Connect with us

Strictly Personal

Tobi Amusan, Ozuah And Buhari’s N1.14bn Vehicles For Niger by Festus Adebayo

Published

on

To understand the profligacy, indiscretion and misplaced priority in the purchase of N1.14bn ($2.7m)-worth 10 luxury vehicles by the MuhammaduBuhari government for neighbouring Niger Republic, ostensibly to shore up that country’s security, at a time when there is excruciating hunger in the land and terrorists are probably a mile away from the Aso Villa seat of government, you have to go way back to the year 1972 or so, to the reply of the late President of Niger Republic, AhmaduDiori, when asked why Niger supported Nigeria as against the secessionist Biafrain the Nigerian Civil War. According to Diori, as quoted by Temitope Ola in ‘Nigeria’s assistance to African states: What are the benefits?’ in International Journal of Development and Sustainability, Niger depended on Nigeria for her economic survival. In his direct words, made in French, Diori had said “when Nigeria sneezes, Niger not only catches cold, it is already on admission in the hospital.”

While government justifies the vehicle purchase as continuation of Nigeria’s national foreign policy, with its central focus on Africa, this has afforded Nigerians the opportunity to dig into the details of the so-called foreign policy. In the process, we found out that, as irresponsibly profligate as that Buhari government’s vehicle purchase is, at this time of national economic pains at home, profligacy and irresponsible spending have, since independence, hallmarked successive Nigerian governments’ national and foreign policies. This recklessness confirms the flipside of that popular aphorism that though Rome was not built in a day, Rome was also not destroyed in a day as well. Not only didn’t the prostrate and lamentable state that Nigeria currently finds herself begin today, Buhari, a known defender of his Fulani ethnicity, at the expense of Nigeria, was led into taking such a reprehensible action based on a Nigerian governmental pedigree of wastage.

According to a January 30, 1970 edition of The New York Times, even after a ruinous, brutal and destructive civil war, Nigeria’s economic structure and promise remained almost unscathed. Put at about $1billion spent on prosecuting the needless civil war, Nigeria must have been one of the few countries in the world which fought an intra-national war for three years without any known record of indebtedness. With an economy managed by Chief ObafemiAwolowo, an astute manager of men and resources, Times reported that Nigeria adopted the “cash and carry” method for her arms and ammunition procurement. More astoundingly, she didn’t have to draw down on her foreign currency reserves which, pre-war, stood at $400 million.

Armed with a hugely humongous oil wealth, a vast population and the mantra that a Nigerian was in five blacks gathered anywhere in the world, as the street lingo says, these soon “entered Nigeria’s head,” and the thought that the country could be an African superpower became a near-national ideological obsession. Between 1967 and 1977, federal government revenue was said to have soared by 2,200 per cent. Nigeria’s economy was so strong that, on January 1, 1973, the country abandoned its pound sterling currency, a colonial relic, and created a Naira currency. Nigeria was managed by an exuberant crop of unaccountable military leaders who had scant leadership and economic training. The height of it was Gowon’s infamous statement abroad in 1973 that Nigeria’s problem was not money but how to spend it.  The huge oil wealth was soon quashed on the altar of naivety, arrogance and knavery.

Going on foreign junkets became a pastime of the nouveau riche military elite and a consumerist pattern driven by obsession for foreign goods. This grossly contradicted a budding ideology of a people who professed African superpower. General Gowon, like MuhammaduBuhari, publicly known for his terse thirst for personal corruption, became a breeding pond for blood-of-the-country-sucking sharks dressed in military epaulettes. The governors began a mania of infrastructure driven more by opportunistic crave to collect kickback from contractors than need for development. It became so bad that in 1975, the Gowon government had placed accumulated order for 20 million tonnes of cement, paid for by Nigeria’s buoyant petro-dollars. The cost of the mind-boggling cement orders was put at about $2 billion, an amount which was a quarter of Nigeria’s oil revenue in 1975. This order was at the time more than the cement capacity of Europe and USSR combined. Apapa was thoroughly overwhelmed and shipping lines all over the world scurried to Nigeria to take a bite of the raw, mindless orgy of profligacy. Most of the shipments entered demurrage in what was infamously dubbed the Cement Armada.

The petro-dollar El-Dorado was so hugely provoked that every rural dweller in Nigerian villages wanted to migrate to the city. Prostitution statistics rose tremendously, so did crimes. Girls became willing liaisons to soldiers in whose hands hid the famous dollars from oil exploration and their civil servant accomplices. Between 1970 and 1976, statistics revealed an upsurge in criminal activities due to the craze to take a bite of petro-dollars. An approximate 900-percent increase in incidences of armed robbery was recorded, with 12,153 reported cases in 1970. This figure soared to 105,859 in 1976. Executions of robbers, codified in federal and state laws, went on the upswing. The capital punishment for armed robbery could however not deter the spate of robberies because the petro-dollar gains accruable from the crime outweighed the risk of being caught.

