The Nation Newspaper

Tag: strong

  • CBN: Nigeria’s foreign reserves remain strong

    •’Doing better than other emerging markets reserves’

    Central Bank of Nigeria (CBN) has explained that the foreign reserves remain strong and that the recent reduction in the level of the  reserves is not political.

    CBN Director of Corporate Communications,  Isaac Okorafor, attributed the drop in the reserves to capital flow reversals arising from rising interest rates in the United States.

    “You will recall that the Fed has been raising rates and has even given guidance that this would continue in the near term. As a result of this, investments in the emerging and some frontier markets are gravitating towards the US market to reap higher returns”.

    Continuing, he said there’s also the factor of election circle. “In Nigeria, however, we have done much better than most emerging and frontier economies. Some of these countries have suffered substantial depreciations in their currencies as a result of these flow reversals”.

    For instance, since this year Argentina has lost 134 per cent of its currency to depreciation largely occasioned by these reversals, Brazil lost 34 per cent Turkey 78 per cent, Iran 25 per cent, South Africa 19 per cent, Russia 18 per cent, Pakistan 17 per cent, United Kingdom 3.7 per cent, Japan 1.3 per cent whereas  Nigeria has gained six per cent by way of appreciation.

    “The key reason here is because the CBN adopted a forex management strategy that has worked successfully, achieving a comfortable stability in the exchange rates and still maintaining an equally comfortable reserves level”.

    Okorafor also spoke at the 13th Abuja Chamber of Commerce Mines and Industries (ABUCCIMA) Trade Fair in Abuja said foreign reserves fell “because of global squeeze on emerging markets, which was consequent upon increasing interest rates in the  United States of America.”

    Okorafor noted that other developing and emerging markets like Turkey, Brazil, South Africa, Argentina and even China were facing similar dilemma.

    Despite this squeeze, Okorafor assured that notwithstanding the fall, the present level of the NIgeria’s foreign reserve now stands at “$44 billion which is capable of financing between 14 and 17 months imports which is way above internationally acceptable three months.”

    He also gave assurance to customer of defunct Skye Bank that their deposits were safe in Polaris Bank. Okorafor stated that Polaris Bank was duly registered at Corporate Affairs Commission (CAC) and licenced by CBN.

    He also told the audience at the fair that the overall impact of CBN’s numerous interventions, will continue to enhance the operational capacity of Small and Medium Enterprises (SMEs).

    These interventions the CBN said “has translated into a reflation of our economy with attendant growth and development.”

    The CBN he said will continue to ensure that it delivers on its core mandate of ensuring monetary and price stability. However, it cautioned that “the it will also continually roll out proactive and innovative policies which would ensure that all economicsub-sectors especially the SMEs in Agribusiness receive the desired support.”

    According to Isaac Okorafor “we are determined to ensure that Nigeria’s economy remains in a state of consistent growth even as we focus on economic diversification and national food sufficiency.”

    In his response, President of ABUCCIMA, Prince Adetokunbo Kayode who was represented by Prof. Adesoji Adesugba disclosed that the Chamber has restructured and now operates through four Centres.

    The prime Centre he revealed “is the Abuja Trade Centre (ATC). The other Centres are the Trade Dispute Resolution Centre (DRC), the Business Entrepreneurial Skills and Technology (BEST) Centre for Skills and Capacity Development as well as the Policy Advocacy Centre which is out to help MDAs to deliver on their respective mandates.

    The 13th Abuja International Trade Fair Prince Adetokunbo Kayode said “seeks to Promote accelerated development of commerce and industry; Promote revitalization and diversification of the Nigerian economy by promoting the nation’s non-oil exports; Direct attention to the role of private sector in the Nigerian economy; Provide access to resources and technology findings; and Attract foreign investment into the Nigerian economy.

    The ABUCCIMA boss expressed appreciation to the CBN for the apex bank’s swift response “which have succeeded in ridding our economy of sharp practices by some financial institutions or houses.”

    In the area of Development Finance, Prince Kayode applauded the CBN for ensuring “the supply of finance to various sectors of the economy which has promoted the growth of the economy in a holistic manner making development, welfare improvement to proceed at a faster rate.”

  • Strong, autonomous state is panacea to poverty, says Osinbajo

    Vice President Yemi Osinbajo has advocated for strong and autonomous states within the Nigerian federal system as a panacea for poverty in the country.

    Osinbajo stated this position while delivering a lecture at the special parliamentary session  in commemoration of the third anniversary of the 8th Assembly of Lagos State which took place at the chamber of the Lagos State House of Assembly, Alausa on Friday.

