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Govs, Sheath Your Sword! …As Sovereign Wealth Fund Rages

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An atmosphere of zest and economic optimism dominated the nation’s polity when the Sovereign Wealth Investment Authority Act, a.k.a. Sovereign Wealth Fund (SWF) was enacted in May, this year. But the zest is literally dead. Why? President Goodluck Ebele Jonathan and the 36 state governors are now in war of words over the SWF Act, meant to save the excess revenue from the sale of crude oil.

However, the president is undaunted. He appears set to dialogue with them (governors) over this touchy national issue. Apparently reacting to media reports that governors were singing discordant tunes over the SWF, he has asked the state chief executives to approach the Federal Government on any issue that they are not comfortable with so as to take a common position.

That way, he noted, both the federal and state governments would not be exposed to media hype, and warned them not to play politics with the nation’s economy. “We  know, without fixing our economy (Sic), we cannot go anywhere as a nation. So, that is the first interest of government and I would want to urge all the different tiers of government, the states and local governments to place economic issues on the front burner because without a well managed economy, as a nation, we will not be planning for the future generation”.

The Nigeria Governors’ Forum (NGF), last week Monday, condemned the establishment of the sovereign Wealth Fund, and described it as unconstitutional. Rising from their meeting in Abuja, the governors not only criticized the SWF Act, but also called on the federal authorities to suspend its operation because of its unconstitutionality.

Chairman of the governors’ forum and Governor of Rivers State, Rt. Hon Chibuike Amaechi who spoke on behalf of the governors, said their meeting agreed that the constitutional issues arising from the SWF Act have to be dealt with. “Members resolved to call on the Federal Government to suspend operation of Sovereign Wealth Fund Act until all the issues are resolved because it is unconstitutional”, he said.

It would be recalled that the disbursement of excess revenue from the sale of crude oil to the three tiers of government has over the years been a subject of public controversy. In 2005, the price of crude oil at the international market hit an upward trend following instability in supply due largely to crises in the Middle East. As a result, the Federal Government raked-in hundreds of billions of naira as excess revenue, accruable from the sale of crude oil.

But while the various tiers of government were awaiting the release and subsequent sharing of the excess crude oil money, the federal authorities slammed an embargo on the disbursement of the money. Expectedly, the issue generated palpable bad-blood between the federal authorities, state governors, as well as the local government councils across the country.

However, a truce over the non-release of the excess oil money was later reached between former President Olusegun Obasanjo and the state governors, following the intervention of the National Council of States which spelt out a sharing formula for the excess oil money. Under the sharing formula, at the time, 50% of the excess oil funds was set aside to take care of possible fluctuation in the price of crude oil in the near future. The council, at the time in question, also agreed that 37% of the excess oil money should be shared by oil producing states.

The sharing formula, as rolled out by the Council of states, was that the federal government’s share would be N146 billion, N74 billion for state governments, and N41 billion for oil producing states. The council also directed that the disbursement should be on monthly basis to ensure probity.

This was how touchy national issues were resolved, resulting in the withdrawal from the law courts, litigations and other crises that accompanied the non-release of the excess oil money in 2005. Regrettably, the crisis reared its ugly head again during the last lap of the Obasanjo administration, as the excess oil money was being held in the nation’s foreign and domestic reserves by the Obasanjo regime, in spite of the cries of the governors, at the time.

Worried by the development and coupled with the empty treasury inherited by most state governors from their predecessors, the new governors had at several meetings with late President Umaru Yar’Adua appealed to him to use his good offices to put the necessary machinery in motion to effect the disbursement of the excess fund from crude oil which was being held by the federal authorities.

Happily enough, late President Yar’Adua, apparently moved by the cries of the state governors, graciously authorized the immediate disbursement of the accumulated excess crude fund. Under the arrangement, the federal, state and local governments signed an agreement on the utilization of funds accruing to the Excess Crude Account which grossed more than N1.4 trillion at the time in question.

Prof. Chukwuma Soludo, Governor, Central Bank of Nigeria (CBN), at the time, said in Abuja shortly after a meeting of the National Economic Council, that N1 trillion of the amount was to be saved in a base account for the state, and that the balance would be shared to the three tiers of government after reconciling debts owed by seven states and the Federal Government. The agreement for the disbursement of the excess oil money which was for four years, provided for the sharing of 80% of monies to be accrued in subsequent years, while the remaining 20% would be saved, according to Soludo.

