 603 other workers20 as the biggest Law Firm in America with the income generated in 2010 alone pegged at $2,104,000,000.
    The title of the World’s largest Law Firm now belongs to DLA Piper LLP which in 2012 made over $2,440,000,000and has 1,032 partners. The biggest Law Firm in the United Kingdom, Clifford Chance LLP, and third largest in the world, according to the 2010 ranking, made over 1.8 Billion Pounds in 2010 alone! In the period between 2011 and 2012, Clifford Chance LLP had revenues of over 1.3 Billion pounds and profits per equity partner of 1.1 Million pounds23. There are no prizes for guessing how much money these Firms have made over the years. In that same year (2010), the lowest ranked law Firm on the prestigious list according to revenue was Dorsey & Whitney LLP with an income of $342,000,000.
    In recent years, Baker & McKenzie LLP25 has been involved in some of the most complex transactions for clients. Recent matters include:
    (i). The American International Assurance Company, Limited, a wholly owned subsidiary of AIA Group Limited, on the 1.8 Billion Dollar acquisition of ING Groep N.V’s Malaysian insurance and Takaful business.
    (ii). The Steering Committee of international creditors of BTA Bank JSC in the successful second restructuring of the Kazakhstani bank in relation to 11.1 Billion Dollars of its international financial debt and other claims. The deal was the largest Central and Eastern European restructuring of 2012.
    (iii). The Regal Real Estate Investment Trust on the establishment of its 1 Billion Dollar medium-term note program.
    (iv).The Thai Oil Public Company Limited on its offering of US$1 billion dual-tranche senior unsecured fixed-rate notes to foreign institutional investors in accordance with Rule 144A and Regulation S.
    (v).Endeavour Silver Corporation on its option and joint venture agreement with La Sociedad Quimica Minera de Chile SA (SQM) to earn a 75 per cent interest in the El Inca silver-gold properties.
    (vi).The Kingdom of Bahrain, in relation to its $1.5 billion bond issuance.
    (vii).Sierra Gorda SCM and Salfa Montajes S.A., an affiliate of Chilean based SalfaCorp Engineering and Construction Business Unit on its agreement for the construction and installation of wet and dry areas of the Sierra Gorda mine project processing plant.
    (viii). AXA Private Equity, on its acquisition from the private equity arm of Ontario Municipal Employees Retirement System (OMERS) of a portfolio of 11 private equity fund investments and the related unfunded commitments.
    (ix).WestLB, regarding a definitive agreement to sell its Subscription Commitment Facilities (SCF) portfolio in the USA and in the UK to the financial services provider Wells Fargo Bank, NA (Wells Fargo).
    (x).The Dow Chemical Company (Dow) and certain Dow subsidiaries in relation to the 1.4 Billion dollar Islamic finance facilities made available to Saudi Acrylic Acid Company (SAAC), Saudi Acrylic Monomers Company (SAMCO) and Saudi Acrylic Polymers Company (SAPCO).
    (xi).Schuler – Beteiligungen GmbH on, the sale of its 38.5 per cent stake of the publicly listed Schuler AG, a world-leader in metal forming and metal processing, to Austrian technology company Andritz Group.
    (xii).Banque Saudi Fransi, Saudi Arabia’s fifth biggest bank by market capitalisation, on its debut $750 million 2.947 per cent Trust Certificates due 2017 issued under its 2 Billion Dollar Sukuk Program.
    (xiii).Global Blue, international provider of travel-related payment, on the sale of the company from Equistone Partners Europe to US private equity firm Silver Lake Partners for 1 Billion Euros.
    (xiv).Yanzhou Coal Mining Company Limited (Yanzhou Coal), on its US$1 billion Notes issue.
    (xv).A CAPITAL, in connection with the international aspects of a new fund named A CAPITAL China Outbound Fund.
    (xvi).Banque Saudi Fransi (BSF), in relation to the establishment and listing of its debut 2 billion dollar Sukuk program.
    (xvii).Almarai Company, on the establishment of a SAR 2.3 billion Sukuk program and inaugural issuance of a SAR1 billion Sukuk.
    (xviii). Colt Group, the information delivery platform for businesses across Europe, on an initial three-year term to provide commercial, IT, Telecommunications and regulatory advice. The appointment is the result of a competitive bid that involved over 45 law firms around Europe.
    (xix). Fresenius Medical Care AG & Co. KGaA, the world’s largest provider of dialysis products and services, on Fresenius Medical Care North America’s acquisition of Liberty Dialysis Holdings, Inc. The acquisition is expected to add annual revenues of around $700 million and 201 clinics to Fresenius Medical Care’s network for an investment, net of proceeds from the divestiture, of approximately $1.5 billion.

