Comment
Why Mismanage Public Funds?
A Nigerian politician once confessed that the corrupt practices which political office-holders are being accused of were taught them by civil servants. From the inflation of contracts, rents and other financial transactions, to the padding of national budgets, political office-holders usually depend on experienced civil servants for advice and guidance. Accounts sections of various ministries, departments and agencies are usually the starting points of official malfeasance.
Page 3 of The Tide newspaper of Friday, July 23, 2021, had this news headline: ‘Senate Queries Loss of N54Bn On External Loans’. The Senate called for the sanctioning of officials in the office of the Accountant-General of the Federation, who made Nigeria lose $274.2 million (N54.1 billion) on external loans. Obviously the Senate would not have issued such query without substantial evidence of malfeasance, after some detailed fact-finding interim investigations.
The Upper Chamber cannot be faulted for approving the report of the Senate Committee on Public Accounts, which did the interim fact-finding investigation on the matter. Therefore, it follows that asking the AGF, Ahmed Idris, to identify and sanction officers responsible for mismanaging public funds, is right and proper. There was a mention of Rule 3115 of the Financial Regulations which deals with gross misconducts. Surely, the public service system is governed by Financial Regulations which must apply where needful.
Text of Rule 3115 of the Financial Regulations reads: “An accounting officer who is queried for his failure to manage or spend public funds effectively or who spends money without due regard to economy, contrary to Financial Regulation 415 and fails to reply to the query, shall be removed from the schedule and be disciplined in accordance with the Public Service Rules”.
It was observed that there was a total exchange loss difference of $278.2 million (N54.1 billion) reported by the office of the AGF, with documents provided. But such vital documents could not be found in the Debt Management Office. With the proverbial buck ending in the Office of the Accountant-General of the Federation, the jinxed task is to “provide the sources of the exchange loss difference of $274.2 million (N54.1 billion) with documentary evidence”.
What will embitter the Nigerian public more is the continuing borrowing, thus piling up of huge debt burden on the nation and its people. Also annoying to the articulate class of Nigerians is the impression spreading abroad with regards to integrity deficit in the country. It would be shameful and untrue to say that there are no people of outstanding integrity and sterling qualities in Nigeria. Rather, it is our fault that honest and serious efforts are not made to locate such Nigerians and use them to clear the mess that we find ourselves in. One theory standing out in this regard is that those who ruined the economy and reputation of this country would be bitter and fear being put to shame by any group that would turn things around.
The experiences of 1966 give glaring evidence that there are obvious and powerful forces of retrogression holding this nation to ransom, and ready to do anything to hold the country down. Fair can be foul and foul fair in their perception of justice and equity. Late Osama bin Ladin made allusion to “Anhaki, the wizard from the desert” who, like a soulless zombie, can hardly be rooted out, even when dead. Perhaps, that is why bandits can hardly be rooted out, even with A-29 Super Tucano aircraft arriving Nigeria.
According to The Tide editorial comment of same Friday, July 23, 2021, “The Latest DMO statistics, covering the first quarter of 2021, indicated that the debt portfolio had increased again to N33.10 trillion”. This is in addition to “another N10 trillion in overdraft with the Central Bank of Nigeria (CBN)”. Very pertinent is The Tide newspaper’s comment: “We wonder what the managers of the economy have up their sleeves when they take on these liabilities which have serious implications not only for the present, but also for the future generations of Nigerians”.
Let it not be said that “when Rome was burning” no patriotic citizens raised alarm. What we find is the engagement of fiddlers to provide soothing sound of music and spin-doctors to do damage-control consultancy services. There had been the hiring of marabouts from Sudan and Saudi Arabia, to exorcise bandits and Boko Haram insurgents from Nigerian soil. Apart from fraudulent padding of accounts and contract values, do we not have cases of lavish spending in the midst of hunger?
A major disservice which any nation can do to itself and to posterity is leave a legacy that would drain the economy in years to come. While political leaders live in obscene opulence in the midst of widespread poverty and hunger, it is inexcusable that managers of the affairs of the nation should be asking for more foreign loans. It is saddening why managers of the nation’s affairs cannot see the need to make some patriotic sacrifices by cutting down their comfort and perks.
