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Editorial

RITCS: The Way To Go

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For many years, Nigeria has been combating a considerable infrastructure deficit because the economy is not generating sufficient revenues to close an infrastructure gap estimated at $3 trillion by Moodys. The African Infrastructure Development Index strongly indicates that the country ranks 23 out of 54 African economies in infrastructure development. It is an appalling performance. That is why the country has to be forward-looking.
Nigeria faces weak organic incomes and suffocating debt servicing. Between January and May 2021, the Federal Government raised N1.84 trillion but spent N1.8 trillion on debt charges. This translates into 98 per cent of total debt service revenues. The debt profile is similar to the 99 per cent of revenues used for debt servicing in Q1 2020.
To get out of the self-imposed embarrassment, the Federal Government conceived the idea of infrastructure funding by implementing a tax policy to promote infrastructure development. In January 2019, President Muhammadu Buhari signed into effect the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order 2019.
This tax system allows the participating company to recover costs incurred in the construction or rehabilitation of eligible roads as income tax credits payable by the partaking company. The tax credit can be carried forward to future years until it is fully used and redeemable. A company taking part in the scheme may sell or transfer its unused tax credit to others.
Zainab Ahmed, the Minister of Finance, said the strategy would stimulate private sector investment in Nigerian roads across critical economic corridors and industrial clusters, relieving the government of the burden of funding the initial outlays for these investments. She has a point. Indeed, if properly implemented, the programme has the potential to improve Nigeria’s road infrastructure. It may also enable the government to utilise public funds on other sectors of the economy apart from roads.
Several participating companies have already expressed an interest in the scheme and are involved in projects execution. These include MTN: 110km Enugu-Onitsha Road in Anambra State in exchange for tax credits; Transcorp Group: Oyigbo-Izuoma-Mirinwayi-Okoloma-Afam Road; Access Bank: Oniru axis of VI-Lekki Circulation Road in Lagos State.
Others are GZI Industries:  Umueme Village Road, Abia State; Mainstreet Energy:  Malando-Garin-Baka-Ngwaski Road; The BUA:  Bode-Saadu-Lafiagi Road; Eyinkorin Road and Bridge; NLNG: Bodo-Bonny Bridges and Road and the Dangote Group: Obajana-Kabba Road, among others.
Dangote Cement Plc is the most prominent participant in this system. A tax credit certificate worth N22.3 billion was awarded to the firm to construct the Apapa-Oworonshoki-Ojota Road in Lagos and the Lokoja-Obajana-Kabba Road connecting Kogi and Kwara States.
We appreciate Buhari’s Federal Government for this innovative approach to infrastructural development in the country and expect other companies to join the fray as it promises to give the nation’s infrastructure a facelift. As a result, participating companies will control cash flows rather than make cash payments. They can also give value to society by picking the assets they seek to finance.
Critics of the model insist that it could deprive the nation of income if more companies adopt the regime. However, while we think that revenue target is important as projected by the castigators, it is not as significant as the optimisation of funds when collected. The question is: are we getting value for money? Given the present high level of corruption, this is surely the safest way to proceed.
The initiative has different attractions for various stakeholders. For the government, it is the ability to execute more development projects within a short time. For companies, they have a combination of brand edge and cash flow management. Cement manufacturers, for example, are also able to record improved sales of their products used in road construction; hence, they benefit both explicitly (financially) and implicitly (brand improvement).
However, the success of this enterprise and any other will depend greatly on the transparency of the process and the sincerity of the parties concerned. The policy itself is well established, and unless there are corrupt proclivities on the part of any party, it should function congruously.
Also, the Order setting up the contrivance, expected to last for 10 years, does not indicate the criteria for selecting eligible roads and participants that would construct or refurbish such roads. We also note that there is no dispute resolution mechanism in the Order, particularly concerning the determination of the cost of projects. 
Furthermore, when compared to returns on other investments, it is doubtful whether the Monetary Policy Rate (MPR) — currently 11.5% — is sufficient return on project cost, especially for companies for which an Eligible Road would not positively improve their operations and grow their businesses. Those are critical questions the Federal Government must address for the model to succeed.
To ensure that the attractiveness of the strategy is not diminished, a constant review to deal with the grey provisions of the Order and manage any stakeholder concerns arising from the implementation of the scheme is imperative. Again, action is needed to ensure that the model is executed impartially nationwide to effectively finesse the widespread infrastructure gap throughout the country.