    The vice president who was the guest speaker spoke on ‘Stronger States and the Eradication of Poverty’. According to him, poverty can be eradicated by having stronger states with strong judiciary, executive and legislature who would channel the resources of the state to create wealth for the citizens and eradicate poverty.

    “The three arms of government in the states must work proactively for the economic development of its citizens. To achieve this there must be devolution of powers to the states to enable them control their resources,” Osinbajo said.

    He cited the great feat achieved by the late sage, Chief Obafemi Awolowo who as Premier of the then Western Region recorded achievements that were acknowledged worldwide and most of which has remained enduring relying solely on revenue from taxes and cocoa.

    Osinbajo submitted that although he supports devolution and restructuring but that even without restructuring it is possible to create a strong state without any major constitutional changes.

    He cited how collaboration between the three arms of government in Lagos right from the administration of Asiwaju Bola Ahmed Tinubu to the present governor, the state has been able to win series of cases at the Supreme Court which has given more powers to not just only Lagos State but which has benefited so many other states as well.

    According to him, the Lagos Assembly has pushed the frontiers of federalism by passing laws which has strengthened federalism in the country.

    He advised that for outstanding economic growth there is need to focus more on education, healthcare and provision of jobs through deliberate programmes and pumping of more resources to these sectors to benefit the majority of the citizens.

    The vice president disclosed that the present government is working round the clock to create an environment for business to grow especially through a micro credit scheme for those at the lower rung of the economic ladder to lift them out of poverty.

    He lauded the Lagos State government for creating exemplary institutions for economic growth and development.

    Osinbajo also made a case for state police to tackle present security challenges confronting the nation, saying that “local policing is very important as part of security architecture.”

    In his remarks, Governor of Lagos State, Akinwunmi Ambode, praised the leadership of the State Assembly for team dynamics and infrastructural development within the assembly.

    According to him, the three arms of government in the state have always worked together and have strived to show a good example of tenets of democracy and what growth and development should be “and with that collaboration we will take Lagos to where it is supposed to be.”

    In his welcome address earlier, Speaker of the Assembly Mudashiru Obasa said in three years the Assembly has passed 28 bills into law and over 100 resolutions on education, health, power, transport, security and environment for the well-being of Lagosians.

    He lauded Ambode for the good job he is doing which is visible all over the state, “he has turned the whole state to one construction site.”

    While stressing on the important role of the Assembly in democracy, Obasa said the executive should ensure the survival of the legislature by playing the role of a father and ensuring cordial relationship to avoid instability and anarchy.

    The event was witnessed by Osun State governor, Rauf Aregbesola; former Speaker, House of Representatives, Ghali Umar Na’Abbah; former Deputy Governor, Lagos State, Femi Pedro, who represented Asiwaju Bola Tinubu; PDP chieftain Adesewe Ogunlewe.

    Others were: House of Representatives Majority Leader, Femi Gbajabiamila; APC National Legal Adviser, Babatunde Ogala; APC South West Women Leader, Mrs. Kemi Nelson; Femi Falana (SAN); Secretary to the State Government, Tunji Bello and other exco members, Body of Permanent Secretaries of the state, traditional rulers, APC Lagos chairman and other party chieftains.

  • ‘Still Water Runs Deep’: The strong also cry

    ‘Still Water Runs Deep’: The strong also cry

    This story of loss and emotion is Abbesi Akhamie’s directorial debut.

    Starring notable theatre actor, Toyin Oshinaike, this short film reflects the irony of life from two angles: that disciplinarians do have rebellious children, and that tough men do have emotions concealed in them.

    Here, the protagonist’s firm hand on his children’s upbringing is put to test when his eldest son goes missing.

    In this unsettling portrait of a man confined by his convictions about paternal duty, a father’s steely resolve to run his household with a firm hand is tested when his estranged son goes missing forever.

    Throughout his frantic search, the lead actor is seen fighting back tears, even snapping at people in the process.

    The filmmaker does not pretend that in Africa, religion is one of the means of resolving problems. We see that in a brief worship session in the victim’s home, even though the father had earlier reported at the police station.

    Produced by Melissa Adeyemo, Abbesi Akhamie and Lala Akindoju, this is a commendable effort by Akhamie who also explores the natural environment and the people’s local language in the conversations.

    However, it is a minus that the movie is not fully subtitled. Also, the filmmaker could have saved us the detail of telling us that the missing boy was never found, and simply allow the viewers’ imagination to run.

    Other actors in the film include Rita Edward and Yemi Adebiyi.

  • MAN Pharmaceutical Group urges strong partnerships

    For Nigeria to achieve 70 per cent self-sufficiency in domestic pharmaceuticals, there is the need to adopt strong and innovative partnerships with leading lights in the pharmaceutical manufacturing sub-sector.