    (xx). Kiekert AG, market and technology leader for automotive side door latches and inventor of the modern central locking system, on the sale of its shares to publicly traded automotive supplier, Hebei Lingyun Industrial Group Corporation Ltd. in Beijing, China. The transaction paves the way for an international automotive supplier with yearly revenue of 1.2 Billion euro.
    (xxi). Sierra Gorda SCM, held by Quadra FNX Mining Ltd., Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation, on the closing of its loan agreement with financial institutions for 1 billion dollars.26
    There is no doubt that its sheer number of lawyers, the specialization of its lawyers and their presence in so many countries combined to give the law Firm of Baker & McKenzie LLP an almost unassailable lead in virtually all areas of development in the period between 2011 and 2012 although the top spot is now held by DLA Piper LLP27. On the National Law Journal’s 2013 list of the 350 biggest firms in the United States (the “NLJ 350”), the smallest Law Firm on the prestigious list, (Number 350) Looper Reed & McGraw, has 117 partners. If size or income were used as a criterion, you would be hard pressed to find a Nigerian law Firm that would make any of these prestigious lists.
    It is difficult to find a law Firm in Nigeria that has up to 10 Partners or one that generates as much income as even the lowest quoted above. In foreign jurisdictions, Law Firms merge and pool their resources (including human resources) together in order to allow for better planning and a stronger financial footing.
    It is my belief that such mergers are needed for the Legal Profession to move ahead in Nigeria.

    (f)Acceptance of technology by lawyers and judges
    The hard truth is that technology in legal practice has come to stay. It makes legal practice so much more convenient. There is no doubt that in terms of human capital, the Nigerian legal profession scores high It is in the non-human aspect that our legal profession falls far short of what obtains in the United Kingdom. For instance, our legal profession is still “paper based”. By that, I mean that few of our lawyers are computer-literate. Very few offices are connected to the internet and research is done manually.
    In the United Kingdom, most offices are 80 per cent “paperless” and the majority of the research is done on-line. Judges in Nigeria have to write down all that is said unlike judges in developed countries where stenographers are used. Technology has simply made legal practice easier. Now, instead of “invading” Court rooms with books, one can store the soft copies of such law reports and statutes on an i-pad or a laptop and the results would be even better because the i-pad and laptop can store more books than you can carry. The typical modern law Firm has done away with typewriters and has state of the art computers, it has stand-by generators and inverters, it is connected to the internet 24 hours a day and can access information at the touch of a button. Lawyers are therefore advised to accept technology for what it is; a faster and more efficient means of legal practice in Nigeria. It is technology that will propel legal practice in Nigeria to its position among the best in the world.