It was easy for the exuberant military leaders, many of them in their 20s and 30s, some of whom were bachelors, like General Jack, the Head of State himself, to extend the spatial control mentality of military psychology into governance. They easily keyed into the African superpower near-national ideological obsession and began to spend like Father Christmas, in the service of a foreign policy they devised, which was woven round Africa as centre-piece. This cost Nigeria heavily.

Thus, in 1972, as reported by Ola, Nigeria signed a pact with Niger Republic to supply her 30,000 kilowatts of electricity, from the Kanji Dam hydroelectricity, even when local electricity needs were not met. Again in 1974, Nigeria donated millions of Naira-worth relief materials to same Niger when it was ravaged by drought. After the widespread Soweto massacre riots of 1976, Nigeria brought into the country hundreds of “Soweto kids” and several other South African Black youths and offered them scholarship to study in Nigerian universities. This continued to the end of apartheid. Nigeria also established a South Africa Relief Fund (SARF) in 1978 where Nigerians poured about $20 million of their hard-earned money into. In June 1976, according to Ola, Gen Obasanjo presented a cheque of $250,000 to the liberation forces of Rhodesia through Mozambiquan Foreign Minister, Joaquim Chissano in Mauritius during the OAU summit. Quoting General Joe Garba, Ola also reported that, on April 25, 1976, Obasanjo handed over to President Samora Machel of the newly independent state of Mozambique the sum of $1.6 million as development assistance.

Nigeria also did this Father Christmas in her negotiation with and sale of a concessionary 90-day crude oil to South Africa, Namibia, Ghana, Niger and other Africa countries. Ghana and Togo owed the country over $30million from the exercise. The Big Father Xmas also constructed an expressway from Lagos to the outskirts of Cotonou with several millions of dollars, while spearheading the integration project of a regional gas pipeline for the sub-regional economic development. Nigeria equally established the Technical Aid Programme and created a Trust Fund at AfDB for Africans with a soft loan of $100 million it left in the bank to be lent to Least Developing African Countries.

In 1989, upon the paralysis of Beninoise government by a bludgeoning workers’ strike occasioned by its inability to pay salaries, Nigeria, under Babangida, offset the salaries while also donating 12,000 tonnes of petroleum products to the government. The year before, Babangida’s Nigeria funded the Ibrahim Babangida School of International Studies in Liberia and donated seven Nigerian academics to its institution while Nigeria constructed the Trans-African Highway and bought over Liberia’s debt valued at $30 million.

There have been several arguments from international relations scholars who aver that, not being an island unto herself, Nigeria cannot but assist other nations, especially the ones that surround her. This argument is further bolstered by the fact that Nigeria herself receives huge assistances from developed countries of the world. However, Nigeria’s foreign policy has been left so much to the whims of the executive arm of government which then drives it according to the personal mindset of the head of the arm. It is why a cronyist like Buhari will capitalize on this unwholesome pedigree of Nigerian leadership to fritter money abroad in building a road into his Niger ancestral home, spend billions of Nigerian money on the tiny African country and legitimize it by citing Nigeria’s national foreign policy. President Obasanjo and General Babangida, for instance, squandered Nigeria’s national wealth so unconscionably during their stay in office on what will appear a mythical brotherhood relations policy, without corresponding benefits accruable to the country. Many of those countries on whom Nigeria squandered her national resources that could have been saved to build a today for her children demonize Nigeria and Nigerians today on account of the social and economic calamities that result, partly from such mindless donations and investments in their countries that were made decades ago. Nigerians today face xenophobic attacks from South Africans, for whose today we cleaned our treasury yesterday.

Almost as if it was perforating the thesis I have been sermonizing about since the beginning of this piece, on the scene emerged an alumnus of the College of Medicine, University of Ibadan, MBBS Class of 1985, Dr Philip Ozuah who donated the sum of $1,000,000 to a hostel building fund project of the college last week. The news nearly blocked the social media airwave. In an earlier discussion of Nigeria’s Father Christmas role in Africa that I had with some persons, I was asked that, put beside Ozuah’s gesture, what difference exists between Nigeria and Dr. Ozuah, both having helped their needy ecosystem?

In some way, you could also throw into this mix Nigeria’s Tobi Amusan, the 25-year old athlete who made history last week by winningthe 100 metres hurdles gold at the World Athletics Championship.

