Tag: Transparency

  • FG moves to harmonise fiscal data for economic stability, transparency

    FG moves to harmonise fiscal data for economic stability, transparency

    The Federal Government has taken steps to address discrepancies in fiscal data across its institutions as part of efforts to strengthen economic management and improve transparency. 

    The move is intended to boost investor confidence and enhance the country’s financial credibility. 

    To this end, the government has initiated a plan to harmonise fiscal data nationwide.

    At the centre of this initiative is Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who convened a high-level Fiscal Data Harmonisation Meeting (FDHM) in Abuja. 

    The meeting was attended by key government officials, including the Minister of State for Finance, Dr. Doris Uzoka-Anite; the Accountant General of the Federation, Shamsedeen Babatunde Ogunjimi; and the Director General of the Budget Office, Mr. Tanimu Yakubu.

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    One of the major outcomes of the meeting was the agreement to establish a comprehensive Fiscal Data Coordination Framework. This framework will include a main committee, a subcommittee, and technical teams charged with the responsibility of standardising fiscal reporting methodologies and aligning economic assumptions used across government agencies.

    According to a statement by the Ministry of Finance, discussions during the meeting centred on the existing inconsistencies in fiscal data reporting among various government bodies. 

    These discrepancies, the statement said, have had an adverse impact on Nigeria’s credit ratings and its ability to access international borrowing opportunities on favourable terms.

    Edun stressed the importance of ensuring coordination among agencies such as the Budget Office, the Office of the Accountant General of the Federation, and the Debt Management Office (DMO), in order to deliver consistent and reliable fiscal data.

    “Delivering accurate and comprehensive fiscal data is critical to economic stability and investor confidence,” Edun said, adding that Nigeria must take control of its fiscal data management and reduce reliance on external institutions for the validation of its financial information.

    He noted that ensuring the credibility of fiscal data will not only support the country’s macroeconomic goals but also enhance its standing among global investors and financial institutions.

    At the conclusion of the meeting, participants committed to swiftly implementing the newly agreed framework. The goal, according to the Ministry’s statement, is to promote transparency, bolster investor confidence, and improve Nigeria’s overall economic outlook.

    “As Nigeria embarks on this transformative journey, one thing is clear: accurate and reliable fiscal data will be the cornerstone of the country’s economic resurgence,” the statement concluded.

    The harmonisation of fiscal data is expected to address long-standing concerns over the accuracy and consistency of economic indicators used in policy planning, budget execution, and debt management, thereby supporting Nigeria’s broader economic reform agenda.

  • ‘Lack of transparency in budgeting responsible for underdevelopment’

    ‘Lack of transparency in budgeting responsible for underdevelopment’

    Ilevbaoje Uadamen is the Founder/CEO of MonitNG, a civic tech company committed to entrenching accountability in governance. In this interview with Frank Ikpefan, the former banker speaks on the role of advocacy champions in ensuring good governance at all levels. Excerpts:

    How can civic tech be leveraged to increase transparency in government spending in Nigeria?

    Civic tech is pivotal in enhancing transparency in government spending in Nigeria by connecting citizens with the government and making budget information more accessible and easier to understand. Previously, many citizens had little to no insight into the budgets affecting their communities. However, with the advent of MonitNG, people now have easy access to budget documents, project details, and spending reports. This platform enables citizens to provide feedback on government spending or raise concerns about potential mismanagement, with their input collected through mobile apps, SMS, or web platforms and directed to the relevant authorities.

    In the past, government agencies often recycled the same budget plans each year, including projects that were never implemented. However, with MonitNG a civic tech tool which has transformed the process, citizens can actively monitor and evaluate the effectiveness of government budgets. This  tool enhances transparency, encourages citizen engagement, and provides real-time data for informed decision-making. As a result, the outdated practice of copy-and-paste budgeting has been significantly reduced, with citizens now more aware of and involved in budgetary provisions.

    What are the challenges to implementing effective civic tech solutions in Nigeria’s governance system?

    The challenges of implementing effective civic tech solutions in Nigeria can be viewed from various perspectives, including technological, political, and social factors. A significant portion of the Nigerian population that needs this information resides in rural areas, where reliable internet access is limited, making it difficult to reach and engage them through digital platforms. Additionally, government agencies often resist collaborating with organisations due to concerns over increased scrutiny, transparency, and accountability, which can lead to a lack of cooperation or even active sabotage of civic tech initiatives.

    While technology may not completely eradicate corruption in Nigeria’s public sector, MonitNG has significantly reduced it by boosting transparency, accountability, and citizen engagement. Previously, elected officials often allocated funds ineffectively, such as directing N100 billion for zonal intervention projects towards items with minimal impact, given to party loyalists and hoarded privately. However, ongoing sensitisation town hall meetings have improved oversight and allowed citizens to demand greater accountability and transparency from their representatives. This increased engagement has led to greater public ownership of projects and contributed to a reduction in corruption.

    What are the key drivers of good governance in Nigeria, and how can they be strengthened?

    A key driver of good governance in Nigeria is active citizen participation. Government agencies should enhance transparency by regularly publishing detailed budget information, including project amounts, locations, and statuses. In the past, many projects lacked specific locations and had poorly targeted rural communities, leading to a lack of community ownership. For instance, two primary health centres were built in the same community by different representatives but remained unused. To address these issues, agencies must provide regular updates, publish comprehensive details on their websites, and conduct needs assessments before project nominations, enabling citizens to track and take ownership of projects in their communities.

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    How can Nigeria’s government improve its responsiveness to citizen needs and concerns?

    Firstly, the government should include citizens in the budget process to highlight economically important projects. They should provide clear, detailed information on government projects, budgets, and decisions via open data platforms and regular updates. Collaborate with civil society organisations, community groups, and the private sector to better address citizen needs. Set up user-friendly platforms, such as hotlines and online portals, for citizens to report issues, give feedback, and request services.

    What roles can civil society organisations like yours play in promoting good governance in Nigeria?

    The role of MonitNG is to support citizens by advocating for and holding elected officials accountable. We collect and visualise budget data to strengthen citizens and community organisations, using town hall meetings and workshops to spread information. By collaborating with active citizens, civil society, the media, and key stakeholders, we aim to advance advocacy and monitor government financial commitments at state and local levels.

    How can Nigeria’s anti-corruption agencies be made more effective in tackling corruption?