    (g) Creation of professional goals
    People work better when there is a prestigious award at the end of it all. For a practising lawyer, nothing epitomises this like the rank of Senior Advocate of Nigeria (SAN). The Rank of Senior Advocate of Nigeria (SAN) is undoubtedly the most prestigious title in the legal profession. Every young lawyer dreams of being a ‘SAN’ and the mere thought that the title could be attained by hard work and dedication serves as a motivating factor for these young ones. Legal practice in Nigeria would be the ultimate victor if lawyers made it a point of duty to make excellence their watch word. That excellence could be better attained if there was a reward at the end of all their efforts. In Nigeria, we have less than 500 Senior Advocates in a country of over 60,000 lawyers.
    In the United Kingdom, a certain percentage of applicants are made Queen’s Counsel (the United Kingdom version of Senior Advocates). For instance, in July 2005 in the United Kingdom, application forms for appointment under a new system were released. The appointment of 175 new Queen’s Counsel was announced on July 20, 2006. 443 people had applied (including 68 women, 24 ethnic minority lawyers and 12 Solicitors). Of the 175 appointed, 33 were women, 10 were from ethnic minorities, and 4 were Solicitors. Six people were also appointed QC Honoris Causa. The Silk Ceremony was on October 16, 2006 in Westminster Hall, a couple of weeks after the beginning of the legal year. The successful candidates were to make a declaration and receive their letters patent from the Lord Chancellor. 175 is 39.5 per cent of 443. In Nigeria, less than 20 persons are appointed each year out of hundreds of applicants. The rank of Senior Advocate of Nigeria (SAN) should be made available to all who merit it and complex technical requirements like the five-year rule should be jettisoned so as to motivate the younger ones.

    (h) Quicker determination of cases
    This is self-explanatory. Nigerians simply cannot afford to keep spending their hard earned money to pay lawyers who then proceed to secure adjournments and amendments for the next five years. It is highly discouraging and forces clients to explore other means of Alternative Dispute Resolution. If the current trend continues, Nigerians will look for other means to resolve their disputes; without lawyers. It is possible for a more realistic variation of the 180 days given to Tribunals to determine Petitions, to be made compulsory for Nigerian courts. In foreign jurisdictions, the time frame for cases is set out, including the delivery of judgment. It is quite possible for Nigerian courts to adopt this same technique, even if on a more realistic scale (of say 12 -18 months) at first. The time frame can reduce as the new practice sinks in. With time, the practice of never-ending, laborious litigation would be a thing of the past.
    Particular attention should also be paid to Interlocutory appeals which ultimately stall proceedings at the lower court. Interlocutory appeals should be filed with the leave of the trial court only. Also, if the matter is already on Appeal, at the Court of Appeal for instance, an interlocutory appeal to the Supreme Court must be with the leave of the Court of Appeal. That way, the Nigerian Legal System can sieve out the frivolous interlocutory appeals. In addition, a time frame should be fixed by the higher courts for the determination of interlocutory appeals so that trials and substantive appeals are not indefinitely stalled. Justice is not meant to be rushed but it could also be a problem if it is unduly slow.
    Stenographic means could also be used to record proceedings in court. The judge does not have to be the one recording.
    He may record important points that catch his eye but the stenographer should be given the responsibility of recording verbatim.

    In the alternative, cameras or voice recorders could be used to relieve judges of the onerous burden of writing, thus saving time and ensuring quicker determination of cases.

    (i) Procedural Reforms in our courts

    One cannot claim to be ignorant of the reforms undertaken by the various courts of the land all in a bid to make legal practice easier and less tedious (its tedious nature has already further popularized other means of dispute resolution like Arbitration and Mediation). A lot more needs to be done however and this time, we are not referring to Practice Direction Rules of the Supreme Court and the Court of Appeal, we are instead referring to the Civil Procedure Rules of the High Courts of the land and the Criminal Procedure Code30 and Criminal Procedure Act31 which still need to undergo reforms which will ensure that trials are swiftly concluded. This will improve legal practice in the country tremendously.

    (j) Admission into the Nigerian Law School

    The Vice-Chancellors of the various Universities should ensure that the quota determined by the Council of Legal Education and the National Universities Commission (NUC) are not undermined. This calls for robust enforcement no matter whose ox is gored. I expect to see a modern legal education where once admitted into the University, the student is assured that on successful completion of the university education, there is a seamless transition to the Nigerian Law School. I am strongly of the view that any Vice-Chancellor that exceeds its quota should be sanctioned by the NUC.

    Alternatively all law faculties can be allowed to produce as many law graduates that they want to but on the strict condition that applicants to the Nigerian Law School must face a qualifying or entrance examination or test to gain admission into the Law School on the basis of merit.

