Nigeria Now

“No Where to run to; “The dynamics of global Gas Flares Are Like Giant Cigarettes at Oben,Edo State And Kolo Creek business requires flexibility ofThe Giant Cigar in Bayelsa State” - P.19 looking at the rules that guide transparency and full disclosures” - Ndanusa - P.32NIGERIA NOWVol.1 No.2 Fe b r u a r y 2 017 YOUR COUNTRY AND YOU N800ReFRseoedsutrrecurecatCuliorsinnmtgr,ol, ...And all thatUSA....$8.00 UK £5.00 2536- 6777



NIGERIA NOWFrom the NIGERIA NOW Published by United Newspapers (NIG) LTD,News Room Registered in 1999 by the Corporate Affairs orried by the fractured architecture Commission (RC: 370069). of our federation, we sought to rediscover the building blocks laid Publisher by our founding fathers at M. Sani Zorro, FNUJ, MHR independence. The verdict: Thereis no 'ideal' federalism anywhere. (On Leave of Absence)What many see as ''true'' federalism is only relative Enterprise Editorto the country concerned. We also run enriching Akanimo Sampsoninterviews in support of this reality. Editorial Advisory BoardOur Business/Economy section has been given a Chair: Dr. Obadiah Mailafiaboost with 'Business Extra' that takes a Mahmoud Othman (Mall.)panoramic view on businesses in the country. Clement Ebri (Mr.) Umar Kari (Ph.D)There is an agenda for the National Assembly to Richard Akinnola (Barr.)come clean on the 2017 Appropriation Bill.Peugeot Automobile Nigeria (PAN) is making a Associate Editorcase for enhanced local production of vehicles to Ahmed Idriscounter the impact of our galloping exchangerates. Editor-at-Large Monima DaminaboFrom the Sport Desk, Researcher/Reporter,Abdulsalam Mahmud, reviews the record of our Researcher/ReporterNational League and submits that Nigeria had no Abdulsalam Mahmudexcuse (whatsoever) for not growing our socceron a scale like Europe's, in Africa. Adverts Evelyn AdikwuEnterprise Editor, Akanimo Sampson is in hisbest elements. He tackles the impact of gas flaring Web Masterin the Niger Delta, in our Environment page. Mohammed AdemuA legion of writers and scholar have also joined us Copyright ©at ''The Newsroom'' to enrich this edition. Nigeria Now ISSN 2536-6777Enjoy it, please. © All rights reserved Corporate office:03 NN I February 2017 4, Agatu Street, Area 11, Abuja — Nigerianow.co twitter— @nigerianowinfo Email: [email protected]/[email protected] Tel: 08034004254, 09096999961 Website: www.nigerianow.co Advertising: 09095555994, 08166611881

contents FEATURES12 Pressing The 17 2017 Budget: Federalism Button: Keeping The Mace Clean Backwards Or Fast Forward 22 Osborg: Our Vision For04 NN I February 2017 New Nigeria 25 Rejigging Nigeria: By Our Reservations – Ango Abdullahi 31 Peugeot In Top Gear ‐ Drives Local Production 38 PIB of Controversy 45 Like Beauty, Like Federalism 24 Business Extra

‘'IF this happened to me echoes today, it could be Ekweremadu tomorrow. We must protect the integrity of the Senate. Three times, Ioffered to resign as Senate Leader, but youall wanted me to stay.\"Former Senate Majority Leader,Senator Ali Ndume reacting to his removalby the APC caucus in the Senate via a''legislative coup''. \"I must tell you with all ''The President is going to rest. You know that God honesty that my people and did the work of creation for six days, and on the I will not participate in the seventh day he rested. So, if God needed to rest, sitting of this panel. This how much more a human being. So, the President panel has not shown us that is just going to rest, and the statement we have it will not be biased. All these released is straight forward. He will go on this activities are orchestrated so leave, and during the leave he will do routinethat APC will use the materials therefrom at medical check-ups.”the tribunal. Even you as the chairman of Special Adviser to the President on Media and Publicity, Femithe panel cannot say from your conscience Adesina, saying there is nothing wrong with the president embarking on a 10-daythat you are not biased.\" vacation, as God himself rested on the seventh day after doing the work of creation for sixRivers State Governor, Nyesom Wike days.tongue-lashing the Nigerian Police Special JointInvestigation Panel on Rivers' legislative rerun. “Though it may look difficult to be in APC in Igboland but I know what to tell my people “The entire architecture of because I have never disappointed them. I never the runway from bottom to got appointment from PDP even as a founder. top has collapsed. It is totally Looters came and drove all of us away. I belonged unsafe to continue to use the to a party that brought about the death of Savanna runway. The action we have Bank but things will change for good. I have no regret joining APC because taken is the best, right and in all my progressive friends are there.” the interest of Nigerians.” Former Senate President, Ken Nnamani on why he left Peoples DemocraticMinister of State for Aviation, Senator Party (PDP) to All Progressives Congress (APC).Hadi Sirika reiterating the FG's stance regardingthe 6-weeks proposed Abuja Airport closure. “I am just tired of people coming to me to say I want to build a new mosque. You know, we keep “If this is how you want to building mosques and our daughters are illiterates. speak to me, then go and do So, my appeal is that if you really want to help your worst. If you want to Kano, don't come to me with a request to build a cause trouble, I'm ready for N300m mosque because I have enough mosques you. Let's see what happens everywhere. And if I don't have a mosque, I'll build it myself. If you really then.” want to help, go and educate a girl child in the village.” Oyo State Governor, The Emir of Kano, Mallam Sanusi Muhammadu II, calling on wealthyAbiola Ajimobi launching a tirade at students individuals in the North to stop wasting money in building mosques but rather invest it inof Ladoke Akintola University, LAUTECH, girl-child education.protesting the prolonged closure of their university.05 NN I February 2017

ADVERTORIAL We AreRevolusionising NOUN – Vice-Chancellor Address By the Vice‐Chancellor, National Open University of Nigeria, Professor Abdalla Uba Adamu, on the Occasion of the 6th Convocation Ceremony of the University, Held at the NOUN Main Campus, Jabi, Abuja, on Saturday, 21st January, 2017Introduction Study Center, Lagos, who emerged the best graduating students in this convocation. T gives me great pleasure to welcome you to another great occasion of the Convocation Ceremony of the National Open The National Open University of Nigeria continues to be the University of Nigeria (NOUN). Today marks the 6th leading Open and Distance Learning (ODL) institution in the West successful graduation ceremony of the students of this great African sub-region through the provision of affordable, accessible university in various disciplines. Today we graduate over and flexible learning at the undergraduate and postgraduate levels.12,000 students across the disciplines, with 31 recording First Class As a social enabler of learning, NOUN presents unprecedenteddegrees. NOUN congratulates Nkwor Jude Peter from our Ikeja opportunities for liberalizing access to university education in06 NN I February 2017

ADVERTORIALNigeria. The non-residential nature Connected to this segment ofof the degree programs makes it system reform was the strong needpossible for NOUN to provide a for democratization of academicflexible and self-controlled structures and leadership.learning system that is rapidly Consequently, with thegaining traction in the world of Faculty/Departmental switch-contemporary learning processes. over, came the need to conduct elections to democratically elect It is with great pride, those who would provide effectivetherefore, that I seek your and competent academicindulgence to outline the leadership to the new system. As atremendous efforts being made by result of this, elections were heldthe university management in for the first time in NOUN tofurther propelling NOUN to positions of Deans and Heads ofcontinue its role as the leading Departments in which allODL institution in the West academics participatedAfrican sub-region. enthusiastically. At the end of the elections, five of the eight DeansThe Last One Year elected were women – which goes to show the gender sensitivity ofIn the last one year since the NOUN and the total confidence we have in the ability of ourlast convocation, the university has womenfolk to provide leadership.witnessed tremendous system Having instituted a Faculty/Departmental structure, the nextreforms. These system reforms are focus was on Benchmark Minimumall targeted at positioning the Prof. Abdalla Uba Adamu, NOUN’s Vice Chancellor Academic Standards (BMAS), created in various disciplines by the Nationaluniversity within the framework of global Sciences also moved to the newly Universities Commission (NUC) andbest practices in ODL delivery, and at the completed Faculty Building I at the which remains the main structuralsame time raise the profile of the headquarters, Jabi, Abuja. What remains at academic framework to ensure quality,university within the international the Lagos Liaison Office are the Faculties uniformity and excellence in universityUniversity Rankings System to showcase of Education, Law and Management education in Nigeria. NOUN systemthe intellectual achievements and diversity Sciences. Efforts are being made to ensure reform initiatives in this direction wereof NOUN as an institution. These system their movement to the Jabi Headquarters focused on ensuring due process isreforms become necessary to attract more hopefully before the next convocation. followed in accreditation of all academiccollaboration and engage with The Faculty of Agriculture moved from programs in the university. To this end,international network of research Lagos to its permanent site in Kaduna in efforts were made to ensure that allinstitutions so that NOUN maintains its 2015, where it currently occupies a five- properly accredited programs by NUC areleading status not only as the largest ODL hectare land, enough to practice extensive strengthened and empowered throughinstitution, but also an exemplar of ODL experiments in agriculture. When all the advertisement for properly qualifiedbest practices in Africa. seven faculties move to Jabi, NOUN academic staff, well-entrenched inThe system reforms began with the would have a mega-campus that is culture of research, so that a massive overhaul of our study materials can bemovement of the university from its unmatched in ODL delivery anywhere in undertaken with greater efficiency.congested temporary site on Victoria Africa. Thus, the Directorate of Academic Planning was re-organized to ensure totalIsland, Lagos, to its more conducive The second in the series of reforms compliance with NUC BMAS guidelinespermanent site in Jabi, Abuja, on the by streamlining all the programs to reflect approved accreditation status of theland allocated to it 1983. This started programs at both undergraduate and postgraduate levels. NOUN proudlyon 29th March, 2016 with the focused on internal academic structures, reports that a total of 60 programs havemovement of the Office of the Vice- where former Schools were converted intoChancellor to the permanent site in Abuja, standard Faculties, and Units into full-followed on 4th April by the Offices of the fledged Departments. This will furtherother Principal Officers and Directors. assure our students about the standardThe Lagos Office became Liaison Office, nature of academic structures in NOUNwith the Deputy Vice-Chancellor and remove any doubts about any(Academic) as Supervising Officer. variations in what the university offers in On 1st August 2016, the Faculties of comparison to what the conventionalHealth Sciences, Arts, Science, and Social universities offer.07 NN I February 2017

ADVERTORIALfull NUCaccreditation,which reflects theexcellence withwhich NOUNimplements itsacademicmandate.NOUNStudy Centersprovide the mainnetwork throughwhich weinterface with ourstudents.C o n s e q u e n t l y,NOUNManagementtook a long hardlook at the 77Study Centers HRH Igwe, Lawrence O.C. Agubuzu, OON, NOUN Chancellor Sen. Ameh Ebute, CON, Pro‐Chancellor and Chairman of Councilacross the federation and initiated a series robust information access system that avenue in which our students can voiceof activities aimed at overhauling the study meets the needs of contemporary NOUN their perceptions about our servicesCenters' control directorate to make it students who are technology savvy and directly to the Vice-Chancellor while themore efficient and transparent through therefore appreciate speed, excellence and latter provides an opportunity for ourinstitution of effective data flow value in data management. To bring students to rate the services offered tomechanism to enable decisions/initiatives NOUN closer to its students, the two them at the study Centers. To strengthentaken on service delivery to be quickly Directorates were empowered to create a this initiative, NOUN will institute atransmitted to the end users. Thus, the whole raft of nine modular websites. reward system for the best-rated Center,Directorate of Learner Support Services These are and use the failings of low-rated Centers aswas overhauled and given greater mandate 1. NOUonline (StudWare Student fulcrum for system-wide change andon data mining to generate a more Admission Administration Portal) improvement.effective profile of the study Centers forbetter service delivery. 2. NOUN Academics Online Included in the new access modules is a new eLearn platform that replaced theDue to the significance of effective 3. NOUNOnline Courses (ilearn) former iLearn services. The new eLearndata flows in information processing as 4. NOU e-Exams goes far in introducing a more personalenabler of smooth-running of 5. NOU e-TMA electronic facilitation services, as well as aorganizations and effective decision- whole new range Virtual Experiences,making, the next step of the system 6. e-Library particularly in the full-utilization of Openreforms was in taking control of NOUN 7. NOUN HRPlus Source Virtual Laboratories for ourdata resources in terms of registration, science-based students, embedded Virtualexamination and facilitation. This involved 8. Rate My Center Library modules that make referencingempowering an existing entity, the 9. Talk To the VC easier for our students as well as theDirectorate of Information and Communication university staff.Technology, as well as creating a new one - The flagship site is NOUonlineDirectorate of Management Information Systems which is our new Student Admission To improve our Web rankings and(MIS). These two directorates were Administration Portal and which went live raise the profile of our academic staff,empowered to provide effective data on Tuesday 10th January 2017. With this, NOUN has also created a NOUNleadership for the university by saving NOUN now has total control of its data Academics Online module where each of ourcosts and reducing examination wastages, and provide more effective bases for academic staff is showcased to attractleakages and inefficiency occasioned by decision making. national and international collaborationsoutsourcing such data services to outside in teaching and research.agencies. This reform therefore creates a Others include Talk to the VC and Rate My Center. The former would be an NOUN has also created a more08 NN I February 2017

