Opinion
EFCC And Abia’s Rot
Is Abia State on the verge of having two of its former governors cool off in prison? With the ongoing investigation of Senator Theodore Orji, who governed the state from 2007 to 2015 over an allegation that he diverted N521 billion from the state to his personal use by the Economic and Financial Crimes Commission (EFCC), it seems that may probably be the case.
According to the anti-graft agency, on March 17, 2017, a group, Fight Corruption: Save Nigeria Group, filed a petition accusing the former governor of withdrawing N500 million monthly as security vote from the state’s treasury during his eight years in office; diverting N383 billion revenue from the Federation Account, N55 billion Excess Crude revenue, N2.3 billion Sure-P revenue, N1.8 billion ecological funds, N10.5 billion loan, N12 billion Paris Club refund, N2 billion agricultural loan, and N55 billion ASOPADEC money while in office.
According to the petition, the N500 million the former governor allegedly withdrew monthly was “not part of the security funds expended on the Nigerian Police, the Nigerian Army, DSS, Navy, anti-kidnapping squad, anti-robbery squad, purchase of security equipment and vehicles for the security agencies.”
Also accused is the son of the former governor and current Speaker of Abia State House of Assembly, Chinedum Orji, who is said to own about 100 accounts in different banks, accounts that received “so much deposit in cash without evidence of job or services rendered”.
Add this mind-blowing amount of money to the N7.65 billion stolen by his former boss and predecessor, Dr Orji Kalu, which had earned him 12 years imprisonment and you will understand why Abia State is in its present pitiable situation.
Arguably, the most popular city in Abia State is Aba. Residents of the city are renowned for their enterprising spirit and commercial endeavours, making it one of Nigeria’s foremost commercial hubs. Some call it Nigeria’s China. Yet, most of the roads in the city are in deplorable condition. Some of the roads, like Port Harcourt Road, had been abandoned for many years. People living around this area continue to tell pitiable stories of how difficult it is for them to move in and out of their homes for their business and other daily activities, especially during the rainy season. The situation is the same in many other parts of the city. In many areas, the drainage systems are blocked by waste which litters almost all the city.
With the heavy commercial activities going on daily in Aba comes heavy waste. Incidentally, over the years, improper management of these wastes has posed a great challenge for the government. Anybody that goes to Aba or passes through there to other places in the country will agree that waste has become a permanent feature of the city, especially at the various markets. Roads and streets are littered with all manner of waste and the entire environment is polluted with stench from the gutters and the rubbish. During the administration of the immediate-past governor, Theodore Orji, Aba became the dirtiest city in Nigeria and even found a place among the list of worst places to live in the world.
Yet, billions of Naira meant for development of the state was allegedly pocketed by a few individuals. If a small fraction of the loot was used to provide incinerators in Aba to cater for the huge volume of waste, would the city not have been better than the pigsty it is today? What if a percentage of the money was used to tackle erosion, flooding and other hazards that occur annually in the state which has led to the loss of valuable properties? What if a little sum of the money was channeled to road construction, repair and maintenance of the numerous bad roads across the state? Indeed, there are plenty of things that would have been done with the massive loot which would have impacted so much on the people.
It is, therefore, hoped that the EFCC will expedite action on this particular case and bring father and son to book if found guilty. In addition to serving the constitutional punishment for the offences, they should also be made to return the looted funds which should be used to address the infrastructural deficit in the state.
The anti-graft agency should also beam its searchlight on other states of the country so as to fish out all the “Kalus and Orjis” that may have milked or are still milking their states dry to the detriment of the citizens. The rate of looting and embezzlement, not only among the state chief executives, but at different sectors of our economy, is so scary and disturbing that one wonders what becomes of the future of our states and the country in general if nothing is done to check it now.
Some have said that one big issue we have in the country today is the security votes that are not accounted for. There can be no better truth thant that. Some greedy, selfish governors are using it as an excuse to siphon the treasury and impoverish the people. It is difficult to understand why you should take tax payers’ money as the person in charge of the state’s affairs and don’t deem it necessary to give account to the people who own the money.
For donkey years we have claimed to be fighting corruption in this country, yet there is nothing to show for it. Rather, the situation seems to be worsening by the day. People no longer see corruption as a wrong doing but as a way of life. That’s why some people are castigating EFCC for investigating Orji and his son, labeling the action as a witch hunt, politically-motivated act and all manner of sentiments.
Corruption is now a systematic issue and the sooner we devised a more effective way of dealing with it systematically, the better for us. We need to build the integrity of the citizens. Integrity is what will make a governor, lawmaker, president or anybody for that matter, to always ask himself two important questions before taking any action: am l doing the right thing? am l doing it right? Once we can get many Nigerians reason this way, corruption will be stemmed.
By: Calista Ezeaku
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Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo
