Tag: Peterside

  • Transport, logistics can boost growth, says Peterside

    Transport, logistics can boost growth, says Peterside

    •UNIPORT needs help in many areas, says VC

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr. Dakuku Peterside has described transport and logistics as the greatest enabler of economic growth.

    He spoke yesterday at the Senate Chambers of the University of Port Harcourt (UNIPORT) after his inauguration as the Chairman of 12-member Board of the Centre for Logistics and Transport Studies (CELTRAS) of UNIPORT.

    CELTRAS board consists of many eminent Nigerians as members, including an Assistant Corps Marshall (ACM) of the Federal Road Safety Corps (FRSC), Dr. Kayode Olagunju.

    The Vice-Chancellor of UNIPORT, Prof. Ndowa Lale, who inaugurated the members of the board, said the university had big dreams, but needed help in many areas.

    Acting Director of CELTRAS, Dr. Gladys Emenike, added that the centre, which was established in 2012, was one of the foremost institutions of supply-chain management, logistics and transport management in Nigeria, which had been improving on the general absence of proper planning, coordination and efficient management of logistics and transport activities in both public and private sectors.

    He the centre prepares and trains personnel.

    Emenike revealed that admission into the centre started in 2012/2013 session, with an initial intake of 17 post-graduate students, stressing that in the 2016/2017 session, CELTRAS had 38 students in M.Sc. programme, 12 Post-Graduate Diploma (PGD) students and 13 doctoral students

    He said the centre is in the process of transiting into an institute, with transport specialised areas of maritime, air, road, rail, pipeline and logistics.

    Peterside said: “It is both an honour and responsibility to serve on the board (of CELTRAS), especially an invitation from the university (UNIPORT) community that we should be part of the roles the university discharges to society: filling the knowledge gap; expanding the horizon of opportunities, by giving people skills and knowledge to be valuable and better members of the society, as well as giving people a sense of social responsibility and civic commitment.

    “If there is one enabler for economic development, it is transport and logistics. Have you ever imagined that we produce goods in one part of the world and are consumed in other parts? Demand and supply exist in two different locations.

    ‘China today is credited with having excess productive capacity, but the goods produced in China are consumed elsewhere. The link between where the goods are produced and where they are consumed/where the demand is effective is transport and logistics.”

    The NIMASA chief, who was the governorship candidate of the All Progressives Congress (APC) in Rivers State during the 2015 election, pledged that members of the board would not fail UNIPORT’s authorities.

  • I have no quarrel with Amaechi, Peterside, says Abe

    I have no quarrel with Amaechi, Peterside, says Abe

    The senator representing Rivers Southeast in the National Assembly, Magnus Abe, says he has no disagreement with Transportation Minister Rotimi Amaechi and the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside.

    Abe said all was cordial in his relationship with Amaechi, a former Governor of Rivers State, as well as Peterside, the state’s governorship candidate of the All Progressives Congress (APC) in the 2015 election.

    The APC senator said the “so-called” misunderstanding was based on people’s speculation and imagination.

    Abe, who spoke yesterday in Port Harcourt, the state capital, assured his constituents that the East-West Road would soon be completed.

    The senator said he was working with the Ministry of Niger Delta Affairs to ensure the quick completion of the strategic road.

    East-West Road starts from Oron in Akwa Ibom State, passing through Ogoni land in Rivers State, stretching to Bayelsa, Delta, Edo, Ondo and Ogun

  • End of Wike’s govt in sight, says Peterside

    End of Wike’s govt in sight, says Peterside

    The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, has said the end of Governor Nyesom Wike’s administration in Rivers State is in sight.

    The All Progressives Congress (APC) chieftain described Wike’s administration as a disappointment, especially in the battle against crime, provision of infrastructure and social services.

    Peterside said if Wike’s administration was a bad dream, Rivers residents wished they would never have the kind of dream again.

    The NIMASA chief insisted the Rivers State government is a nightmare.

    Despite insinuations in some quarters, he said there was no disagreement in the state’s APC.

    Peterside, who was APC governorship candidate in the 2015 election, spoke on Saturday night during an interactive session with select reporters at his home at the old Government Reservation Area (GRA) in Port Harcourt, the state capital.

    A former APC chieftain who recently defected to the PDP, Chief Glory Emeh, told reporters there would be no vacancy in Government House in 2019.