Rather than counterpoise or equalize Nigeria, I think what both Ozuah and Amusan did for Nigeria is what Leo Tolstoy called Loss as the elder brother of Gain. At a time, we thought our Loss was the national morale that had sagged badly in Nigeria, both in individual Nigerians’ willingness to intervene in the affairs of the other person or intervention in matters that affect the collective. Also, at a time that we thought that the name of Nigeria could never inspire anything good in the world, Amusan and Ozuah dismantled this mindset by coming as our Gain. In the words of Bob Marley, in his Trenchtowntrack, Ozuah and Amusan both made Nigeria/Nigerians to find “our (national) bread in desolate places,” among a world that asked, “can anything good come out Of (Nigeria) Trench Town?”

However, Ozuah and Amusan haven’t totally erased the fact that Nigeria is still a desolate place. If you listened to the maiden Channels TV interview granted by Festus Keyamo, National Publicity Secretary of the APC and his haughty pee on the graves of Nigerians who died and are still dying as a result of Buhari’s effeminate fight of terrorists, or his cavalier dismissal as inconsequential and the over-simplification of the almost half a year stay at home by our university children, you cannot but conclude that though brains similar to Keyamo’s, since 1960, have profligately driven Nigeria back, the Amusan and Ozuahs demonstrate that even inside the tunnel, we can have the light shine.

Tobi Amusan, Ozuah and Buhari’sN1.14bn vehicles for Niger

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Strictly Personal

Let’s merge EAC and Igad, By Nuur Mohamud Sheekh

Published

on

In an era of political and economic uncertainty, global crises and diminishing donor contributions, Africa’s regional economic communities (RECs) must reimagine their approach to regional integration.

The East African Community (EAC) and the Intergovernmental Authority on Development (Igad), two critical RECs in East Africa and the Horn of Africa have an unprecedented opportunity to join forces, leveraging their respective strengths to drive sustainable peace and development and advance regional economic integration and promote the African Continental Free Trade Area (AfCFTA).

Already, four of the eight Igad member states are also members of the EAC and, with Ethiopia and Sudan showing interest, the new unified bloc would be formidable.

Igad’s strength lies in regional peacemaking, preventive diplomacy, security, and resilience, especially in a region plagued by protracted conflicts, climate challenges, and humanitarian crises. The EAC, on the other hand, has made remarkable strides in economic integration, exemplified by its Customs Union, Common Market, and ongoing efforts toward a monetary union. Combining these comparative advantages would create a formidable entity capable of addressing complex challenges holistically.

Imagine a REC that pairs Igad’s conflict resolution strengths with the EAC’s diplomatic standing and robust economic framework. Member states of both are also contributing troops to peacekeeping missions. Such a fusion would streamline efforts to create a peaceful and economically prosperous region, addressing the root causes of instability while simultaneously promoting trade investment and regional cooperation.

These strengths will be harnessed to deal with inter-state tensions that we are currently witnessing, including between Ethiopia and Somalia over the Somaliland MoU, strained relations between Djibouti and Eritrea, and the continually deteriorating relations between Eritrea and Ethiopia.

The global economy experienced as a result of the COVID-19 pandemic, compounded by the Ukraine war and competing global crises, has strained donor countries and reduced financial contributions to multilateral organisations and African RECs. Member states, many of which are grappling with fiscal constraints, are increasingly unable to fill this gap, failing to make timely contributions, which is in turn affecting key mandate areas of Igad and EAC, and staff morale.

A merger between Igad and EAC would alleviate this financial pressure by eliminating redundancies. Shared administrative systems, integrated programmes, and a unified leadership structure would optimise resources, enabling the new REC to achieve more with less. Staff rationalisation, while sensitive, is a necessary step to ensure that limited funds are channelled toward impactful initiatives rather than duplicative overheads.

The African Union (AU) envisions a fully integrated Africa, with RECs serving as the building blocks of the AfCFTA. A unified EAC-Igad entity would become a powerhouse for regional integration, unlocking economies of scale and harmonising policies across a wider geographical and economic landscape.

This merger would enhance the implementation of the AfCFTA by creating a larger, more cohesive market that attracts investment, fosters innovation, and increases competitiveness. By aligning trade policies, infrastructure projects, and regulatory frameworks, the new REC could serve as a model for others, accelerating continental integration.

The road to integration is not without obstacles. Political will, divergent institutional mandates, and the complexity of harmonising systems pose significant challenges. However, these hurdles are surmountable through inclusive dialogue, strong leadership, and a phased approach to integration.

Member states must prioritise the long-term benefits of unity over short-term political considerations. Civil society, the private sector, the youth, and international partners also have a critical role to play in advocating for and supporting this transformative initiative.