    To tackle corruption effectively, anti-corruption agencies need to collaborate with civil society organisations and government agencies to gather and use information for thorough investigations. Ensure whistleblower protection and impose visible penalties for corruption to deter misconduct. Strong accountability measures and protection for reporters foster a culture where wrongdoing is less likely to go unpunished.

    What are the benefits and challenges of implementing a decentralised system of governance in Nigeria?

    Decentralised governance allows citizens to access budget data, enhancing their ability to demand transparency and accountability. It ensures that public resources benefit the broader community rather than just a select few. The challenges may lead to increased local corruption without robust oversight and result in uneven distribution of resources and capacity across regions.

    As an ex-banker, how were you able to switch from the banking sector into development?

    From a young age, I’ve been dedicated to accountability. My career started as a banker; however, following my displeasure with the lack of accountability by Nigerian leaders, I started working with BudgIT in 2012, where I tracked the N17 billion in flood relief funds across 16 River Niger states. Since then, I have moved through the ranks; first working as a Project Tracking Officer before occupying my current role. In 2019, I received an award for building the capacities of youths to monitor public finance from Association Citoyens des Rues in Morocco and was also selected among 200 African leaders across 45 countries in Africa for the Obama Foundation in 2019. Before I founded MonitNG, I aspired to a future where community projects across Africa are executed for the good of Africans; a world where public funds serve the citizens.

  • Enhancing transparency in extractive sector 

    Enhancing transparency in extractive sector 

    The Nigerian Extractive Industries Transparency Initiative (NEITI) is leading the charge in promoting transparency and accountability in the handling of payments from extractive industries to the government, as well as the revenue received by governments and other designated recipients, reports AMBROSE NNAJI.

    The Nigerian Extractive Industries Transparency Initiative (NEITI) recently convened the NEITI-Companies Forum, which centered on the theme, ‘Deepening and Strengthening Engagement in Nigeria’s Extractive Sector.’

     The gathering, attended by key players in the oil, gas, and solid minerals sectors, was facilitated by the Oil Producers Trade Section (OPTS), the industry’s umbrella body.

    The primary objective of the forum is to provide companies with insights into NEITI’s activities, offering a platform for inquiries and clarifications on industry-related issues. Also, the event aims to help operators comprehend the implications of their involvement with NEITI, both on the global corporate reputation and investment decisions for their companies.

    NEITI, as the Nigerian arm of the global Extractive Industries Transparency Initiative (EITI), was established to champion transparency and accountability in the management of payments made by extractive industries to the government and revenue received by various statutory recipients. The NEITI Act of 2007 solidified the initiative’s implementation in Nigeria, making the country the first globally to support EITI with legislation.

    The EITI, an international, multistakeholder endeavour, promotes transparency and accountability in resource-rich countries’ oil, gas, and mining sectors. To achieve EITI compliance, participating nations must adhere to a minimum set of standards governing reporting quality and the multi-stakeholder process used in report creation, verified through a validation process.

    In a significant development in 2013, EITI expanded its scope to require disclosure of information throughout the decision-making chain, going beyond its previous focus solely on revenues paid to the national government.

    The Executive Secretary of NEITI,  Ogbonnaya Orji, emphasised that the agency serves as a vital mechanism for promoting transparency, accountability, and good governance in various sectors. He acknowledged that NEITI was established to foster an enabling environment for companies to operate. As a member of 67 countries, he highlighted that information generated within the agency is shared globally, including with G7 countries.

    Expressing the significance of the forum, Orji stated that it should have provided an opportunity for participants to stay informed about the agency’s recent (2021) reports. Also, it was meant to serve as a platform for discussing sector opportunities and challenges, with a focus on enhancing the involvement of the OPTS, miners association, and other companies.

    Due to a low turnout at the forum, the executive secretary proposed a reconvening in the first quarter of the current year, anticipating a greater attendance. He attributed the poor participation to the challenges posed by the COVID-19 pandemic. Orji assured of ongoing discussions with the OPTS and the miners association to develop strategies and reaffirmed the agency’s commitment to its objectives.

    Orji underscored the forum’s role in decision-making, stressing the importance of active participation from those capable of influencing their companies. He urged stakeholders to disseminate the message that the forum remains active and will reconvene for a more robust discussion.

    Acknowledging challenges posed by changes in leadership within International Oil Companies (IOCs),  Orji highlighted the need for formalised suggestions and outlined plans for extensive training programs. He emphasised the agency’s dedication to coordinating with stakeholders, including the OPTS, to ensure the forum represents a unified voice for industry-wide EITI implementation in Nigeria.

    Expressing gratitude to cooperating companies, Orji assured them that their suggestions would be taken seriously. He emphasised the importance of self-education in the industry, urging individuals to proactively seek knowledge about their sectors.

    Orji highlighted NEITI’s commitment to providing enlightenment within its means and urged continuous self-education for growth.

    Gwueke Ajaifia

    The OPTS has committed support to the Nigerian Extractive Industries Transparency Initiative (NEITI) in its endeavour to enhance transparency and accountability within the oil and gas and mining sectors.

    Its Executive Director, Gwueke Ajaifia, affirmed that the forthcoming forum would witness substantial attendance, emphasising NEITI’s significance for everyone in the industry. Ajaifia stressed the pivotal role of data and information in societal growth, underlining NEITI’s potential to shape a mindset conducive to proper planning.

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    He emphasised the importance of not only having data but ensuring its quality, as erroneous data could lead to misguided decisions.

    Ajaifia urged industry stakeholders to actively engage in fora like NEITI’s, especially considering the oil and gas sector’s crucial role in providing foreign exchange for the country.

    Ajaifia underscored OPTS’s  interest in NEITI, highlighting its role on NEITI’s board. He explained that transparency, which helps prevent corruption, is essential for the industry’s success. He expressed OPTS’s readiness to meet financial obligations to foster industry unity and achieve shared objectives.

    The ED acknowledged the role of the EITI in building confidence among host communities, operators, and the government. He stressed the importance of collaboration between companies, civil societies, and the government to create a balanced and effective platform.

    In a welcome address, the ED and Chairman of the industry forum emphasised OPTS’s commitment to transparency and accountability principles, aligning with NEITI’s objectives. He assured OPTS’s support in raising awareness, addressing concerns, and improving the industries reporting accuracy.

    Ajaifia acknowledged the perception of NEITI resembling the Economic and Financial Crimes Commission (EFCC), aiming to dispel such notions through increased engagement with industry members. He proposed collaborative efforts to create a database allowing members to access their submissions to NEITI, ensuring transparency in the information published.