ADVERTORIALstreamlined Directorate of Examinations and sought NUC approval for open education and serving asAssessment (DEA) and integrated itsactivities with Directorate of Information standardization of the programs to ensure inspirational model of engagement andand Communication Technology (DICT)and the Directorate of Management that only duly approved and accredited commitment. The National OpenInformation Systems (DMIS). The natureof ODL delivery and test measurement programs are offered in the School. This is University of Nigeria (NOUN) has shownnecessitated a tighter integration amongthese three entities. The effective inter- to raise confidence in the School and a strong determination to become a full-departmental collaboration among thesethree directorates has created a robust NOUN. fledged OER-based Open University withexamination platform that ensures smoothand effective measurement of learning Achievements and Collaborations a measured share for MOOCs. It seemsoutcomes throughout the NOUN fair to say that NOUN is the first Opensystem. One area in which NOUN University in the world implementing such consistently outpaced other ODL an 'all-inclusive' OER strategy and profile, Noting the trend in technology institutions in Africa is the Open and at high speed. NOUN alreadyusage among our students and Educational Resources (OER) initiative. launched its first 40 OER-based coursespredilection towards Smartphone and In this regard, NOUN is pursuing an and its first three OER-based MOOCs.Tablet devices, NOUN has started aggressive drive towards ensuring opennegotiations with key technology NOUN certainly has demonstratedpartners to migrate our studymaterials into an ePub electronic that it can provide leadership in thisformat that makes them easier,friendlier and therefore more Noting the trend in domain to other universities.interactively accessible on technology usage among ourSmartphone and Tablets for those students and predilection To further consolidate this gain,who wish to avail themselves with the on 21st November 2016, thenew innovative delivery mode. International Council for Distance Understanding the power of towards Smartphone and Education (ICDE) Executivelifelong learning, NOUN merged twostrong units into a bigger and more Tablet devices, NOUN has Committee appointed Dr. Jane-powerful entity. These constituent started negotiations with key Frances Obiageli Agbu, Dean, Facultyunits were Center for Educational technology partners to of Health Sciences to the HonoraryTechnology and Entrepreneurial ICDE Chair in Open EducationalDevelopment (CETED) in Kaduna andCenter for Lifelong Learning (CLL) in migrate our study materials Resources (OER) for a period of 4 years,Lagos, to create Center for into an ePub electronic format starting January 2017. Dr. Jane-Entrepreneurial Studies and Lifelong that makes them easier, Frances Obiageli Agbu's experienceLearning (CESLL) based in Kaduna. The friendlier and therefore more and expertise will be appreciated in theCenter is targeted at the provision of skills ICDE chairs network, whichdevelopment/acquisition for out-of-school youth and young adults. To this end, interactively accessible on collaborates with UNESCO where aCESLL has entered multiple partnerships Smartphone and Tablets for Chairs' Program across a range ofwith various agencies and governments to those who wish to avail disciplines already exists. This is anprovide skills to young people who are out themselves with the new international recognition, not only forof schooling for one reason or another. the erudite and indefatigable Dr. Agbu With regards to Postgraduate Studies, innovative delivery mode. who catapulted NOUN OER into theNOUN continues its quest for excellence international sphere, but also aand due process by aligning ourPostgraduate programs with best practices celebration of excellence whichin high quality accredited postgraduateeducation. The School of Postgraduate NOUN has become known for.Studies reorganized its academic programs access of world-class educational materials In other international spheres,09 NN I February 2017 to all our students to support their NOUN continues to play an active role. In learning, as well as provide support to July 2016 NOUN hosted its 1st NOUN staff in their research endeavors. Distinguished Lecture delivered by Prof. Asha This aggressive pursuit of excellence has Kanwar, President of the Commonwealth been noticed internationally. of Learning (COL). The event In April 2015, NOUN was honored consolidated the participation of NOUN with an Award for Excellence in Open at the Pan-Commonwealth Forum 8 (PCF8) Educational Resources. The award was meeting held in Kuala Lumpur, Malaysia, bestowed by the Open Education from 27th - 30th November, 2016. At the Consortium's Board of Directors at Forum, NOUN was well-represented and Krakow, Poland. The Award is granted by highly acknowledged for making the OE Consortium Board of Trustees to substantive contributions to the growth of an org anization that exemplifies the Forum. extraordinary leadership in the field of

ADVERTORIALThe collaboration with COL NOUN since its establishment and which congratulate them and indeed all thecontinues with the strengthening of our was not clear to some our collaborators. graduands, we urge them to hold high theCommonwealth Executive Master of For instance, we emphasized the fact that shining light of our university.Business Administration (CEMBA) and we are a Full-Time Open and Distant Conclusionthe Commonwealth Executive Master of Learning (ODL) institution, notPublic Administration (CEMPA), a strong 'correspondence' or 'part-time', as Mr. President, distinguished ladieslinkage of executive academically- erroneously ascribed to us. and gentlemen, let me seize thisenriched programs sharing similar opportunity to express NOUN's deepmodules across Commonwealth countries, Other challenges include: gratitude to Akwa Ibom Stateaimed at the business sector of the  Massive shortfall in staff Government for its generous donation toeconomy using leading-edge examples and emoluments that restricted employment NOUN of its proposed Special Educationnetworks from international businesses. and overburden existing staff; Center in Uyo on Udo Udoma Avenue,Expectations and Challenges  Increasing demands for which will be converted to a NOUN Study Community Study Centers from all parts Center. The entire Center was handed over While NOUN strives to meet all the of the Federal which NOUN cannot cope to NOUN management. With over 9,000requirements of NUC to obtain full actively registered students in Akwa-Ibom,accreditation of its S/N Faculty Number of Graduands the additionalprograms, situations, 1 80 Center will ensurestructures and 2 Faculty of Agriculture 72 more effectivecircumstances often 3 Faculty of Arts 2038 ser vices to ourpresent interesting 4 1956 students in the state.challenges. The Faculty of Educationbiggest challenge Faculty of Health Sciencesfaced in this regard isthe full accreditation 5 Faculty of Law 676 NOUN alsoof NOUN Law 6 Faculty of Management Sciences 3613 acknowledges theprogram which, to all 7 Faculty of Sciences 2087 contributions to theintents and purposes, 8 Faculty of Social Sciences 1509 university by thethe university has 9 CEMBA 02 Kaduna and Sokotofulfilled. 10 PGDM (ASCON) 02 State Governments 11 CESLL 90 through their TOTAL 12, 125 patronage of the Center forSadly, these Law graduates are with due to severe reduction in staff Entrepreneurship and Skills Learningprevented from proceeding to the Law emoluments (CESLL). Between these two governmentSchool to train as Barristers at Law (BL)  Lack of maintenance of existing entities, NOUN has been able to provideand be called to the Bar so they can study centers due to their resource training workshop to 10 batches ofpractice as lawyers. The Council of Legal demands students in the last one year.Education apparently perceives NOUNLaw degree program as 'part-time' or  Deviancies in effective At this juncture, I would like to'correspondence', rather than open and implementation of broadband networking especially appreciate the immeasurabledistance learning. Despite the measures systems to facilitate contact between staff efforts of my three predecessors – Prof.taken by NOUN to appease the CLE and students scattered across 76 study Afolabi Ojo, Emeritus Prof. Olugbemirothrough institution of specific classrooms centers in the country. Jegede and Prof. Vincent Ado Tenebe, forfor Law students to interact with their laying a solid foundation and nurturing thetutors (as in conventional Law classes) and Summary of Graduands university into a position of reckoning,Moot Courts, the CLE has still not without which, what we have been able toaccepted our request to admit our Law It is to the glory of God that I achieve in the last few years would not havegraduates into the Law School. Part of the announce to you that a total of 12,125 been possible. NOUN will foreverproblem seemed to be tied down to the students of NOUN have been found remember your labor of love.NOUN Act. On Monday 16th January, worthy in character and learning to receive2017, the Senate Committee on Tertiary the various certificates of this university. We say thank you to Mr President for The breakdown of the figure is as follows: giving us this wonderful campus andEducation and TETFund held a Public Mr President, Ladies and Gentlemen, supporting the development of theHearing on the amended Act, and it is our it may interest you to know that included in university. We also thank all Nigerians forfervent hope that the updated version will these figures are 31 graduands in reposing their confidence in our affairs. Wepass its third reading and finally approval. undergraduate programs who made 1st once more congratulate today's graduands.The amended Act reflects the reality of Class in their various disciplines. While we10 NN I February 2017

PrologueFEDERALISM: What it is, What it is notELITE consensus has eluded Nigerian politicians as they bicker that the military in Nigerian history was to be greatly influenced more by about how to re-launch the country back to its federalist track, issues and forces of unity, than by issues and forces of division. negotiated by our founding fathers, at independence in 1960. In 2014, the administration of Dr. Goodluck Ebele Jonathan, convenedNigeria deviated from its original path to an evolving federal system, no a national dialogue in response to the clamour for restructuring, fiscal andthanks to the first military putsch that ended our parliamentary true federalism(s), devolution of power and such other citizen expressions fordemocracy and triggered a 3-year civil war between 1967 and 1970. a more even spread of power to Nigeria's federates. To underscore theAlthough built around a contentious federal structure, the history of deep divisions among the conferees, the gathering began and ended onNigeria's nation-state has been shaped largely by its political and controversial notes on key issues such as states' creation, derivationeconomic dynamics, spanning different developmental epochs. principle for allocation of oil revenue, and a host of others.Typical of countries challenged by the increasing need to balance power The conference was dead on arrival more so as it lacked the legalacross multicultural divides, both centripetal and centrifugal forces have framework to back it up and enforce its outcomes, afterwards. While thecontinued to impact on the on-off debate about Nigerian federalism president has power to initiate such conference, the National Assemblyamong the political class. Ironically, the debate has been more of is the institution vested with the power to alter the constitution. Worserhetoric, laden with threats and counter threats among our divisive elite. still, delegates to what turned out to be another jamboree wereFifteen-Seven years after colonial rule, Nigeria has wobbled through a handpicked in a skewed manner, instead of emerging through electoraltapestry of events, defining the direction in which various regimes college as recommended by the panel set up to develop the modalitiesresponded to the tensions and contradictions that characterized the for convening the elite dialogue.transition of our disparate multicultural groups into a corporate, It is intellectually dishonest to assume that there can be “true federalism”modern state. as is being canvassed by a section of the current federalism debaters. AsOf all the events that determined our post-independence federal part of the science of government, the pursuit of federal ideals is aarchitecture, however, was the dominance of our body politic by the dynamic process with no quick fixes.military. Not only did Major Nzegwu's misguided coup of January 15, In a federal system, units can be in the form of states as they exist in the1966, plunged Nigeria into carnage, our country continues to reap from United States of America. They may take the form of regional blocks asthe negative repercussions of that misadventure, 52 years afterwards. obtained in pre-1966 Nigeria. Federates can also be an amalgam ofHaving truncated the process of Nigeria's emergent federal system, the otherwise multicultural nations such as in England, Wales, Scotland andmilitary, over the years - 1966 – 1979, 1983 – 1999, also constructed and Northern Ireland. Yet, everywhere, federal debates are triggered bybequeathed to the nation, a federal structure built around the exigencies emergent political and social conditions of nation-states.of their time and longevity in power. The ill-advised cancellation of 1993 presidential election which the lateFrom dismantling the regional structure to pave way for General Aguiyi Chief MKO Abiola was set to win served as a trigger to a new round ofIronsi's dictatorship, and subsequent creation of states by various agitation for a return to regional autonomy. The right to secede was alsoregimes, the military, in response to the pulls and swings of Nigeria's freely canvassed by vocal Yoruba groups and individuals.foedus and separatus have been exclusively responsible for engineering The anti-June 12, 1993 election protests did not subside until both back-today's vertical federal structure - with 37 states (including the Federal door and table-top negotiations led to the exit of military presidentCapital Territory) and 774 local government councils. (General) Ibrahim Babangida from power and the installation of ChiefIn furtherance of the need to balance the tug-of-war between social Ernest Shonekan, as Head of an interim government, to appease theforces committed to forging a union, and those canvassing for greater Yoruba.devolution of power, the Nigerian military found itself consistently The imperative of balancing power among multicultural groups inunder pressure and therefore reacted according to its perception of the Nigeria as a respite for political stability and as a tool of politicalevents and circumstances of the times. appeasement was what also informed the emergence of GeneralFor instance, Gowon's administration instituted the compulsory one Olusegun Obasanjo, in 1999.year national service scheme for graduates of tertiary institutions, in The pursuit of a federal idea has proved to be a start-stop process,1973, to enhance national integration among latter-day generation of depending on what events influenced what trends, and the direction inleaders. The federal character principle was entrenched in the 1979 which the pendulum swings, in favour or against the contending forcesconstitution to ensure structural balance in recruitment and composition of centralization or decentralization. While the period between 1960 andof the federal civil service, as well as a dynamic, equitable revenue 1966 saw devolution of power to the defunct regions, the militarysharing-formula among the federates. interregnum between 1966 and 1979, epitomized the pursuit of centralThe military's contribution to constitutional engineering led to authority as decrees and orders flowed freely from federal to stateconsensus-building around intricate issues in 1978, 1985 and 1989. governments.While in power, it also facilitated dialogue among our nation's Economic planning was centralized, with uniform working days,acrimonious political elite. To stabilize the polity, diffuse power and holidays, traffic rules, municipal laws, etc., across the federation. Militaryensure balanced development across the country, it founded federal interventions in Ghana and Nigeria, the conferences that swept awaycolleges and universities and delivered on sustainable social sector many sit-tight dictators in the French-speaking African states in theprograms such as primary education, health care and a host of others, 1990s, or indeed the Arab spring phenomenon that toppled regimes incountry-wide. Tunisia and Egypt, are all, but clear examples of the unsmooth, non-The provision for mandatory appointment(s) of a minister from each linear, and fluctuating nature of transformation of states and issues infederating state and balancing of key appointments in the federal nation-building as dictated by the inter-play of social and political forcesbureaucracy, including permanent secretaries, ambassadors, chief in any historical epoch.executives of departments, agencies and public institutions andleadership of universities, as well as recruitments into security agencies, On account of history and empirical evidence, therefore, the concept ofmilitary and paramilitary services are some of the policy initiativesentrenched by the military to guarantee stability and a balanced “true federalism” is misleading and deceptive, and cannot stand thefederation.Given the circumstances that propelled the military to power and the rigour of academic discourse either in Nigeria, or anywhere else. Rather,events leading to the outbreak of war and aftermath, it was only logical federal models are based on historical phases, antecedents and specific trajectories of nation-states in the face of available political choices and prevailing legal character of nation-states, among other factors.11 NN I February 2017