How do we explain a situation where public servants, particularly those in accounts units and security agencies, own several houses in Nigeria and foreign countries? Should we blame those who help themselves from public funds (where they find loopholes to do so) when those who should lead the masses by good examples, merely pontificate and prevaricate? Nigerians have come to know the hypocrisies, shenanigans and unreliable nature of the leadership class. It is quite sad to see the zeal with which security operatives pounce upon those who have the courage to point out official malfeasance.
Public funds will continue to be mismanaged, pinched, spent lavishly and unmercifully until the nation’s political economy is restructured. The structuralist philosophy stipulates that a Just and Firm structure would hardly admit or accommodate fraudulent manipulators of monetary affairs. Late Chief Obafemi Awolowo was a high priest of that philosophical school. During the Nigerian Civil War he managed the nation’s funds without going aborrowing, neither did he spare accounts fixers! Good name; good legacy!
By: Bright Amirize
Dr Amirize is a retired lecturer from the Rivers State University, Port Harcourt.
Comment
Rivers @59: Progress Through Tough Times
Today, May 27, marks the 59th anniversary of the creation of Rivers State by former Head of State, Yakubu Gowon. The creation of the state in 1967 represented a defining moment in Nigeria’s political evolution and a crucial victory for minority groups seeking recognition, inclusion, and self-determination within the federation. It also challenged the dominance of the old regional structure made up of the Northern, Western, Eastern, and Mid-Western regions.
The decision to create 12 states remains one of the boldest and most far-reaching policies of the military era. It reflected the growing desire among Nigerians for greater autonomy and a more balanced political arrangement. One of Gowon’s principal objectives was to ease fears of regional domination and foster national unity by establishing six states in the North and six in the South, thereby creating a more equitable federal structure.
The original 12 states were North-Western, North-Eastern, Kano, North-Central, Benue-Plateau, Kwara, Western, Lagos, Mid-Western, Rivers, South-Eastern, and East-Central states. Over time, these federating units expanded into the present 36-state structure, giving even greater significance to the historic state creation exercise initiated in 1967.
Before announcing the creation of the new states, Gowon consulted widely with leaders from different regions of the country in a bid to strengthen national cohesion and avert further instability. In the former Eastern Region, agitation for the creation of the Calabar-Ogoja-Rivers (COR) State had become increasingly intense, while in the North, demands from the Middle Belt movement reflected widespread dissatisfaction with the prevailing regional arrangement.
The struggle for the creation of the old Rivers State, now divided into Rivers State and Bayelsa State, began as far back as 1939 and reached its climax in 1967. At the time, the area was administered as part of the Eastern Provinces, with headquarters in Enugu. The region later became the Eastern Region of Nigeria, dominated politically by the Igbo ethnic nationality, alongside several minority groups including the Ijaw, Ibibio, Efik, Anang, Ogoja, Ikwerre, Ibani, Ekpeye, Engenni, Ogba, Kalabari, Nembe, and Ogoni peoples.
Popularly known as the Treasure Base of the Nation, Rivers State occupies a strategic place in the Niger Delta region. The state’s rich human and natural resources, coupled with the resilience and hospitality of its people, have continued to distinguish it nationally. The creation of the state fulfilled the aspirations of its founding fathers, who had long decried the marginalisation of minority ethnic groups within the former Eastern Region.
Since its creation, the state has been led by a succession of military and civilian administrations that have shaped its political and socio-economic development. Military administrators and governors have included Alfred Papapriye Diete-Spiff, Zamani Lekwot, Suleiman Saidu, Anthony Ukpo, Ernest Adeleye, Godwin Abbe, Fidelis Oyakhilome, Dauda Musa Komo, Musa Shehu, and Sam Ewang.
Civilian administrations have equally played vital roles in the advancement of the state. Democratic leaders such as Rufus Ada George, Peter Odili, Rotimi Amaechi, Nyesom Wike, and the incumbent governor, Siminalayi Fubara, have all contributed in varying degrees to the state’s development. Key stakeholders, including traditional rulers, political leaders, technocrats, youth groups, and elder statesmen such as Harold Dappa-Biriye, also played notable roles in shaping the political history and identity of the state.