The time for EAC and Igad to join forces is now. By merging into a single REC, they would pool their strengths, optimise resources, and position themselves as a driving force for regional and continental integration. In doing so, they would not only secure a prosperous future for their citizens and member states but also advance the broader vision of an integrated and thriving Africa.

As the world grapples with crises, Africa must look inward, embracing the power of unity to achieve its potential. A combined Igad-EAC is the bold step forward that the continent needs.

Nuur Mohamud Sheekh, a diplomatic and geopolitical analyst based in London, is a former spokesperson of the Igad Executive Secretary. X: @NuursViews

Continue Reading

Strictly Personal

Budgets, budgeting and budget financing, By Sheriffdeen A. Tella, Ph.D.

Published

on

The budget season is here again. It is an institutional and desirable annual ritual. Revenue collection and spending at the federal, State and local government levels must be authorised and guided by law. That is what budget is all about. A document containing the estimates of projected revenues from identified sources and the proposed expenditure for different sectors in the appropriate level of government. The last two weeks have seen the delivery of budget drafts to various Houses of Assembly and the promise that the federal government would present its draft budget to the National Assembly.

Do people still look forward to the budget presentation and the contents therein? I am not sure. Citizens have realised that these days, governments often spend money without reference to the approved budget. A governor can just wake up and direct that a police station be built in a location. With no allocation in the budget, the station will be completed in three months. The President can direct from his bathroom that 72 trailers of maize be distributed to the 36 states as palliatives. No budget provision, and no discussion by relevant committee or group.

We still operate with the military mentality. We operated too long under the military and of the five Presidents we have in this democracy, two of them were retired military Heads of State. Between them, they spent 16 years of 25 years of democratic governance. Hopefully, we are done with them physically but not mentally. Most present governors grew up largely under military regimes with the command system. That is why some see themselves as emperor and act accordingly. Their direct staff and commissioners are “Yes” men and women. There is need for disorientation.

The importance of budget in the art of governance cannot be overemphasized. It is one of the major functions of the legislature because without the consideration and authorisation of spending of funds by this arm of government, the executive has no power to start spending money. There is what we refer to as a budget cycle or stages. The budget drafting stage within the purview of the executive arm is the first stage and, followed by the authorisation stage where the legislature discusses, evaluates and tinkers with the draft for approval before presenting it to the President for his signature.

Thereafter, the budget enters the execution phase or cycle where programmes and projects are executed by the executive arm with the legislature carrying out oversight functions. Finally, we enter the auditing phase when the federal and State Auditors verify and report on the execution of the budgets. The report would normally be submitted to the Legislature. Many Auditor Generals have fallen victim at this stage for daring to query the executives on some aspects of the execution in their reports.

A new budget should contain the objectives and achievements of the preceding budget in the introduction as the foundation for the budget. More appropriately, a current budget derives its strength from a medium-term framework which also derives its strength from a national Development Plan or a State Plan. An approved National Plan does not exist currently, although the Plan launched by the Muhammadu Buhari administration is in the cooler. President Tinubu, who is acclaimed to be the architect of the Lagos State long-term Plan seems curiously, disillusioned with a national Plan.

Some States like Oyo and Kaduna, have long-term Plans that serve as the source of their annual budgets. Economists and policymakers see development plans as instruments of salvation for developing countries. Mike Obadan, the former Director General of the moribund Nigeria Centre for Economic and Management Administration, opined that a Plan in a developing country serves as an instrument to eradicate poverty, achieve high rates of economic growth and promote economic and social development.

The Nigerian development plans were on course until the adoption of the World Bank/IMF-inspired Structural Adjustment Programme in 1986 when the country and others that adopted the programme were forced to abandon such plan for short-term stabilisation policies in the name of a rolling plan. We have been rolling in the mud since that time. One is not surprised that the Tinubu administration is not looking at the Buhari Development Plan since the government is World Bank/IMF compliant. It was in the news last week that our President is an American asset and by extension, Nigeria’s policies must be defined by America which controls the Bretton Woods institutions.

A national Plan allows the citizens to monitor quantitatively, the projects and programmes being executed or to be executed by the government through the budgeting procedure. It is part of the definitive measures of transparency and accountability which most Nigerian governments do not cherish. So, you cannot pin your government down to anything.

Budgets these days hardly contain budget performance in terms of revenue, expenditure and other achievements like several schools, hospitals, small-scale enterprises, etc, that the government got involved in successfully and partially. These are the foundation for a new budget like items brought forward in accounting documents. The new budget should state the new reforms or transformations that would be taking place. Reforms like shifting from dominance of recurrent expenditure to capital expenditure; moving from the provision of basic needs programmes to industrialisation, and from reliance on foreign loans to dependence on domestic fund mobilisation for executing the budget.

