NNPC Reform
Any promise made to Nigerians to tackle corruption in the country without genuine commitment to checking the books at the Nigerian National Petroleum Corporation (NNPC), unearthing the massive looting of national resources in various shades is surely not a sincere promise.
The country’s major foreign exchange earner has been managing national resources in questionable manners and this has remained a major source of concern to Nigerians.
Before he was eventually fired, former Governor of Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi in a letter to former president, Dr. Goodluck Jonathan raised the alarm over massive diversion of government oil revenues.
Edo State Governor, Adams Oshiomhole, recently lamented that NNPC generated about N8.1trillion between 2012 and May 2015, but only remitted N4.3trillion to the federation account, alleging that the balance of about N3.8trn was withheld and spent by the NNPC without approval or National Assembly appropriation.
Last month, the Natural Resource Governance Institute (NRGI), an international independent body that monitors the oil and gas sector globally, alleged that the NNPC failed to remit a total sum of $12.3 billion (N2.5 trillion) crude oil proceeds into the Federation Account over a period of 10 years.
The corporation unilaterally spent billions of dollars in crude oil revenues each year, instead of transferring them to the treasury, because its budget process fails to cover operating expenses and agitation over the sleaze in that sector reached its peak during the immediate past administration with opposition All Progressives Congress (APC) as at then lashing on it as campaign issue.
The allegations raised by Sanusi, Governor Oshiomhole, NRGI and several other well-meaning Nigerians over the several billion dollars allegedly stolen by a former minister in the Goodluck Jonathan administration, got major boost when another prominent Nigerian, Queen Zainab Duke-Abiola, the Akasoba of Kalabari land in the Niger Delta, claimed she had evidence from the White House that a former Petroleum Minister stole $9.3 billion from the coffers of Nigeria.
Duke Abiola, one of the wives of the late Chief MKO Abiola, was quoted in an interview as saying: “According to the information available to us, the minister stole more than $9 billion; not Australian dollars, but US dollars. And what I am saying is that the money should be used to develop the Niger Delta. Use this to help the impoverished Niger Deltans.”
Even with the obvious draining mismanagement of public revenues, previous governments before the Buhari administration have not shown seriousness about reforming the all-important sector.
In what many regarded as a landmark directive that would go a long way in curtailing mismanagement of funds accruable to the nation, President Buhari in July ordered that all revenue generating agencies such as the Nigerian National Petroleum Corporation (NNPC), Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), Nigerian Ports Authority (NPA), Central Bank of Nigeria (CBN), Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigerian Liquefied Natural Gas (NLNG), amongst others, to pay all their revenues into the Consolidated Revenue Fund (CFR).
With the directive, the NNPC would no longer be allowed to withdraw funds that should have been remitted to the CFR to meet its expenses before remitting whatever balance it deems fit to the country. This is a step that is expected to have positive impact on national earnings in a short while.
Considering that the dwindling income from the oil revenue was part of why some states were unable to pay salaries, the Ebonyi State Governor, Chief Dave Umahi, when reacting to the issue of bailout given to states by the federal government, commended the initiative of President Buhari.
“What Mr. President simply did was to say NNPC don’t spend money that was never appropriated. The old system of making money for the nation and keeping half of it and spending it how you like; without having a budget; without appropriation – Mr. President had to stop that and that is a major bailout. And then he said you have so many accounts that you have even lost account of bank accounts you had - I think he directed them not to have more than two or three.
“That is a major bailout for the entire citizen of this country because oil is the mainstay of our economy, so if the NNPC that manages our earnings should make money and keep half of it and say it is their running cost that is a very terrible trend. So, that is the bailout I can understand,” he said in a recent interview with THISDAY.
Apparently, in the bid to reorganise the body, President Buhari sacked all Group Executive Directors (GED) of the NNPC and followed it with the removal of the NNPC’s Group Managing Director, Joseph Dawha. And later Emmanuel Ibe Kachikwu of Onicha-Ugbo, Delta State became the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC).
Many Nigerians are optimistic that with his actions in the oil and gas sector, Nigeria will soon begin to save much more money than before and that the ripple effect will address the inequality in the distribution of national income.
The Bailout
From all indications, activities in states that were unable to pay salaries of workers would have been grinded to halt if there was no intervention from the federal government, but shortly after taking over power, the administration approved a comprehensive cash relief package designed to salvage the situation.