COVER Pressing The Federalism Button:Backwards Or Fast Forward ORMER Vice President Atiku Western and Eastern Regions in 1939. The Regional Legislatures and since the policy of Abubakar had in the past few Richards Constitution in 1946 gave Nigeria its greater regional autonomy is so widely months, hugged media first regional parliaments. accepted, we do not fear that there will be any headlines throwing his weight However, Nigeria's federal system took desire at the Centre unnecessarily to interfere behind the renewed debate proper root in the 1951 Macpherson with purely regional legislation or about Nigeria's federal Constitution formulated after wide ranging administration.\" character. He is the most consultations with Nigerians in their villages, The Conference also argued against over- prominent political figure from districts, divisions, and provinces. centralisation, while noting that Nigeria as aNorthern Nigeria known to engage in the It introduced a Central Legislature and country was “vast” with “widely differinglatest debating arena. Regional Houses of Assembly with powers to conditions and needs.\" In the same vein,“Nigeria is not working well. And part of the make laws in such areas as Local governments, analysts posited that both the 1960 and thereason is the poor way we have restructured town and country planning, agriculture and 1963 Republican Constitutions granted moreour economy and governance, especially since fisheries, education; public works for the powers to the regions.1960. The Federal Government is too big and regions, public health, forestry, veterinary The two constitutions described each region astoo powerful relative to the federating units. services, land, welfare, local industries, native \"a self-governing Region of the FederalThat situation needs to change and calling for courts, (subject to central legislation regarding Republic of Nigeria.\" Also, each of thethat change is patriotic,”Atiku said at a book launch appeals to courts outside the regions), direct regions had its ownin May last year. taxation (other than income tax and Constitution, Coat of ArmsHe says the call for companies tax) among others. and Motto in addition torestructuring is not a recipe The Macpherson constitution introduced separate semi-independentfor dismembering Nigeria. fundamental changes in the relationship missions in the U.K. headed“An excessively powerful between the colonial power and between the by 'Agents-General'.centre does not equate to people themselves. In adopting the federal The two constitutions alsonational unity. If anything, system, participants at the national conference granted residual powers. Ait has made our unity more in Ibadan conference noted that: \"the Central matter that was notfragile, our government Legislature and Executive must retain both allocated to Regions or theunstable and our country residual and overall powers, but since the Federal Governmentunsafe. We must negotiate Central Legislature and Executive will automatically became aour union in order to make themselves be made up of representatives of matter for Regionalit strong,” according to the jurisdiction. The Regionsformer no 2 man and were strong statutorilypotential President of empowered to establishNigeria. High Courts as well asFor some Nigerians Regional Courts of Appeal.however, the former Vice They were strong in termsPresident's buy- in into the of revenue and were thus'restructuring and true able to carry out basicfederalism argument' is a functions in the areas ofploy to advance his health, education and otherpresidential ambition in the social services to their2019 general elections people. This was due tothrough base appeals to strict enforcement of thesentiments popular in the Southern part of the principle of derivation incountry. the sharing of revenue, especially under theRoot of Nigeria's Federalism 1963 Constitution.The former territories that make up present Section 140 of the Constitution whichday Nigeria were acquired by the British and specified the manner of sharing proceedsincorporated into a colony between 1885 and from mineral resources stated that: \"There1914. However, Nigeria formally emerged as a shall be paid by the Federal Government to acountry in 1914, following the merger of Region, a sum equal to fifty per cent of theProtectorates of Southern and Northern proceeds of any royalty received by theNigeria respectively by Lord Lugard, the Federation in respect of any mineralsBritish Colonial representative. The country extracted in that Region, and any mining rentswas divided into three Regions- the Northern, derived by the Federal Government from within any Region. Also, section 136(1) of the12 NN I February 2017

COVERconstitution stipulated payment of 30 per cent country. violence in many parts of the country.of general import duties into a distributable The North feared that the new policy would The Eastern region, still under the leadershippool for the benefit of the Regions. favour the South on account of its literacy rate of Col. Ojukwu threatened to secede fromImport duties on petrol, diesel oil and tobacco and preponderance in the civil service already. the country. A summit to resolve the different(less administrative expenses) were fully There was fear that a unitary system could challenges which followed the coup and thepayable to the Regions which the petrol or easily lead to southerners \"taking over control counter coup, as well as fashion out a structurediesel oil or tobacco was destined, among of everything,\" in the northern civil service. that will be acceptable to all Nigerians was heldother similar provisions. In his book “Nigeria: This fear was further heightened when the at Aburi, in Ghana, in January 1967. But theThe Tribes, The Nation or the Race” then Eastern region Governor Lt. Col. summit failed to achieve the aim of halting thepublished in 1965, F.A.O Schwarz estimated Odumegwu Ojukwu announced a day after nation's plunge into crisis as the outcomethat the Federal Government yearly returned the promulgation of the decree that on the became contentious after the participantsat least 40 per cent of revenues from its basis of seniority, Igbo civil servants would be returned to the country. The drums ofcoffers to the regions based on a number of reassigned to Lagos and other regions. 'From secession continued to beat very loud in themethods like derivation, population and the northern viewpoint, the implications of all Eastern and other parts of the country.balancing of development within the regions. this in terms of distribution of power, the To dampen the agitation, Gowon broke up the“The Constitution reflects all these principles regions with the creation of twelve new states— derivation, per capita distribution, and Nigeria is not working to replace them. The 12 States were createdbalanced development. Though the ratio well. And part of the with the division of Northern Region intovaries from year to year, approximately two- reason is the poor North Eastern State, North Western State,thirds of the money is distributed according to way we have Kano, Kaduna, Kwara, and Benue-Plateauthe principle of derivation and the remainder restructured our states respectively while Lagos was carved outis distributed under a formula designed to take economy and of the Western Region. Mid Western regioninto account “population as a broad indicator governance, especially was renamed Bendel while Eastern Region wasof need” and the “balanced development of since 1960. The divided into East Central State, Cross Riverthe Federation, “ he said. Federal Government is and Rivers.The 1966 Coup, counter coup and too big and too The new states favoured the minorities in theNigeria's federalism powerful relative to Southern and Northern parts of the countryThe regional system of government began to the federating units. who had been complaining of oppression andunravel following the coup and counter coup That situation needs denial of opportunities in their former abodes.of 1966. General Aguiyi Ironsi, an Igbo to change and calling Indeed, the minority groups have beenmilitary General, took over the reins of for that change is demanding for their own separate states sincegovernment following the crises set off by the patriotic,” Atiku said the 1950s. The creation of the new stateskilling of Prime Minister Tafawa Balewa and at a book launch in particularly helped Nigeria win the civil warthe creame of Nigeria's political leadership May last year. because it denied the then Eastern State ofmostly from the Northern and Western parts support from the oil producing part of theof the country in the coup of January, 1966. allocation of public resources and amenities, territory now carved out as Rivers and Cross the prospect of Igbo and southern Rivers State respectively.The coup threw the country into crises with domination, and the threat to mainstreamthe North particularly seething with heavy northern ways of life were unmistakable,' By the time the military left in 1999, thediscontent about the loss of the creame of its former President Shehu Shagari wrote of the country had been divided into 36 States and aelite in it. The crises however took a turn for policy in his biography \"Beckoned to Serve.\" Federal Capital Territory, FCT. The creationthe worse when in May, 1966, General Ironsi The introduction of the decree was met with of the new States were accompanied byannounced a change in the country's political strident protests from the Northern part of changes in revenue allocation formular even asstructure with the introduction of the decree the country. The protests culminated in the the Federal Government continued to take up32, otherwise called the unification decree. counter coup of July 1966 in which a group of responsibilities like provisions of education,Under the new law, Nigeria was designated a military officers killed the 'Supreme health and other social services previouslyrepublic, rather than a federation, while the Commander' Ironsi and his host, Colonel being carried out by the regions. To be able toregions were changed to provinces. The Adekunle Fajuyi, the military administrator of carry out the responsibilities, the Federalregions were also allowed to retain their Western Nigeria. Ironsi was succeeded by Government, starting from Gowon in 1966constitutions while the principles used in General Yakubu Gowon whose first action in started tweaking the revenue allocationsharing of revenues between the Federal office was to reinstate the federal system. An formula to favour itself. There was theGovernment and the regions were also left ad hoc constitutional conference he later introduction of the offshore/onshoreuntouched. The central government however, summoned to fashion out the future of the dichotomy and the promulgation of Decreestripped them of powers to initiate foreign country was disrupted midway by outbreak of No.113 of 1970 which reduced the derivationpolicies. formula to 45% and at the same timeThe most controversial proposition of the appropriated the entire offshore oil revenue tonew decree, as it later turned out of the the federal government. In 1977, the militarynationalization of public service, through the regime of President Obasanjo reducedintroduction of what it referred to as “the allocation based on derivation to 25% and alsonational public service.” The policy brought maintained the total ownership of revenuecivil service under the control of central earned from oil produced offshore.government with the implication that civil In 1981, the civilian administration of formerservants can be posted to any parts of the President Shehu Shagari appropriated another13 NN I February 2017

COVER20% of revenue from oil produced on shore to federalism argue that it will be more efficient Assembly.the central government, thus leaving 5% for for the country to revert to the regional The address was seen by the Northernthe oil bearing states. General Muhammed system, with the six geo-political zones ofBuhari as military head of state further North West, North East, North Central, delegates as the confirmation of theirremoved 3.5%, thus reducing it to 1.5% while South East, South West and South South as suspicion that the conference was called tostill holding on to the offshore revenue. federating units. The argument is that the restructure the country in tune with agitations return to the regions will streamline for true federalism or resource control by a However, military President Ibrahim administrative structures at the sub national 'Niger Deltan' President. It was therefore not aBabangida increased derivation to 3% through level of government, thereby helping to surprise that the conference was conductedthe Oil Mineral Producing Areas reduce administrative expenses. The under rancorous atmosphere characterized byDevelopment Commission (OMPADEC) restructuring or true federalism argument has mutual suspicions.decree of 1992. The constitutional been at the core of the various constitutional As such, the Conference could not agree onconference summoned by General Sani or national conferences as well as attempts to key issues that are at the root of Nigeria'sAbacha between 1994 to 1995 fixed amend the Nigerian Constitution since 1966. federalism such as devolution of power,derivation at a minimum of 13% but was While most delegates from the southern part creation of additional states, state police andsilent on the issue of onshore-offshore of the country had most times, argued in the likes. In a report produced at the end of thedichotomy. support of “true federalism” or conference, the Northern Delegates ForumThe offshore/ onshore dichotomy was “restructuring argument,” most of their reiterated their opposition to the ideas asabolished with the passage of a bill initiated on colleagues from the northern part of the canvassed during the exercise.the issue by former President Olusegun country always took the opposite view. The Though the Forum agreed that Nigeria shouldObasanjo in 2004. Overall, the country's situation was not different at the 2014 continue operating as a federal system, itcurrent revenue sharing formula gives Federal National Conference convened by former however rejected the various tweaks to itsGovernment 52.68%, States 26.72% and President Goodluck Jonathan. practice in the country as suggested byLocal Government Councils 20.60%. Indeed, the President had, in the address he advocates of restructuring or true federalism.The true federalism- resource control- restructuring- delivered to start off the conference asked the Indeed, the Forum called for enactment of afiscal federalism argument is essentially about delegates to make recommendations on the new Act that will restore the use ofundoing the changes in structures of the form of Power, Revenue Sharing, Resource offshore/onshore dichotomy to address thecountry and the formula for sharing of Control, States and Local Government problems of “inequitable distribution ofrevenue between the Federal Government and creation, Boundary adjustment, State wealth in the country.”the sub national entities, i.e States and Local elections, Indigeneship, Gender Equality and The Forum also disagreed with delegates fromGovernments that have taken place since Children's rights amongst others.” The other parts of the country as it asked for1966. President had also indicated that such maintenance of the status quo with regards toProponents of true federalism, argue that the recommendations would form part of a constitutional provisions on devolution ofFederal Government's apportioning of a constitutional amendment proposal then power and resource control. In the same vein,whopping 52.68 per cent of revenue from the under consideration by the National the Forum noted that “Although the Nationalfederation account to itself while 26.72 per Conference adopted creation of state police,cent and 20.6 per cent is allocated to the 36 While most delegates the status quo should be maintained in thestates and 774 local governments respectively from the southern interest of National Security.” It also arguedhas emasculated the sub national units, part of the country that the idea of each state having its ownimpairing them from carrying out their basic had argued in constitution will be “premature and against theresponsibilities. support of “true unity, intergrity and continuous existence ofThe argument therefore was that more funds federalism” or the country.”should go to the local and state governments “restructuring, their The question is that is there anything like truethrough adjustments of the revenue colleagues from the federalism? This was also the question thatallocation formula to allow more resources go northern part of the authors of Nigerian Federalism: Continuingto the two levels of government. There is also country always took Quest for Stability and Nation building tried tothe argument that states should be allowed to the opposite view. answer recently. In a historical excursion intocontrol resources in their areas and pay royalty The situation was not Nigeria's federal system, the authors,to the central government, - the 'resource control' different at the 2014 Okechukwu Ibeanu and Mohammed Kunastrand of the true federalism argument. National Conference agreed that the nature of Nigeria's FederalismConsequently the federal government, they convened by former has, over the years been determined byargued should shed some of its President Goodluck intricate forces of centralization andresponsibilities, a move which they say should Jonathan. decentralization. According to them,lead to reduction in over 93 areas in which the “federalism is a mechanism for the exercise ofconstitution currently granted it exclusive power and management of conflicts in afunctions. multi- cultural context. It is an evolvingThis is always backed up with arguments that process and an ongoing process. It is moreso,some responsibilities are best performed at on account of history, logic and rationalitylocal or grassroots level. Advocates of true everywhere.federalism argue that the bulk of work of lawenforcement is best performed at the local or Bystate level, hence, the need to allow states to Ahmed Idrishave their separate police. With excerpts from researched materials In terms of structure, advocates of true14 NN I February 2017