    Similarly, the NUC should re-visit the curriculum of the Faculties of Law to ensure that those who do not intend to practice law can graduate with, for instance, BA (Law) or a combined honors programme so that it is only those who intend to practice law that proceeds to the Nigerian Law School. At the moment, some products of the Nigerian Law School are not interested in legal practice thus blocking the opportunity for those who are interested in legal practice but not admitted because of the backlog of students awaiting admission into the Nigerian Law School.

    Apart from the trauma of losing seniority which is very critical in the legal profession, those not admitted are usually not absorbed by law offices.

    Other than the core academic subjects, I expect a modern lawyer to be taught entrepreneurial skills in the University. Accordingly, the NUC should review the Benchmark Minimum Academic Standards (BMAS) for the Law Faculty to ensure that entrepreneurial skills commensurate with the status of a law graduate are taught and not courses like sewing, knitting, soap making, etc that are included in the Introduction to Entrepreneurial Skills that form part of the General Studies of the Universities.

     

    (k) Continuing Legal Education

    Continuing legal education (CLE; also known as MCLE (mandatory or minimum continuing legal education)) is a professional education of lawyers that takes place after their initial admission to the bar. It is to ensure that lawyers remain professionally competent throughout their lives. In the United Kingdom for instance, a lawyer has to be assessed every year before he is allowed to practise. To remain competent, the lawyer has to stay in touch with the profession. All Nigerian Lawyers in legal practice or employment must comply with the Nigerian Bar Association’s Mandatory Continuing Legal Education (MCLE) Programme. They are required to take Mandatory Continuing Legal Education (MCLE) courses in order to qualify to practise law within our jurisdiction

    The Nigerian Bar Association Institute of Continuing Legal Education (ICLE) serves as the Continuing Legal Education regulatory authority for the NBA and the profession by providing the standards and scope for the MCLE programme. The institute is overseen by the Board of the Nigerian Bar Association’s Mandatory Continuing Legal Education and works closely with Nigerian Bar Association Sections and the various local branches at large in developing programs on Mandatory Continuing Legal Education.

    In many states in the United States, Continuing Legal Education participation is required of attorneys to maintain their license to practise law. Continuing Legal Education requirements exist in many other jurisdictions, such as in Canada.

    I believe Nigerian Lawyers should be subjected to such conditions as well. That way, we can be sure that any Lawyer who practises in Nigeria is not out of touch with the Profession.

    (l) Rating of Firms and Faculties

    In foreign jurisdictions like the United Kingdom and the United States of America, Firms are rated yearly in order to determine the largest Firms according to the number of lawyers or financial turnover. This rating is done by the relevant regulatory authorities or newspapers and magazines The system could be introduced in Nigeria to enable law Firms in Nigeria know their current status, both in Nigeria and indeed the world. In addition, a favourable rating for a law firm, means more potential clients would be inclined to select the law Firm as against a poorly rated Firm.

    The law faculties that produce Nigerian law students should also be rated yearly by the relevant bodies (like the National Universities Commission and the Nigerian Law School) or some independent ones (like Newspapers and magazines). This would encourage law faculties to raise their standard in order to receive a favourable assessment, which favourable assessment could increase the rate at which such faculties are selected by potential law students.
    (m) Separation of the Council of Legal Education from the Nigerian Law School

    The Nigerian Law School as presently constituted is over centralized in terms of admission and examination. Although there is a Secretary to the Council of Legal Education and Chairman of the Council, the Director General of the Nigerian Law School virtually runs the Council. This should not be the case. It should be the other way round, that is, the Council running the law schools. In any case, before the multi-campus system was introduced, there was no legislation providing for multi-campus. It was merely an administrative fiat.