    The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) canvassed this position at the fourth Nigerian Pharma Manufacturers Expo (NPME) held in Lagos.

    The Group, through its Chairman, Chief Okechukwu Akpa, said the approach remained one of the most sustainable means the government could drive its bid to secure standardised production and access to quality patent medicines.

    He also said deepening relations with critical stakeholders would effectively drive the requisite investment needed to fix problems facing the sector’s growth.

    Akpa said the challenges of long-term financing, procurement preferences, knowledge and technology transfer and tax incentives, among others, should be addressed to stabilise the operating environment for manufacturers, as well as check counterfeiting.

    Akpa, who noted the group’s contributions to national development via enhancement of access to medicines, reiterated the need to protect the sub-sector through policies that prioritises its growth and efficiency.

    He hailed the Executive Order by Vice-President Yemi Osinbajo directing the mandatory patronage of locally-manufactured medicines by government Ministries, Departments and Agencies (MDAs). He, however, said the directive should be backed with implementation.

    “This policy is expected to accelerate growth and development of the local pharmaceutical manufacturing sector. It will in turn assure national medicines’ security, boost self sufficiency in production, stimulate considerable employment in the sector, and increase inflow of Foreign Direct Investment (FDI),” Akpa said.

    He added that it would also facilitate the export of indigeneous medicines to neighbouring countries. “We therefore, look forward to more partnerships and support from critical stakeholders to ensure the industry continues to play its critical national role and reach its full potential”, Akpa said.

    Drug and Research Director, National Agency for Food, Drug Administration and Control (NAFDAC), Dr. Monica Eimunjeze, who represented the Director-General, Mrs. Yetunde Oni, pledged to support the sector with enhanced regulatory functions.

    She praised efforts at positioning the country as the most concentrated pharmaceutical base in West African, noting that it portends immense opportunities for the sector.

    “We have a responsibility to work to sustain good health through access to quality medicines and vaccines for all. The executive order would be considered to consolidate the effort to expand the local base of pharmaceutical products,” Mrs Oni said.

    MAN President Dr. Frank Udemba Jacobs charged the government to address the security of manufacturing investment in the country.

    He said the country needed to ensure that investors were not discouraged by harsh operatimng environment.

    Jacobs, represented by the Chairman, Ikeja branch of MAN, Prince Oba Okojie, noted that the mandate to deliver a sustainable healthcare could be engineered by robust collaboration with government.

  • For strong audit

    •The anti-corruption process should boast a modernised audit law, guaranteeing full independence for the Auditor-General

    What is the fate of the Audit Bill of 2014, submitted to the 7th Senate, to be passed into law, to replace the Audit Ordinance Act of 1956?

    That appears to weigh much on the mind of Anthony Ayine, sitting Auditor-General of the Federation (AGF), reported to have called for the speedy passage of that bill, to further strengthen the anti-corruption process. He was speaking in Abuja, while receiving the Conference of Auditors-General for Local Governments of the Federation, led by Reuben Nwosu, their chairman.

    Mr. Ayine also made an impassioned plea for the independence of the AGF, thus guaranteeing a sound legal cover for financial checks-and-balances, thus making the accounting process more transparent; and subscribing to the doctrine that prevention is better than cure in the fight against corruption.

    Not a few could, of course, argue against Mr. Ayine’s seeming penchant for the legalistic, stating that there are already too many laws. They could also go ahead to say that inasmuch as laws are vital, developing a mindset to be bound by law, unlike Nigerian elite’s natural instinct to flout it, is even more vital.

    Indeed, this could be a clincher to that argument: that conventions — informal practices over time, without formal legal cover — appear stronger than laws in established democracies, is because those people subject themselves to the law, rather than arrogate themselves over it.

    All these could well be. But if everybody is a product of his or her environment, Mr. Ayine’s push cannot be totally dismissed. Take his call for the independence of the AGF to be guaranteed by law, one of the key provisions in the Audit Bill 2014.

    In 2005, Vincent Azi, an acting AGF, summarily lost his job. He had published a financial report that indicted the  Presidency, the National Assembly, ministries and some parastatals over dubious expenditures.

    Ike Nwachukwu, former army general but then presidential candidate of the National Democratic Party (NDP), was so incensed with the move, declaring it unjust as, he added, Mr. Azi was a dutiful official of state, that took routine but official steps to ensure transparency and fight official corruption. Not a few others too, home and abroad, railed against what they perceived as clear injustice and disincentive to fight sleaze.