From the creation of Bayelsa State in October 1996 to important investments in education, healthcare, infrastructure, and human capital development, Rivers State has steadily evolved into one of Nigeria’s most influential states. Its relevance in national politics, contribution to the oil and gas sector, and growing presence in entertainment and commerce continue to reinforce its strategic importance within the federation.
Perhaps apart from the pioneering years of the state, few administrations have altered the physical landscape of Rivers State as extensively as the current government. Through urban renewal projects, rehabilitation of state-owned facilities, expansion of road networks, and ongoing infrastructural development across various communities, the administration of Governor Siminalayi Fubara has sought to address longstanding developmental challenges while pursuing the aspirations of the state’s founding fathers.
The government’s infrastructure drive has particularly improved connectivity in previously inaccessible riverine areas. Communities in Bonny, Andoni, and neighbouring areas are now linked more effectively to the state capital through road projects, while the ongoing Trans-Kalabari Road is expected to open up more economic opportunities for the Kalabari Kingdom and adjoining settlements. The Port Harcourt Ring Road is ongoing as well. These projects have the potential to stimulate commerce, improve mobility, and create new urban centres across the state.
As Rivers State celebrates its 59th anniversary, the political class must seize the moment to reflect deeply on the values that inspired the struggle for state creation. The success of that struggle was made possible because political leaders, traditional rulers, youths, and community stakeholders united around a common purpose rooted in sacrifice, solidarity, and service to the collective good.
Sadly, the famed Rivers spirit of unity and selfless commitment appears to have diminished over the years, replaced in some quarters by bitterness, division, political greed, and unhealthy rivalries. Such tendencies threaten public peace and undermine the progress that generations of Rivers people worked tirelessly to achieve. There is therefore an urgent need for leaders at every level to embrace dialogue, tolerance, and statesmanship in the interest of the state’s continued stability and prosperity.
The sacrifices of the founding fathers should never be forgotten. Their courage, persistence, and activism laid the foundation for the creation of Rivers State and secured a stronger voice for minority groups within Nigeria. Present and future generations must preserve those ideals by pursuing lawful, peaceful, and constructive means of resolving disagreements, recognising that violence and conflict only weaken the bonds that unite the people.
The philosophy behind the creation of Rivers State was rooted in the pursuit of justice, fairness, and equitable representation within the Nigerian federation. Nearly six decades later, questions remain about how fully those aspirations have been realised. Nevertheless, the enduring relevance of the founding vision serves as a reminder that the values of unity, inclusion, and collective progress must continue to guide the state’s development.
As Rivers people commemorate this important milestone, there is every reason to celebrate the resilience, achievements, and enduring spirit of the state. The occasion should inspire renewed commitment among government, indigenes, residents, and stakeholders to build a peaceful, secure, and prosperous society where opportunities abound and future generations can thrive.
Comment
Stop Power Subsidy Removal
The International Monetary Fund (IMF) was founded after World War II to help rebuild economies that were devastated by the conflict. Over the years, the IMF has played an essential role in promoting global monetary cooperation and ensuring financial stability. One of its key functions is providing financial assistance to member countries in need. However, the IMF’s involvement in the domestic affairs of borrowing nations, like Nigeria, goes beyond just providing loans.
Undeniably, Nigeria has maintained a strong partnership with the global financial institution over the years. The organisation regularly guides economic and social policies to the giant of Africa in exchange for financial assistance. While these recommendations often focus on essential fiscal reforms, some critics believe they fail to consider the country’s specific socio-economic challenges, potentially worsening existing issues.
Historically, the Monetary Fund has been criticised for promoting strategies that prioritise Western economic interests over those of the recipient nations. This pattern has led to scepticism and accusations of neo-colonialism. Many believe that the Fund’s policies contribute to a cycle of debt, dependency, and economic vulnerability for the recipient nations, ultimately reinforcing the dominance of the West on the global stage.