Aside the direct cash bailout, the three tiers of government also to shared $1.7 billion from the Excess Crude Account (ECA). There was also a CBN-packaged special intervention fund that would offer financing to the states, ranging from N250 billion and N300 billion and a debt relief programme proposed by the Debt Management Office (DMO) which will help states restructure their commercial loans currently put at over N660 billion and extend the tenure of the loans to 15 years, thereby reducing their debt service obligations.
Many Nigerians commended President Buhari for the initiative, which was aimed at addressing the sufferings of workers across the nation, but some argued that it was more of an endorsement of the financial recklessness of some of the governors, promoting their corrupt tendencies and their high cost of governance.
Economic Policies
Over the years, Nigerians have relied largely on the consumption of imported goods. This has turned the nation into a dumping ground – even for goods that can be produced in the country and it has exerted untold pressure on external reserve.
So, as part of government’s efforts at addressing the fast depleting Nigeria’s external reserves, the CBN stopped the sales of foreign exchange to importers of rice, private jets, textiles, tomato paste, poultry products and 35 other things in a circular signed by the Director, Trade and Exchange, CBN, Mr. Olakanmi Gbadamosi and dated June 23, 2015.
It is germane as the implementation of the policy would help preserve foreign reserves and give chance for resuscitation of domestic industries consequentially creating job opportunities.
Though not necessarily banning their importation, importers of items such as; cement, margarine, palm kernel, vegetable oil, poultry products (chicken, eggs and turkey), Indian incense, tinned fish in sauce (Geisha, Sardines), cold rolled steel sheets, galvanised steel, roofing sheets, wheelbarrows, head pans, metal boxes, containers and enamelware are now to import such products using their funds without any recourse to the Nigerian foreign exchange market.
Other products on the list are; steel drum, steel pipes, wire mesh, steel nails, wire rods, security wire, wood particle and board, wood fibre boards and panel, plywood board and panel, wooden doors, toothpicks, glass and glassware, kitchen utensils, tableware, tiles and wooden fabrics, plastic and rubber products, soaps and cosmetics.
Explaining the rationale behind the policy, the CBN Governor, Mr. Godwin Emefiele indicated that it was wasteful and illogical that Nigeria spends an estimated N1.3trn on items that could be manufactured locally.
“Sometimes, policy changes are forced on policymakers as a result of exogenous shocks beyond their control. While most people do not like to be forced to do something, one of the hallmarks of effective policymaking is to be nimble and responsive when such situations arise,” he elucidated.
Similarly, on July 30, 2015, when discussing the topic: ‘Indiscriminate use and abuse of waivers for rice importation,’ in the upper chamber of the National Assembly, Senator Ibrahim Gobir of Sokoto South disclosed that Nigeria has lost about N585 billion to import waivers in the last four years. It was against this background that the Senate urged the federal government to stop the policy of granting waivers to importers.
In sync with the lawmakers, the federal government has vowed to go after importers who enjoyed waivers to import rice but went ahead to exceed the quota granted them. Speaking at a function recently – precisely when addressing officials of Paddy Rice producing states and rice value chain investors, Emefiele, who wants all those who have defaulted to remit the monies into government coffers, said: “We have resolved to go after rice importers who defaulted in the payment of customs duty after bringing in excess quotas of the product into the country at concessionary rates.”
“Go and pay. You are taking a big risk and don’t wait for the big stick to be wielded on you. Just go and pay.” He however assured the rice producers that the apex bank would work closely with the Nigerian Customs Service to address the issue of smuggling. He also vowed that those believing that the ban on forex for the importation of the listed items would only dream about it, stressing that: “The bank has no plans to do so.”
As a result of blocking of leakages, the Nigerian foreign reserves increased from $28.57 billion at the end of May to $31.53 billion as of July 22, 2015.
The Boko Haram War
The news from the ongoing onslaught against the dreaded Boko Haram sect is changing these days. Though the group’s attacks have not subsided totally – they still come in form of suicide bombings that have claimed no fewer than 500 lives since President Buhari took over power on May 29, Nigeria is making progress in the war against the terrorists group.
Among the 178 people rescued from the sect early August were some people who claimed to have been held captive by Boko Haram for over a year. They claimed they were kept in a village just about 40 kilometers away from Maiduguri. There were 101 children, 67 women and 10 men among those rescued.