    Still, none of all those could save Mr. Azi’s job. That was under President Olusegun Obasanjo. Twelve years down the line, no other AGF had summoned enough courage to replicate Mr. Azi’s feat.

    Down that line too, the economy had gone near-bust; and corruption assumed a near-stratospheric state, with revelations of alleged humongous sleaze under President Goodluck Jonathan. You don’t need to be a clinical diarist to tie the reckless spending of the Jonathan years to a near-complete breakdown of financial checks-and-balances.

    Would an independent AGF, secured by law, have made any difference? In the context of a robust audit institution, and an officialdom ready to subject itself to the strictures of law, at the pains of dire sanctions otherwise, clearly yes. That is the point of Mr. Ayine’s advocacy.  That is why he should be listened to and not be dismissed.

    That is why work should be restarted on the Audit Bill 2005. It is tribute to a general penchant for lack of accountability that the current regnant audit law was forged under colonial rule in 1956. It has remained all through independent Nigeria since 1960, all through the military era and even survived the return to democracy in 1999. It is a momental scandal!

    To fully and successfully fight corruption, effective auditing is critical. That is the narrow and winding path to financial health; and the development and prosperity that beckon after.

  • ‘Nigeria can only fight corruption with strong institutions’

    ‘Nigeria can only fight corruption with strong institutions’

    The negative aspect of corruption is that people take the money outside the country. they will go and spent it elsewhere, so that we will all miss the opportunity for development. If they can steal and spend it within Nigeria, Nigerians will benefit. But, when they take it out, we will start to lose as a nation. That is the most terrible aspect of corruption.

    People in Gujba and Gulani are displaced by the Boko haram insurgency. The communities needs rehabilitation and reconstruction. Can we know the position of the Northeast Development Commission?

    Well, Gujba and Gulani were once completely taken over by Boko haram militants. For over two years, I have not been able to go to my village. this is to tell you how serious the situation was. now, peace has returned. Most of the boko haram have been killed or disappeared, and people are going back to their villages.

    It‘s fortunate that we could not hold election in some of the liberated communities, because pockets of the Boko haram militants in those locations are still heating on soft targets. but, definitely, they don’t have a territorial control of even a square inch of Gulani and Gujba local government areas.

    As peace gradually returned, the state government is helping a lot in carrying food and all sorts of basic human requirements to those communities, and people will use the facilities to clear their farms in this rainy season.

    The Northeast Development Commission is a permanent body just like Niger Delta Development Commission; it will attract budgetary attention and allocation every year. We have gone through the first reading and second reading. what remains is the third reading and the passage of the bill. And there has not been any opposition from anybody on this commission. So, it is just a matter of patience and things well be all right.

    But people in these communities have returned without shelter, some even sleep in an open…

    The return of peace is the biggest consoling factor in all the equation. things will continue to get better and government will continue to help at the local, state and federal levels. In addition to that, the national assembly members’ caucuses on geopolitical zones are also helping matters. We have recently met and agreed that every senator should donate the  sum of N1 million and every member, house of representatives N500, 000. The money will be directly deducted and then, whatever the national assembly leadership gives will be put together and brought  to them as assistance. We have been doing that over and over again.

    What is your take on the Saraki case?

    Well, Saraki saga is an unfortunate saga.  The  saga is a saga, it will still continue. Saraki will be tried; the court will definitely make their pronouncement. Whatever the court decides, we will obey the court. The worst that could happen is to go to the Supreme Court where everything ends. But, I can assure you that 99 percent of the senate is behind Saraki for a simple reason that we are all human beings and we do make mistakes.

    When you stay as a governor for eight years or a big man for many years, there is no way you can account for every kobo. So, if anybody wants to investigate you thoroughly, he will find a fault here and there. They may not necessarily be a falsehood you are intended in any way to harm the economy or not intended to be a financial crime as being speculated.

    But, do you believe that the trial is politically motivated?

    I believe so, but politically motivated from which angle? It looks like it is a local political motivation from Kwara. Definitely, President Muhammadu Buhari has no hand, and definitely the federal government of Nigeria did not initiate it. It was a local politics in Ilorin. People made complaints. They gave out the details of what they thought Saraki had and he didn’t declare. That was how EFCC came in and started investigation.

    You said it would be difficult for somebody to be a governor for eight years and make no mistake. Do we assume that former governors in the senate were in solidarity with Saraki?

    Of course, yes. You pretty knew that there are so many governors who are in the same shoes with Saraki, whose trials have been initiated, but they were not publicised like that of Saraki because he is the Senate president. Almost every former governor in the senate with the exception of Bukar Abba Ibrahim has one case or the other with EFCC or CCT. Some had even died like the case like Alamas… or Alamesia (Alamieyeseigha) and others.