    Emeh, who is former Chief of Staff at the Government House, insisted that with Wike’s “impressive” performance in the local government areas, the people would vote for him to continue in office till 2023.

    But Peterside said: “One thing is certain: the end of Wike’s government is in sight. Rivers people can no longer accommodate this maladministration in our state. We have been subjected to the most dehumanising era ever experienced in the history of our state.

    “We have had the unenviable record of being the state with the highest number of killings, assassinations, murder. Human lives mean nothing to us. We have more Rivers children out of school than we had two years ago. We have more crimes in Rivers State than any other state in the country.

    “It is very clear that Wike was not elected by Rivers people, who never freely gave him their votes and so they are not disappointed. Wike was foisted on Rivers people. In approximately two years, Rivers people will have a chance to correct the wrong that was done to them.

    “I want to assure you that they will grab the chance with two hands, maximise the opportunity and throw these chaps out of Government House, Port Harcourt. So that they will bring some serious-minded persons to turn the fortunes of the state around, accelerate development and give the people cause to smile again. Our people have suffered enough.”

  • Why big businesses can’t do without private jets, by Peterside

    Why big businesses can’t do without private jets, by Peterside

    In this piece titled: “Being seen above the clouds: Perception of business aviation in West Africa and how to affect it”, Atedo Peterside, the Chairman of ANAP Business Jets Limited, explains the advantage of private jets to businessmen.

    Business Aviation has a terrible reputation in West Africa. Unfortunately, private jets are still seen in the region as expensive toys for playboy millionaires, insensitive and wasteful Heads of States/senior government officials or politicians and others, who acquired their wealth through questionable means. And yet, it needs not be so.

    Private Jets can be, and are indeed an indispensable and efficient tool for big business in the West Africa region where efficient travel between neighbouring capital cities can still be a nightmare because many of our airlines are seriously challenged. The traffic between many of the smaller urban centres is not large enough to support regular scheduled services. For instance, three flights a week between Lagos and Freetown means that, to attend a three-hour Tuesday morning meeting in Freetown, a Nigerian business delegation may have to depart Lagos on Saturday morning and only get back home on Thursday afternoon. Even travel between capitals of two neighbouring countries like Abuja and Yaoundé remains a daunting task in 2017. As a general rule, commercial flights are only available to and from major hubs. Point-to-point travel, which bypasses hubs, is therefore only possible in West Africa via business aviation.

    ANAP Business Jets Limited is on a mission to correct the narrative surrounding business aviation in West Africa and, so far, we are succeeding. Serious business people are surprised when they discover that, by embracing the fundamentals behind a “sharing economy”, a modest financial outlay through the ANAP Jets Fractional Ownership platform can significantly transform their businesses by giving them access to a private jet “on demand” for a few years. This helps to eradicate their regional travelling headaches in a most efficient manner.

    For business aviation, the watchword for these products which embrace the sharing economy is “Pay less and fly more”. The alternative description is “Fly smart”.

    The first time I realised that private jets had become an essential or indispensable business tool in our region was when I had a series of meetings with successful mining companies in Western Australia some years ago. I was trying to sell them the West African mining story. Miners typically bring out large maps and when you discuss specific mineral deposits with them, their first question is “where is the nearest airport or airstrip” from that location?

    The bottom line is that, in the 21st Century, senior executives of successful mining companies (and other large businesses) are only largely interested in destinations that they can fly into and out of efficiently to explore opportunities. Because they are realists, they do not expect to find quality airlines to fly them to the hinterland. They expect to fly into a regional hub like Lagos, Abuja, Accra or Abidjan on a commercial airline and to transfer efficiently unto a 6-seater or 10 or 13-seater private jet or turboprop that will get them within no more than a one hour car-drive from their destination.

    Airports and airstrips are therefore vital towards opening up the hinterland. Viewed from this perspective, the presidents or governors who insist on developing modest airstrips in the hinterland should not be vilified because business aviation should/could be the forerunner that eventually leads to significant investment activity in their undeveloped backyard.

    In most parts of West Africa, there are large distances between urban centres. The days of Mungo Park spending months sailing up the River Niger are long gone. Businessmen want to finish their journey within a region inside one or two hours and only air travel can achieve that over long distances. Security concerns have also helped to create that mindset. Indeed, it might be pertinent to remember that, even Mungo Park never lived to tell us about his last journey up the River Niger. Today, international businessmen and big businesses in general will no longer agree to travel very long distances by road in undeveloped parts of West Africa because long distance road travel is just too risky and is also time consuming.