    Recognising the need for collective action, the OPTS director pledged to collaborate with NEITI to enhance communication and collectively address challenges. He reiterated the importance of self-promotion and brainstorming to reinforce the industry’s positive image and foster a more collaborative relationship with NEITI.

    National President, Miners Association of Nigeria, Dele Ayenleke expressed that their recent visit to NEITI proved to be an enlightening experience, serving as a significant forum for them. They highlighted a prevailing lack of awareness among operators in the solid minerals sector about NEITI’s functions.

    Dele Ayenleke

    The spokesperson emphasised that the challenge goes beyond disseminating information; the primary concern is creating awareness about NEITI’s fundamental purpose. Many individuals within the solid minerals sector, including operators, are unfamiliar with NEITI’s actual role. The spokesperson noted that as operators in the solid minerals sector progress through the typical evolution, a crucial starting point is to understand what NEITI expects from them.

    In their view, the essential question is not just about how to share information but, more importantly, comprehending what NEITI necessitates from their sector. They stressed the importance of establishing databases for all their members to facilitate this understanding. While acknowledging the executive’s commitment to providing enlightenment on this matter, they emphasized the critical need for clarity on the specific information NEITI requires from them. This, they believe, is foundational for effective collaboration and compliance within the solid minerals sector.

  • ICAN to govt: Embrace technology, transparency for effective governance

    The Chartered Institute of Accountants of Nigeria (ICAN) has called on government, corporate organisations and stakeholders to leverage on the importance of accountability and transparency as well as the deployment of technology for effective leadership and good governance in the country.

    The call was made at the 13th Western Zonal Conference, tagged “Ikorodu 2019” organised by the Ikorodu District and Society of ICAN, Lagos.

    In his keynote address, the ICAN President, Alhaji Razak Adeleke Jaiyeola, said the professional body is determined to improve public sector financial management at the three tiers of government.

    Earlier in his welcome address, the Zonal Chairman, ICAN, Ikorodu, Toluwase Ojo, noted that this year’s theme was carefully chosen after serious brainstorming-sessions by the organisers and due consideration of the present need in our nation.

  • Buhari lists transparency, inclusiveness as policy thrust in next four years

    President Muhammadu Buhari yesterday gave an insight into what will shape his administration in next dispensation.

    He told Nigerians that his government will pursue inclusive and transparent policies to guarantee security and economic safety of all.

    The President, who received a delegation of the Nigerian Union of Journalists (NUJ) led by Mr. Chris Isiguzo at the State House, said: “As I look to the next four years, I will remain committed to a safe and secure nation; creating an inclusive and diversified economy; and a governance system that is free of corrupt practices.   In all these areas, we will remain transparent in implementing our policies.’’

    A statement by the Senior Special Assistant on Media and Publicity, Garba Shehu, said the President told the visiting NUJ leadership to rally their members in devising a means to control the spread of false information.

    According to him, those who “create alternative reality’’ on social media are steadily eroding the credibility of journalism.

    The statement reads: “Your profession today is undergoing a fundamental shift. For better or worse, the digital space is now becoming the major outlet for ‘news’. This space is difficult to regulate and police. In many instances, the participants in this medium are not trained or professional journalists.

    “The stories they present are neither factual nor true. However, through the digital platform, they are able to reach millions and create an alternate reality in their minds. I am sure you will all agree that the biggest threat to the sustainability and credibility of your profession is the uncontrolled and unregulated news platforms operating in the cyber space.’’

    The President noted that some misleading information in the social media were created and posted by people who lived outside the country.

    ”Many of the perpetrators of these acts do not even live within our shores. However, they have been able to damage the reputation of hard working Nigerian journalists while at the same time promoting conflict and divisions within our society,’’ the statement added.

    President Buhari commended journalists for the effective coverage of the 2019 elections, pointing out that many, out of patriotism, went beyond their call of duty and took risks to ensure full and balanced reporting of the election, assuring the NUJ that security agencies will do their best to protect reporters, especially in hostile environments.

    Isiguzo congratulated the President on winning the 2019 Presidential Elections, attributing the victory to his integrity and commitment to the development of the nation.

    The NUJ leader said the union was concerned by the growing number of media casualties in Nigeria, and across the continent, in carrying out their duties, urging Federal and State governments to take effective measures in protecting journalists.

    He said: “Sir, we also wish to encourage your administration to evolve better ways of impacting positively on the lives of Nigerians who feel marginalised from the mainstream of Nigeria’s social, economic and political activities.”

    In a chat with State House reporters, Isiguzo said: “Basically, we have come to congratulate the president on his re-election as the President of the Federal Republic of Nigeria and of course, to also make it clear to him that to whom so much is given, much more is also expected from him.

    “He’s gone through the first-four years; by May 29, he will be through with that and he’s been given yet another mandate to lead Nigeria for another four years and we also made it clear to him that some of the major challenges that we have had in the past four years, this is an opportunity for him to correct them especially when it comes to the area of inclusiveness, carrying everybody along.”

     

  • Perception index…And Transparency ignores the reality

    The 2018 Corruptions Perceptions Index (CPI) recently released globally by Transparency International has erroneously shown that Nigeria has ‘neither improved nor progressed in the perception of corruption in the public administration in 2018’. This is the fallacy that this intervention seeks to address, not on the basis of sentiments, but on the premise of raw facts, data and verifiable statistics.  But first, what is the assessment of the rate of corruption in Nigeria in the context of global affairs as released by Transparency International this year?

    In the assessment just released, Nigeria scored 27 out of 100 points in the 2018 CPI, maintaining the same score as in the 2017 CPI. In the country comparison, Nigeria ranks 144 out of 180 countries this year as opposed to 148 out of 180 countries in the 2017 CPI.  This may have shown that Nigeria is still perceived as highly corrupt, meaning that even if Nigeria moved up four places in the latest ranking, this has not translated into any significant improvement because four other countries may have scored worse during the period under review. But has Nigeria really fared worse in the year 2018 as erroneously portrayed by Transparency International? I think not for the following reasons.