    We believe that the Legal Education Act of 1962 is overdue for review and amendment to provide for autonomous campuses and separation of the Council from the Schools.
    (n) Private Law Schools And Institutions

    At present, we have a total of one hundred and twenty eight Universities in the country. Fifty (50) out of this number are Private Universities, forty (40) are Federal universities while the remaining thirty eight (38) are State Universities. If private individuals or institutions, can run Universities, I do not see why private individuals or institutions cannot run Law Schools under the guidelines to be published by the Council of Legal Education and a central examination conducted by the Council. However, there must be strict regulations and accreditation of such Private Law Schools. This is more or less the practice in other climes, for example, the English system has moved from four Inns of Court to the creation of additional ten institutions for the training of lawyers.
    1. CONCLUSION

    It is my humble but firm opinion that majority of today’s lawyers lack adequate preparation for the basics of legal practice. We should bear in mind that we derive our present legal heritage from the United Kingdom where Barristers and Solicitors practise separately. Both arms of the profession run a system of professional education which follows after the academic qualification has been obtained. For one to get the approval to work as a Solicitor, one has to spend another two years as a trainee. In the case of Barristers, one has to undergo a mandatory one year pupillage after graduating from the Bar Vocational College. Consequently, by the time one comes into practice one is armed to face the rigors of the legal profession. In Nigeria, however, once one passes the Bar Exam and is called to the Bar he is thrown into the fray. This has led to the advent of “half-baked practitioners” who do not appreciate some of the basic concepts of law. They are unleashed at the society without adequate preparation.

    We are not just building lawyers who will bestride the Nigerian legal landscape; we are building Lawyers who can stand toe to toe with their counterparts from developed countries. The question has been asked several times; where would Nigerian legal practice be in the next decade? Are we going to be far better off? Would we have a Nigerian law Firm acting as external Solicitors to Goldmann Sachs? Have the seeds been sown? Will we get rid of the shackles holding us back?

    It is my firm conclusion that legal practice in Nigeria has a bright future but needs to expunge those factors that work against its progress while absorbing those factors that aid in its development. Where there is life there is hope and where there is a will there is a way. Life is reassuring each time one recalls the saying:

    “Learn to be happy with what you have while you pursue all that you want’’
    (Footnotes)

    .

    12
    Senior Lecturer, Department of Public Law, Rivers State University of Science and Technology, Nkpolou, Port Harcourt.
    .

    20 The 2012 NLJ 350. Retrieved June 10, 2013.
    .
    29
    The Titi Tudorancea Bulletin. October 5, 2010.
    .
    .

  • Ethiopia skipper insists Nigeria can fall at home

    Ethiopia skipper insists Nigeria can fall at home

    Ethiopia skipper Degu Debebe has said despite the 2-1 loss to Nigeria Sunday they could still turn the table in the 2014 World Cup playoff.

    The return leg match will be played in Calabar on November 16 with the overall winners qualifying for next year’s World Cup in Brazil.

    “We missed some good scoring chances today, but we are capable of going to Nigeria and also winning,” said Debebe after the tough encounter at the National Stadium in Addis Ababa.

    After a barren first half, the hosts took the lead through Behailu Assefa in the 57th minute, before Emmanuel Emenike levelled matters 10 minutes later.

    But the Super Eagles showed more aggression and got a penalty that Emenike made no mistake converting for the match winner.

    Debebe said although they lost the game which was very unfortunate, he thought the referee did not give them many of the advantages.

    “We badly needed a win at home, but we have lost. We need to go back to the drawing board and work hard to be able to win away from home,” added the skipper.

    Ethiopia coach Sewenet Bishaw said he was disappointed with the loss.

    “We wanted this win so badly, but we lost,” said Bishaw,who said they will now focus on preparing the team for the second leg.

    The hosts had five players cautioned (Tesfaye Seyoum, Girma Adane, Behailu Assefa,Addis Hintsa and Aynalem Hailu),while the Super Eagles had no player booked.

  • How far can Nigeria go without plan-based MTEF, annual budgets?