    It’s not easy to fight corruption, especially when it comes to an individual. That is why those of us do believe that corruption can best be dealt with through institutions. Let’s strengthen our institution. Stop giving out bribe and also taking  bribes. If nobody gives out, nobody takes and all things being equal. Institutional fight against corruption is actually the best fight we can have as a nation. It has begun and it will continue for a very long time.

    The negative aspect of corruption is that people take the money outside the country. they will go and spent it elsewhere, so that we will all miss the opportunity for development. If they can steal and spend it within Nigeria, Nigerians will benefit. But, when they take it out, we will start to lose as a nation. That is the most terrible aspect of corruption.

    But, there is this apprehension that, if the court verdict does not favour Saraki, the PDP will take control of the House. In fact, some even said that the PDP has taken over the Senate?

    How, Why? The APC is still in the majority; whether Saraki is in or out, there is no way PDP can take over senate presidency with the presence of over 60 senators from APC against 50 PDP senators. There is just no way.

    The last time, they had what they had. The PDP had to come in and assist Saraki to win Senate President. Because so many APC senators were asked to go to the International Conference Centre, we were there and we don’t even know what was happening. they had the election. So, the PDP were in the majority then and they forced the APC who are in the minority then to agree that Saraki is the President and Ekweremadu is the deputy senate president.

    It‘s not that in any way we are against Ike Ekweremadu. he is a good legislator. I don’t mind him continuing to be deputy senate president, because he is a very decent human being. But there is no way the leadership will be taken over by PDP.

    When you contested for Presidency with President Muhammadu Buhari, you said at the eagle square that Buhari was unsellable.  Do you still hold to that impression?

    I attempted. I absolutely believe in Buhari. I absolutely believed in his leadership. He has been tested, tried and found to be worthy leader. He is a leader who is incorruptible, honest, transparent, and straightforward and a leader who will tell you direct as he knows and understand.

    Besides, at that time I wanted to be president, do you want me to be praising Buhari or what?

    Is it because you are in the same political party that is why you are praising him now?

    No, we were in the same political party when I stepped down for him, and condemned him. Because I wanted to be president, so I needed  to get something against him, no matter how minor. But now, we are on the same page, the same party, and I really trust him.

    The government of APC will be one year old on May 29. As a senator, what do you think is the problem with the administration?

    You know, when things go wrong for a very long period of time, improving it  and bringing normalcy will never be easy, it takes time. President Muhammadu Buhari has collected, now in his custody over N2.5 trillion from people whom with impunity stole our money within the period of nearly one year you have talked about, and he is still collecting.

    What is now delaying things is the lack of the passage of the bill on the budget.  It will be illegal for the President to spend any money without appropriation. He is waiting for appropriation, and I understand that by next week, he will sign the budget, budget would be law and once it becomes law, Buhari will be the most anxious to implement it. I know the kind of hardship people are going through. We, the elected people, know how it bites our pockets, everyday from Monday to Friday I have to send out N300,000 to N400,000 to people in dire  need in my constituency and other areas. I believed other legislators are also under the same problem. So, our hope is that thing will be better very soon, InshaAllah.

    You have been elected three times as governor and now senator for the third time. There is the rumour that Governor Gaidam will contest your position, having come from the same zone. Will you contest with him?

    Well, 2019 is still very far away from now. I haven’t thought about it at all, but I can assure you if the governor wants to have my senatorial seat in 2019, it is all his. I have had enough. I made my contributions, I  have made my point. I have a lot of other things to do, particularly educating my children, taking care of my farm, my constituency, my state and appearing in national affairs. So, I don’t think there is going to be any controversy at all. If he wants, it I will hand over to him and he doesn’t want it, I will take it. And, definitely, will not have primary election with governor Ibrahim Gaidam not to talk about having election again him in the PDP. I will never be in PDP; of course I will always oppose PDP because they are on the right wing politics and I am always at the left wing politics whether slightly or further down.

    The name Bukar Abba Ibrahim is a household name in Yobe politics and the country as a whole. Can you survive without politics?

    I started politics right from primary school like Malam Aminu Kano. I have been in politic for the last 60 years, on and off. So, I do intend to be on the left till I die, and I will continue to contribute till  I die because no human being will live forever.

  • John Fashanu, Rachel Baskam wax stronger

    IT IS no longer news that John Fashanu, known for near-insatiable flirtation with love and the romantic life, has once again found love in TV big girl, Rachel Bakam. What is news, contrary to the expectations of some who believe that the budding romance would ebb once the playboy tired of his new lover, is that the relationship waxes stronger a year after.