    There is a chicken and egg situation with provincial airports and airstrips in the sense that if you do not build them, nobody will come, but then an excuse for not building them also is that there is no guarantee that anybody will come just because you built them.

    Government policy on aviation should therefore be futuristic. We should not kid ourselves that the hinterland will open up itself. That may not happen or it may happen too slowly. Provincial airports and airstrips can be built very modestly and are relatively cheap to build in areas that have natural flat grasslands and that is true for large parts of West Africa. Airports and airstrips are a lot more expensive in swampy and/or hilly terrain.

    The natural order/sequence of development of the hinterland would entail the following:

    • Airports/airstrips first
    • Business aviation
    • Sustainable commercial airlines.

    Note that commercial airlines come last in the sequence. If they rush in too early, commercial airlines will fail because they will be flying with lots of empty seats. In many provincial locations therefore, business aviation will hold sway for a while.

    I have already mentioned earlier that safety should be the number one goal. According to the ICAO Safety Report 2014, Africa had approximately two per cent of global air traffic in 2014 and yet our share of global aviation accidents in that same year was 10 per cent. Another way to present these statistics is to point out that Africa’s accident rate was 12.9 per million departures, whereas the global average was 2.8 accidents per million departures. There is no excuse for that. We (Africa) can and should be as safety conscious as the rest of the world. We should have safe airports, safe skies and safe aircrafts among others. Our accident rate needs not be above the world average. Indeed, Africa’s accident rate can and should be in line with the world average – and this goal is achievable in less than a decade. After all, we do not encounter snowstorms, icy runways, amongst several other hazards that exist elsewhere.

    Embracing safety as a priority goal sounds so simple and yet, we have had some past Aviation ministers in the region that only embraced safety, as a priority, after their country suffered some horrific air crashes that were clearly avoidable. If you ask West Africans to choose between safe skies and national carriers, they will choose safe skies first. Our Aviation ministers should constantly ask questions about the surface conditions of all our runways, the quality of lighting (runways and taxiways), quality of communications between air traffic control and the pilots they are directing among others. We want to get to a position where we can say that we should never have an aviation accident anywhere in our region caused by these avoidable factors. Are we there yet? Sadly we are not there yet, but with a little more application and focus, we could be our way there.

    Many people in our region wrongly equate private jets with safety and regional airlines with high risk. This need not be so and the correlation is not that straight forward. It is the operator and the premium that he places on safety and the good practices that he adopts that makes the difference. A bad operator can therefore run a risky private jet business.

    It is for our Aviation ministers to ask the hard questions and help initiate and coordinate policies that will get West African aviation to global safety standards. Priority attention must be given to expanding existing airports and equipping them properly with terminals and other facilities to keep pace with growing passenger traffic whilst also building new airports and airstrips to open up the hinterland.

    Aviation is the preferred mode of travel for long distance travel in the future. Sadly, the pursuit of ill-advised and grandiose national carrier projects in the past, made us take our eyes off the safety ball. Fewer and fewer countries around the world care about a national carrier. Successive European countries have given up on the old-fashioned national carrier model. Most African countries have also jettisoned the idea. West African countries should not lose energy trying to repeat failed experiments from past years. Instead we should embrace “safety” as the watchword and the call to action in aviation.

    Business Aviation means different things to different people. The old fashioned idea of owning your own aircraft and trying to manage it yourself is fast falling out of favour. In the same way that many of us use Uber in various foreign cities rather than seeking to own cars in multiple locations, Fractional Ownership, Jet Cards and Charter Services (all provided by ANAP Jets), are smarter ways to fly. Governments too should be encouraged to embrace the shared economy model. Tying down state resources in an aircraft or fleet that hardly flies is wasteful, uneconomical and largely unaffordable.

    Owning your own jet leaves you vulnerable to uncapped bills. Meanwhile, all the business aviation products that companies like ANAP Jets offer enable you to ascertain and cap your costs. You decide how much you want to spend and we tell you how long or how far you can fly. There are no surprises because we take large chunks of the equity and ownership risks away from even our fractional owners.