    The Minister of Finance is required by section II of the Fiscal Responsibility Act 2007 to prepare the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP), for approval by the Federal Executive Council and the National Assembly ahead of the presentation of the budget for the following year. These two documents provide the basis for the annual budget planning, they contain a macroeconomic framework that indicates revenue and expenditure estimates. The documents also provide underlying assumptions for the projections, evaluation and analysis of the previous year’s budget and overview of consolidated debt and potential fiscal risks. However many of the projections of the 2014-2016 MTEF are rather pessimistic; this article interrogates some of these assertions and proffers alternative perspectives.

     

    Global economic outlook

    is more upbeat

    The 2014 -2016 MTEF/FSP document painted an overtly pessimistic view of the global economy as well as the domestic economy. The global economic outlook for 2014 seems brighter than the MTEF admitted. The world economy started showing signs of recovery in 2010 and has remained so since the economic and financial crises of 2008 and 2009. Contrary to the assertions of the MTEF, the OECD projections of September 2013 reported the economic growth projections of USA at 1.9 per cent for 2013 and 3.2 per cent in 2014. The Chinese economy is also projected to grow at 7.8 per cent in 2013 and 8.4 per cent in 2014. The average growth rate of African economies is projected at 5.2 per cent in 2014. However, the Euro Zone economy remains fragile with projected growth rate of – 0.6 per cent.

    In the same vein, the MTEF document did not pay adequate attention to Nigeria’s major trading partners such as the BRICS nations that are currently the major drivers of bilateral trade and growth in Sub Saharan Africa. Bilateral trade between Nigeria and BRICS nations has been on the increase in recent times. Therefore, the emphasis and reliance on our traditional trading partners i.e. Japan and Euro zone economies as basis for the impact of world economy outlook on the 2014-2016 MTEF though conservative is overtly misleading. Indeed China is projected to surpass the Euro Area in a year or two and the United States in a few more years, to become the largest economy in the world, and India is projected to overtake Japan in the next year or two and the Euro area in about 20 years (OECD, 2013). With these forecasts, there are reasons for cautious optimism that the world economy will recover further in 2014 as against the depressing position of the Ministry of Finance.

     

    Performance of economy goes beyond GDP growth

    The Nigerian economy has been reported as “resilient experiencing a robust growth of 6.58 per cent in 2012 compared with average global growth of 3.1 per cent”. Inflation is also reported to have declined to single digit of 8.4 per cent as at end of June 2013 from 12.7 per cent in May 2013. Other indicators like interest and exchange rates have been reported as stable with annual declining fiscal deficit, improved sectoral growth rates particularly in agriculture, wholesale and retail trade. All things considered; the fundamentals of the economy appear good.

    Obviously the current administration is not without some economic achievements; most notably is the maintenance of fiscal stability against volatility in oil revenue. In particular, the establishment and continuous management of the Excess Crude Account (ECA) provided a fiscal cushion for the country. However, it must be noted that ECA was supposed to be hedging against international volatility in oil prices and not fall in oil revenue owing to crude oil theft and pipeline vandalism which in themselves are indicative of a systemic failure of governance. Otherwise why would there be increased incidence of crude oil theft and pipeline vandalism at a time multi-billion naira pipeline protection contracts were allegedly awarded to former Niger Delta militants and war lords.

    Unfortunately, despite the much touted successes in macroeconomic fundamentals, it remains unknown why there is no marked improvement in employment and direct social-economic benefits to the population. The unemployment rate is reported at 29.6 per cent up from 12 per cent in 1999, while the figure is as high as 40 per cent in some states of the federation. The incidence of poverty is also high, with absolute poverty rate estimate of about 62.6 per cent. Currently, Nigeria is ranked 158 out of 186 countries on the HDI scale, Nigeria’s is making unimpressive progress towards the attainment of MDG goals and holds a potential risk to an Africa drag down at the regional level. Irrespective of the sexy external validation of the state of the economy by international rating agencies, the acid test of the performance of the economy is the index of welfare of the citizens after all; the raison d’être of government is to secure lives and property and promote the welfare of the citizens.