    First, the EFCC has raised the ante in criminal prosecutions securing 312 convictions in 2018 including that of politically exposed persons.  This feat is remarkable given the performance in previous years.  In 2010, the rate of convictions was 68, in 2011 the figure was 67, in 2012, the figure was 87, in 2013, Nigeria had a figure of 117, in 2014, Nigeria recorded a figure of 126, in 2015, the conviction rate was 103, in 2016, the figure rose to 194, in 2017, the figure dropped to 189 and significantly in 2018, the figure rose to 312 – very remarkable and unprecedented.  Remarkably, this 312 figure include convictions of former governors of Taraba (Rev. Jolly Nyame) and Plateau State (Senator Joshua Dariye) in addition to the conviction of the former Executive Chairman of Ogori/Magongo Local Government of Kogi State, Mr. Gabriel Daudu amongst others. A breakdown of 2018 EFCC’s Zonal Offices Convictions reveals the following: Abuja 53; Lagos 85; Kano 36; Port Harcourt 33; Gombe 28; Benin 27; Enugu 15; Maiduguri 11; Ibadan 10; Uyo 8; and Kaduna 6 respectively.

    The agency also made a strong showing in the 2018 record of concluded financial crimes and corruption cases compiled by the National Judicial Council’s Corruption and Financial Cases Trial Monitoring Committee, COTRIMCO. Out of 297 cases compiled by the Committee being prosecuted by law enforcement agencies in the country, the EFCC proved itself as the agency to reckon with, with a total of 175 cases being prosecuted by it, with 13 listed for the Independent Corrupt Practices and other Related Offences Commission, ICPC.  The EFCC and the ICPC are the leading anti-corruption agencies in Nigeria.  Perhaps, what is most remarkable in 2018, is the conviction of the seemingly untouchables in the society.

    Significantly, these achievements are happening during the Buhari administration that is committed to the agenda of tackling corruption in many ways.  One example that can be cited in favour of the Buhari’s administration is the new Whistleblowing Policy introduced by the Federal Ministry of Finance in December 2016 which has since yielded several recoveries. These include N13.8 billion from tax evaders and N7.8 billion, $378 million, #27,800 in recoveries from public officials targeted by whistleblowers.

    Secondly, the National Economic Council (NEC) under the Chairmanship of Vice President Yemi Osinbajo, approved the audit of key federal revenue generating agencies, which has so far yielded a total sum of N526 billion and $21 billion. The money was underpaid to the Federation Account between 2010 and 2015.

    Significantly, the Buhari administration is also on record as addressing issue of poor levels of remittance of operating surpluses by Ministries, Departments and Agencies of government.  This blockage of leakages is already posting phenomenal results.  The Joint Admissions and Matriculation Board (JAMB) remitted N7.8 billion in 2017, with prospect of achieving similar feat in 2018.  This figure was against the sum of N51 million remitted between 2010 and 2016 an indication that it is no longer business as usual.

    Significantly, the Buhari’s Administration has also submitted an Executive Bill for the Mutual Legal Assistance in Criminal Matters between Nigeria and other foreign countries, to facilitate the identification, tracing, freezing, restraining, recovery, forfeiture and confiscation of proceeds, property and other instrumentalities of crime. The government has further signed agreements and MOUs with various countries to boost international cooperation for the investigation, tracking, freezing and return of stolen assets.  In addition, the government has also set up the Presidential Initiative on Continuous Audit (PICA), which is aimed at strengthening controls over government finances through a continuous internal audit process across all MDAs, particularly in respect of payroll.  The government has also introduced the Treasury Single Account Policy by virtue of which all MDAs are advised to close their accounts with Deposit Money Banks and transfer their balances to the Central Bank of Nigeria with effect from September 15, 2015.  This policy has resulted in the consolidation of more than 17,000 bank accounts previously spread across Deposit Money Banks in the country. Secondly, the policy has resulted in increased transparency in public financial management amongst several advantages.

    The Buhari’s administration also attended and participated in the International Anti-Corruption Summit organised by the UK Government in May 2016 with President Buhari being recently appointed by the AU to drive the anti-corruption agenda of the continent. Nigeria was elected to lead the Open Government Partnership (OGP) in 2018 alongside Argentina, France and Romania.

    The federal government has established an efficiency unit in the Federal Ministry of Finance to review all government overhead expenditure so as to reduce wastage and provide efficiency and quantifiable savings for the country. The policy has resulted in savings on travels, sitting allowances, and souvenirs to the tune of N17 billion.

    Significantly, in an effort to deliver on transparency and accountability, the Nigeria National Petroleum Corporation (NNPC) has been publishing its performance monthly report in newspapers and various new media platforms and most importantly on the NNPC website. The government has also created a new prison Data Management System as well as the creation of Sexual and Gender-Based Violence Response Teams to some states as some of its major achievement in the area of transparency and good governance.

    There are other far-reaching achievements of the Buhari’s administration including reforms in the judiciary. One example of these reforms is the establishment of Presidential Advisory Committee Against Corruption (PACAC) to, among other things; promote the reform agenda of the government on the anti-corruption effort, and advise the administration in the prosecution of the war against corruption and the implementation of required reforms in Nigeria’s criminal justice system. The work of PACAC has been quite significant and far-reaching. PACAC has empowered Judges and Prosecutors to operate effectively in carrying out their responsibilities through workshops on the new Administration of Criminal Justice Act, 2015.  PACAC has also trained both federal and state prosecutors on proper drafting of charges and has also helped anti-corruption agencies devise clearer strategies for obtaining forfeiture of assets suspected to have been acquired fraudulently, mainly from State Coffers, before prosecuting suspected culprits.  PACAC has also reviewed existing laws like the Money Laundering Act, 2004, the EFCC Act, 2004 and the ICPC Act, 2000 to identify and highlight sections directly conferring powers of forfeiture on Nigeria’s anticorruption agencies.  Lately because of these reforms, there has been a significant increase in the use of Non-Conviction Based Asset Forfeiture Mechanisms by anti-corruption agencies.

    Significantly, PACAC has also drafted a bill for establishment of Special Crimes Court to speed up anticorruption related matters.

    Based on the foregoing measures, one cannot justify the newly released index by Transparency International wherein Nigeria scored 27 out of 100 points in the 2018 Corruption Perception index. This ranking ignores some positives in the governance field, judiciary and anticorruption agencies particularly in the number of persons convicted for corruption related charges. The ranking also ignores measures put in place to fast track the trial process including measures culminating in the seizure of ill-gotten assets in non-conviction based trials amongst other positive narratives.