COMENTARIAT Federalism: The Missing Legislative FlavourBy Monima Daminabo NE incident that captures for all the country. Its utility was not only recognised early by times and in graphic context, the the British colonial masters, but was also adopted byThe present import of federalism in the them in launching the indirect rule system for thesituation Nigerian polity, played out in a country under their watch. This was in theirreflects more a dialogue that reportedly took place anticipation of the likelihood of misgivings andfailure by the between the late Dr Nnamdi strains in the forced marriages of convenience amongleaders of the Azikiwe - the first indigenous Head the various groups. And true to their anticipation theconstituent of state, and equally late Alhaji political arrangement of the British has been subjectedunits to foster Ahmadu Bello, the Sardauna of Sokoto as well as Premier to severe strains since the creation of the Nigerianmutual of the defunct Northern Region, in the early days of the state in 1914, by Lord Frederick Lugard.”understanding country's search for nationhood. Azikiwe had suggestedamong to his friend and compatriot Ahmadu Bello, “Let us Since then, the experience of the country hasthemselves and forget our differences….”. The latter however replied, featured a series of internal crises driven mostly by theacross the “No, let us understand our differences. I am a Muslim and expression of resentments by one group or the othercountry, which a Northerner. You are a Christian, an Easterner. By over perceived or real marginalisation in the nation'sis a direct anti- understanding our differences, we can build unity in our matrix of interests. The several instances of colonialthesis to the country.” era political upheavals, the First Republic's sordidprescription by Since then, this reductionist view of Ahmadu Bello 'Wild Wild West' political crisis, the 30-month CivilAhmadu Bello. has remained one of the most concise, elegant and War, restiveness in the Niger Delta, the resurgence of efficacious prescriptions for federalism in Nigeria's the clamour for Biafra in the East, the Odua Peoples national conversation, even if it had been largely Congress (OPC) movement and the iconically unheeded, by the powers that be in the country. Its merit horrendous Boko Haram outrage in the North, are just lies in its admission of the simple historical fact that some of the extreme metaphors that fit into the matrix Nigeria comprises a collection of about 300 disparate of failed federalism in Nigeria. ethnic groups from equally varied geographical and cultural backgrounds, assembled courtesy of the political However, if after over a century of existence and alchemy of the British, with the intention of executing 56 years of independence, the country is still facing their colonial agenda. In their colonisation ventures the challenges of consolidation of its nationhood with British had brought together under one flag, these ethnic significant threats to its territorial integrity, then the groups – many of whom had never heard or seen one marginal successes and significant failures of the another since creation. In that aggregation were ethnic prevailing political arrangement stand in stark relief. groups of varying sizes, leadership styles and cultural Yet, while in the colonial era, it could be excused that peculiarities as well as religious persuasions. Hence the an alienated political leadership might not have been challenge of peaceful coexistence for the aggregating disposed to identify and articulate the wide spectrum units was at the beginning of the Nigerian union. This is of interests of the equally wide variety of ethnic the terrain that is Nigeria today, and which to her eternal constituent units of the Nigerian union, the same credit, one of her lady of songs - Evi Edna-Ogholi could cannot be said for the post-colonial period, with the not have put better with her golden hit of the nineties - arrival so to say, of four republics in succession, and 'Lingua Franca' in which she sang “One kilometre means with consolidated governments of both the civilian another language…”. and military genres, each with all relevant The messages from the late great sage Ahmadu paraphernalia of political power and administrative Bello and the latter-day Edna Ogholi point towards the authority in place. imperative of a harmonious coexistence by the various ethnic groups that make up the country, under the Of particular significance then is the role of the framework of federalism, which remains the most viable legislature due for critical consideration with respect political arrangement for a country as this. Federalism to its statutory responsibility, for building and itself is the system of governance in which several self- consolidation consensus, among the country's governing political groups come together under a constituent units. For as it is, no other facility enjoys common central authority, and share power based on the statutory liberty or otherwise of authoritatively mutually agreed terms. defining the gamut of common values and processes, “Incidentally, the appreciation of federalism as the that will unify and grow the country. most preferred system of government for Nigeria is not a recent dispensation in the management of the affairs of In this respect lies a complement of instances that unfortunately betray a lacuna between the commitment to facilitating true federalism on one hand, and the core contents of the individual agendas of the various institutions of the nation's legislative15 NN I February 2017

COMENTARIATestablishment. The legislative establishment The implication is that proportions and led to the ugly circumstancescomprises the National Assembly at the centre, after over a century of the that spawned the 30-month civil war. Yet the36 state Houses of Assembly and 774 existence of the country same Ndigbo have historically remainedchambers at each of the local government and 56 years after oppressors of their minority non-Igboareas. Yet there is hardly a meeting point or independence, the country neighbours such as the Ijaw, the Ibibio and thefacility which harmonises the enterprise of is still battling with the Efik, to name a few.these institutions in the direction of developing challenge of nationala truly national political culture for the country. cohesion, as various As well, the ongoing militancy in theFor the purpose of clarification, there is no leadership communities Niger Delta is bigger than a mere agitation byforum for routine meeting of legislators at the with their followers see some 'misguided' youths. To dwell in suchvarious tiers of governance to even compare themselves more as mere unhelpful presumption is to demonstrate anotes. champions of their poor reading of the country's history; primordial ethnic bases, especially the sterling contributions of patriots This situation compares unfavourably than drivers of the like the late Major Adaka Boro, a formerwith the practice of advanced democracies country's nationhood. president of the University of Nigeria Nsukkasuch as that of the United States of America Students Union and minority rights activistwhere legislative chambers meet routinely to and not stand stable as well as erect. who in 1965 led an armed uprising against thereview the state of their country. Should it then While the present state of affairs may Federal Government, in the now famousbe surprising that the dividends of the various 'Twelve Day Revolution' – an armed uprisinglegislative chambers in Nigeria are yet to be have derived from the history of the country, aimed at establishing a Niger Delta Republic.rated in the public domain as being the bigger challenge is the relatively slow pace Also unforgettable is the sacrifice of the latepromotional of federalism. The dividend of of change with respect to moving the country environmentalist Ken Saro Wiwa, whothis 'every man for himself and God for us all' from its pristine centrifugal inclinations to the deployed the written word instead of the gun orsyndrome is accentuated by the present next level of consolidation of national political sword for his campaign.perennial struggle for control of power at the culture. In that context arises a series ofcentre: a direct anti-thesis to the prescription of questions such as - how much do Nigerians In another vein, the North whichAhmadu Bello. actually understand and trust one another? comprises 19 of the 36 states of the federation What efforts has the country invested to and easily the largest bloc of the federating Yet all the post-independence promote the required understanding and trust units, is perceived by the rest of the country asconstitutions of the country unequivocally among the federating units? Which statutory virtually unfeeling and over-archinglyassigns to the legislature the sacred duty of organs should facilitate such understanding? dominant towards the peculiarities of otherdefining for the country a direction that serves Granted that the country's legislature which component parts of the country with respectthe need of the people. By the same fact, the should drive the common values of the to tendencies that are seen as the perpetuationultimate utility of the legislature remains the country's disparate groups was until recently in of the policy of 'North First'. Seeminglyguidance of the country towards the abeyance, but how has it fared in the task of competing with the North is the South Westattainment of federalism, based on a mutual blending citizens into one indivisible nation of geo-political zone in pushing its interests aheadunderstanding of one another, by the shared values under the aegis of unity in of the rest of the country.federating units, still as elegantly prescribed by diversity?Ahmadu Bello. In the African traditional setting, when, From a casual perspective, the questions and if a child fails to crawl or walk when he or With the exit of the colonialists from the may seem only rhetorically significant. she is expected to demonstrate such dexterity,stage at independence in 1960, the onus fell on However, a closer look at historical and questions are raised. Even if the parents showthe succeeding indigenous leaders to carry on contemporary developments in the polity scant concern neighbours and relations arewith the process of consolidating federalism. demands a more profound consideration, as likely to raise alarm. In same vein, Nigeria'sThe success or failure rating of the generations virtually all the hot beds of dissension in the unsteady crawl to full blown federalism has notof such indigenous leaders with respect to the country over time, have based their grouses on failed to attract attention and concern, even ifconsolidation of federalism in the country, themes that betray mutual distrust among the consensus on a sustainable panacea has beenremains as demonstrated by the series of crises federating units. elusive. In the course of time, variousand present state of affairs in the country prognoses have been proffered with eachespecially with respect to the series of For instance, protests by the youths from falling short of resolving the matter. Theflashpoints of anomie around the country. the East who are agitating for the actualisation consequence has been the syndrome of of the Biafra dream, is to misread the picture. It arrested development in which Nigeria's “The implication is that after over a is rather safer to appreciate that they are only federalism is wallowing.century of the existence of the country and 56 perpetuating the advocacy for a cause whichyears after independence, the country is still their forebears started clamouring for as far However, with the legislature now fullbattling with the challenge of national back as when the foundation of Nigeria was bloom, the least citizens expect from that armcohesion, as various leadership communities laid. As the country's history teaches, of government is a re-jig of its enterprisewith their followers see themselves more as resentment of Ndigbo - a majority group as it towards evolving for the country a politicalmere champions of their primordial ethnic were - over fears of domination in an emerging culture that matches the vision of the foundingbases, than drivers of the country's nation-state, snowballed into monstrous fathers. This is feasible only if and when thenationhood.” The present situation reflects Nigerian legislative establishment – rangingmore a failure by the leaders of the constituent from the National Assembly to the Legislativeunits to foster mutual understanding among Chambers of the Local Governments, deliversthemselves and across the country, which is a itself from a self-imposed state of suspendeddirect anti-thesis to the prescription by animation to identify with the task of fosteringAhmadu Bello.” The result is that the country a Nigeria of the peoples' dream. That s aremains in a soft state like a candle standing by a Nigeria in which though tribe and tongue mayburning furnace. It may not melt down differ, the people will stand kamkpe inimmediately, just as it may also remain flaccid brotherhood and sisterhood.16 NN I February 2017

NATION2017 Budget: Keeping The Mace CleanA GROUP, BudgiT, with a sole mandate of making Nigerian budget and public data more understandable, has tasked the legislative arm of government with removing frivolous and suspicious items in this 2017 appropriation bill.THE two chambers of the Yakubu Dogara, House Speaker Commission (PSC), Bureau of Public country's National Assembly, the Service Reforms, National Salaries, Senate and the House of non-governmental advocacy organization with Income and Wages CommissionRepresentatives are currently on recess the sole mandate of making Nigerian budget (NSIWC) and Federal Civil Servicein order for their committees to and public data more understandable had Commission (FCSC).scrutinize the 2017 appropriation bill. extracted and published a list of frivolous and Some of the frivolous spending in theMinisters and chief executives of suspicious items in the proposed 2017 budget. budget identified by BudgiT in theministries, departments and agencies publication include: ''Electricityhave been appearing before the various The publication, tagged ''Proposed 2017 Charges'' of N22, 200, 000 proposed forcommittees to defend allocations to Budget Frivolous and Suspicious Items the Auditor General of the Federation''their respective organizations. Prepared for National Assembly'' has been which had 75.9% increase against 2016'sPresident Muhammadu Buhari had distributed to the chairpersons of the proposal; the ''Consultancy on Revenuepresented a N7.298 trillion fiscal Committees in both chambers after it was Collection Projects and Securityspending plan tagged, ''Budget of formally presented to Senate President Bukola Receipts'' proposed for the FederalRecovery and Growth'' to the National Saraki. Ministry of Mines and SteelAssembly last December 14. The NGO identified questionable 590 line Development to gulp N171, 445, 366;Analysts have been examining different aspect items in the 2017 budget from 32 MDAs, Also, there were allocations for theof the financial proposal with a fine tooth amount budgeted and a question or comment ''Procurement of an Operational Vehicle forcomb since it was submitted and coming up against each to help the lawmakers ask M&E Field Work, Insurance of the Vehicle,with different verdicts. appropriate questions during the budget Vehicle Branding, Vehicle Licensing,An Abuja-based development economist, who defence exercise. Installation of Security Gadgets'' for Ministryis also the chief executive of Pan-Africa An analysis of the document revealed that the of Mines and Steel Development to gulp N216,Development Corporation, Odilim State House (Presidential Villa) has 21 00, 000; the ''Uniforms and Other Clothing'' forEnwegbara, said the budget would hardly questionable line items listed against it; the the Ministry of Justice to gulp N153, 900, 000;achieve its goal of stimulating and attracting Office of the Secretary to the Government of the ''Purchase of Library Books andinvestments to lift the economy out of the the Federation (OSGF) has 30; while the Office Equipment'' for the Ministry of Justice to gulpcurrent recession, arguing that the financial of the National Security Adviser (ONSA) has N200, 000, 000; the ''Enabling Environmentplan is not pro-investment, pro-growth, and 16. Anti-corruption agencies are not excluded For Industry, Trade and Investment'' for thepro-jobs. with 11 line items listed against the ICPC and Ministry of Industry, Trade and Investment toThe ability of the budget proposal to take the three against the Code of Conduct Bureau gulp N500, 000, 000; the ''Purchase of Vehicle''country out of recession may be a matter of (CBB). for the Ministry of Industry, Trade andarguments between analysts and experts. But The group also identified frivolous allocations Investment to gulp N158, 330, 000; thelike the previous budget proposals, the 2017 in the budget of ministries of Finance, Budget ''Acquisition of Non-Tangible Assets'' for thespending plans also contained lot suspicious and National Planning, Interior, Justice, Mines Ministry of Niger Delta to gulp N2, 030, 183,and frivolous allocations. and Steel Development, Industry, Trade and 608; the ''Construction of Sanitation and Investment, Niger Delta, Water Resources, Hygiene Facilities in Institutions'' for the Eze Onyekpere of Centre for Economic Information and Culture, Transport, Labour & Ministry of Water Resources to gulp N1, 402,Justice had drawn attention to this in a recent Employment, Agriculture, Petroleum 000, 000; the ''Rehabilitation of Prisons/newspaper article in which he noted that some Resources, Education, Defence, Environment Barracks Nationwide'' for the Ministry ofof “the expenditure heads could not be and Power, Works and Housing. Interior to gulp N1, 229, 019, 555; and thereconciled with common sense as no man, Also affected were the ministries of Health, ''Governance and Institutional Reforms'' forwoman, youth or adult will spend his personal Youth and Sport Development, Foreign the Ministry of Information and Culture tomoney on any of those expenditure heads.” Affairs, Office of the Head of Service of the gulp N1, 917, 133, 260, among other suchHe decried a situation in which the there seem Federation (HoSF), Office of the Auditor- bogus allocations.to be an obsession with procurement of General of the Federation, Police Service “This document does not exhaust all thekitchen equipment for the State House every frivolous and suspicious items in the proposedyear with the allocation jumping from N80.2m 2017 budget. We hope this will serve as a guidein 2016 to N100.8m. to the National Assembly during the budget“Do we need to change kitchen utensils and defence sessions. We state that our commentsequipment every year? Rehabilitation and are without prejudice and are raised fromrepairs of fixed assets gets N5.8bn with routine concerned citizens. This should allow themaintenance gulping N4.9bn. The State House National Assembly to ask questions to ensuremust buy new vehicles every year and vote proper allocation of funds,” the group noted.outrageous sums for honorarium and sitting While BudgiT has no doubt helped pointed outallowances (N556.5m). All these votes are just areas of concern to the lawmakers, Nigeriansunder the very nose of the Spartan President will wait till the passage of the Appropriationwho is supposed to lead by example,'' he Bill to see if the document has been cleared ofqueried. the frivolities.As part of their civic responsibility, BudgiT, a17 NN I February 2017