In the words of the CBN Governor, “the saving will accrue interest for the respective states to be utilised for a rainy day”. Commenting on the issue, many Nigerians expressed the belief that if the excess oil money is being shared, a large chunk of it would end up in private accounts of the few privileged ones in government at the expense of the poor ones. They reasoned that there was no sin in sharing the excess oil money from the foreign reserves, but it was not tied to specific programmes that will ensure the socio-economic development of the country. More so, as the excess oil money was being withdrawn, it was not attached to any socio-economic programmes, such as education, health, employment generation, among others.

The Minister of State for Finance, Mr Remi Babolala, at the time, explained that the Federal Government got the lion share of $841.911 million, the 36 states, $799,648 million, while the 774 local government councils received $358.440 million. Certainly, with the sharing of the two billion US dollars by the three tiers of government, there was more cash pumped into the system to enhance spending and rejuvenate the nation’s economy. It also meant that funds were made available for on-going projects at the federal, state and local government levels. La-mentably, the common man did not feel the impact of the excess crude cash sharing.

Again, barely two months after assumption of duty as President, Dr Jonathan, ordered the release of  another two billion US dollars from the Excess Crude Account. Indeed, the money was released and the three tiers of government shared the oil windfall, accordingly. However, reactions trailed the remittance of the excess crude cash  into the accounts of the three tiers of government. While some Nigerians saw nothing wrong in the president’s action, scores of others condemned it, insisting that it was rather too early for the president to have ordered the sharing of the oil money, barely two months after assumption of office. All that is now history.

Better still, the Federal Government, early this year, ordered the sharing of $1 billion from the Excess Crude Account to the three tiers of government. Indeed, the excess oil money was remitted into the accounts of the federal, state and local governments. According to the former Minister of Finance, Olusegun Aganga, a large chunk of such funds earlier shared had always ended up in the private pockets of the privileged ones in government. Worst offenders are the local government chairmen.

It is public knowledge that scores of the nation’s political office holders have a penchant for looting excess crude cash and statutory allocations from the Federation Account disbursed to the various tiers of government. Yes, not too long ago, Senate President, David Mark, accused local government chairmen of going to hotels to share among themselves, funds statutorily allocated to them from the Federation Account.

As contained in the new law, any excess money from the sale of crude oil will now be properly invested or tied to specific projects. This new economic feat, achieved by President Jonathan, has been widely applauded by economists and other well-meaning Nigerians. No doubt, this has added another feather to Jonathan’s cap of achievements.

But it is imperative to ask the federal authorities, especially the “managers” of the Sovereign Wealth Investment Authority to begin now to set in motion the machinery to invest the excess crude cash in specific economic projects, as well as infrastructural facilities that will spur the socio-economic developments at the federal, state and local government levels.

It is still fresh in the minds of Nigerians that the National Assembly in May, this year, passed into law the Sovereign Wealth Investment bill, a.k.a. Sovereign Wealth Fund. This follows an executive bill for the establishment of the fund which was mid-wifed by President Jonathan and duly sent to both the Senate and House of Representatives for passage into law. Happily, the president assented to the billed on May 27, 2011.

Indeed, the president’s action was greeted with applause by many Nigerians because, with the setting up of the fund, backed by law, the frequent sharing of excess crude cash by the three tiers of government was legally suspended or stopped. What’s more, with the new law now in place, the Excess Crude Account, from which the excess oil money was being shared, will not be in operation, any longer.

That said, it behoves the 36 states governors to sheath their sword over the SWF Act. Afterall, some elected public office holders have been fingered for looting excess oil money and monthly allocations, disbursed to them from the Federation Account.

Beyond that, with the Sovereign Wealth Fund Act, economic analysts believe that Nigeria is set to play in the $4 trillion global alternation assets club, address her critical infrastructure deficit and attract the needed investments. Again, renowned economists say Sovereign Wealth Fund has the capacity to do two things: either prevent drastic aftershocks of a systematic financial crisis or principally provide cash to the owner countries (or firms) that are on brink of insolvency or in need of capital for growth.

Happily, Nigeria has just enacted her own Sovereign Wealth Fund Act. No doubt, the wealth fund will provide a firmer legal basis to ring-fence the nation’s saving. Our governors must therefore allow the SWF to see the light of day.