    Undoubtedly, Nigeria’s efforts in curbing corruption inspite of the tremendous strides in recent times, is still work in progress. We still have to do more to strengthen institutions responsible for maintaining checks and balances over political power and ensuring they are able to operate without intimidation or coercion.  Secondly, we need to close the implementation gap between anti-corruption legislation practice and enforcement.  It is also important to support Civil Society Organisations to enhance the quality of political engagement and oversight responsibilities particularly on public expenditure.  A free and an independent media that will facilitate the reportage of corruption related practices are desirable.  We need to build systems, build institutions, enhance societal traditions, strengthen ethical and moral values including personal behaviours and delivery on effective leadership with the requisite political will to combat corruption in the land.

    In conclusion, corruption perception index 2018 may have shown that more is still required in the fight against corruption in Nigeria but the ranking of Nigeria inspite of the giant strides recorded by the Buhari administration is unfair.  Unfair significantly not only because of the anticorruption measures of the administration including the positives delivered by the Presidential Advisory Committee Against Corruption (PACAC) but more particularly because of the phenomenal achievements of the EFCC under Magu’s watch.

  • Lagos night life: In need of more light, transparency

    In my more than two score years in Lagos, Nigeria’s commercial capital, I have always thought of the city as a trader’s paradise; a place where merchants can carry on business at all times of the day, whether it be at dawn, dusk or in between. The energy in the place appears inexhaustible enough to be extinguished by the mere approach of darkness. Sadly, in many places, this is just what happens; enterprise comes to a halt, frozen by the arrival of night.

    But it doesn’t necessarily have to be so – at least not for a state set to be the third largest economy in Africa – if a few crucial ingredients are firmly in place. This can almost be guaranteed with greater security of lives and property, what with traders’ desire to continue their hustle into the dead of night. It didn’t seem so at first until I started to believe that with the ‘Light Up Lagos’ initiative, the Lagos government may be on the way to ensure this happens.

    I came to this conclusion after my interaction with micro-business people across densely populated areas of Lagos including Agege, Alimosho and Ogba. In these markets that mostly form during rush hour and typically last until nightfall, traders display and flaunt wares as diverse as kitchenware in lock-up shops to bathing sponges and perishable food items in the open. Also to be seen in these milieus are nimble okada riders who go into fits just to outdo each other in nicking the next passenger.  A casual observer from afar may see the frenzy as one mad house but, within the maze, transactions worth hundreds of thousands of naira are being closed. Such is the informal economy that is Lagos night markets.

    These market operators reveal that they do not mind displaying their wares until very late in the night if they will not be harassed by hoodlums. Many who trade around Ogba Bus Stop are comfortable to do so as they feel safe with the bright lights shining above them, something that was absent roughly a year ago.

    Theresa (not real name), a seller of spices, whom I spoke with at about 9pm, said she hoped to stay on until about 11 pm before heading home. She now stays back two hours longer for a chance to make a few bucks more than before the lights were installed. Umaru, who has been operating a Kiosk at the same market said that, although he has never heard of attacks around the market (probably because it is situated close to a police station), people got apprehensive when darkness approached; so it was natural for them to pack up and leave. He observed however, that traders have begun to stay a bit longer to sell their wares ever since the street lights came on.

     

    Turning the lights on

    The ‘Light Up Lagos’ project was launched in 2016 with the aim of illuminating major highways and streets in Lagos with street-lamps in order to boost commercial activity, enhance security and promote tourism by adorning the city with a more befitting aesthetic appeal. Considering the breadth of Lagos, the initiative is ambitious albeit laudable. It is certainly indispensable for a city that is determined to maintain its self-imposed ‘mega city’ label.

    If the project is to aid commerce and work towards a round-the-clock economy, then, based on the accounts of Theresa and Umar, it is probably succeeding – even though some media reports might suggest otherwise. “The ‘Light Up Lagos’ project is one of the components needed to make sure a 24-hour economy runs in Lagos State” said Steve Ayorinde, former Lagos commissioner of Information who is now in charge of the Tourism ministry.

    Documents obtained from the state electricity board say that over 1000 km of road networks from almost all the local governments of the state are benefitting from the initiative. “These  installations cut across areas like Maryland, Ojota, Berger, Iyana Oworo, Ajara, ASCON areas in Badagry, Ile Epo Zik to Toll gate, Alausa, Third Mainland Bridge, Ikorodu Road and Service Lanes, Oworonshoki etc”, says one of the documents. Communities in Ajah, Ile Epo-Zik and Sango Toll Gate have also benefited from the project along with 34 communities in Badagry, the southernmost parts of Lagos.

    But street lights are only one part of the three facets that make up the Light Up Lagos Initiative. Other components of the programme are community electrification and embedded power. The community electrification plan is to ensure that communities that have been disconnected from the national grid are re-connected or get new transformers.

    Recently, the Lagos governor, Akinwunmi Ambode, signed into law a pledge to bring uninterrupted power to the whole state, something inconceivable almost anywhere else in the country. The plan was to use state funds to provide guarantees to private electricity generators so that they can build mini-power plants around the city. Very early in his tenure, he had promised Lagosians that “my administration would light up the State and create a 24-7 economy.” With the Light Up Lagos project, He hoped to put Lagos ‘on the same pedestal and status as similar megalopolis in the world’ stating also that it was “part of our security strategy to make our State competitive, safe and secure.”

    The Embedded Power facet of the scheme is yet to take off but it envisages providing power for strategic locations in some parts of Lagos in the medium term. Planned to plug the shortfalls from the regular national electricity grid, private businesses and homes would buy their power directly from the state government.

    Ironically, the facilities that would provide the illumination required for a sense of security needs to be secured. Sadly, Lagos is notorious for the misuse and theft of public amenities, installations and equipment. The project therefore incorporates the engagement of local vigilante to work with the local police to ensure the facilities don’t get squirreled away by criminals in the beneficiary communities.

     

    Shedding more light

    The Light-up project may have brought good tidings for traders like Theresa and Umar trying to sell their wares up till the late hours, but their unexpected fortune is unlikely to be a useful indication of the initiative’s success. Although Ikeja, the suburb where they operate, is a densely populated local government area, the number of residents there pale in comparison with others like Alimosho, Mushin, Ajeromi or Surulere. In such areas, security from hoodlums would be arguably better appreciated especially at that time of night.

    With deals struck and support offered from private sector actors, the Lagos government has made clear that it will light up every local government in the state. Apart from determining whether the project offers value for taxpayers’ money, there are salient factors to consider before drawing conclusions about which residents in Lagos should be given priority. Clearly, population density is one of them. Another is the number of roads in the different local government areas while a third would be the cost of the streetlights vis-a-vis the other components of the overall project.