SPORTSBECOMINGAfrica's EPLRangers lifting last season’s NPFL Trophy By Abdulsalam Mahmud laurels and continental football extravaganzas. In the past, names of Nigerian club sides elicit IGERIA Professional Football League (NPFL) is among the A-list fear and evoke intimidation to their of soccer leagues in Africa. Football bodies have been rating the opponents. Pundits, say Nigerian clubs were country high. In 2012 the NPFL was ranked as the best in the the 'ravishing' darlings of many fans across the continent and 24th best in the world by the International Federation globe. But, can administrators, club owners of Football History and Statistics (IFFHS). The rating puts it on a and fans confidently boast that the current spot above the Scottish premier league for the year. clubs are among the continent's pride? The league at the moment comprises 20 clubs, of which the Shooting Reasons for their plummeting fortunes in Stars Sports Club of Ibadan (3SC), Rangers International of Enugu continental tourneys are clear. It is widely (Flying Antelopes), and current Champions of the NPFL, Enyimba believed that corruption cum poor funding of of Aba (Peoples' Elephants) are stars. Previously, Heartland of clubs, and bad officiating have negatively Owerri, formerly Iwuanyanwu Nationale, Bendel Insurance, affected the growth and development of Leventis United, Stationary Stores and BCC Lions of Gboko, among clubs. These have also resulted in their dismal other great clubs have dazzled soccer enthusiasts with sublime outings in both the CAF Champions League soccer artistry and uncommon conquering prowess—winning and Confederations Cup in recent times.18 NN I February 2017  39

ENVIRONMENTMissing BillionsFrom Giant CigarettesBy Akanimo Sampson reconstituted tobacco and other addictives. curing them. The plant is part of the genus Nicotiana and of the Solanaceae OR Wikipedia, the free online The term cigarette, as commonly used, (nightshade) family. While more than 70 encyclopedia, a cigarette is a refers to a tobacco cigarette, but can apply species of tobacco are known, the chief small cylinder of finely cut to similar devices other substances, such as commercial crop is N. tabaccum. The more tobacco leaves rolled in thin canabis. Wikipedia says a cigarette is potent variant N. rustica is also used around paper for smoking. It is ignited distinguished from a cigar by its smaller size, the world.at one end causing the cigarette to smoulder use of processed leaf, and paper wrapping,and allowing smoke to be inhaled from the which is normally white, though other For those who know better, tobaccoother end, which is held in or to the mouth; colors and flavors are also available. Cigars contains the alkaloid nicotine, which is ain some cases, a cigarette holder may be are typically composed entirely of whole- stimulant. Dried tobacco leaves are mainlyused, as well. Most modern manufactured leaf tobacco. used for smoking in cigarettes, cigars, pinecigarettes are filtered and also include tobacco, and flavored shisha tobacco. They Tobacco however, is a product prepared can be also consumed as snuff, shewing from the leaves of the tobacco plant by tobacco, dipping tobacco and snus.  21Gas flare19 NN I February 2017

SUBSCRIBE NOW TO NIGERIA NOWGet a copy of your trail blazing NIGERIA NOW delivered to your home at pocket friendly rates instead of the N800.00 cover price:3 Months @ N700 per copy = N2,1006 Months @ N650 per copy = N3,900 This is Real. Grab it! PERSONAL DATAName:Birthday:Ocupation:Company:Address:e-mail:Telephone:Signature & Date: Issue your cheaque in favour of, pay to: UNITED NEWSPAPERS NIG LTD ZENITH BANK PLC: 101323636920 NN I February 2017

ECNOVMIRMOENNMTAERNIATTContinues from pg 19 aimed at compelling oil companies 2012 by the Petroleum Revenue Special producing oil and gas in the country to Task Force, oil companies often do not pay Tobacco use is a risk factor for many submit preliminary programs for gas re- the fines “and when they do are still payingdiseases, especially those affecting the heart, injection as well as detailed plans for the old penalty of N10 per 1000 standardliver, and lungs as well as many cancers. In implementation. cubic feet flared.”2008, the World Health Organisation(WHO) named tobacco as the world's single Oil companies can only flare, as an The Task Force reported that thegreatest preventable cause of death. This interim measure, if they have site-specific Department of Petroleum Resourcesimplies that tobacco products are toxic! certificates permitting them to flare. (DPR), was “unable to independently track Permitted or not, companies are required to and measure gas volumes produced and So is gas flaring in the Niger Delta, a pay fines for lighting those giant cigarettes flared. It depends largely on themajor oil and gas region of Nigeria. in our communities. Unfortunately, routine information provided by the operators. gas flaring continues. There were no available records or Environmental rights advocates like information in respect of gas flare volumesNnimmo Bassey, of the Health of Mother Activists say the penalty for gas flaring for the years 2005 and 2011.” There are noEarth Foundtion (HOMEF) have remains low and does not offer real readily available records for fines paid forconsistently maintained that gas flaring is incentives to defaulting oil companies to gas flared in the period 2012-2015.the obnoxious practice of burning natural stop the practice. ''The current penalty forgas associated with crude oil extraction. gas flaring in Nigeria was set by a Ministerial The loss of revenue to Nigeria from non- directive issued on August 15, 2011 at $3.50 compliance to the 2011 penalty regime is For Joseph Croft, of Stakeholder per 1000 standard cubic feet. Attempts by enormous. According to the report of theDemocracy Network (SDN) in an the National Assembly, including through task force, “Using the DPR gas flareenvironmental documentary film, No Where the Petroleum Industry Bill (PIB), to raise information (irrespective of the inherentTo Run, says gas flares are like giant the penalty to equal the commercial price of errors…) to compute the potential revenuescigarettes attached to communities. Some natural gas has not seen the light of day. for the relevant years at the rate of $3.50 perflares are located horizontally, at ground scf is $4.1 billion versus the $177 millionlevel, posing even greater dangers to the ''About $1.10 billion gas flare penalties computed by the DPR using the N10 percommunities. There are several instances, are not collected annually. This is more than scf.”including at Oben, Edo State and Kolo the amount required to commence the fullCreek in Bayelsa State. implementation of the United Nations The Nigerian Gas Flare Tracker hosted Environment Programme (UNEP) report by the Federal Ministry of Environment is a According to Nnimmo Bassey, on the clean up of Ogoni environment. It tool that every Nigerian should look up to''communities with gas flare stacks are simply goes up in smoke annually by way of be informed about the atrocious giantsentenced to live with these furnaces and uncollected fines from gas flaring. This sum cigarettes on 220 locations across the Nigercannot avoid the heat, the noise, the poisons could also assist in plugging the deficit in Delta. It is a great tool for publicand the offensive vista. It is estimated that our national budget if the reneged oil information. It is a tool that should spurflared gas could potentially generate over companies are compelled to pay up'', Bassey policy makers into action to rescue our25,000 GWh of electricity which would said. environment from continued hazardousmeet a high proportion of Nigeria's most substances from the hellish oilambitious power projections''. The Nigerian Gas Flare Tracker website corporations. informs that, according to a report issued in Yet, the Associated Gas Reinjection Actof 1979 outlawed gas flaring in Nigeria witheffect from January 1984 (33 years) and was21 NN I February 2017

VIEW POINT government should have the exclusiveOur Vision For right to create anotherNew Nigeria tier of government as - Osborg it wishes. We suggest that a community/city based government be recognised and established by the TONY Osborg state as the last tier of government. Community/City based government should therefore replace the existing local government style tier of government. The constitutions must guarantee the autonomy of each tier of government. The community based T ONY Osborg is a writer, a sociopolitical government should have full control over the critic, a bid documentation expert and a web developer. He is a founding member of most basic things that affect the community. Restructure Nigeria platform and has remained a consistent advocate for the The federal constitution should limit the federal government responsibilities to only defence, monetary policy, foreign policy, restructuring of the country into true immigration and customs. All duties not given federalism. He is the author of Can Nigeria to the federal government should become the Bake Her Own Bread?. He has published duties of state governments. several critical articles on federalism and he is “The federal constitution should be written by the representatives of the already existingIssues like basic currently sensitising, coordinating and autonomous states that now wish to create a mobilising Nigerians towards demanding for federal government. In the same manner, the state constitution should be written by theeducation a restructured Nigeria He has been speaking representatives of the the people, tribes and communities that would make up the state.(management and to our Enterprise Editor, AKANIMO SAMPSON, on the subject-matter. Excerpts:funding of basicschools), security, “The most important question before us is “Ownership of all federal owned assets andwater, envisaging what a restructured Nigeria will institutions that are no longer under federalmaintenance, look like. As a movement, we have agreed jurisdiction should be transferred to the states that Nigeria needs restructuring based on the where they are located. Arrangement should be made to ensure that the there is a fairhealth care, etc principles of federalism. The next big balance of payment for the transferred assets. Where the states fail to offer a fair bargain forshould be done by question is, what should a restructured the new assets, the general public should be Nigeria look like? This is what we have set out invited to take ownership of the assets. Federalthe community now to address. institutions (i.e federal universities) capable ofbased being autonomous should be declared asgovernments. It “How should responsibilities be shared autonomous institutions and free from federalshould also have between the federal and state governments? interference.the right to raise To answer these questions, we have drawn up 20 rules that should guide us in our debate.its own taxes to Following are the rules that we consider asfund its needs. The fundamental to a two-tier system of federal “The federal government will no longer buildcommunity based structure and which we think is best suitable hospitals, universities, rail lines, refineries,government should for a country like Nigeria. These rules power stations, etc. These shall becomebe the most highlight the basic principles of true exclusive duties of state governments. The federalism. federal government duty shall be limited to the items listed in numberempowered tier of “There should be two tiers of governmentgovernment. recognised by the federal constitution; a federal and state government. Each of them The federal constitution shall forbid both the federal and state governments from should have a separate constitution. The state22 NN I February 2017

VIEW POINT embarking on business ventures and shall limit their the present presidential executive system. The House of sources of revenue to only taxation and royalties. tribes (House of Reps) should be abolished and a single parliament retained comprising of tribesmen, “The federal constitution should recognise the right of professionals, and town/city/state representatives. ownership of land and natural resources as belonging to communities and individuals and should therefore forbid “The federal constitution shall guarantee the both the state and federal governments from upturning decentralisation of the civil service. this inalienable right. The implication of this rule is that resource control will now be in the hands of the The federal constitution shall recognise indigeneship and individuals and communities and not the state or federal residency as qualification for occupying public offices in government as it currently is. both state and federal offices. “The state and federal governments should have two “Taxation shall be the major source of revenue for both independent judiciary with each having its own Supreme the federal and state governments. Federal taxes shall be Court. limited and deducted from the state governments while state taxes shall be unlimited and deducted at source “Right to secession should be enshrined in the federal “Both basic and tertiary education shall be the exclusive The federal and state constitutions rights of the state and community based governments. shall guarantee the autonomy of The federal government shall have no business with every tier of government in building and managing basic or tertiary institutions. conducting their own elections. Power generation and distribution shall also be the Each tier of government shall be exclusive rights of the state and city governments. The solely responsible for the conduct federal constitution shall guarantee the autonomy and of its own elections without need for federal, state, community and institutional police interference. The people of the system. communities, towns and cities that make up a state shall be solely “Federal regulations should be unlimited on matters of responsible for electing the state security, environment, economy, etc.,. government officials in the same way the people of the state Issuance of licenses (whatever kind be it exploration or government shall be solely social license) should be the exclusive right of the state responsible for electing the governments while regulations of such licenses should be officials of the federal government. jointly done by both the state and federal governments. constitution. Communities/towns should have the right “The federal and state constitution shall guarantee the to secede from a state and seek membership of another autonomy of every tier of government in conducting state within Nigeria while states should have the right to their own elections. Each tier of government shall be secede from Nigeria and seek membership of another solely responsible for the conduct of its own elections country or form an independent country of their choice. without interference. The people of the communities, The process of doing this must be by referendum. towns and cities that make up a state shall be solely responsible for electing the state government officials in “States should be entitled to receive irregular annual the same way the people of the state government shall be grants from the federal government in the same way solely responsible for electing the officials of the federal communities/towns should be entitled to receive government. irregular grants from their state governments upon meeting certain conditions. There shall be no more “The federal constitution shall separate religion from the monthly allocations. state and state from religion. “Parliamentary democracy could be adopted to replace The federal parliament shall be structured in such a manner that a bill can only become law if and only if it23 NN I February 2017 receives support from a minimum of 2/3 representatives from each state and not a 2/3 of the general House. “These are what we consider as fundamental principles of true federalism as may be applicable to the Nigerian society. Once we are able to establish these rules in Nigeria, Nigeria has become a true federal state! The rules will expand as time goes.”