    Like a flame that burns eternal, the Abuja-based lovebirds’ mutual affection shows no sign of abating. Beautiful Rachel recently revealed that her relationship with the ex-soccer star progresses despite the negative perception of their marriage by many. And even though they do not seem to be in a hurry to walk down the aisle, the two virgoans have remained inseparable, regularly painting the town red and making onlookers jealous.

    Fashanu is currently embroiled in divorce proceedings with Abigail Igwe, the mother of Joseph Yobo’s wife, Adaeze, while Rachel is divorced with one daughter. This has, however, not stopped the Romeo and his Juliet from enjoying their growing romance.

  • Nigerian banks are strong, says Fitch

    Nigerian banks are strong, says Fitch

    •Downgrades economy to ‘B+’

    Fitch Ratings has said Nigerian banks are well capitalised to absorb the impact of the 40 per cent effective devaluation of the naira against the dollar. It said currency devaluation affects banks’ capital ratios largely because total risk-weighted assets are inflated when foreign currency (FC) assets are translated back into naira, while capital is denominated in local currency.

    It assigned ratings to 10 Nigerian banks and its assessment is that, with a 40 per cent effective devaluation, the majority will not face an immediate breach of regulatory capital adequacy ratios (CARs). However, if the naira continues to weaken, buffers between minimum and reported CARs may decline to a level which heightens ratings sensitivity.

    Fitch-rated banks report CARs ranging from 14 per cent to 21 per cent. The devaluation will impact ratios in different ways across rated banks, depending on the level of their FC risk-weighted assets and the size of their net open FC positions. On average, 45 per cent of net lending in the Nigerian banking sector is extended in FC. Balance sheets tend to be reasonably well-hedged, although CARs are primarily affected by the revaluation of their FC risk-weighted assets into naira. “In our view, the immediate impact of effective devaluation on CARs reported by Fitch-rated banks will be a two per cent average reduction,” Fitch said.

    Meanwhile, Fitch Ratings has downgraded Nigeria’s Long-term foreign currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB-’ and Long-term local currency IDR to ‘BB-’ from ‘BB’. The outlooks are stable. The issue ratings on Nigeria’s senior unsecured foreign-currency bonds have also been downgraded to ‘B+’ from ‘BB-’.

    The Country Ceiling has been revised down to ‘B+’ from ‘BB-’ and the Short-Term Foreign-Currency IDR affirmed at ‘B’. It said the downgrade of Nigeria’s IDRs reflects the following key rating drivers: Nigeria’s fiscal and external vulnerability has worsened due to a sharp fall in oil revenue and fiscal and monetary adjustments that were slow to take shape and insufficient to mitigate the impact of low global oil prices.

    Renewed insurgency in the Niger Delta in first half of this year has lowered oil production, magnifying pressures on export revenues and limiting the inflow of hard currency. Fitch forecasts Nigeria’s general government fiscal deficit to grow to 4.2 per cent in 2016, after averaging 1.5 per cent in 2011 to 2015, before beginning to narrow in 2017.

  • Strong men, weak institutions

    SIR: During the last general elections, people who believed in Buhari, worked hard to ensure he won the election. This, they did, because of the integrity of the then General Muhammadu Buhari. Looking back, one would pardon them. The former administration of Goodluck Jonathan was epileptic in terms of governance and there was a clear abdication of responsibility by the administration. Insecurity was at its highest level. Corruption broke new records and gained more grounds; everywhere one looked, there was total confusion. People wondered whether Nigeria had returned to the state of nature as espoused by Thomas Hobbes.

    As a result, there was understandably great anger in the land. People were united in the quest to send an ineffectual and inefficient government parking. Give us anybody but Jonathan. In the midst of the communal suffering by Nigerians, APC crept in; a party hurriedly created to take advantage of the flops and inefficiencies of the PDP. Realising that there was anger in the land, APC embarked on massive propaganda to a disoriented and disenchanted people, who swallowed it hook, line and sinker. It enhanced its political fortune and translated into electoral victory.

    Ten months after, has the APC fared any better? The answer is obviously in the negative. The slogan of the APC was change, but what Nigerians have seen, is more of stagnation than the promised change. The party upon attaining political power denied virtually all of its campaign promises and is joyfully confused. Looking back at the last 10 months, it is safe to conclude that the APC and President Buhari under-estimated the problems of Nigeria. What we have seen so far are talk, talk and more talk. Nothing more.

    The anger that was prevalent under the Goodluck Jonathan’s regime has returned with more salvo. People are bitting their fingers and gnashing their teeth. The general feeling among Nigerians now, is where did we go wrong? Was appointing Buahri a mistake? There is a massive ill-feeling against this government. The goodwill it enjoyed is evaporating; that is if it still has any left. Buhari and his co-travellers have returned to the PDP ways; or so it seem.