    If the government were to use the first criterion, Ajeromi/Ifeloju with the highest population density should get more street lights than any other local government while Ibeju-Lekki should get the least street lights. On the flip side, Alimosho local government deserves more street lights than others if the number of roads were used as the criterion. Alimosho proves its mettle as Ifako/Ijaiye falters. Alimosho has a whopping 1,083 roads and should get more lights. A combination of both criteria could give a robust view.

    So should the population density of the twenty local governments in the state or the number of roads in a local government determine where to install the lights? To make this decision, relevant data is required. Unfortunately, most of what is in the public domain appears to be grossly incomplete or non-reusable.

    Generic data from the Lagos Bureau of Statistics offers some respite. In the same way as the flicker of light from a matchstick guides an explorer through to the end of dark tunnel, the types of roads and the materials used to construct them can help to situate the Light Up Lagos project. From the data, I found that 92.4% of the roads were constructed by the local government. The state and federal government were only responsible for 6.1% and 1.4% of the roads respectively. This means that there are more feeder roads in the state than highways. This is justifiable for a state with such an enormous population. These roads feed traffic from residential areas to the highways. Of more importance are the types of materials used for the in the construction of the roads. A typical Lagos road is either paved or made up of gravel and earth.  Bitumen is commonly used for the construction of paved roads. Which of these is prevalent in Lagos? Data shows that there are more earth and gravel roads (59%) than those covered with bitumen (41%). Of the roads constructed by the local governments, more than 61% are earth and gravel roads. This means that most of the feeder roads are unpaved. Thus, would Alimosho, the local government with the highest number of gravel and earth roads, have all its roads lit up?

    In the context of this data, one could question the readiness of Lagos roads for street lamps when more than half of its roads are made of earth and gravel. Would the government use tax-payers money to light up untarred roads all in the name of positioning the state as a mega-city? In the case of future upgrades of the roads, what would be done to the street lamps? Of course, they would have to be evacuated first and then reconstructed; but that would not be a judicious use of tax-payers money. It could be thus assumed that one of the three pillars of ‘Light Up Lagos Project’ which is the creation of 24/7 hour economy within the state might not be achieved unless the current situation of the feeder roads which host most of Lagos’ residents is revisited.

     

    Hobbling in the dark

    But did the Lagos government apply these criteria to lighting up the city? I am left with my imagination as the crucial information is not available in the public domain to be scooped and interrogated. I spent the good part of four weeks trying to get this information from the state electricity board. One my first day of enquiry, I got there at about 3:30 pm on a Friday and I was asked to return the following week. I did as I advised but, rather than furnish me with the requested data, I was told to write a letter to the GM responsible for the information. Once again, I placidly obeyed, drafting a quick letter there and then with the hope that I would be attended to immediately. But after barely two minutes, I was asked to return the following week.

    I showed up as directed only to be told that there was no information for me along with the refrain that I should “come again” but, this time, before the end of the week. A back and forth ensued and approximately one month after my application, several emails and even whatsapp messages, I received a two-page document about the Light Up Lagos project that was devoid of any kind of data. I grumbled and was promptly told that I was lucky to have gotten the ‘prize’ I was clutching in my hands. In fact, according to them, it was given to me only because of my persistence. I was then advised to make good use of what I had, since “after all, half bread is better than none.”

    The non-availability of data thus frustrated my attempt to find out the official rationale and analyses behind the distribution of streetlights across local governments. It thus muted a simple inquiry to help draw simple inferences about the project, such as the tendering, contracting and implementation processes, which was the original intent of this piece. I was therefore left with no option but to skew my story since I didn’t have any data to work with. Alas, I had imagined drawing fancy graphs demonstrating relationships and causalities with data of number of streetlights mounted in each local government versus the population and number of roads in each local government!

     

    Other shades of light

    My original enquiry had also sought to find out how much it costs the Lagos taxpayer to light up their city. According to data obtained from the state’s annual budget, not less than N27.8 billion has been spent on the project since 2016. ‘Delivery of light up Initiative’ was allocated N3 billion in 2016 and N1 billion in 2017 while a whopping N13.1 billion was spent on Independent Power Projects (IPPs) in 2017 and N10.72 billion in 2016.

    While it was easy to obtain costs of the line items in the state’s annual budget by merely searching online, a breakdown of the actual spend turned an impossible task. The best that came out of my month long visit to the state electricity board was an explanation of the initiative. Nothing is known about the bidders for the contract, criteria for the bidding process nor about how much was paid to the awarded contractor. In other words, my interest in comparing the cost of delivering the project with similar projects in other parts of the country or the world proved an impossible task. The non-availability of information of this sort may mean undermining the taxpayer who may be interested in establishing whether his taxes are judiciously used. This is crucial information for a state with the highest Internally Generated Revenue (IGR) in Nigeria.

    Among the questions I asked the electricity board was ‘who are the contractors to the project? The idea was to eventually establish if there was competitive bidding in awarding the contracts and to see if due process was followed. This too met with a dead end after a series of ‘come back tomorrow’.

    The numerous road blocks I encountered in the course of my enquiry leads me to conclude that if the Lagos government really wants to be accountable to the people, it is apposite to open up to them and this will include making data and other information easily accessible to the people. A situation where even journalists like me who have a duty to obtain and process such information for the people cannot gain access makes the situation all the opaquer and unacceptable.

     

    Light at the end of the tunnel

    But perhaps the bigger worry should be that Theresa and Umar and many more like them, who are smug with illumination coming from high above them, do not seem to care for these things. One could see that they are content to sell their wares deep into the night without the slightest worry about how much it all costs them in fees and taxes. Watching as they exchange goods for money, with their only thoughts probably being how to subsist at the lowest rung of the hierarchy of needs, perhaps the best thing to do is to leave them alone in their ignorance, because that has proved to be bliss. But then again, it is this “I don’t care’ attitude, which characterises much of the Nigerian society that gives room for government’s lack of transparency. If only they can care a bit more about where their tax buck really stops, perhaps they can get the Lagos government to do the needful and account for the lights and much more as they work to make Lagos a traders paradise.

    Where to start from on how to tackle a government as big and as powerful as the Lagos State government may seem like a daunting one. In fact, it may seem impossible. This is all the more so when one considers all the powerful things a government can do and does in Lagos, like demolishing whole areas and markets and even seizing land for development. But despite all the power a government wields, people can boldly demand for simple accountability. This is because governments get to be there by the people’s votes and so are entitled to explanations failing which the unresponsive, irresponsible government gets voted out. As soon as they can understand the power inherent in their votes, then the challenge is halfway solved.  They should realise that they can stop corrupt, non-transparent governments and those that take them for granted. They owe themselves and the other segment of society that civic duty. In the end, it is up to the traders whether they want to see more lights, better maintenance of the lights and other public infrastructure to help their hustle. In short their longed-for traders’ paradise where they can operate round the clock lies in their own hands.