    If you want to be seen above the clouds, then, it is also best to be seen to fly smart by capping your costs and transferring virtually all the ownership risks to companies like ANAP Jets. Done properly, business aviation in West Africa can, and should be hassle-free, more efficient, private, convenient and flexible. Modern companies like ANAP Jets are there to alleviate the ownership burden and replace it with a fixed fee, convenience and reliability.

    Finally, it is good to remember that business aviation has a positive social impact. The airlines in the region are not able to absorb all the indigenous pilots and engineers. Two pilots are deployed to fly a seven-seater Embraer Phenom 300 aircraft by ANAP Jets. This is the same number of pilots that are deployed on the largest commercial airliners with 500 seats. In a sense therefore, business aviation is more labour intensive and so, it contributes significantly towards reducing unemployment amongst highly skilled pilots and engineers in the West African region.

    • Peterside, who was the Chairman of Stanbic IBTC is the Chairman of ANAP Business Jets Limited.
  • Peterside: we’re set to make Nigeria a hub of maritime activities

    Peterside: we’re set to make Nigeria a hub of maritime activities

    •NIMASA set to host 32 countries next month

    The Nigerian Maritime Administration and Safety Agency (NIMASA), in collaboration with the International Maritime Organisation (IMO), will host about 32 countries in Abuja next month.
    It was part of its efforts to align itself with other foremost maritime administrations in the world and make Nigeria the hub of maritime activities in the sub-region.
    NIMASA said it is collaborating with the IMO to organise the Third Conference of the Association of African Maritime Administrations in Abuja, as part of its efforts to accomplish its mandate in a way that would serve the best interest of Nigeria and Nigerians within a dynamic and complex economic environment.
    Speaking at a news conference organised by the agency in Lagos yesterday, its Director-General, Dr. Dakuku Peterside, said the conference would be attended by countries in the Southern and Central African sub-region and beyond.
    The theme of the conference is: “Sustainable Use of Africa’s Ocean and Seas”.
    As part of the benefits of the conference, he said the forum would enable Nigeria to return to IMO Council at the category C level. “NIMASA’s management has received the Presidential approval to seek election into the category C of the IMO Council,” he said.
    NINASA, he said, has the responsibility of aligning itself with other foremost maritime administrations globally.
    Giving account of his stewardship since his appointment, Peterside said the reforms he brought to the agency were in line with the “Change Agenda” of the Buhari administration, which is committed to the diversification of the nation’s economy”.
    “On the public perception of NIMASA over the years, the agency under my leadership has completely change the narrative from the negative perception of corruption, inefficiency and abandonment of its core mandate to that of a maritime administration that is alive to its responsibility and working to make  Nigeria the hub of  maritime activities in Africa,” he said.
    President Muhammadu Buhari, he said, will unveil the rebranding of the NIMASA by April 22 next month. According to him, the need to rebrand NIMASA was borne out of the fact that the agency must make itself one of the foremost maritime administrations in the world.
    Based on the concerted efforts of the agency, he said NIMASA had reduced  sea pirates to the lowest ebb in the last one year.
    According to Peterside, NIMASA foiled six attempts to attack vessels on the nation’s territorial waters.
    “We have brought piracy to its lowest level in Nigeria. Only less than four pirate attacks are successful in the last one year,” he added.
    Peterside, who also described sea piracy and maritime crime as global phenomenon, assured Nigerians the agency would not relent in its efforts to reduce criminalities on the nation’s waters.
    “Piracy is a global problem whether in Gulf of Aden or Gulf of Guinea and we have enjoined support from United Nations (UN) office of Drug and Crime and IMO in fighting the scourge.”
    Speaking on the agency’s surveillance and domain awareness, the DG said NIMASA now operates a 24-hour surveillance system to capture the movement of vessels on the waters.
    “I am glad to inform you that NIMASA now operates a 24 hour surveillance system, which captures all vessels in the Nigerian maritime domain, irrespective of weather conditions.
    “We can now achieve a complete profile analysis which includes the flag, registered owner, operator, beneficial owner and movements over a specified period. The system enables us to take very swift decisions in real time on any targeted ship,” he said.
    The DG also revealed that 80 per cent of terminals and jetties in the country have complied with the International Ships and Facilities Security (ISPS) code.
    On the nations Cabotage Law, the NIMASA DG explained that the agency has made rapid progress in the enforcement of the law.
    “The Nigerian Flag has also enjoyed significant growth within the past 12 months. While 262 vessels with a total tonnage of slightly over 232,000 GRT were registered in 2015, the figures almost doubled in 2016 as 370 vessels with a total tonnage of almost 420,000 GRT were registered within the past 12 months,” he said.
    Another area of achievement of his administration, he said, was the  training of over 2000 workers of the agency and promotion of over 300  others in the last one year.