    What therefore is the way out? The problem of Nigeria is not about Buhari. It is simply a problem lack of institutions. Nigeria is a country is without institutions that ensures credible leaders are produced to head different arms and parastatals of government; one that ensures sound economic and social policies. In fact, it will be a miracle for this government or anyone (including those manned by angels) to succeed with the kind of institutions we operate. Jonathan suffered from this lack, Buhari is manifestly suffering from it too.

    To bring our country back to the route of development, there must be a holistic overhaul of the institutions we operate. There would be hardly any positive achievement that can be recorded with the corrupt, lacklustre, nepotic despotic and sluggish political, social, economic and religious institutions that we currently operate.

    For any government to succeed, it must ensure a solid foundation for sound political, economic and social institutions to be created. No single individual can solve our problem. The solution is in sound institutions backed by strong individuals. No one can exist without the other.

     

    • Frank Ijege, 

    Network for Democracy and Human Rights,

    frankijege@yahoo.com.

  • ‘Buhari has made a strong start’

    ‘Buhari has made a strong start’

    The Buhari Administration is barely 25 days old. But, a frank appraisal of the administration’s first steps has been made. In an interview monitored by ROBERT EGBE on Channels TV, United Kingdom High Commissioner to Nigeria Dr. Andrew Popcock shares his thoughts on a wide range of issues affecting Nigeria, including the prospects of the All Progressives Congress(APC) government led by President Muhammadu Buhari. 

    Buhari’s win, a political earthquake

     President Muhammadu Buhari’s win was not just a political change, it was a political earthquake. I was present at President Buhari’s inauguration last month and the British Foreign Secretary came, the American Secretary of State and many African Heads of States came as well and the president made the most astonishing, ambitious, analytical and indeed self-critical inaugural speech I’ve ever heard.

    It was remarkable. So, that is in itself an extremely good thing, but what he’s also done, of course, is, I think he recognises as well that it’s raised the bar. It’s lifted people’s expectations of what this new government is about and what it has promised to deliver. And I think we now need to move to delivery stage.

     

    The president has made a ‘strong, focused start’

     The president looked at the country so critically (in his inaugural speech); he looked at the security situation, particularly in the North East (of Nigeria). But not just the North East, he looked at crime, at instability in the Middle Belt and The Delta. So, he looked at it pretty plainly and said, ‘This is not where we want to be.’ And he looked at governance both at the federal level and the state level and he made some very interesting observations about the federal government not wishing to interfere in the governance of the states, as that is the states’ issue, at the same time acting as a sort of referees, at least as a sort of element of oversight to make sure that the states were being managed properly and public money was being managed properly. He looked at the international agenda which, I must say, I think one thing this administration has done is to start very strongly on the diplomatic agenda. The first thing the president has done is with his neighbours. The second thing is to invite his neighbours to Abuja for a summit about the North East. He’s been to the G-7 where he met (Chancellor) Angela Merkel (of Germany) and our own prime minister (David Cameron) and other G-7 leaders. He’s been to South Africa, where I think it’s important not just for African Union purposes but to rebuild the diplomatic relationship between Nigeria and South Africa, the two power houses of the continent; they need to work together. That’s a very strong and well focused start. I think what people are now looking for, people want more of this. People are looking for the domestic agenda to develop.

     

    Nigeria needs a ‘grown up form of politics’

    I think the president has defined his own agenda here, I mean what needs to happen is, I mean the North East is a very complicated issue, the key thing, the key point that we made to our Nigerian friends is that the security response is only one of the many responses required in the north east. It’s an essential response but it’s not the single one. So, while the Nigerian army needs to approach this in as effective a way as possible, you need also to do a number of things, you need to get the politics right, for too long the federal and state governments have been at logger heads, to put it mildly, you need a more grown up form of politics recognising that Borno State and the surrounding states are an essential part of the country and need to be treated as such. Secondly, you need an element of economic uplift, people up there need hope, they need the prospects of employment, and you need to address the dire humanitarian situation with almost two million people internally displaced. So there’s an element of humanitarian as well as economic response. And the third area is, working with the neighbours, this is now a problem that’s overlapped borders, the neighbours wish to be engaged, indeed Chad has been immensely helpful on the military side. So, those four things; the security side, the development side, the political side and the cross border regional side have to come together in a synchronised approach.

    I think president Buhari understands this, and the question is just to get the people and the mechanisms in place, and let me use this as a quick commercial for the UK, we want to help with this.