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Skill Gap And Nation Building

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A recent exposition by the Executive Director of National Board of Technical Education in Nigeria Professor Bitrus Bagagi on skill Gap in all se3ctors of the economy is revealing.
The issue of skill gap is traceable to the yawning gap in our educational system between paper qualification and capacity development in skills that are relevant to industry and general services in Nigeria.
According to professor Bitrus Bagegi in every five university graduates, there should be five technologists and in every five technologist there should be five technicians.
However, this reality has eluded Nigeria because of poor educational planning and implementation.
Nigerian educational system is still suffering from the hangover of British colonial Educational system which emphasised two basic skills of Literacy and Numeracy.
The colonial masters brought this skill regime to provide the needed manpower for their colonial administration. They wanted interpreters, court clerks, Clergy and security personnel to run their administration. These skills served their purpose of that time and the early days of our independence. However it does appear as if curriculum developers in the Nigeria Educational System are still struggling to get away with this philosophy of immediate and non- sustainable manpower needs.
When the six-three-three-four system of education in Nigeria was introduced, there was a strong vocational component to remove the system from this colonial need.
Old habits they say are difficult to die. Efforts at building vocational education centres to remove the skill gap at the lower rungs of technological development did not seem to make deep and sustainable impact in bridging skill gaps. Polytechnic Education also was created to grow middle level manpower to groom technologists that will provide industrial revolution. Sadly, polytechnics created none technological
Departments to satisfy other needs which universities and Colleges of Education should address. The Universities of Technology became the vogue in the nineteen . eighties with the establishment of Rivers State University of Science Technology in Port Harcourt. The Federal Government of Nigeria glorified it by establishing several Universities of Technology to enthrone a technological revolution. The idea in all these is to have a large army of Artisans, Technicians, Technologists and Certified Engineers.
Education Departments created vocational Department to produce teachers of these skills in technical colleges and vocational centers. Have these efforts made any sustainable and effective impact in addressing skills gap at all levels of technological enterprises.
It is sad to note that the current railway development project in Nigeria has exposed serious skill gap among the I Nigerian work force. Records indicate that five thousand welders are needed in the current construction of Rail tracks and maintenance in Nigeria but the numbers that were documented were only in their hundreds.
This is just a tip of the ice bag in the gap that exists in skill acquisition in the Nigeria conomy. Citizens of Togo and other West African Countries cross the border to Nigeria to do simple jobs of pipe fitters, plumbers and other building craftsmen.
In a country of over 180 million people, it is difficult to find good craftsmen to do simple electrical wiring in a house and good automobile craftsmen are hard to find.
Most times we find half baked technicians who end up creating more problems. Poor electrical wiring installations have often led to fire out breaks and electrocution. Car engines are easily damaged these days because of Incompetent Auto mechanics.
The problem emanates from poor training culture and get rich quick mentality. Some of these skills which are picked on the road sides can be better managed in well structured vocational training centers with the right curriculum and philosophy.
According to C. S. Lewis “Education without value is useful only to make man a more clever devil”.
Have we asked ourselves why buildings are collapsing? Lack of adequate skill is responsible. The Nigeria Polytechnics and Engineering as well as Environmental science Departments have produced more quacks than men and women with requisite skills, the rest are paper tigers. This is why there is serious reliance on
foreign skill holders in almost all the high tech enterprises in Nigeria.
Competent and well groomed craftsmen, technicians, technologies are very few.
Many quacks roam the streets with their tools of incompetence. Sadly, it is not their fault; it is a problem that starts from a flawed educational Environment. Nigeria is a
; mono cultural economy that relies so much on oil but possesses little skill value in the industry.
Foreign investors still control the bulk of man power needs. The hope lies in restructuring our educational system to produce balanced skill driven system. We must get rid of producing graduates with skills and craftsmen who are empty in capacity.