     

    • This article was written as part of the Open Contracting Programme for Journalists workshop organised by the Open Data Research Centre of the School of Media and Communication, Pan-Atlantic University, Lagos. 

     

  • NNPC, NEITI engagement attains global transparency

    The Nigerian National Petroleum Corporation (NNPC) and Nigerian Extractive Transparency Initiative (NEITI) have attained global standards set for operators in the oil and gas industry, NNPC’s General Manager, Crude Oil Marketing, Mansur Sambo, has said.

    He said since the enactment of NEITI law by the government, NNPC and NEITI have committed themselves to transparecy in every aspect of their operation.

    He said the two agencies have  been having frequent engagments on transparency, as regards attaing global standards, adding that their efforts have paid off, as the two bodies were adjudged to have attained the standard.

    Sambo said the engagement started with the reconciliation of crude oil produced, recalling at some point the allegations/issues that we didn’t know what we were producing as a country. He added that through frequent engagment the story has changed today.

    In an interview with The Nation in Abuja,  Sambo said Nigeria  has moved from hydrocarbon accounting to hydrocarbon revenue accounting, and has transited to hydrocarbon revenue utilisation. “We have moved through all these stages because of the engagements we have been having in the past.

    “We moved from the level where we hear that crude oil is disappearing at the terminals through ships, and the engagements have brought much enlightenment to the public on what happens in the terminals,” he said, adding that some of those perceptions people were having did not even happen at the terminals

    Stressing the need for continuous engagement, he said the Corporation has been able to clear some of the issues in the industry with further engagements.

    On the deep offshore Act, he said the industry has pursued the deep offshore, however, there are many other fundamental and salient items that if looked at would generate more revenue than the deep offshore Act.

    “The deep offshore Act can only increase profit sharing we will get from the production sharing contracts (PSCs). Similarly, the petroleum industry bill (PIB) is part of the solution to the increase in revenue that we are heading to, however, the bill alone will not address all the issues to the problem, and it has to go beyond the deep offshore Act,” he added.

  • LCCI: why we’re partnering INEC on transparency, openness

    The Lagos Chamber of Commerce and Industry (LCCI) is partnering with the Independent National Electoral Commission (INEC) to set a framework for transparency, openness and level playing field for all economic players because the political environment has a profound impact on the investment environment and business performance.

    LCCI President Mr. Babatunde Ruwase said as business people, members of the Organised Private Sector (OPS) cannot operate outside the political space. “We, therefore, cannot be spectators in the democratic and electoral process,” he stated.

    Ruwase, who spoke at an INEC private sector forum, organised by the LCCI in Lagos, noted that many private sector players have a negative perception of politics which informed the adverse disposition of many of them to politics.

    He noted that the quality of political governance has implications for the sustainability and prosperity of businesses, and politicians determine the quality of economic policies.

    “It is the politicians that determine the quality of institutions; it is the politicians that determine the quality of investment policies and appropriate the resources of the state. Invariably the destiny of the people is in the hands of the political class,” Ruwase said.

    This, he said, was why LCCI was seeking political governance that sets a framework for transparency, openness and level playing field for all economic players, as well as an economy that rewards entrepreneurship and enterprise.

    He added that the Chamber also seeks an economy where there is a relationship between wealth creation and economic prosperity; and an economy where the policy formulation process is transparent, inclusive and in the overall national economic interest.

    The INEC Chairman, Prof. Mahmood Yakubu, said as part of entrenching the culture of transparency, openness and level playing field, the Commission’s ongoing Continuous Voter Registration (CVR) will have a register of over 80 million voters in 2019.

    He said since April 2017 when the CVR exercise started, some 9,700,999 new voters have been registered as at 14th June 2018, adding that if they add this to the current register of 69,720,350 voters, they will have a register of over 80 million voters in 2019.

    Yakubu said in an effort to promote certainty of electoral process, the Commission broke with tradition by establishing the principle that going forward national elections in Nigeria should hold on the third Saturday of the month of February of the election year (Presidential and National Assembly), followed two weeks later by  state elections (Governor and state Assembly).

    According to him, it was on this principle that the commission took the decision that the 2019 general elections will hold on the dates referred to earlier. Accordingly, and for the first time in their history, the Commission released the timetable and schedule of activities for the 2019 general elections on 9th January 2018, over a year in advance.

    “Just like elections proper, election dates in Nigeria are also no longer a matter of guess work. We believe that doing so will engender certainty and give sufficient time to political parties, civil society organisations, the media, security agencies and the business community to plan.

     

  • Fed Govt reforming NNPC for transparency, says Adeosun

    The Federal Government will reform the Nigeria National Petroleum Corporation (NNPC) to ensure that all revenues earned are accounted for, Finance Minister Mrs. Kemi Adeosun said yesterday.

    Mrs. Adeosun spoke at a joint news conference with Central Bank of Nigeria (CBN) Governor Godwin Emefiele at the end of the 2018 International Monetary Fund/World Bank Spring Meetings in Washington  D.C.

    She said the government’s priority was to ensure that all earned revenues entered government coffers and were better managed.

    The minister said: “Government will continue to efficiently and effectively manage costs and plug leakages. We must make sure that every money that is earned comes in. We will drive the process of improving governance.”

    The reforms of state-owned enterprises, she said, would boost the country’s fiscal buffers, which will lead to a rise in the Excess Crude Account (ECA). The ECA, Mrs Adeosun said, was expected to rise now that crude oil prices have risen.

    “Now that we have $72/per barrel oil price and $45/per barrel oil benchmark, we must begin to see ECA accumulation and to do that, we have to focus on the cost of state-owned enterprises. If every time the price of oil goes up, and the cost goes up, then there is no net gain,” she said.

    Mrs Adesoun said her ministry would work closely with the NNPC. “In terms of what we are doing, even tomorrow (today), I am staying back because we are having a team from the NNPC coming in, and we have  meetings with technology providers who will help us control some of those costs. We have to look into state- owned enterprises and look at their costs very, very closely. And as Chairman of the Federal Account Allocation Committee (FAAC), and on behalf of their owners and NNPC, we are going to be strengthening their governance,” she said.