The Army spokesman, Col Sani Umar, reported soldiers beating back Boko Haram at Bitta, a village on the Southern edge of the Sambisa forest reserve and Bama town, where about 59 insurgents were reportedly killed, when the Nigerian military resisted quest of the sect to expand its caliphate to Bama, Borno State.
Earlier, Boko Haram declared its caliphate in Gwoza, a town 135km from the state capital and was aiming to expand its coast closer to Maiduguri by advancing towards Bama but under the new administration, the Nigerian military has been on the offensive; taking the fight to the insurgents.
Aside the fact that President Buhari ordered the relocation of the military Command Centre to Maiduguri, during his inaugural speech - a move hailed by many, it is reported that there is plan in the pipeline to establish a battalion of Special Task Force in Sambisa Forest, believed to be hiding place of the terror group.
The government was also able to actually enlist the support of the United State (US) government in its fight against the terrorist group is considered a major step forward. The former administration could not muster a favourable working relationship with the US and were unable to secure the kinds of weapons needed to rout the Islamic sect.
Though the US was initially reluctant about selling weapons to Nigeria, over some human right issues, there are growing indications that the country is already considering lifting ban on sale of arms to Nigeria and to provide the country with weaponry to defeat the rebellious group.
This was a revelation by a delegation from the US Congress led by Issah Darrel, who hinted the Nigerian military authorities during a visit last month that the considered reversal of US stance was part of efforts to improve cooperation between the two countries in ending the activities of the Boko Haram insurgents in Nigeria.
Courting America
The Buhari administration has not only attracted $5m assistance for the Joint Task Force from the American government in tackling Boko Haram, it has also obtained the country’s cooperation in fighting the endemic problem of corruption in Nigeria.
The US, which castigated the Jonathan administration as harboring corrupt persons, is partnering Nigeria in recovering the $150bn looted funds stashed away in foreign countries and it has been blowing whistle over other stolen Nigerian money, particularly the alleged $9.3 stolen by one of the former president’s minister.
Many Nigerians, including the opposition Peoples Democratic Party have indicated support for the Buhari- led government to rigorously pursue its anti-corruption drive, recover the huge stolen funds and apply it for economic development.
There are high expectations that the visit of President Buhari to America would yield positive business relationship between the two countries too.
Two Functioning Refineries
Going by the commencement of operations at the Warri and Port Harcourt refineries, Nigeria is expected to experience a significant reduction in the importation of refined petroleum.
This added to the promise that the remaining two refineries will also resume production this month are signs of big relief to come to Nigerians. When fully functional, the four refineries have a combined installed capacity of 445,000 barrels per day, network of pipelines and depots across Nigeria.
Nigerians and non-Nigerians have continued to condemn the fact that despite being a leading oil producing country, Nigeria has had to rely on imported refined products due to a lack of functional refineries.
Therefore, Nigerians have had to bear the brunt of purchasing fuel at international market prices – an act of corruption that has not been addressed by any civilian government after the situation was worsen by the military government.
In what is a further source of solace to Nigerians as well as an indication of a robust working relationship between Nigeria and the US, the United States Trade and Development Agency (USTDA) has announced a grant of $997.4 million dollars as training support for the proposed Dangote Refinery and there are still indications that more interested investors will build refineries in the country.
Encomiums
Chief Allen Onyema, in an interview assesses President Muhammadu Buhari after over three months in office and awards him high marks. He particulary advised that the government should not be perturbed by cries that he is slow.
“President Buhari, I will say, is highly successful. The president should not be stampeded into taking hasty actions that we may regret at the end. He needs time to plan. He met things that are not so pleasant on his table. He has to take time to undo some of those wrongs,” he said.
In a response to a statement credited to the Peoples Democratic Party (PDP), where the opposition party accused the APC of making mockery of governance with premature celebration of imaginary achievements, the ruling party insisted that President Muhammadu Buhari has already surpassed President Goodluck Jonathan’s achievements in the area of fighting insecurity.
The APC National Publicity Secretary, Alhaji Lai Mohammed, maintained that President Buhari had done what Jonathan could not do in six years in three weeks.
While noting that the former PDP-led federal government could not get world powers to help Nigeria in fighting terrorism, he assured Nigerians that the Buhari administration would wipe out terrorism within a short time.