Unfortunately, the global financial institution has been advocating for the removal of subsidies in Nigeria, claiming that they hinder economic growth and development. This argument has gained traction recently, with the institution urging the Nigerian government to eliminate all subsidies, especially in the electricity sector. According to the institution, subsidies create market distortions, promote overconsumption, and put a strain on government finances. They believe that removing subsidies would stimulate economic growth by promoting fair competition and reducing the burden on the government.
We strongly disagree with IMF’s proposal to take away subsidies, especially for those on power. These subsidies are essential for the well-being and security of ordinary Nigerians as they impact the cost of living and overall quality of life. In a country facing various socio-economic challenges such as low income, poverty, unemployment and gross income inequality, subsidies help alleviate financial burdens, particularly for those in low-income households. Removing them, as suggested by the IMF, could result in higher living costs, increased poverty levels, and heightened public discontent.
IMF’s admonition is akin to giving the President Bola Tinubu government a rope to hang itself with, given the possible outcome of such a move at this juncture of extreme hardship in the country. Because of the poverty-generating framework of the Nigerian economy, the attempts to completely commercialise the power market have been unsuccessful. Consequently, the Federal Government is obliged to provide financial support through the Nigerian Bulk Electricity Trading Company (NBET) to compensate for the deficit resulting from the inadequate revenue collected by the power companies.
An example of this is seen in 2023 when the power companies managed to gather N783 billion in tariffs out of a total bill of N1.06 trillion. To bridge the gap, the Federal Government had to provide N375 billion in subsidies. Removing this subsidy now would result in consumers having to pay more than 35 per cent extra compared to current rates. Additionally, consumers would need to brace themselves for unpredictable tariff hikes that power companies are eager to implement.
While some argue that full deregulation will attract investors, Nigeria’s experience has shown otherwise. For instance, despite the removal of the petrol subsidy almost a year ago, the promised benefits have not materialised. The Dangote and government refineries, which were expected to lower the cost of petroleum products, are not in production. This highlights the complexities of the Nigerian market and the challenges that come with full deregulation.
For the already terribly afflicted Nigerian masses, the elimination of power subsidies at this time would be very difficult. The withdrawal of fuel subsidy has already caused many businesses to shut down, as the value of the naira continues to decline. Elimination of power subsidy may be the final straw that breaks the camel’s back. The protests that have been occurring, which the government believes are sponsored, could escalate and become unmanageable.
Nigeria is already struggling with recent changes in electricity and exchange rates, so the Bretton Woods Institutions’ harsh demands are placing the nation in a risky situation. The additional burden of higher electricity tariffs could severely impact the competitiveness of the nation’s manufacturing sector, which is already facing defiances such as low productivity, high costs, and inadequate infrastructure.
Both the IMF and the World Bank have demonstrated insensitivity and hypocrisy in their policies towards Nigeria. They have failed to consider the impact of their suggestions on the welfare of Nigerian workers and the general population. They must understand that there is a correlation between the purchasing power of the people and their ability to afford essential services like electricity. The government must be cautious in heeding their advice, as the abdication of electricity subsidies could worsen the current economic crisis. Policies should be implemented with the well-being of the people in mind.
The official exchange rate for the dollar was N464.51/$1 before the removal of the fuel subsidy on May 29, 2023. Today, it is about N1,650 -$1 in the parallel market. This crisis has led to high inflation, pushing up prices of goods and foodstuffs. Therefore, Nigerian leaders should take advice that will assuage the sufferings of the citizens and better their lives. They have to address the economic remonstrances facing the country and find solutions that will benefit the people. Nigerians can no longer absorb any further shocks because of the difficulties of the times.
Comment
Halt Soaring Cost Of Drugs
Nigeria is currently grappling with a frightening health crisis. A critical concern that has dramatically escalated is the burgeoning prices of medicines, rendering them inaccessible to the majority of the population. The grim reality is that Nigerians battling various health challenges are in a perilous situation, their lives hanging in the balance owing to the soaring costs of vital drugs. Potential solutions do not lie in the government’s customary tokenism but demand a potent emergency response.
Since the assumption of office by President Bola Tinubu, the nation has experienced a steady depreciation of the naira against the US dollar and other major global currencies. The deregulation of the foreign exchange market has ignited a chain reaction culminating in several economic emergencies, one of the most severe victims being the healthcare delivery system.