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Editorial

Democracy, Losing Its Relevance 

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Twenty five years of democracy in our country have unfortunately brought about a culture of insecurity due to various factors such as ethno-religious bigotry, power imbalances, institutional collapse, corruption, and economic decline. Despite the historic June 12, 1993 presidential election being hailed as the freest and fairest, the promises of hope and progress have not been fully realised. This raises the question of the necessity for Democracy Day and democracy in general.
Given the current challenging circumstances, Nigeria needs to build on its past successes and strive towards becoming a leading democratic nation. There is no time to waste, as the Human Development Index shows real room for improvement. The state of petroleum refining, which serves as the country’s main economic foundation, has declined rapidly and requires immediate action. Additionally, the unprecedented depreciation of the national currency must be addressed.
The escalation of corruption within the nation is a pressing issue that continues to worsen, especially with the blatant looting of state funds by politicians. The actions of various administrations have shown autocratic and draconian tendencies, often displaying a lack of accountability and respect for the rule of law. The authorities must address this growing problem and hold those responsible accountable for their actions.
Nepotism and cronyism have become widespread, with individuals using their influence to secure competitive political positions for their family members. This practice goes against democratic principles and undermines the merit-based system. Additionally, there has been a rise in industrial actions, such as strikes initiated by the Academic Staff Union of Universities (ASUU), which further disrupt the democratic process.
It is time for Nigerians to shift their focus from lamenting to taking action towards progress. Nigeria is a country rich in potential and resources, and it is unacceptable for us to continue to be held back by the current state of affairs. Rather than dwelling on past mistakes, we must come together to reflect on our challenges and take decisive steps towards rebuilding a better future.
Furthermore, it is essential to understand the importance of June 12 in relation to leadership and utilise these lessons to accomplish our goals. One key takeaway is the role of the Independent National Electoral Commission (INEC) in ensuring fair and unbiased elections. INEC must view this responsibility as both a duty to the nation and a moral imperative.
Another valuable takeaway is that politicians must view their political positions as a service to the nation rather than a means for their advancement. It is critical for political participation to be approached with ethical and moral principles at the forefront, as it holds essential societal value.
June 12 serves as a reminder of the vital role leadership plays in making tough decisions that may not always align with personal beliefs. It highlights the need for courage and the ability to prioritise the greater good over personal interests. This lesson is particularly relevant for Nigeria’s current government and its officials, who must engage with the public and make decisions that benefit the country.
The lessons of June 12 are a reminder for all Nigerians, especially lawmakers, who have the duty to protect democracy. Unfortunately, there has been a departure from the core principles of democracy in Nigeria, with disrespect for the rule of law and judicial processes, blatant impunity, and a disregard for human rights and dignity. We must reflect on these lessons and work towards upholding democracy and the values it stands for.
Political leaders and public service managers have to provide the necessary tools for our lawmakers to rejuvenate democratic practices. Legislators need to be intellectually, emotionally, psychologically, and physically prepared to succeed. They should demonstrate a strong understanding of democratic principles and values, a willingness to engage with constituents, and an openness to different perspectives to advance democracy.
We cannot overstate the importance of June 12, as it reveals the link between Nigeria’s present social, economic, and political challenges and the corrupt ruling class, as well as the indifferent middle class. As we commemorate Democracy Day today, we must empower ourselves to not only recognise but also utilise our power to decide and mold our future.
Nigerians should ensure that political aspirants go through genuine democratic processes to exercise their freedom. Citizens must be educated on their civic responsibility and mentor youths towards social engagement. The people should also hold local government administrators accountable for the purpose of implementing result-driven policies.
All must adopt an active role in government at all levels. Community leaders and young people can collaborate to organise peaceful protests, petitions, and marches when infrastructure is not up to par. Obtaining a voter card and participating in elections is required to prevent corrupt political figures from forcing unqualified candidates into office.
Civil society played a vital role in the struggle for rights during the military dictatorship, and their achievements should inspire us today. It is essential for the current generation to take up the mantle and strive for justice and equality. The media must act as a watchdog against tyranny and protect the public interest.
Youth are often the most let down group in society, and it is time to act. The #EndSARS protests demonstrated the determination, articulateness, and composure of young activists. Quitting is not an alternative – they must step up and take charge. They should draw inspiration from the courageous youth in South Korea, Taiwan, and Hong Kong, who continued their fight despite facing harsh repression from their governments.
There is a need for Nigerians to assert their rights and sovereignty through all legal means possible. Neglecting to do so will lead to a deterioration of the current situation and the eventual downfall of the state. We must uphold the ideals of June 12 as a representation of our democratic hopes and utilise it as a unifying factor for genuine national unity.