“Within three weeks of President Buhari’s inauguration, he has done what the PDP government could not do in six years: invigorate the fight against Boko Haram by rallying a regional and global front against the terror group.
“Today, the United States has pledged $5 million to the fight against Boko Haram, in addition to other material support. This is apart from the support that has been pledged by the G-7 to strengthen Nigeria’s efforts to quell the insurgency.
“Thanks to President Buhari’s diplomatic shuttles, the Multi-National Joint Task Force that the PDP government could not bring together for all of six years is ready to deploy more soldiers next month, while the president has ordered the release of $21m to facilitate the establishment of the headquarters of the force in N’Djamena, Chad.”
The APC mouthpiece stressed that Buhari had been able to restore Nigeria’s integrity and that many countries were beginning to respect Nigeria again, adding that the PDP-led federal government politicised the fight against terrorism which made it unable to protect Nigeria’s integrity.
The statement reads further, “Since assuming office about three weeks ago, President Buhari has visited Chad, Niger, Germany and South Africa, winning support and friends for Nigeria all over again and returning the country to the comity of respected nations.
“Those who were put off by the PDP government’s resort to politicising the fight against Boko Haram – even as the insurgents grew stronger – are now joining President Buhari to battle the terrorists. In no distant future, the results of his tireless efforts will begin to show,” Mohammed said.
Obama gave similar assurance in Washington DC, when he received Buhari, who was on 4-day official visit to the United States. “I want to emphasise how much I appreciate President Buhari’s work so far. I have seen him put together a team so that we can do everything that we can to help him succeed and help the people of Nigeria succeed.”
According to him, Buhari has come with a clear agenda to tackle the problem of insecurity occasioned by the activities of Boko Haram sect as well as other violence criminal activities. He expressed appreciation of Buhari’s leadership style so far, saying that his administration would continue to assist and help Nigeria in overcoming its challenges.
“It is a great pleasure to welcome President Buhari and his delegation here in the White House for his first visit since the historic election that took place
“Nigeria is obviously one of the most important countries in the world, one of the most important countries in the African continent. Recently, we saw an election in which a peaceful transition to a new government took place. Nevertheless, the people of Nigeria understand that only through a peaceful political process that can change takes place.
“President Buhari came into office with reputation for integrity and a very clear agenda that is to make sure that he has been bringing safely security and peace to his country. He is very concerned about the spread and the violence that is taking place there and the atrocities and has a very clear agenda in defeating Boko Haram and extremists,” Obama said.
He also assured that the American government would continue to partner with Nigeria in ensuring political stability in Africa and around the world.
Knocks
It has not been rosy for the government. There are have been complains among the largely expectative Nigerians who are expecting the government to act with greater speed and to have recorded more achievements within the first 100 days – which has been a standard gauge for performance of new administrations.
It has not been rosy for the government. There are have been complains among the largely expectative Nigerians who are expecting the government to act with greater speed and to have recorded more achievements within the first 100 days – which has been a standard gauge for performance of new administrations.
Mohammed has however attributed the seeming slowness of the Buhari administration to the level of decadence left behind by the immediate past government, which according to him the new government is just unearthing and working out ways to cope with them.
In fact, the APC and the presidency had to deny that it produced any specific document to the effect that it promised Nigerians some specific achievements it would have recorded within 100 days in office. The government is even worst hit by criticisms due to the fact that it has not appointed ministers, who are expected to complement the president.
While the government won the administration of most Nigerians with its promise to tackle corruption headlong, the Buhari anti-corruption drive has also faced serious criticism, particularly from members of the PDP who are raising the alarm that the ongoing anti-corruption crusade is selective and targeted at members of the opposition.
The internal crisis that characterised the emergence of the leadership of Senate and the House of Representatives was also a low point in the lifespan of the administration of the ruling APC. The incident opened the government to criticisms from quite a number of Nigerians who felt it was reneging on its promise to up hold the tenets of democracy by insisting on party supremacy above laid down National Assembly guidelines.
That the Chibok girls are yet to return and the fact that there is no indication that they are likely to return any time soon; after over 500 days in captivity has also been a talking point. Though the pioneers of the #BringBackOurGirl are yet to take the fight to the new government, agitations for the save return of the abducted secondary school girls have continued and the Buhari administration is being expected to do all that can be done to reunite the girls with their families.
0 comments:
Post a Comment