BUSINESS EXTRADangote To NPA, Customs facilitation initiatives of government throughProduce Trucks Collaborate For collaboration with sister agencies. Single WindowDangote Group of Companies, Nigeria's Platform Jaiz Bank Expands biggest conglomerate has gone into a Operations partnership with National Heavy Duty Nigerian Ports Authority (NPA) and theTruck Group Company Limited, (SINOTRUK) Nigeria Customs Service (NCS) have Jaiz Bank will establish three new branchesto establish a $100million truck assembly plant perfected plans to operationalise the in early 2017 in a bid to make its uniquein Lagos expected to produce 10,000 trucks much talked about Single Window (SW) financial services to available to moreannually. platform as parts of initiatives designed to help Nigerians, Malam Hassan Usman, ManagingThe Nigerian manufacturing giant owned 60 per Director of the bank revealed during a courtesycent stake in the assembly plant while actualize Federal Government's plan of creating an enabling business environment Hassan Usman, MD Jaiz BankSINOTRUK holds 40 per cent, in the and enhancement of international trade. call to Emir of Gwandu and Chairman, Kebbipartnership that was expected to create 3,000 Managing Director, NPA, Ms Hadiza State Council of Chiefs, Alhaji Muhammaddirect employments when fully operational and Usman said during a courtesy visit to the Bashar recently.save the country huge foreign exchange being Comptroller-General of Customs, Retired Jaiz, Nigeria's first full-Fledged Non-Interestspent on importation of heavy duty vehicles. Col Hameed Ali in Abuja that the SW would Bank owned by over 20,000 shareholdersAnthony Chiejina, Chief Corporate be established through an intense including the Islamic Development Bank (IDB)Communication Officer, Dangote Group said automation and introduction of Standard started operations five years ago withthe conglomerate has been spending heavily on Operating Procedures (SOPs) at ports. provisional approval to open three branches inimportation trucks to distribute its products “The goal of trade facilitation is to help Abuja , Kaduna and Kano. The bank has sincelocally and across African countries. trade across borders, make imports and then been given approval by the Central Bank ofDangote Group, the biggest manufacturer of exports faster, cheaper and more Nigeria to open branches nationwide.cement in Africa is also building a $17 billion predictable, while ensuring safety and “We have 27 branches with three new ones to bepetrochemical refinery and fertiliser plants in security. Trade facilitation focuses on established in February this year,'' Usman said.Lagos. The 650,000 barrels per day refinery simplifying and harmonising formalities, He also revealed that though the bank's N5which is expected to begin operations in 2019 procedures and the related exchange of billion capital base at inception has now risen towould also require trucks for product information and documents between the N15 billion, N10 billion will also be added todistribution. various partners in a supply chain. make it N25 billion before the end of the year.Chiejina said the partnership with SINOTRUK Jaiz deposit base had also risen from N12 billionwill be expanded in the future to meet national NPA’s Hadiza Usman (R) with Custom’s Hameed Ali (L) to N50 billion.truck demand and export to neighbouring “The bank's operational system is devoid ofcountries to generate foreign exchange for the Transparency, simplification, harmonisation interest, unlike other conventional banks andnation. “Alhaji Aliko still believes that Nigeria is and standardisation of port operations, can only even Non-Muslims can save and benefit fromone of the best places in the world to do be achieved by embarking on the establishment the bank's loan. The first person to benefit frombusiness,'' he added. of a well-articulated Single Window system,” our package is a Non-Muslim and I am happy Usman said. that even the conventional banks are now24 NN I February 2017 NPA and Customs, she said, as the arrow heads adopting some of our principles,” noted behind the logistic and financial portals of Usman. government have the responsibility to synergise Alhaji Bashar described the emergence of Jaiz and build a common industry culture around the Bank on Nigeria's financial scene as innovative: ports toward achieving the right level in trade “Jaiz bank, although an Islamic bank, is accepted facilitation. In his response, Col. Ali said the even in Western countries because of its Customs would continue to promote trade transparent policies and principles of making  29

INTERVIEW The first major mistake we made was the abandonment of the Parliamentary system of government. This has given birth to problems that we are not able to cope with today. In the Parliamentary system you must be an elected member of the House before you can become a minister.Rejigging Nigeria:Our Reservations ‐ By Ango AbdullahiAS the on and off debate about Nigeria's national question rages the creation of states and over 700 localamong its ever querulous elite, Professor Ango Abdullahi, governments was more divisive than whatspokesperson of the Northern Elders Forum (NEF) bares his mind the British left in terms of trying to forgeon the issue in an exclusive interview with Nigeria Now. unity in Nigeria. hat is wrong with Nigeria? So, for me, any restructuring of this country, assuming that we are really going “The first major mistake we made was the abandonment of the to stay together, is to go back to the Parliamentary system of government. This has given birth to parliamentary system of government. And problems that we are not able to cope with today. In the if we can, perhaps, we need to also take the Parliamentary system you must be an elected member of the hard decision that our states as presently House before you can become a minister. So, you are constituted are not economically or sociallyaccountable to your constituency ab initio and you are again accountable to the viable and therefore, the restructuring weParliament. Most importantly, you are accountable to Parliament. “A country with at should be looking forward to is theleast 360 ethnic groups, how far can you go to satisfy these groups through creation of grouping of states into blocs, akin to thestates, local governments and so on? So, for me, rather than bringing Nigerians closer, regional blocs that we had in the First Republic. And when these blocs emerge,25 NN I February 2017

INTERVIEWthey should also have their own constitutions. Even though they resources is very clear and there are various criteria that areoperate their presidential system, each state in America has its applied to finally arrive at what each state gets from theown constitution. These are things that, to my mind, people federation account. “ I cannot see how the North cheats othersshould be paying attention to. on the basis of individual state's allocation. I cannot see it. But the area where, particularly, those who speak on behalf of theWhat, then, is your grouse with pro restructuring voices? Niger Delta are talking about is that they are being cheated by the fact that they produce the main foreign exchange earner for“My quarrel with those calling for restructuring is the apparent Nigeria, and yet, to their own thinking, they are not being given ainsinuated bias against the North, and I have an evidence for fair share of the funds. They forget two things, legally andthat. The evidence I always quoted is Professor Ben Nwabueze. constitutionally.I have sat down with him and (Paul) Unongo and argued. He In terms of international law, everything that is under ground inargues that Nigeria's problem is the North. From his point of any country belonged to the sovereign of that countryview, the call for restructuring Nigeria isabout what to do to remove the completely and entirely, irrespective of where it is located. So, itproblems being caused by the is fallacy that oil belonged to anybody in Nigeria except thedominance of the North. In my Nigerian State. And to that extent, it is a resource that should gopresence, the old man told Paul to every part of Nigeria, particularly when you look at the sectionUnongo, (a TIV man) that he did not of the constitution which talked about even development inbelong to the North. 'What do you pursuit of chapter two of the constitution.mean?,' Unongo asked him. If you lookat the Constitution of Nigeria from the What about the DAWN document by people of the SouthBritish and so on, I am a Tiv man. I West?come from the North. Then Nwabueze “Their advocacy is for development of the old Western regionsaid, 'no, no, no. The 'real North' are the because under the leadership of Chief (Obafemi) Awolowo, theHausa Fulani.' So, if you are not Hausa South-West had made a lot of progress. South West was aheadFulani, you cannot truly belong to the because of the free education that Chief Awolowo promoted. INorth according to him. His argument studied at the University of Ibadan and knew all these things.is about the North should continue toappear as if it is a bloc, even though it ismade up of many ethnic groups,forgetting that this leadership wasbrought about by the good leadershipof the Sardauna who brought all ethnicgroups together to make them feel thatthey belonged to Northern Nigeria, irrespective of whether theywere Tivs, Idomas, Angas or whatever. What he looked forwere good people who would be good managers of the affairs ofthe North. That's what brought us into this unified politicalbehavior. “There is also insinuation that the North is cheatingthe rest of the country, although, they have not gone intospecifics. But you can only cheat politically, socially andmaterially.I cannot see how the North has cheated the rest of Nigeria. As Italk to you, 82 per cent of all federal personnel are fromSouthern Nigeria. Only 18 per cent of federal personnel at alllevels- come from the North. How could North be accused ofcheating the rest of the country in terms of federal employmentthen? Or, is it in finance? The process of allocating federal26 NN I February 2017

INTERVIEWOne can see from their document that it is better to aggregate a and go and get a job in Oyo or Ondo and so on. But not with thedevelopment plan than to put it in bits and pieces, which doesn't present states-ism. Igbos cannot go from Imo to get a job inmake for efficient use of limited resources. That is the real Abia, Anambra and so on. This is separating people more andmessage inside that document. The South West should look at more. “The Presidential system is not suitable for a developingitself- irrespective of whether there are substantial changes in the country with limited resources like Nigeria because by its nature,structure of the country, but the states in the area should be able it is very expensive. Then, it comes with the issues that I haveto put their resources together, so that they can pursue certain talked about- corruption, impunity and lack of accountability.projects and programmes that will have common application, But when you have an elected person, say from Zaria, he knowscommon use in the area which otherwise, could not be provided that if he messes up in Parliament, he will find himself in trouble.by any one single state alone. But now, the Governor, depending on who is licking his boots will pick any commissioner, irrespective of his competence, orShould the North also think along that line? whatever and these are things they are doing now.“We did advise Northern governors' way back in 2003 to develop Some things you have said are not different from whatagriculture point because that is where we have our strength- advocates of restructuring are canvassing forthey should embark on joint development programmes with thefederal and neighbouring states and in the region. “No, I told you in some areas, people are politically biased. If somebody with the kind of status of Professor NwabuezeAway from true federalism and restructuring slogans, how should say that the North is the problem of Nigeria, I will notcan this country work better for the average citizen? agree. And he was the one who tried to promote the National Conference which Jonathan did, eventually. When he went to“Why Nigeria has not made progress in 56 years is political show the proposal to Maitama Sule, he (Maitama Sule) called meinstability and Nigerian political elites. The instability being to come and see. I said, I can't see you alone. I had to look for myfuelled by elitism is what has kept us Deputy, Paul Unongo. So, we satwithout a coordinated development together in Abuja and he (Nwabueze)planning. There used to be development It is not correct for people said they wanted a national conference. Iplans in Nigeria. I was a commissioner to say Nigeria is indivisible, said what is wrong with 'nationalfor Economic Planning in the old North indissoluble. Realistically it conference? is it constitutional or just aCentral State. Professor Ayo Adedeji was is not correct. It's people discussion group?' He said 'it is the samethen the federal commissioner for that put Nigeria together. thing.' I said it cannot be the same thing,Economic Development and was our So, people can also dissolve what's the purpose? If it's constitutional,chairman. But this country has not had a Nigeria. So, it is divisible‐ it obviously you know how to set up adevelopment plan since 1972, almost 46 constitutional conference- it is alwaysyears. Everybody is in disparate position- is a matter of change of based on representation- we can usethe only concerted struggle is to control circumstances. And I gave federal constituencies, constituentthe centre. “This is why I believe that the examples. The oldest assembly and so on. He said 'it will be likestarting point for restructuring Nigeria democracy in the world is that.' I said 'fine.' And when they set upthrough true federalism is to go back and Britain, but only last year, that Committee, every place they wentlook at the mistakes we made by Scotland went on to, they said it would be based on electiveabandoning the parliamentary system of referendum to get out of representation, but eventually sat downgovernment. the union. And they nearly and chose people. And the way they got it. Up till now, there is chose people, obviously we could see theIf we go and look at it very carefully, we a problem of Northern biases of the Nwabuezes. The Northwill see why we have made so many Ireland and recently, was given 40 per cent of the delegates. Ifmistakes in splitting Nigeria into all these Britain bolted out of EU. you talk of religion, the Muslims wereunviable states and dividing our people. only 33 per cent in that region and it wasUntil we have all these states, I could the Tanko Yakasais of this world thatwalk in from Kano, get a job anywhere, were there to promote Jonathan'ssomebody could move from Ogun State agenda. That's why we refused to attend.27 NN I February 2017

INTERVIEWSo, what would be your advice to President Buhari and that I have seen Nigerian attitudes, the unity that we are all cryingNational Assembly over agitation for constitutional about and I came to work in ABU- the most national universityalteration? you can find today. There is no national university in terms of composition of staff and students like the Ahmadu Bello“I feel the present constitution is wrong for Nigeria. I attended University. I was one of the managers. So, I couldn't be accusedthree (past) constitutional conferences. The argument all along of sectionalism. But as time went on, these things keepat those conferences was that the document itself has no snowballing and they forced you out of your patriotic feelings.problem, but the operators of the constitution. And to a large “At 56 years, with all our human, natural resources, we are oneextent, that is true. But you should also pay attention to the of the 14 poorest countries in the world, today, in terms offrame, because if you say the operators of the frame are to Human Development Indices. Something is basically wrong.blame, you can also change the frame that can automatically Why should we continue along the same line if we believe thatmake the operators fall in line. And to me, it is the present Nigeria cannot achieve unity because of this inherent diversity,Presidential system that led us to where we are today – 36 states prejudices, hatred and so on? You can't live in hate and expect toinstead of four- with all the overheads. Four Premiers, four make progress. Nigeria was made up by people and they believeHouses. that it could succeed. And if by any chance, Nigerians believe we are not making sufficient progress or we cannot make sufficientWere you sarcastic when you said (in a recent interview) progress under this arrangement, we should divide.that the country can break up? Will you support another conference around the national“No, I am serious. It is not correct for people to say Nigeria is question if convened by Buhari?indivisible, indissoluble. Realistically it is not correct. It's peoplethat put Nigeria together. So, people can also dissolve Nigeria. “I would support. But the composition of members must beSo, it is divisible- it is a matter of change of circumstances. And I fully representative of the Nigerian people. Jonathan talkedgave examples. The oldest democracy in the world is Britain, but about ethnic nationalities. But if you are talking about ethniconly last year, Scotland went on referendum to get out of the nationalities, there are over 360 in Nigeria. And you say this isunion. And they nearly got it. Up till now, there is a problem of democracy. I come from an ethnic stock which today, if you takeNorthern Ireland and recently, Britain bolted out of EU. Soviet the North West as a bloc (mainly made up of the Hausa-Fulanis)Union about 20 years ago was a super power, one country, today there are seven states and we would be represented by, say, 10there are 13 or 14 countries in there. Czechoslovakia broke into people in a conference like this. And another small group, let'stwo states. India divided into Pakistan, the following year, say my playmates as a Fulani man, the Tivs insist that they alsoPakistan gave birth to Bangladesh. And if you look at these want to be represented by 10 people based on their ethniccountries, their diversities are not even as near as our own. But nationality and you are talking about democracy which is definedwe have deliberately refused to really work for what one would as one man, one vote? “Take for example, North West zone withlike to see as one nation that our children and grand children will current population projected at 44 million. We have seven states,forget that they come from Hausa, Yoruba or Igbo lands. therefore we have 21 senators. The South-south has six states“Instead, the politicians and elites are digging deeper into these with a population of 14 to 18 million, South east with five statessectional enclaves. and population of 12 or 13 million, 18 plus 13- Let's give a round figure of 30 million people in eleven states, with 33So, if we are going to continue like this, there will be no day that Senators in the Chamber. But North West with 44 million has 21this country will develop. And if we cannot develop, meaning we senators. So, if we are going to discuss restructuring, it shouldcannot prosper as a nation, what you are going to have in not too be on the basis of one man, one vote. There will be nofar from now are the new Boko Harams and the new avengers all concession whether on zonal or whatever basis. There will be aover the place because wuth poverty, increase in population, concession only on election day- if you are good man, even ifdeclining resources , young graduates coming in thousands your village is not on the map of Nigeria and the rest of thewithout jobs! They will be putting together these explosives and country are willing to vote for you, fine. But there will be noyou can bump into them anywhere you are going to. “This is concession on the basis of zone, ethnic division, nothing of thewhat my worries are about. I was a returning officer in the 1959 sort. That would be the only basis of that one would like tofederal elections and went to Ibadan for undergraduate studies, participate in that kind of conference.”so I must have seen all that happened. It is fair to concede to me28 NN I February 2017