     

    The 2012 and 2013 budgets failed to meet expectations

    With two consecutive budget failures, it’s time for a rethink the effectiveness of our MTEF and budget processes. By admission of the Federal Ministry of Finance (FMF), a total of N4.697 trillion was appropriated for Federal Government expenditure in 2012 out of which N4.131 trillion (or 88 per cent) was utilised for personnel costs, overheads, debt service, statutory transfers and capital expenditure. Out of this amount, only 71.6 per cent of N1.017 trillion released for implementation of the capital budget was utilized as at the end of the year. This translates to a capital spending of N728 billion or 17.6 per cent of total appropriation for the year.

    The implementation of this year’s budget has not shown any better performance. As reported in the MTEF and FSP, as at the third quarter of the year, N850 billion of N1.621 trillion (52.4 per cent of total capital expenditure) or 17 per cent of total appropriation has been released for capital spending.

    The repeated failure of FAAC in ensuring timely disbursement state allocations has made most states handicapped in meeting their financial obligations in the absence of dependable Internally Generated Revenue (IGR). All these portend dangerous signals for the political economic stability of the country.

     

    The fiscal strategy for 2014- 2016 not realistic

    The claim that Fiscal Strategy for 2014–2016 is premised on macroeconomic stability, structural reforms, governance and institutions, and investing in priority sectors are questionable. The proposed approaches, current and expected success in job creation, reforms in the power and housing sectors and correction of imbalance between recurrent and capital expenditure are arguably weak and unconvincing.

    In the area of job creation, it will be an impossible mission for the any Government, least of all the Federal Government, to rely on initiatives such as YouWin and Graduate Internship Schemes to generate the quantum of employment required in the economy. Ultimately, the private sector of the economy will have to be relied upon for the solution to our unemployment problem by way of providing the enabling environment to the sector. Nigeria ranks 131 out of 185 in the 2013 Doing Business Survey; this has not improved from the 2012 ranking. The agricultural transformation is very much at its early stages and its adoption by states is still low largely due to its poor understanding and underestimation of the federalist nature of the relationships between central and state governments.

    On power generation, the amount spent between 2011 and 2013 juxtaposed against the additional 2500 kilowatt generated suggests humongous contract inflation and poor score of “money for value” proposition. What is the kilowatt per capita in Nigeria compared with other countries? According to the World Bank figures to which our Minister of Finance must be very familiar, on electricity Power Consumption, Nigeria at a meager 135 Kwh per capita compares poorly with Angola 242; Cameroon 258; Ghana 295; India 626; Brazil 2,381 and South Africa 4,803. Perhaps the MTEF could provide details of the 10 cities enjoying power for 18 hours, what is the ratio of their population to the total population and how geographically wide spread are they.

    The policy of predicating the reforms in the housing sector on mortgage financing will not bridge the current housing gap which is estimated at over 17 million units. It will only limit mortgage financing to a few salary earners who can afford it. The Government may have to look at the social aspect of housing as it is done even in some advanced countries of the world such as the United Kingdom which takes care of the less privileged and the vulnerable

    In respect of correcting the imbalance in the ratio of recurrent and capital expenditures, from a previous analysis of less than 20 per cent for capital spending, the Government should accept failure. There is nothing to show sincerity in reducing the ratio of recurrent/capital expenditure as shown in the fiscal projections of share of capital as percentage of total expenditure of 22.22 per cent, 28.38 per cent and 28.69 per cent for 2014, 2015 and 2016 respectively. What it means is that the little efforts made by the Government to rationalise Government parastatals may have been dumped. What these portray is simply that the Nigerian economy is driven by consumption. If the Federal Government is truly serious about personnel cost reduction, why the reluctance of the executive to implement the Oronsaye Report on harmonisation of over 800 MDAs many of which perform overlapping functions?

     

    The growing debt and debt

    service is worrisome

    Nigeria’s external and domestic debts stand at $6.67 billion (or N1.07 trillion at the exchange rate of N160.00/USD) and N6.49 trillion respectively bringing the total debt to N7.56 trillion. The projection in the FSP is that our debt will be serviced with N712.0 billion, N684.0 billion and N684.0 billion in 2014, 2015 and 2016 respectively. What happened to the Sinking Fund established in the 2013 budget? The reality of the situation is that our debt and cost of servicing them have become a burden on our resources on an annual basis, while the infrastructural gap is also increasing. Fiscal consolidation is a policy aimed at reducing government deficits and debt accumulation, in other words it is a movement from deficit budget to surplus budgeting.