That brings us to the issue of budget deficit and borrowing. When an economy is in recession, expansionary fiscal policy is recommended. That is, the government will need to spend more than it receives to pump prime the economy. If this is taken, Nigeria has always had a deficit budget, implying that we are always in economic recession. The fact is that even when we had a surplus in our balance of payment that made it possible to pay off our debts, we still had a deficit budget. We are so used to borrowing at the national level that stopping it will look like the collapse of the Nigerian state. The States have also followed the trend. Ordinarily, since States are largely dependent on the federal government for funds, they should promote balanced budget.

The States are like a schoolboy who depends on his parents for school fees and feeding allowance but goes about borrowing from classmates. Definitely, it is the parents that will surely pay the debt. The debt forgiveness mentality plays a major role in the process. Having enjoyed debt forgiveness in the past, the federal government is always in the credit market and does not caution the State governments in participating in the market. Our Presidents don’t feel ashamed when they are begging for debt forgiveness in international forum where issues on global development are being discussed. Not less than twice I have watched the countenance of some Presidents, even from Africa, while they looked at our president with disdain when issues of debt forgiveness for African countries was raised.

In most cases, the government, both at the federal and state cannot show the product of loans, except those lent by institutions like the World Bank or African Development Bank for specific projects which are monitored by the lending institutions. In other cases, the loans are stolen and transferred abroad while we are paying the loans. In some other cases, the loans are diverted to projects other than what the proposal stated. There was a case of loans obtained based on establishing an international car park in the border of the State but diverted to finance the election of a politician in the State. The politician eventually lost the election but the citizens of the State have to be taxed to pay the loan. Somebody as “Nigeria we hail thee”.

Transformation in budgeting should commence subsequently at the State and federal level. Now that local government will enjoy some financial autonomy and therefore budgeting process, they should be legally barred from contracting foreign loans. They have no business participating in the market. They should promote balanced budget where proposed expenditures must equal the expected revenues from federal and internal sources. The State government that cannot mobilise, from records, up to 40 percent of its total budget from IGR should not be supported to contract foreign loans. The States should engage in a balanced budget. The federal government budget should shift away from huge allocations to recurrent expenditure towards capital expenditure for capital formation and within the context of a welfarist state.

Sheriffdeen A. Tella, Ph.D.

Continue Reading

EDITOR’S PICK

VenturesNow3 weeks ago

Nigeria: Marketers predict further price cut as another refinery begins operations

Oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority expect refined petroleum product prices to reduce as another...

VenturesNow3 weeks ago

Kenya: Consumer inflation rises to 3.0% from 2.8%

Kenya’s statistics agency said on Tuesday that Kenya’s consumer price inflation increased slightly to 3.0% year-over-year in December from 2.8%...

VenturesNow3 weeks ago

South Africa’s Transnet’s half-year deficit hits $117m

Transnet, a state-owned logistics company in South Africa, announced on Tuesday that it had lost 2.2 billion rand ($117.48 million)...

Musings From Abroad3 weeks ago

Nigeria, China extend $2bn currency swap deal

A 15 billion yuan ($2 billion) currency-swap arrangement between China and Nigeria has been extended to boost investment and commerce...

VenturesNow3 weeks ago

Egypt’s central bank maintains overnight rates

As anticipated, Egypt’s central bank has maintained its overnight interest rates, stating that although inflation was predicted to drop significantly...

VenturesNow3 weeks ago

Illicit flows cost Nigeria, others $1.6bn daily— AfDB

According to the African Development Bank (AfDB), illicit money flows and profit shifting by multinational corporations doing business in Africa...

Metro3 weeks ago

‘Don’t start what you can’t finish’, ex-Nigerian official replies President Tchiani

Former Nigerian Aviation Minister, Femi Fani-Kayode, has told President Abdourahamane Tchiani of Niger Republic to refrain from making infantile and...

Tech3 weeks ago

Again, Starlink raises prices of its services in Nigeria

Elon Musk’s satellite internet service provider, Starlink, has again jacked up the prices of its services in Nigeria after an...

Sports3 weeks ago

Former President of Moroccan club Raja sentenced to 3 years in prison

The former President of Moroccan top club, Raja Casablanca, Mohamed Aouzal, has been sentenced to three and a half years...

Metro3 weeks ago

Zambia announces second case of Mpox as country battles cholera outbreak

The Zambian Ministry of Health has reported a second case of Monkeypox, popularly known as Mpox, in Kitwe region of...

Trending