  • Peterside, a people’s missed opportunity

    The campaigns for the 2015 general election in Rivers State tasked the strongest and left the weak sapped. But for Dr. Dakuku Adol Peterside, it was an engagement on the catwalk. For him, a man’s strength can only be verified at a long distance race. The dash is only for the swift-legged, but would you want to show raw strength and attest to a runner’s resilience,, set him on the marks for a marathon.. In 2015, Peterside ran a marathon as for the outcome, Rivers State is reaping the fruits.

    This discourse is the product of empiricism derived from statistics both verifiable and marginal. Since 2015 the Independent National Electoral Commission, INEC, declared his main opponent in the governorship election winner, Rivers State has lost its eye and sleep unfortunately, at the same time. Had the state still its eyes, it could pray for sleep.. But losing both its sleep and eye becomes its irredeemable tragedy. In 2015, Rivers State had an opportunity to build on its peace; expand its boundaries for development. No doubt, Peterside was the poster page boy, the symbol of an emerging revolution anchored on humility and trust. Peterside, a thorough disciple of the Hon. Chibuike Rotimi Amaechi political school and thoroughbred loyalist, not anxious nor given to haste, ran a campaign anchored on intelligence, respect for elders and decorous diction. He was never faulted nor found loquacious with his speeches. Even though the average Nigerian politician seeking for votes could go merry and wild in their speech during campaigns, for Peterside a man’s words show who he is. So, never at any time was he caught on the offside of the tongue. The case was different with his major contender who razor-bladed with his tongue, whose slogan was laced in violent chants and slogans.

    Often found in the carriage of ancient philosophers and wise men who understood the power of the tongue, even when provoked beyond measure by his opponent and other reverse political interests, Peterside clung to modest response that even his supporters would spoil for war. Not even the infamous Okrika attack on him and the campaign train arm twisted him to become who he was not – a man of peace. His reaction to that provocation sold him further as a man of peace whose administration would pursue peace for the sake of Rivers State. However, ulterior forces, mobilised by anti-peace agents from home, bungled such fine opportunity. Today Rivers State is reaping the bitterness of that diversion.

    Since the current regime in Rivers State came on board, the state has graduated from its glorious “Rivers of Possibilities” to its now inglorious status of “Rivers of Blood”. Streets are deserted as the day hits evening over fear of rampaging apostles of King Herod. Remember that Roman potentate domiciled in Jewry was the first recorded murderer who beheaded John, the Baptist. This Herod, the murderer, drew the first sword across a neck and would be proud today that his bestial example is today a big industry in Rivers State. But trust, had Peterside occupied the Brick House, Rivers State would not have walked this boulevard of murderous Herod. Peterside abhors violence and speaks out against its proponents. He believes that nothing is impossible through peace.

    Today in this state, life is as cheap as the cheapest as people get killed, their heads beheaded and pinned across streets as football goal posts. It never got that bad until now. Peterside’s foray into the Rivers governorship was not for personal aggrandisement but was to proffer abiding peace and development module. What Rivers State missed!

    The current unfortunate scenario in Rivers State was avoidable. Peterside was a clear solution to the tragedy of today. He was not rejected by the voters but was shot out by messengers of hot pellets buoyed by their paymasters. That sad incident has dragged Rivers State into an abyss. Today, the future of this greatly endowed state is in the hands of clairvoyants, people who rule by fiat and terror.

    This piece shall return with options open to Rivers State with Peterside still an unavoidable option.

     

    • First published by Neighbourhood
  • Peterside accuses INEC of being compromised

    Peterside accuses INEC of being compromised

    The governorship candidate of the All Progressives Congress (APC) in Rivers State during the 2015 election, Dr. Dakuku Peterside, has accused the Independent National Electoral Commission (INEC) in the state of being compromised by Governor Nyesom Wike during Saturday’s legislative rerun in Etche and Omuma local government areas.

    He said the Rivers governor manhandled INEC officials and forced them to do his bidding, in an effort to prove that his factionalised Peoples Democratic Party (PDP) was a popular party in the Niger Delta state.