By: Bon Woke

 

 

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Checking Illegal Oil Refining

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Lately, the rate at which fire incidents resulting from illegal oil refining, popularly known “kpo fire” refining, are being reported is alarming. The fire incidents have led to several deaths and destruction of properties worth millions of naira.
It is worrisome that the sad event occurs almost on a daily basis.  No week passes without a case of kpo fire explosion being mentioned in the society. These days, it is not only in the rural areas of the creeks, it is also happening in the urban areas that are heavily populated, due to storage of either kpo fire kerosene or petrol.
Despite heavy security checks and monitoring of those involved in the act of producing adulterated petroleum products, the menace has continued unabated. The rate of loss of lives and properties due to activities of illegal refineries has continued to increase despite all the surveillance mounted in various communities by community heads, community development committees (CDCs) and local vigilante groups whose responsibility is to safeguard oil installations in their domain.
Kpo fire or illegal refining does not just occur but is carried out by humans through illegal tampering of the oil pipelines by fraudsters. It is high time we looked into it by getting the relevant authorities to create more awareness. Government at all levels and all relevant agencies involved in crude oil production and refining should, as a matter of urgency, do something as it has caused a lot of harm in most communities.
About two months ago, it was reported that residents were concerned about the activities of illegal oil refineries which led to three separate fire outbreaks in different communities in a local government area. After a fire incident that occurred in Elele community, they were worried about the activities of artisanal crude oil refinery.
As the dry season approaches, it calls for concern because a little spark can lead to serious fire outbreak. Any lives lost can never be recovered. It was alleged that a case of fire outbreak that occurred at Omerelu and led to the death of a man was as a result of kpo fire. Residents of that area also alleged that those involved in the act convey the products in the open without fear of apprehension.
Those involved should be fished out because they are humans and are visible. A situation where such illegal business will be going on within a neighbourhood, while residents keep quiet calls for concern. Even when some of the residents are aware of the activities, they are afraid of victimisation at the end of the day.
Recently, it was also reported that a motorcycle carrying illegally refined products fell and spilled its content in Ubima community. That led to the razing of some buildings and properties worth millions of naira were lost to the inferno.
Eyewitness account revealed how in Omerelu community, a fire incident was recorded when a bus carrying adulterated petroleum products ran into a truck while trying to avoid security checks. It was also gathered that three occupants of the bus lost their lives to the fire and properties were also destroyed.
One problem associated with fire incidents in the rural areas is that of contacting Fire Service operators who are usually stationed in the city. One thing is to put a call across and another is the distance which may take a long time before arrival.
About a month ago, there was fire incident around Chokocho village in Etche Local Government Area. Although Fire Service from Mile 1 in Port Harcourt was contacted and they responded but properties worth millions of naira were already destroyed before their arrival. Their effort deserves commendation, though.
We are aware of the far distance between Isaac Boro Park Flyover in Port Harcourt and Chokocho. One amazing thing about that incident was that so many people in that neighborhood never knew what happened and even those who knew could not speak out.
It was also gathered that the fire outbreak was traceable to the activities of illegal oil refinery. The artisanal refinery was said to be owned and operated by a yet-to-be identified man who fled the area before the surveillance group got information about him. In fact, the man was accused of being behind the Chokocho incident. The head of task force on illegal bunkering activities who made inquiries about it discovered that the suspect left the area with his family before their arrival.
The issue of artisanal refinery has been on the increase in this part of the country and it is important that people are aware of the activities going on in their neighborhood as that will check the excesses of those who indulge in it. People should be able to identify their neighbours with their occupations.
Imagine a situation where security agents were not aware of such incidents until the members of the illegal bunkering taskforce got informed. There are speculations that law enforcement agents are involved and assisting perpetrators in indulging. It is high time the police defended themselves so that all eyes will not be on them. Lately, the Police had been doing great jobs. In fact, their relationship with the citizenry has been very cordial and anything that will tarnish the image of the Force should be avoided.
At the end of investigation, anyone found guilty of the offence should be arrested and prosecuted to serve as deterrent to others. This is because the harm resulting from illegal oil refinery and kpo fire is alarming. Sometimes, it is either adulterated petrol or kerosene stored in the houses that go up in flames when it comes in contact with fire. Petrol as inflammatory substance is supposed to be deposited at the petrol filling stations and not in the houses.
It is common these days to see heavy and thick smoke resulting from kpo fire around creeks in the environment. The smoke, experts say is dangerous to human health. How long will ‘yet-to-be-identified persons’ continue to perpetrate evil in the society?
Some persons have argued that it is better to gather all the people doing the illegal refining since they have become local petroleum engineers. Then the government should set up refinery and sell the crude to them to refine legally without doing kpo fire that is harming the environment. At the end of the day, they distribute to their customers in a better and legal manner. I think that is a welcome development as it will save the society from the menace.
The issue of illegal refining or kpo fire should be looked into by governments and oil producing companies in Nigeria.  Surveillance by both host communities where oil installations are sited and security agencies should be intensified so as to apprehend those whose stock-in-trade is to vandalise pipelines and cause loss of lives and properties.
Local Government chairmen and their councillors should ensure that those found in the act are punished according to the law. Community heads should communicate with the rural dwellers and more awareness created on the dangers of oil bunkering.