     

    How effective can MTEF & FSP without a plan be?

    Ideally the MTEF document should originate from a national development plan with clear objectives, outcomes and performance indicators. Just like its preceding editions, the 2014-2016 MTEF/FSP is not very explicit on whether or not it is based on a medium term plan. From the onset of this administration, the FMF has relied on the transformation agenda which in turn is based on the first National Implementation Plan (NIP) of 2011-2013. It is not clear how much of that plan was achieved and there are speculations of abysmal non- implementation of the 1st NIP. Yet Nigerians were treated to a mid-term celebration of the achievements of the transformation agenda. The controversial report of the first NIP needs to be made public and Nigerians need to know if the 2014-2016 MTEF is based on the second NIP or not.

    It is claimed that MTEF and FSP are underpinned by the 1st NIP that is scheduled to end in 2013. The second NIP which is supposed to be the basis of the 2014 – 2016 MTEF and FSP is yet to be prepared. In other words, the MTEF and FSP 2014 -2016 do not relate to any plan, this once again, exposes the vulnerability of our 2014 annual budgets to a predictable failure in the absence of well articulated multi-year planning and budgeting system. From all indications, we do not have a PRSP or sectoral plans as the MTSS has been abandoned since 2005. The appraisal, costing, social and economic analysis of projects and programs are not done and therefore the budget cannot simply deliver any concrete result without these fundamentals. Ideally the MTEF should be drawn with strong inputs from the Medium Term Sector Strategies which is currently not in place. The document talks without any empirical basis on strategies for key sectors such as power, health, agriculture, education, housing, transport and security. The complete absence of specifics on how these will be achieved and what outcomes are expected makes the whole 2014-2016 fiscal policy framework seems banal. What have we done differently in new MTEF that will yield results from MTEF 2013? The current approach of Ministry of Finance prioritizing releases without clearly defined sector plans and detailed analysis of capital projects is the exact opposite of the case in Brazil and India where MTEF and budgets are based on multiyear plans and well analysed capital projects and programmes with measurable economic and social benefits. Common sense dictates that we cannot continue to do the same thing year in year out and expect a different result.

     

    Conclusion

    The MTEF and budget presentation to the National Assembly for approval and appropriation have become a yearly ritual without concrete outcomes. The MTEF and FSP for 2014-2016 will most likely, end up with annual budget failures unless it is re-worked and based on a well articulated medium term plan. The National Assembly must avoid the temptation of approving the new MTEF without a rigorous review that is based on informed input from competent economists and public finance experts. Beyond the rhetoric on a jobless GDP growth, plan-based budgeting remains another legacy that this administration can bequeath a future “Coordinating Minister of the Economy.”

     

    •Senator Adetunmbi of the APC, Ekiti North, is Vice Chairman, Senate Interior Committee and Member National Planning Committee

     

  • WCQ: Nigeria beat Ethiopia 1-2

    WCQ: Nigeria beat Ethiopia 1-2

    Super Eagles of Nigeria secured an away win on Sunday against their Ethiopian counterparts in the first leg of the of FIFA 2014 World Cup Play-Off.

    The African Champions came back from a goal down in Addis Ababa to snatch three points from the determined Ethiopians ahead of the second-leg billed for November.

    Behalu Assefa put his side up in the 56th minute  through a cross from the left flank. His effort was adjudged a goal for crossing the line even though it was caught by the Nigerian goalie, Vincent Enyeama.

    Emenike found the back of the net in the 67th minute with a powerful shot from the edge of the box sending the stadium quiet.

    The CSKA Moscow forward was dragged down in the box for a clear penalty — he calmly dispatched the penalty to give  Eagles the victory and a leg in Brazil.