    Peterside yesterday in an interview with reporters in Port Harcourt regreted the way the electoral commission went about announcing results from elections, which INEC earlier declared inconclusive.

    He declared that the electoral commission violated its rules and guidelines, leading to the declaration of PDP’s candidates: Chief Jerome Eke and Mr. Tony Ejiogu as winner of the House of Representatives’ Etche/Omuma federal constituency and Etche constituency 2 in the Rivers House of Assembly seats respectively.

    The APC chieftain said: “The results clearly do not reflect what transpired during the elections of yesterday ( Saturday), even though they added to the discredited results of earlier elections of March 19 and December 10 last year.

    “Wike arrived INEC office at about 12:35 a.m. on Sunday and attempted to force the returning officer to announce results which the official had earlier declared inconclusive, as elections did not take place in majority of the polling booths. The returning officer insisted that announcing results the way they were would amount to discrediting substantial number of voters, who were denied opportunity to vote by thugs and hoodlums.”

    Peterside, who is also the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), also expressed surprise on how INEC allow itself to be compromised by the Rivers governor,  who he said had a long history of bribing electoral officials.

    He said: “Only recently, INEC officials who served in the state during last December 10 rerun elections were indicted by police for receiving several millions of naira to influence results.

    “Wike was seen with INEC officials computing results of the election. How did the governor get there? Is the governor a returning officer? Is he an INEC official or a security agent?

    “How could Wike be standing with INEC officials, where results were being computed? Under which law is a governor permitted to be present where results were being computed for legislative elections in a local government that is clearly not his? I am sure Rivers people are watching this.”

  • Abe, Peterside  mourn Rivers police chief Odesanya

    Abe, Peterside mourn Rivers police chief Odesanya

    The senator representing Rivers South East, Magnus Abe, has marred Police Commissioner Francis Odesanya.

    In a statement yesterday in Port Harcourt, the state capital, by his spokesman, Parry Saroh Benson, the senator said he was shocked by the death of “the fine and gallant police officer”.

    The Chairman of  Senate Committee on Federal Roads Maintenance Agency (FERMA) said the late police chief was a professional ,who carried out his duties with a high sense of responsibility, commitment and diligence. He condoled with  his family for the loss of its bread winner as well as the government and people of Ogun State.

    The Director-General of Nigeri Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside,  also mourned  Odesanya.  He described his death as “shocking” and coming at a time the state and Nigeria needed his professional competence and managerial capability.

    Peterside said death had robbed the nation of a fine officer and gentleman, who rose through the ranks before his posting to Rivers State to curtail criminality.

  • Maritime ready to take over from oil, says Peterside

    Maritime ready to take over from oil, says Peterside

    The Director-General of the Nigeria Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, has said maritime will soon take over from oil as the country’s leading revenue earner.

    He urged the media, especially maritime correspondents, to support the government’s drive to diversify the economy for growth and create alternative opportunities for investments.

    The NIMASA chief spoke while receiving the leadership of the Nigeria Union of Journalists (NUJ), led by its National President, Mr. Abdulwaheed Odusile, at the agency’s headquarters in Lagos.

    Peterside, while noting that the media is the interface between the public and the government, urged journalists to be professional in their reporting as people look up to them as major sources of information.

    He said: “We urge you to support the Government as it diversifies the economy for a better future for the entire Nigerian populace. You have to be fair and professional while reporting Government activities in order not to create unnecessary panic amongst the public.”

    Peterside urged stakeholders to tap opportunities  in the maritime sector.

    Peterside added: “The ocean is a resource a country can leverage on to grow its economy and blessed with a coastline of about 853km and 250 nautical mile Exclusive Economic zone, we must begin to take advantage of the maritime opportunities available to us to grow our economy.”

    Odusile, who had on his entourage Chairman of Lagos branch of NUJ, Mr. Deji Elumoye, said  his colleagues would do more to focus on government activities geared towards revamping the economy. He added that special attention would be on agencies, such as NIMASA that are in the frontline of driving the diversification process. He noted that this will help ensure a virile maritime industry and a greater economy.

  • How to turn economy around, by Peterside

    How to turn economy around, by Peterside

    Rather than exerting energy on what brought about the parlous state of the Nigerian economy and how the country fell into recession, the Federal Government should initiate reforms to revamp the economy. Stanbic IBTC Holdings Plc Chairman ATEDO PETERSIDE, in this article entitled: “Eleven actions required for speedy economic turnaround”, gives 11 nuggets that can lift the economy. 