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Editorial

Fubara’s Scorecard: So Far, So Good 

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One of the primary issues that the federal and state governments have been facing recently is the increasing cost of living, mainly caused by the depreciation of the naira. This has resulted in financial difficulties for many Nigerians, leading to demands for the leaders to seek out new sources of revenue apart from oil. They need to be creative and adopt tactics that can enhance their revenue sources and ease the financial strain on their people.
However, the past year in Rivers State had been a whirlwind of events, with the government working diligently to bring happiness to the people. Governor Siminalayi Joseph Fubara has addressed numerous challenges despite the ongoing political crisis that presents a huge obstacle for the administration. This situation is worrisome and has the potential to shift any leader’s focus away from their goal of serving the people, no matter how well-intentioned.
Fubara believes that development is not just a matter of chance, but a conscious effort to address the needs of the people. Over the past year, he has initiated numerous development projects with the goal of enhancing the quality of life for residents. Since taking office on May 29, 2023, he has been proactive in realising his vision for the state. He is ensuring that his plans are carried out efficiently by appointing capable individuals to key positions.
His determination to bring his vision to life was clear when he presented a bill to the Rivers State House of Assembly for approval of his legacy project – the Port Harcourt Ring Road. The 50.15 km dual carriageway project, estimated to cost N200 billion, aims to connect six local government areas in the state. It will feature six flyovers, a river crossing bridge, and 19 rotary intersections and roundabouts, with the goal of fostering the development of new cities and easing traffic congestion in Port Harcourt and Obio/Akpor Local Government Areas.
To celebrate his first year in office, the Rivers State Government set aside 20 days for a series of activities. The Governor inaugurated and launched 10 projects in various local government areas as part of the festivities. The event kicked off on May 14th with the inauguration of the Ebubu-Eteo (old Bori) Road, providing an alternative route to the Eleme axis of the East-West Road.
Several projects have been officially launched in Rivers State, including the Elele–Omoku Road, Emohua–Kalabari (Tema Junction) Road, Okania–Ogbogoro Road, and Trans-Kalabari Road Phase II. Projects that have been commissioned include the Ogoni–Andoni–Opobo Unity Road (Andoni Section), Egbeda internal roads, Phase I of the Port Harcourt Electrical Village and the flag-off of its Phase II, as well as the dualised Omoku–Egbema Road. These projects are focused on enhancing infrastructure and connectivity in the state, offering improved transportation options for residents and driving economic development.
An economic summit was organised in the state to boost internal revenue, attract investors, and create employment opportunities for the youth. Beyond improving infrastructure, there is a focus on revitalising the civil service, and hiring 10,000 new employees. The government has allocated N4 billion to support businesses in the nano sector and small and medium enterprises, providing funding ranging from N400,000 to N10 million each. This initiative is being carried out through the Rivers State Micro Finance Agency and Nigeria’s Bank of Industry for technical support.
Another vital achievement that sets His Excellency Fubara apart is the astronomical increase in the monthly Internally Generated Revenue (IGR) of the state since May 29, 2023. The administration has successfully raised the IGR from N12 billion to N27 billion monthly, representing an increase of over 100 per cent. This impressive growth trajectory suggests that the annual IGR is on track to reach N324 billion.
Before His Excellency, Sir Fubara, assumed office as governor in May 2023, the annual IGR of Rivers State in 2022 was N172.8 billion, with an average monthly IGR of N14.4 billion, as reported by Nigeria’s National Bureau of Statistics (NBS). In 2021, the state’s annual IGR was N123.3 billion, averaging N10.3 billion per month. The IGR was N117.2 billion in 2020 and N169.6 billion in 2019.
Notwithstanding the numerous challenges, the Governor has made considerable progress in education by implementing innovative measures in schools and providing a new convocation arena for the University of Port Harcourt. He has also shown commitment to the welfare of the people by providing free buses to offset the effects of fuel subsidy removal.
Local government employees have received their promotions, minimum wage, and wage bonuses. Fubara’s timely visit to the state secretariat complex underscores his dedication to public service as a crucial element in government operations. The complex, currently undergoing renovations, now boasts functional elevators, lighting, and water supply. Despite the huge debts left by the last administration, the Governor has assured that he would complete all projects that benefit the people, which were initiated by previous administrations.
The accomplishments achieved by the present government in just one year of rule are unparalleled. The rapid progress in infrastructure development within such a short period is a clear indication of his capability, despite various attempts to derail his efforts. Fubara recently informed Rivers people that true governance only commenced three months ago, when he decided to confront his predecessor’s challenges head-on.
Undoubtedly, the Governor’s leadership embodies qualities such as patience, wisdom and a commitment to peace, essential for conflict resolution and unity in Rivers. Under his guidance, there is hope for a future, marked by progress and prosperity, devoid of discord and division. As we mark this critical milestone, we implore all to prioritise peace, forgiveness and inclusiveness.