     

    How The UK can help Nigeria recover stolen funds

    I think the simple answer is, in any way we can. Some of it requires good old fashioned police work. What we would need to do is work closely with the federal authorities; with the EFCC, the federal police, with the Nigerian government in other aspects to learn as much about what they know, and we will help, as will other administrations in Europe and the United States, to try and trace funds like this. As you know (The late) General (Sani) Abacha’s stolen billions were tracked down to banks, I think, in Switzerland and the Swiss government has been reacting, returning a lot of this money. So, I think the question, this is an important question, but it’s also a multi-dimensional one, as you would expect. Part of the issue is to trace and return stolen money. But that is only the tip of the iceberg; the real question is (how) to break up the systems, the routines, organisations, individuals that contribute to the leeching of Nigerian public money (and taking it) overseas and even more important, I think, is to assault the mentality that regards public money as a free good and effectively drives large scale corruption.

    Now that is an immensely complex business, and, I’m not here to give advice to the president of the federation, but, it just seems to us that to tackle corruption is a bit like launching a war on the Russian front, but, if you do it across the board, you are likely to succeed.

    The way to do it is to pick areas of primary focus and zero in on that. So if you’re looking at military reform, it might be a good idea to look at procurement. If you’re looking at reforming the oil sector, it might do to look at revenue diversion of the money that ever reaches the federation account, never mind oil theft. So, to break up the great corruption cocoon, into project-size bites in which you can focus on particular difficulties. And I think what’s important is, nothing succeeds like success. If you begin to make an impact, if you begin to challenge the network or more importantly, the attitudes, and you begin to show that impunity – the ability to steal public money and get away with it – if you can show that impunity is no longer the norm, then things will begin to click in a different direction. So, a strong start, but a focused start, I think, is the key to this.

     

    Security: The UK’s help in intelligence

    Nothing’s gone wrong (with The UK’s assistance to Nigeria), it’s just gone slowly. President (François) Hollande of France convened a meeting in Paris, this was a while ago, after the kidnap of the Chibok girls in an attempt to pull together the friends of Nigeria, the international friends of Nigeria, and, we speak in shorthand, the P3 – the permanent members of the United Nations; France, The United States and The United Kingdom. We followed that up with a meeting in London, and that was then followed up by a meeting in Abuja, operationalising what we were trying to do from the concept to the structures, to activity. And in this activity, the United States, the United Kingdom in particular are contributing to intelligence gathering and what’s as important, intelligence analysis. Feeds from space don’t give you much until you know exactly how to make use of a good map in front of you.

    And the second thing that we’ve been doing for a while now is working with the Nigerian Army, actually, training Nigerian soldiers to operate in cohesive units in a combat environment. We want to move from training companies to training battalions, we want to work up to divisional level which would see senior operating elements in Borno State and Adamawa. We’ve made some progress, we need to make a great deal more. But what we need above everything else, is access. Let us in, allow us to talk to the very senior people, allow us access to the crews and this is something the Nigerian Army needs to provide us, with the tools that are required (for training Nigerian soldiers), weapons and ammunitions, communications, uniforms. The troops are there but they have not been as well-equipped as they might have been.

    That can be rectified. Nigeria has a military budget of five billion dollars a year. That is more than adequate to provide the basic inputs the troops need.

     

    British trainers find Nigerian soldiers to be ‘really good material’

    Nigerian Army Battalions and Brigades who are part of the third division based in Maiduguri, combatants. What we’ve found, and it’s worth saying this because the Nigerian Army has had a difficult time of late, and senior officers have often accused soldiers of being cowards and there have been court-martials and so forth. The British regiment that was training two companies of Nigerian soldiers recently, who then went on to do extremely well in Adamawa State, and push Boko Haram out of parts of in and around Mubi; the British regiment that trained them said they preferred working with Nigerian soldiers to working with soldiers they’ve trained in other countries, because they found the Nigerian soldier to be really good material; loyal, hardy and prepared to take risks. But he didn’t have, not just some basic equipment, but the training to give him confidence in two things: firstly, that he had a good chance of staying alive, and secondly, that he had a good chance of winning. You give a soldier those two things and you’ve created a much more effective unit. So, that is what we can offer and it’s not a theoretical thing, we’re not going to put British soldiers in Borno State. This is a Nigerian conflict, no Nigerian government, not least this one, has ever asked for someone to come and fight their battles, but what we can and will do, is train Nigerian soldiers to fight more effectively and we’ve seen that they can do it. So, our prime minister’s aide has offered to the president (Buhari), our foreign Secretary told me that recently.

    What we’re waiting for is the access and whatever arrangements are going to be made by the command at the top of The Nigerian Armed Forces so that we can move forward.