    The Federal Government is doing some things right, such as the effort to curb overhead expenditures and to be more frugal than past administrations, but then, they are also doing many things wrong. There is a reluctance to completely break from the past and embrace significant economic reforms, even when our present predicament clearly warrants same.
    We are now facing an economic crisis. A crisis is an inflection point. It is that point when multiple outcomes become possible. 2017 represents the last full calendar year that this administration has within which it must embrace major economic reforms, if it expects to still attain many of the more palatable economic outcomes. It is no use arguing over who, or what caused the economic recession (-2 per cent growth) and high inflation rate (over 18.5 per cent p.a.) that we are currently facing; far better to focus on what we need to do to get us out of this sorry state.
    There are several units within the Federal Government that appear to be working hard. Sadly, most of them are working in “silos” and solving fringe problems. What appears to be still missing is a bold, holistic and audacious effort to harmonize fiscal, monetary, exchange rate, trade and macro-prudential policies in a concerted manner. Very few people want to take on the “big gorilla” in the room. That is why the impact of the Federal Government’s Economic Management Team (EMT) is not being felt.
    Because many fear for their jobs, they are not interested in tackling their colleagues whose actions are negating and/or eliminating the most positive outcomes that the government owes the electorate.
    I know that there are those who will criticize me for saying that the Federal Government’s economic policy direction remains unclear. My response to them is that the most significant economic reforms embraced so far by Federal Government came about rather reluctantly, for instance by Federal Government hanging on to an untenable position until it eventually disentangled itself or got overpowered by its own internal contradictions.
    We saw this with petrol prices and also the devaluation of the naira. When these “reforms” came, they arrived in the form of half-measures. Thus, we stopped short of full petrol price deregulation and introduced an unsustainable price fix instead. We equally stopped short of adopting truly market-determined exchange rates and instead embraced a “fudge” that spewed widely divergent multiple exchange rates. Half measures typically bring some pain, but often fail (as in this case) to yield any lasting gain.
    The rest of this article will discuss 11 major policy actions which the Federal Government should consider. We must shake off the indolent mindset that leads us to believe that all constitutional changes are taboo. Accordingly, I seek to draw attention to the following 11 important items on which major action is still required.
    • The Central Bank of Nigeria (CBN) should accept that its foreign exchange and demand management policies have failed. The more restrictions they have placed on forex repatriation, the less likely it has become that badly needed forex inflows from portfolio investors, foreign direct investors and Nigerians will pick up. Privileged access to CBN’s forex allocations has become the best investment game in town for the politically well-connected. Furthermore, the directive to banks to allocate 60 per cent of forex to manufacturers, who account for only 10 per cent of the Gross Domestic Product (GDP) (including owners of zombie industries which are horribly import-dependent), has exacerbated an already bad supply situation. Forty per cent is much too small to accommodate the rest of the economy and so all other sectors (90 per cent of GDP) have been crippled. This has unleashed panic, thereby sending the parallel market to the high heavens. Forex inflows disappeared partly because of the uncertainty surrounding the ability to repatriate interest/dividends through an overly restrictive 40 per cent window. There is no scientific basis for this 60 per cent /40 per cent rule. Meanwhile it has huge adverse distortionary implications on the supply side. The end-result has been our mind-boggling and widely divergent multiple exchange rates which have spooked investors who have taken fright and also taken flight. Sadly, we have effectively “shot ourselves in the foot” by taking ill-advised actions that crippled both forex inflows and the Service sector in particular (over 50 per cent of GDP).
    · Three preceding administrations ended up brokering peace deals with Niger Delta militants. The Federal Government should urgently pursue high-powered negotiations which should be brokered by persons with a healthy track record in this activity and the ancillary pipeline protection business – it can net Federal Government $6 billion a year. In the longer term, I favour a constitutional amendment that reserves a one per cent royalty payment to immediate host communities on all mining and mineral producing activity (including limestone, oil and precious stones among others). Communities will then be well-incentivised to keep production activity going. This is preferable to a long-term reliance on amnesty payments which constitute a moral hazard. A 13 per cent derivation payment to a possibly “unaccountable and distant” state governor does not filter down to host communities.