Economic parity between the naira and other foreign currencies has resulted in the skyrocketing prices of necessary medications. The devaluation of the naira implies that importing pharmaceutical necessities has transformed into a cumbersome and expensive process. The deregulation of the forex market has only compounded the predicament. The pecuniary burden on the common man has intensified manifold as pharmacies and drug stores inflate the costs of medicines to retain their profit margin.
With the big pharmaceutical companies shutting their doors, the situation is getting worse. This is mostly because of the unfriendly business climate. This unfavourable milieu, twinned with other systemic challenges, pushes medical professionals, from doctors, and nurses to paramedics, to emigrate to Europe, the United States, Canada and Saudi Arabia, among others, in pursuit of improved remuneration and work conditions. The current era is posing a tough obstacle for those who fall ill in the nation.
As the drug manufacturing giants cease operations, the dearth of critical drugs, coupled with uncontrollable inflation, sees the expenditure on healthcare skyrocketing, and the country is bearing the brunt. Life-saving drugs such as antibiotics, analgesics, and hypertensive and anti-diabetic medicines have witnessed an unprecedented price increase between 400 and 500 per cent. What once was a common and affordable antibiotic, Augmentin, which used to cost a mere N3,500, now carries a staggering price tag of over N30,000.
Given the alarming scenario, for those who survive on the minimum wage, and the 133 million Nigerians recognised as multidimensionally poor, falling ill could well bring about the end of times. Their economic incapacity to afford such high drug prices leaves them with no resort but preventive measures. Becoming a victim of sickness amounts to being trapped in a troubling and implausible situation that might have no practical and viable solution.
The healthcare sector, particularly the pharmaceutical industry, is currently facing remonstrances such as a reliance on imported drugs and the departure of GlaxoSmithKline from Nigeria after 51 years of operation. This situation, combined with the instability of Nigeria’s economy, raises uncertainties about the availability of pharmaceutical products and their potential impacts. Multinational companies like GSK are finding it more and more difficult to repatriate their sales proceeds to their home countries because of the nation’s economic quagmire.
Statistics reveal that an alarming approximately 70 per cent of drugs consumed within the country are imported, as corroborated by the Pharmaceutical Society of Nigeria. Unveiled investigation exposes a ghastly reality about three interrelated problems; the deluge of fake and substandard products, comparatively weak regulatory oversight, and a combination of porous borders with corrupt customs personnel.
The ongoing decrease in Nigeria’s drug importation attributed to forex pressures creates a domino effect impacting the country’s public health directly. With food inflation also soaring simultaneously, the populace, already off balance, is left grappling with basic healthcare needs; consequently, they turn away from quality drugs and treatment to patronise quacks and fake drug vendors.
This scenario left unaddressed, can potentially snowball into an extensive and uncontrollable public health crunch, aggravating the existing socio-economic predicament. Thus, it is essential that the catastrophe is recognised accurately in all its dimensions and that relevant policies of the government focus on alleviating both the forex pressures and their resultant detriments to public health.
The authorities have a responsibility, with one of the most important being the health of its citizens. One issue that manifests as a poignant ‘cri de coeur’ is the affordability of prescribed drugs for ordinary Nigerians. Facing an uphill battle with the exponential rise in the cost of goods and services, the common man struggles to reclaim and retain control over one of the fundamental aspects of life — health. The prohibitive costs of necessary medications, and life-saving drugs, have snowballed into a national concern.
Our appeal to the Federal Government is straightforward; the high cost of drugs should no longer serve as a death sentence for citizens. Subsidising essential medications for Nigerians will allow them to combat serious diseases and regain hope, creating a more robust and healthier society. Therefore, those in authority must demonstrate their commitment by walking their talk to ensure that Nigerians have a fair chance at survival.
President Tinubu’s government must take immediate action to address the high drug prices in our nation. Prioritising healthcare accessibility, implementing price controls, supporting local drug production, and strengthening public healthcare infrastructure are essential steps that have to be taken. Nigerians urgently need improved access to health insurance, encouragement to the use of safe and effective generic drug s to reduce costs, and education on the issue including policy modifications.
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