BUSINESS EXTRA Forex Transparent, Overseas Private Investment Corporation CBN Insists (OPIC).Continued from pg 24 Stuart Symington, U.S Ambassador to Nigeria The Central Bank of Nigeria (CBN) has said in a statement that this was achievedlife better for the people. I really commend you insisted that allocation of foreign through an agreement signed with Lumos, anand your resilience in spite of the challenges you exchange under the guidelines it off-grid electricity provider to enhancefaced before you got to where you are today. '' introduced in June 2016 was being determined provision of solar electricity to homes and small by the market. businesses throughout Nigeria.NAICOM Targets Isaac Okoroafor, Acting Director of Corporate Lumos was also a recipient of catalytic funding Communications, CBN, explained that contrary through OPIC and the Africa Clean EnergyCustomer to speculations, the sale of foreign exchange Finance initiative, a partner with the U.S. State (FX) under the new policy is transparent and not Department.Protection, Market intended to benefit any individual or corporate The funding provided crucial start-up capital for body. 30 innovative clean energy projects across 10Stability “We wish to reiterate that the Central Bank of African countries. Nigeria neither allocates foreign exchange nor The Ambassador accompanied by the Director,The National Insurance Commission does it deal directly with bank customers. The United States Agency for International (NAICOM) would re-launch its Market CBN does not fix FX rates for transactions by Development (USAID) Mission, Mr Michael Development and Restructuring Initiative individuals or companies,” Okoroafor said. Harvey, had during a visit to customers of(MDRI) as part of moves to protect consumers To ensure transparency in the process, Lumos in Abuja stressed the need to expandand ensure market stability in 2017. The Okoroafor explained that Deposit Money electricity access in Nigeria.Commission, in a circular titled, “Statement of Banks (DMBs) are required to forward evidence “With market intelligence provided by USAIDNAICOM's Regulatory Priorities for the Year, “ of FX sales to end users to the apex bank as well and financing provided by OPIC, Lumos hassigned by its management also regulatory advertise same in national dailies. Thus, he added 30,000 new solar connections in Nigeriaactivities the Commission has set out for itself noted that since the introduction of the new FX since the beginning of the partnership,” he said.for the year include verification of the capital Symington said his visit was to better understandresources of all insurance companies in the first Policy in 2016, CBN has published monthly, the how access to solar energy had improved theirquarter of 2017 to ensure protection of evidence of sales from DMBs, as received from businesses and service delivery.policyholders and beneficiaries of insurance the banks and without any alteration in the spirit The ambassador stressed the need to expand oncontracts against unexpected losses. of transparency. and off grid access to energy to enhanceAlso, the commission said it would do more The CBN spokesperson however observed that business activities.scrutiny of expenses of operators during the some banks forwarded inaccurate data which “Expanding both on and off grid access toyear to ensure that each company's level of was erroneously published and gave a wrong energy will not only help individuals andexpense was appropriate for its business model impression of disparate rates. He said the banks businesses, but will help overcome some of theand does not adversely affect its profitability, involved had were queried and some of them obstacles to Nigeria being able to fulfill its fullliquidity and capital adequacy. have returned a response indicating that some economic potential.NAICOM noted that some of the companies in of the figures are related to formatting errors “I met a number of people today whose livesthe sector submitted their 2016 statutory returns which do not affect the true rates of the affected have been profoundly changed by access tolate while some are yet to submit the required transactions. efficient and reliable energy.returns and has failed to explain why they have “And I am excited to see this ongoingfailed to do so. “This deprives the commission, U.S Funds Solar partnership expand to ensure greater access to Connections in solar energy throughout Nigeria,” he said.policyho lders, insurance Nigeria “Power Africa'', has mobilised 40 billion dollars in private sector commitments in order tointermedi aries, analysts and other The U.S energy project known as “Power increase access to electricity through both on Africa'' has added 30,000 new solar and off grid generation and distribution projectsstakeholders of the relevant information connections in Nigeria through its across sub-Saharan Africa since it was initiated.about the performance and financial condition Stuart Symington, U.S Ambassador to Nigeriaof the companies, as well as the level of theircompliance with relevant provisions of the law.The Commission said it would implementmeasures to discourage companies from filinglate returns while those who failed to complywould be sanctioned appropriately in 2017.29 NN I February 2017

BUSINESS EXTRAEnhancing Digital LearningNigeria Communications Commission (NCC) is at the vanguard of deploying information and communication technology to boost teaching and education in tertiary institutions. s the regulatory are also the Digital Bridge Institute (DBI) Learning Centres, established body of the sector, for training engineers, ICT professionals, policy makers, and the Nigeria regulators in the relevant and related sectors of the economy. Communications There are five DBI learning centres across the country – Yola, Enugu, Commission, NCC Asaba, Lagos (Oshodi) and Kano. This is in addition to the Information has been at the pivot Resource Centres (IRC), another USPF intervention project to create of the globally ICT-driven knowledge management (digital libraries) within the existingacknowledged explosive growth in the public libraries, to enable e-libraries effective resource sharing and accesstelecommunications industry in to e-content. ” Beneficiary libraries are provided withNigeria, in recent years. Beyond desktop computers, server systems, UPS, printers, computer furniture, airregulation and facilitation of growth conditioners, library software, scanner, 60 KVA generator and VSATof the sector, the NCC has also been equipment with bandwidth. More than 30 state libraries and 26 tertiaryinvolved in activities designed to help institutions across the geo-political zones of the country have benefited,”further channel Nigeria into global he said. Another noble initiative of NCC wasdigital highway through the country's the University Inter-Campus Connectivity (UnICC) a support project toeducational system. the National Universities Commission's NgREN project, with primary purpose ofThis is through various programmes delivering broadband infrastructure and access to facilitate research and learning usingdesigned to build capacity and provide Optic Fibre Cable (OFC). According to the Executive Vice Chairman, aresources to nudge the students, staff total of 381.7 km OFC has been deployed in 15 universities linking them with theirand educational institutions into the medical colleges. He said that at the moment, deployment of OFC was ongoing in anotherdigital highway. Key among such nine universities. There is also the UnICC Electronics Projectinitiatives is the Advanced Digital which involves interconnecting end-user Electronics within the University Campus.Awareness Programme for Tertiary Currently, provision of connectivity is ongoing in five universities across theInstitutions (ADAPTI), one of the country. NCC also provided data sharing platforms for learning and health system incentral capacity building programmes Nigerian universities and Teaching Hospitals, as well as training facilities with modern ICTof NCC. Over 300 tertiary institutions infrastructure to promote learning and teaching in our institutions.in Nigeria have benefitted from theprogramme. Prof. Danbatta, NCC Executive Vice ChairmanADAPTI, according to Executive ViceChairman, NCC, Prof. Umar Danbatta, was and make the lessons more enjoyable, whichconceptualised to bridge the digital gaps that can improve students' attendance andexisted in academia. Under the programme, concentration.NCC provides computers and other The Executive Vice Chairman of NCCI n f o r m a t i o n a n d C o m m u n i c a t i o n added that the Commission had inauguratedTechnology (ICT) equipment to lecturers, several intervention initiatives, programmesadministrative staff and students for the and projects in the education sector inrequisite ICT skills essential for the 21st Nigeria. For example, NCC has beenCentury with the aim of engendering providing broadband infrastructure andfamiliarity and confidence in the utilisation facilities to the universities and otherof ICT in teaching, research and learning. institutions of higher learning in Nigeria andThere is also the Nigerian Research and access programmes. The Commission isEducation Networks (NgREN) designed to presently constructing 12 ICT/CBT centresfacilitate use of ICT infrastructure in under the Stakeholders Initiated Projectdissemination of knowledge in Nigerian (SIP); as well as additional four skillstertiary institutions. acquisition centres, which are also scheduledThe advantages in the use of ICT to deploy for completion soon. There is also theknowledge in education, according to him, Tertiary Institution Knowledge Centresinclude the fact that through ICT, images can (TIKC), an initiative of the Universal Serviceeasily be used in teaching and improving the Provision Fund (USPF), a Department inretentive memory of students.” Teachers can NCC. The TIKCs are designed to promotealso easily explain complex instructions and the use of ICT tools in teaching and learningensure students' comprehension; and at tertiary institutions and their neighbouringteachers are able to create interactive classes communities,” according to Danbatta. There30 NN I February 2017

BUSINESS EXTRAPeugeot In Top Gear- Drives Local Production “These adverse reactions are hard to rationalize considering the supportingMr. Ibrahim Boyi, MD PAN on a non-disruptive transition from vehicles structures to be developed, the incentives assembly to fully fledged manufacturing created for investment and the successes ITH soaring vehicle during the plan period. recorded in districts where similar policies prices due to high He said other countries like Mexico, Indonesia have been pursued. There is no gainsaying that foreign exchange and turkey have thriving automotive industries infrastructure upgrade is paramount for the regime, automobile and have taken similar steps to develop the success of the new auto plans, a condition operators in Nigeria sector. “All of the countries have at a stage in which the plan recognizes. are advocating strict their evolution used preferential tariff Indeed, executive members of the African implementation of between fully built vehicles and component Association of Automobile Manufacturers, Nigeria Automobile parts to encourage local production, he says. AAAM, had last year, met with PresidentIndustrial Development Plan (NAIDP), to In addition, they have imposed other Muhammadu Buhari in Abuja, on theencourage local production. restrictions such as emission controls to implementation of the auto policy. In hisManaging Director/CEO of Peugeot stimulate the vibrancy of the sector, Boyi said, presentation to Buhari's economic team, Mr.Automobile Nigeria Limited (PAN), Ibrahim while citing specific examples of Turkey Jeff Nemeth, who is also the President andBoyi, argues that Nigeria, like other developing which has grown to become the 16th largest CEO of Ford Motor Company of Southeconomies can only achieve rapid growth and motor vehicle manufacturer in the world, Africa, highlighted successful efforts ofsustainability of its automobile industry migrating from assembly-based operations to countries like Brazil, Thailand and Souththrough deliberate long term development highly developed industrial operations with Africa to kickstart and expand their autoagenda for the sector. design capabilities. manufacturing bases.He is pushing for strict implementation of the He noted that though in comparison with the He also affirmed the role of governmentautomotive industry’s development plan to listed countries, the Nigerian automotive policy-making in creating an enablingcorrect its distortions and instead create a subsector is still relatively undeveloped, environment to attract investment and createplatform for steady actualisation of its vast NAIDP can help leap frog the sector. growth, as well as the need to address thepotentials. Boyi dismissed arguments against NAIDP like critical issue of vehicle financing to widen theWhile noting that the main objectives of the claims that its implementation may be consumer base. AAM had during that meetingNAIDP are to protect the local automotive sabotaged by Nigeria's poor infrastructure, expressed its readiness to support the Nigerianindustry, enhance competitiveness, stimulate likely job losses in the retail and after-sales government to develop a sustainable autovehicles demand, encourage investments in market segments and arguments that the local industry.the sector and develop local capacity, Boyi automobile capacity is mostly moribund and With over 170 million people, AAAM realizednoted that the plan rides on the weaknesses labor force unskilled. There is also the there is huge potential in Nigerian marketand gaps within the sector vis-à-vis the factors argument that implementation of the NAIDP which can also serve as a linchpin to the subthat have contributed to the immense will lead to creation of oligopolies with slack regional market with population of over 350successes recorded at other developing responsibility to improve product quality million. “First thing, the government incountries. among others. Nigeria has already made a move andAs formulated, NAIDP is an integrated plan established the foundation of the policy. Yescovering the entire spectrum of vehicle there's still work to be done to make it perfectmanufacturing value chain with strategic focus but we all need to work together to refine the project. Number two, in the whole world there31 NN I February 2017 are only two countries with a population of more than 100million people that do not have functional motor industries – Bangladesh and Nigeria. However, our choice is without doubt Nigeria,” Managing Director Nissan South Africa, Mike Whitefield who was one of the delegates of AAAM that visited the President said. He, however noted that the auto market cannot develop until the problem of used and grey vehicle market is addressed by government. Industry, Trade and Investment Minister, Okechukwu Enelamah, has assured members of AAAM of Nigeria's commitment to the efficient implementation of NAIDP, as part of efforts at fast-tracking Nigeria's economic diversification goals during the visit. Analysts said government should begin to live up to its promise.