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Editorial

Fubara’s Scorecard: So Far, So Good 

Published

on

One of the primary issues that the federal and state governments have been facing recently is the increasing cost of living, mainly caused by the depreciation of the naira. This has resulted in financial difficulties for many Nigerians, leading to demands for the leaders to seek out new sources of revenue apart from oil. They need to be creative and adopt tactics that can enhance their revenue sources and ease the financial strain on their people.
However, the past year in Rivers State had been a whirlwind of events, with the government working diligently to bring happiness to the people. Governor Siminalayi Joseph Fubara has addressed numerous challenges despite the ongoing political crisis that presents a huge obstacle for the administration. This situation is worrisome and has the potential to shift any leader’s focus away from their goal of serving the people, no matter how well-intentioned.
Fubara believes that development is not just a matter of chance, but a conscious effort to address the needs of the people. Over the past year, he has initiated numerous development projects with the goal of enhancing the quality of life for residents. Since taking office on May 29, 2023, he has been proactive in realising his vision for the state. He is ensuring that his plans are carried out efficiently by appointing capable individuals to key positions.
His determination to bring his vision to life was clear when he presented a bill to the Rivers State House of Assembly for approval of his legacy project – the Port Harcourt Ring Road. The 50.15 km dual carriageway project, estimated to cost N200 billion, aims to connect six local government areas in the state. It will feature six flyovers, a river crossing bridge, and 19 rotary intersections and roundabouts, with the goal of fostering the development of new cities and easing traffic congestion in Port Harcourt and Obio/Akpor Local Government Areas.
To celebrate his first year in office, the Rivers State Government set aside 20 days for a series of activities. The Governor inaugurated and launched 10 projects in various local government areas as part of the festivities. The event kicked off on May 14th with the inauguration of the Ebubu-Eteo (old Bori) Road, providing an alternative route to the Eleme axis of the East-West Road.
Several projects have been officially launched in Rivers State, including the Elele–Omoku Road, Emohua–Kalabari (Tema Junction) Road, Okania–Ogbogoro Road, and Trans-Kalabari Road Phase II. Projects that have been commissioned include the Ogoni–Andoni–Opobo Unity Road (Andoni Section), Egbeda internal roads, Phase I of the Port Harcourt Electrical Village and the flag-off of its Phase II, as well as the dualised Omoku–Egbema Road. These projects are focused on enhancing infrastructure and connectivity in the state, offering improved transportation options for residents and driving economic development.
An economic summit was organised in the state to boost internal revenue, attract investors, and create employment opportunities for the youth. Beyond improving infrastructure, there is a focus on revitalising the civil service, and hiring 10,000 new employees. The government has allocated N4 billion to support businesses in the nano sector and small and medium enterprises, providing funding ranging from N400,000 to N10 million each. This initiative is being carried out through the Rivers State Micro Finance Agency and Nigeria’s Bank of Industry for technical support.
Another vital achievement that sets His Excellency Fubara apart is the astronomical increase in the monthly Internally Generated Revenue (IGR) of the state since May 29, 2023. The administration has successfully raised the IGR from N12 billion to N27 billion monthly, representing an increase of over 100 per cent. This impressive growth trajectory suggests that the annual IGR is on track to reach N324 billion.
Before His Excellency, Sir Fubara, assumed office as governor in May 2023, the annual IGR of Rivers State in 2022 was N172.8 billion, with an average monthly IGR of N14.4 billion, as reported by Nigeria’s National Bureau of Statistics (NBS). In 2021, the state’s annual IGR was N123.3 billion, averaging N10.3 billion per month. The IGR was N117.2 billion in 2020 and N169.6 billion in 2019.
Notwithstanding the numerous challenges, the Governor has made considerable progress in education by implementing innovative measures in schools and providing a new convocation arena for the University of Port Harcourt. He has also shown commitment to the welfare of the people by providing free buses to offset the effects of fuel subsidy removal.
Local government employees have received their promotions, minimum wage, and wage bonuses. Fubara’s timely visit to the state secretariat complex underscores his dedication to public service as a crucial element in government operations. The complex, currently undergoing renovations, now boasts functional elevators, lighting, and water supply. Despite the huge debts left by the last administration, the Governor has assured that he would complete all projects that benefit the people, which were initiated by previous administrations.
The accomplishments achieved by the present government in just one year of rule are unparalleled. The rapid progress in infrastructure development within such a short period is a clear indication of his capability, despite various attempts to derail his efforts. Fubara recently informed Rivers people that true governance only commenced three months ago, when he decided to confront his predecessor’s challenges head-on.
Undoubtedly, the Governor’s leadership embodies qualities such as patience, wisdom and a commitment to peace, essential for conflict resolution and unity in Rivers. Under his guidance, there is hope for a future, marked by progress and prosperity, devoid of discord and division. As we mark this critical milestone, we implore all to prioritise peace, forgiveness and inclusiveness.

Continue Reading

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