    • We should simultaneously embark upon some asset sales which improve long-term efficiency and will yield foreign currency. I argued in my ‘LETTER TO MY COUNTRYMEN’ published on October 1, 2016, that the Federal Government share of the major Oil Joint Ventures of International Oil Companies (IOCs) should be sold down to 40 per cent or no more than 49 per cent. This would represent a replica of the highly successful Nigeria Liquefied Natural Gas (NLNG) model that provides a healthy dividend stream for the government. If it is good for NLNG, then it should be good for the IOCs too. Asset sales can yield $15-$20 billion over the course of the next two years if planned carefully.
    •We urgently need to deregulate the entire downstream petroleum sector and also privatise Nigerian National Petroleum Company’s (NNPC’s) three refineries, depots and pipelines and domestic gas.
    • Our civil/public service is still bloated, corrupt and inefficient and has become the excuse for a privileged two per cent of the population to consume close to 60-70 per cent of the annual budget via the recurrent expenditure vote. Methinks mass redundancies are now inevitable because the nation is stuck with a public service and legislators that we could only afford at $100 per barrel oil prices.
    • Less than 25 per cent of our 36 states are economically viable. The obvious answer is political restructuring, as unpalatable as it may sound to some. In terms of overhead spending, we have to rejig our political structure so that significant overheads are transferred from 36 states to 6 zonal centres. We should keep an open mind towards this political restructuring argument because it is not even true that homogeneity within a state or zone necessarily guarantees peace. Somalia is homogenous and yet, it is probably the closest thing there is today globally to a failed state. Conversely, there are communities, states and nations around the world which are heterogeneous, but which are living peacefully together.
    • To help overcome, the social and physical infrastructure deficit, we must embrace the private sector as the engine of growth and a capable partner/financier of infrastructural development. The power and transportation sectors are crying for more and not less privatisation. The logic of the power sector reforms was built around the adoption of cost-reflective tariffs, which we have since thrown out of the window. The transmission sector and gas supply difficulties are some of the other weak links in the power value chain.
    • A dysfunctional legal system is an impediment to the rapid growth of a modern economy. The Chief Justice of the Federation must “buy into” and spearhead radical reform of our legal system.
    · The anti-corruption crusade will only complement the positive changes envisaged above if the government itself respects the rule of law and obeys the courts. We should err on the side of extending the “benefit of the doubt” to accused persons whenever allegations cannot be proven beyond reasonable doubt. It is better to let four people who might be guilty go free than to convict one innocent man. The latter drains all the energy out of the anticorruption crusade and also destroys business confidence.
    · Restoring business confidence should be the primary preoccupation guiding virtually every statement by public officers. This calls for a paradigm shift because the current preoccupation is for every Minister, Governor, Regulator or overzealous official to threaten investors with closure, bankruptcy, fines or seizure of their goods. Frightened businessmen (local or foreign) will not invest. We should be wooing investors instead of threatening them.
    · The Federal Government should immediately appoint directors to the boards of every regulatory agency. The important lesson from the recent Financial Reporting Council (FRC) of Nigeria imbroglio is that a single rogue regulator can hold the entire system to ransom, help destroy business confidence and hamper economic growth. This only becomes possible when the checks and balances which our laws envisaged, through the appointment of boards, council members or commissioners, are not in place.

    CONCLUSION

    Our economy is underperforming because, amongst other things, it is caught up in a low foreign exchange trap. Borrowing forex without instituting necessary and badly-needed economic and structural reforms is akin to suicide. Those who are canvassing for more foreign debt simply because our debt/GDP ratio is low are overlooking the fact that our debt service ratios are already high. Our debt service ratios are high because our Tax/GDP ratio at six per cent is exceedingly poor and so, it will require a few years of concerted action to raise it significantly. Relying on debt alone to ease the forex trap is therefore a high risk strategy. That is why I also emphasise two) and three) above.
    Nigerians take pride in arguing that the Lord loves us and so, he always intervenes by bringing us back from the precipice in the nick of time. I do not doubt that. What I truly believe is that the Lord intervenes through people. After the unbridled insults that were heaped on the Emir of Kano (Alhaji Muhammad Sanusi II) and a few others who dared to tell the government the truth about the parlous state of our economy, the easiest path for me would have been to keep quiet or to simply blame speculators, detractors or past regimes. If I did that then the attack dogs would have won. No, I am not about to abandon my right to free speech on account of some insincere sycophants.
    I speak because I want my country to improve.