    “And the NNPC is working very closely with us. We sit down, and look at the numbers together. If we are not happy with the numbers, we ask more questions. I think in the past, NNPC will simply come and present a figure, now, we are questioning those figures. Why are we spending so much on this, and I think that is very, very important to us to take advantage of this period to really rebuild our buffers,” she said.

    Mrs. Adeosun and Emefiele said the country’s positive growth outlook would be sustained.

    The minister, who noted that the present growth outlook contrasted with the outlook in 2015, said inflation rate was slowing down while the foreign reserves were rising.

    She said: “We are confident that if we diligently implement our economic plan, we will grow the economy. We have room to grow but other countries do not have rooms to grow.

    “By 2019, the growth will be far more robust than the present level in 2018. We are, therefore, very optimistic in sustaining Nigeria’s economic growth. We are going to use this opportunity to grow our fiscal buffers, particularly aggressively growing our revenue base.”

    Mrs Adeosun confirmed the recovery of $322,515,931.83 Abacha loot from the Swiss government into a special account in the CBN. The funds, according to her, would be used for the government’s National Social Safety Nets Programme .

    “The objective of the National Social Safety Nets Project for Nigeria is to provide access to targeted transfers to poor and vulnerable households under an expanded national social safety nets system,” Mrs. Adeosun stated.

    Explaining his absence at the US Investors’ Forum held in Washington on Friday, Emefiele said the minister and himself were in the United States to attend the World Bank/IMF statutory meetings.

    He said: “For the Minister of Finance and me being the governor of the CBN, what takes preeminence is the meetings in the IMF as well as the meeting at the world Bank.  I think it is important for me to say this, when I arrived in Washington, the officials of the embassy spoke with me that there was going to be a US-Nigeria summit and I said I would check my schedule because I was not consulted when this summit was being organised.

    “What one would have expected is that they would have checked my schedule and that of the finance minister if they thought that our presence at the summit was very necessary. They could have checked our schedule to see that there was no conflict. I sit here to say the US-Nigeria summit was meant to hold between 2 pm and 3 pm whereas the World Bank Development Committee plenary session which is an Assembly of Ministers and Governors of Central Banks was to hold between 2.45 and 5pm. There was no way the Minister of Finance and myself could have been at those meetings,” he said.

    Emefiele added: “But I think it is important to say it is unfair for people to begin to cast aspersions without understanding our schedule. The main reason we are here is because of the statutory meetings of the IMF and World Bank.  I felt I should explain this. We are not irresponsible people and please, we apologise to those investors who had gathered at the Nigerian Embassy for the summit. But I know we also held some side meetings with some investors and there will always be lots of opportunities to meet with them. But I want to say this is not the fault of the Minister of Finance and myself the CBN Governor”.

    Speaking on Voluntary Assets and Income Declaration Scheme (VAIDS), Mrs. Adeosun said the Common Reporting Standards agreement was signed, which is a reporting standard that forces multinational companies to report their figures in a consistent way, to allow us compare. The aim, she said was to stop a lot of multinationals which earn a lot of money in Nigeria but do not pay a lot of taxes in Nigeria and also ensure that they are not using profit shifting to move those taxes abroad.

    The VAIDS compliance deadline, she said, was extended because of appeals, especially from professionals, who said, the volume of people that wants to comply, demands that government gives more time and we considered the options and decided that on the balance of averages, it is better to have people who pay voluntarily and get the revenue quicker than to be strict and chase after them. That informed us giving another three months.

    “The level of compliance has been considerable especially personal income taxes, and the state is excited about the number of people who have adjusted their level of compliance. Let me give example with Ogun State. I was speaking with the chairman there, and he said the number of people paying N10 million and above in Ogun State has risen to 200. We asked for that statistics before, I do not think that Ogun had more than 20. So, VAIDS has succeeded in getting an High Net-worth Individuals (HNIs) really stand up to pay their fair share for national development,” the minister said.

    “There is one person that paid N250 million and more under VAIDS. It is a very successful programme and we know a lot of people are waiting for the extension and we want more people to come in. The level of compliance is quite reasonable, especially the personal income tax and the states are very excited about it.  In my own state of Ogun, the number people paying N10 million and above has risen to 200 from less than 20. So VAIDs has succeeded in getting our high net worth individuals to stand up and pay their fair share of national development. I know that the figures for Lagos are very significant. We have a case of one person paying N250 million and more,” she said.

    On debt rebalancing, Mrs. Adeosun said before now, 80 per cent of Nigeria’s debt was short dated, with a tenure of two years or less. “Interest was compounding on debt service to revenue. So, what we did was to restructure, and we told the debt management office to stop issuing 90 days bill. Issue 180, 360 and bonds to reduce your interest cost. Secondly, most of what we owe was domestic and the interest rate was high between 19 and 20 percent. Today, what Debt Management Office is paying is around 13 per cent because we have restructured that portfolio, refined some into dollars,” she said.

    Mrs. Adeosun said one of the advantages of the government borrowing heavily and coming out of the domestic market was to enable the banks to lend to the real sector.  ”If we don’t allow the private sector to grow and only government is borrowing, we cannot grow. The real fiscal buffer is an economy that is growing strongly. That is the real shock absorber and then we can weather the storm if there is a storm,” she said.

    Emefiele described the foreign reserves as economic variables that should be focused on not just by Nigerians, but by everybody. “Today, our reserves have risen close to $47.93 billion as I speak with you but it is not to say it cannot come down. It’s a fluctuating number. You make payments, you receive money. So, if tomorrow you hear that it has dropped from $47.9 billion to $47 billion, then moves to $50 billion, don’t be surprised. I don’t want to raise hopes,” he said.

    The CBN, he said, would continue to build the reserves, adding that Nigeria’s decision to rebuild its reserves from as low as $23 billion in 2016, to almost $48 billion today was a decision in the right direction.

    “So, we are going to continue to do so. If we had reserves when we were hit by the exogenous shocks, we would not suffer the recession that we suffered. And there is a very strong likelihood that there could also be reversals,” he said.

    He said the CBN would love to have inflation as low as possible. “Last month, inflation was 13.43 per cent. We are hoping that in 2018, we should achieve a very low double digit inflation level and if we are lucky, high single-digit. And I think with that we should be seen to be moving in the right direction. I keep saying the Monetary Policy Committee (MPC) has the primary mandate for monetary and price stability.”