By: Eunice Choko-Kayode

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Violence Against Women And Girls

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It is important to recall that when God created Adam, he needed to make creation complete by creating Eve. He thus sowed the seed for procreation and for the population of human society. It became, obvious that no human society can be complete without the presence of male and female homosapien. God made all creatures male and female. This was intended to achieve harmony. Unfortunately, peace and harmony have eluded the human society because of violence. Violence has been explained as strength of emotion or of a destructive natural force.
More apt is the definition of violence as behaviour involving physical force intended to hurt, damage or kill someone. Precisely, violence is about human behaviour which relates to emotional and physical force intended to hurt. The International Day for the elimination of violence against women was celebrated on the 25th day of November, 2021.
This global celebration is a wakeup call on the world population to remind them of the danger of gender based violence. In this case, women and the girl children are the victims of this absurdity. Indeed, any harm done to women and the girl children is harm against humanity. This fragile specie of the human society deserves to be protected because of their roles as mothers. Mothers nurture the present and the future of any society. It is therefore a thing of great global interest that the U. N. Body set aside 16 days of activism as part of this celebration to dig deep into the importance of protecting women and Girl children against all forms of abuse.
Records indicate that one out of three women has been abused at one time or the other. Indeed, 35 percent of women worldwide have been abused with respect to rape. The theme of this year’s celebration is Orange The World: End Violence Against Women Now!”
Orange in this concept is explained as a colour that represents a brighter future, free of violence against women and girl children.
Women and gender activists around the globe have remained awake and vociferous to raise the awareness that women around the world are objects of rape, domestic violence and other forms of gender based violence. Rape in particular is the most prevalent violent injury inflicted on women globally in India, UK, South Africa, Nigeria and the United States. In the United States, reports indicate that one out of six Americans has been raped or has been a victim of attempted rape.
“Rape is an unlawful act which involves sexual intercourse carried out by force and under threat of injury against a person’s will”. Research evidence across the globe indicates that reporting rape cases is a herculean task because many victims choose not to report as a result of the embarrassment associated with it and most importantly because of fear of reprisals.
Victims are most often threatened with serious repercussions if they reveal the encounter and the perpetrators of the act. Parents and adults, keep mute when their girl child is raped because of prejudices and attendant stigmatisation that may trail the victims. The conspiracy of silence is the greatest bane of the unfortunate pain the girl child suffers.
Defilement of underage girl child is the most unfortunate and demonic aspect of gender abuse. There are rampant reports about the adults and aged males forcing their genitals into the sex passage of infants. This absurdity further debases the human society and brings to question the moral authority of some persons who address themselves as fathers. Innocent children are victims of their depravity that sometimes have ritualistic intentions.
According to the Minister of Women Affairs in Nigeria, Mrs. Paulen Tallen, 30 percent of women and girls have experienced one form of sexual abuse or the otherin Nigeria. Women and girls between the ages of 14 and 49 years, experience different forms of sexual abuse.
Research reveals that 28 percent of Nigerians aged between 25 and 29 years of age have experienced physical violence since the age of 15 or below. Most of these revelations come up when the victims are liberated and free to speak out. Also 44 precent of divorced, separated or widowed persons have reported experiencing violence since early teens.
The case of married women in Nigeria and domestic violence is replete with tales of horror, pain and penury. 25 percent of married women experience violence which comes in different forms of abuses. Sadly, many married women die in silence struggling to keep their marriage because of societal stigma. Some swallow the abuses and pain for the sake of their children. In all, the girl children and women suffer sexual harassment, physical violence, harmful traditional practices, emotional and psychological violence.
The girl childen and women need to be rescued from this hell. They need sustained Advocacy and empowerment. The women need to be protected by the law through consistent and purposeful prosecutions of perpetrators of violence. Let parents speak out and let the girl children be taught to speak out too.
The female gender needs to be protected and given the confidence to shield themselves against sexual violence. The society, parents, law enforcement agencies, N. G. Os and the judiciary should rally forces together to protect the mothers of today and the future.

By: Bon Woke

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