GOVERNANCESuleyman Ndanusa, a banker, lawyer andeconomist was a former Board Chairman aswell as Director General of Securities andExchange Commission. He spoke toNIGERIA NOW on recent controversiesabout the enforcement of National Code ofCorporate Governance which has now beensuspended.W hat do you make of the recent controversies over of corporate governance code as enacted by Financial Reporting Council? The parties in the controversies are the Financial Reporting Council which was established to create code of corporate governance for companies (listed or unlisted) and for government institutions. The FRC also said that there is a need for creation of Code of Corporate Governance for nonprofit organisations. And that is where the second party- which isWhy Nigeria Needs mandatory because the code gave them the opportunity ofCode of Corporate complying or explaining why they cannot comply. The key thing that was the source ofGovernance - Ndanusa the controversies was the tenure of the leader or the founder which they put at 20 years. After 20 years, you must step down and when you stepthe Redeemed Christian Church of Christ comes down, you cannot hand the leadership to any member of yourin. Chapter 50 of the FRCN empowers it to from family. It is in that regard that the respected leader, Pastortime to time come up or review their Code of Adeboye, typical of him, decided to comply. The FRC was givenCorporate Governance for profit making and non powers under the Financial Reporting Council Act to setprofit organizations. Therefore, in October, 2016, standards or to issue code of governance. The only part of thethey came up with the new Code of Corporate code of governance they have not effected yet is for publicGovernance which contained the controversial institutions- ministries and agencies, because the law that set upprovision. And though the code that relates to those agencies already stipulated a form of governance andnonprofit are supposed to be mandatory, the there is need for executive order to streamline the laws settingimplementation will depend on the type of non- them up with corporate governance code. Now, if the Churchprofit organisation. If it is for the church, it is not wanted, they don't have to comply because you have said even32 NN I February 2017

GOVERNANCEthough it is mandatory for others, churches, mosques and other instead of creating rules that are repugnant. To me, those rulesplaces of worship are supposed to comply or explain why they are repugnant because there is freedom of association. You cancan't comply. It can because my followers have unanimously ask that at any point in time you want to see how they electsaid there was no need, they are happy with our age, they can their overall leaders based on their constitutions see if theireven quote religious books to back up their claims because when constitution allows their congregations to play a part in it. AndMoses was called, he was about 85. And many of our spiritual is there anything that stops a family from starting a church? Youand religious leaders were actually called at very advanced ages. can wake up tomorrow and say God has called me, I want to start a church and you follow the normal course of registration. I canSome people have argued that there is need for wake up tomorrow and become a legal person and go andsome sort of regulation of religious organizations register an Islamic organization for as long as it is going to beOf course, there was the need to create a way of increasing legal under the laws of the federation. When the law allows youtransparency in all organizations- whether for profit or non- to set rules and regulations, there must be care; there must beprofit. Who registered churches? It is Corporate Affairs diligence not to create those laws that will create other problems.Commission, CAC. Therefore, theremust be a provision in their registration Then, even, the regulator How do you set such codes in athat requires them to do a number of has to have governance way that will ensure generalthings other than how old you are or procedures for making acceptability?how long you stay. I was a regulator rules. Who regulates thebefore. If you are not careful, the regulator? There must be The SEC Act permits SEC to setregulator will get power drunk, because a way the Act regulates rules and to give effect to the Act. But inthere are certain things that you have to the regulator, even if it is our own case, any rule that we will makegraduate- carry the people along, let not written in black and has to be approved by the Board and thethem understand the reasons that you white to ensure fairness in Minister. This is to minimize theare doing it. I don't think the FRC did making rules. And I think concentration of power in one person.that. So, it is over stepping and over we must look at that now First of all, you have to expose the rulesreaching in the kind of regulation it is that the Code of to the market, which in this case, are thedoing, because otherwise, why cause Corporate Governance by codes, the exposure-drafts, as they callthis kind of controversies? What of if the FRC has been them. They criticized it. Even in thethe man was appointed when he is 69? suspended. National Assembly, to make laws, theyThere are others aspects of governance- call for public hearings. Were thefor example, how are they keeping their exposure codes which affect these religious organizations sent to them?books for purposes of tax exemptions, Then, even, the regulator has to havebecause if churches are not paying tax, the government and the governance procedures for making the rules. Who regulates theauthorities should want to know how they are keeping their regulator? There must be a way the Act regulates the regulator,books. If you are exempted from paying tax, you are not paying even if it is not written in black and white to ensure fairness individends to the people, then we should know how you are making the rules. And I think we must look at that now that thekeeping your books. For non-profit, the area of their Code of Corporate Governance by the FRC has beenresponsibility is either to CAC or to FRC, but certainly to suspended. The Board has to approve the rules before you sendgovernment is full disclosure. What is your income? What is your it out as exposure draft. If we are doing rules for journalists, weexpenditure? Interrogate the income and expenditure to see that can't just do the rules because we are regulators in our offices.there are no frivolities. If I were the chairman of FRC, those are We must carry you along, we must all agree that these rules arethe kinds of things that I will look at, especially for non-profit. essential for our sector. You agree with some, you ask us toWhat are those non-profit organisations expecting from us as amend and so on. Once it is agreed at the exposure draft level, weentities that are operating under a state? What are the things that (the management) come back to the Board again and we sitother people operating under the same environment pay as taxes, through- these are what the stakeholders are saying, this is ourbut we are saying A, B, C should not pay? Then, we should have position, this is their position. We say no, we agree with thecreated certain standards for them. I would have done like that stakeholders, we don't agree with you. The Board has a right to  3633 NN I February 2017

BUSINESS & ECONOMY N the next three years, 8000 Fresh Jobs over 8000 new workers will be required in the For 40,000 MW power sector in Nigeria to replace the aging and revive power distribution to curriculum that meets global Resource of USA last year retiring workforce. This manage the expansion of standards. ''We are working submitted a proposal to thewill radically assist the country generation. with the US-based General relevant authority, in whichto overcome challenges in the Its no longer news that the Electric and the Germany- they also propose to carry outepileptic power sector and see country has had many based Siemens to ensure it is Geographic Informationit generate and sustain 40, 000 problems of low power done'', he said, claiming that System (GIS) mapping forMega Watts (MW) by 2020. production, which has crippled there is a reduction of renewables in Ethiopia,This, however, is going by the economy and livelihoods. electricity-related accidents in Ghana, South-Africa andprojections of the National Stakeholders say there is need the country. Kenya; in addition to putting inPower Training Institute of for the private power To further boost the sector, place a framework to constructNigeria (NAPTIN). The generators and distributors in Nigeria has plans to construct the two new solar power plantsinstitute has Reuben Okeke, an the country to partner with two solar power plants in in the country.engineer, as its Director- NAPTIN for training. This is Kumbotso, Kano State and The project is expected to drawGeneral.. because it is costly to set up Karu, Abuja. resources from Obama'sFor those who know better, own training schools. The The two plants will gulp $106 Power Africa Initiative, andNigeria requires around $35 NAPTIN big boss has been million, and each solar power will help Nigeria to realise abillion to meet the target of saying that the school will bring plant will give off 50 MW. goal she has set to have 100%producing 40, 000MW by in electrical engineering A consortium of international rural electrification in five2020. At the current zooming training equipment, and has a investors, Global Business years.exchange rate of the US dollar,about N17.5 trillion is requiredto make a bold powerstatement. The country hasalso indicated the need to34 NN I February 2017

BUSINESS & ECONOMYTop 10 : N1.58 with which it opened the year. Also, Caverton lost 63.56% to close at 90k againstStocks Traded by Value in N2.47, while Diamond Bank lost 61.74% to close at 88k compared to its opening price ofNigeria N2.30 per share. In the same vein, Sterlingin 2016 Bank also lost 58.47% to close at 70k against N1.83 while Lafarge Africa, which opened forJUST like in the other sectors of the national economy, the Nigerian stock 2016 at N96.80, decreased by 57.70% to close Exchange was not immunned from the economic downturn suffered by at N40.95 per share. the country in 2016. The declining value of the naira and the uncertainty over the country's forex policy led to exit of foreign portfolio investors The loss of Forte oil has been attributed to from the market, early in the year. weak earnings while Skye Bank performance Uncertainty about government economic policies further weakened was due to loss of market confidence in its investors' confidence towards investment in equities in the year. stocks since the change of management by the Thus, investors shied away from taking advantage of the relatively Central Bank of Nigeria. The bank also cheap valuations across all segments of the market. Consequently, the posted a huge loss in 2015 financial year. NSE closed the year 2016 on a negative note with decline in market volume and value turnover by 6.86% and 40.23% to close at 86.21billion On the upside, Dangote Flour emerged units and N566.24billion as volume and value traded in the year the best performing stock in percentage terms respectively. in 2016, with its share price closing at N4.25 In 2015, the NSE had recorded a decline of 10.21% and 28.92% in per share against opening price of N1.13. volume and value traded for the year respectively. UBA Capital followed with a growth of In terms of equities, the unenviable tag of worst performing stock in 108.40% in its share which closed the year at 2016 belonged to Forte Oil Plc which price dropped by 74.42% to close N2.73, compared with N1.31, and Total, trading at N84.43 per share as against N330 at the start of the trading year. which opened at N147.01, rose by 103.39% to Skye Bank followed with a loss of 68.35% to close at 50k, down from close at N299 per share.35 NN I February 2017 Also, Seplat increased by 87.19% to close 2016 at N379. 99 against the opening price of N203 and Mobil Oil increased by 74.38%, having closed the year at N279 per share against N160 opening price. However in terms of stocks traded by value turnover, Guaranty Trust Bank led others in 2016 with its stock worth N109.8 billion bought by investors during the year. Zenith Bank, Nigeria Breweries and Nestle followed with N74 billion, N59.8 billion and N34 billion respectively splashed on their stocks by investors during the period. UBA, Access Bank and Dangote Cement followed as the toast of investors with N26 billion, N24.6 billion and N24 billion of their stocks traded during 2016. Following were FBNH, Seplat and WAPCO with N22 billion, N20.7 billion and N17.7 billion worth of their stock traded during the period.

GOVERNANCE shareholders, it is only CAC and the CBN that you will beContinues from pg 33 responsible to. But if you become a public company, havingdo that. Then if it passes through the Board second time, that is 50 shareholders and above, then, SEC also comes in. SECwhat we called second reading, just like in the National Assembly.Then, we will send it to the Minister. The Minister has 14 days to regulates any company that has more than 50 shareholders.review and respond. If after 14 days, those rules are not returnedfrom the Minister, then, the rules take effect because the market More so, if you are registered on the stock exchange, so youcannot wait. are responsible to multiple regulators. That's why SECThere is also the argument that the Code ofCorporate Governance Code is in conflict with the started in 2003 to provide Code of Corporate Governance.CAMA in many areas- like in its definition of what is apublic company, the number of directors and that the It was under me. The code was later reviewed in 2011 andrules should only be applied to publicly quotedcompanies. Some lawyers have argued that the implementation started in 2014. SEC regulates all privatecodes cannot be enforced to the extent to which theyare in conflict with CAMA. companies that are seeking to carry out their activities within “First, let me say CAMA is outdated. When was the last time the capital market because there are private companies thatCAMA reviewed? That is the problem we are having. And then,the Code of Corporate Governance is not made to conflict with may want to come and raise money. But if you are sellingCAMA. It is made to compliment it because it is more recent. Thedynamics of global business and the ways companies are run are sugar, rice in the market and you are a private company, SECso rapid that you have to have the flexibility of continually lookingat the rules and regulations that will guide transparency, full has nodisclosures, etc on a continuous basis. We have the Asian financialcrises from 1994 to 1998 that really jolted the whole world. It business with When was the last timeaffected the Asian countries more but because of the interlinking you. But if CAMA reviewed? That isacross the globe, it also affected some countries in the West. The you are a the problem we arenext one is the ENRON issue where you have financial rascality, private having. And then, theshenanigans around 2001. Laws or Acts are more difficult to company, but Code of Corporatechange, but if the laws make provisions for it, you can easily create your Governance is not maderules. SEC's Investment and Securities Act, ISA was created in activities is to conflict with CAMA. It1999 and reviewed in 2007 and it has not been reviewed since going to is made to compliment,then. The Act says you have the powers to make regulations affect the because it is more recent.based on emerging threats, emerging opportunities, technologies public or you They dynamics of globaland other things in the market. So, we view those laws as are looking business and the wayscompliment to the Act. And the ISA for instance came out of for companies are run is soCAMA- chapter 17 of CAMA used to take care of investments something rapid that you have toand so, when in 1999, that section was impugned, part 17 was from the have the flexibility ofreviewed. And even when that section was there, it was not CAC public and continually looking at thethat was administering it, it was SEC. When you have a quoted you are rules and regulations thatcompany that is also into a sector that is regulated – like for promising will guide transparency,instance, you cannot just set up a bank, you have to set up a the public full disclosures, etc on acompany first by applying to CAC and later, apply to Central Bank that you have continuous basis.to get a license to operate. And that license automatically makes somethingdual regulations – you have to operate as a company and makereturns to CAC, but you also have to operate like a bank and meet for them,all the requirements of Central Bank of Nigeria. If you become abank, and you are a private bank, that is, you don't have up to 50 then SEC will be interested. The responsibility of SEC is to protect the innocent public that does not have all the information. So, that's why sometimes, you find that there are so many areas CAMA will not cover, but the regulators will cover by way of their rules and regulations. Why did the Central Bank in 2006 create corporate governance code for banks? Because corporate governance rules, apart from financial reporting, full disclosures and so on, also wants to know what the Boards are doing, how are they appointed? How are risks measured? These are all to protect innocent stakeholders because we have moved from just shareholders to36 NN I February 2017

GOVERNANCEstakeholders. The ownership of a public FRC is in sections 49 to 53 of the Actcompany is not only by shareholders One very important which is corporate governance- thewho are the profit motivated owners. thing is how those Directorate of corporate GovernanceGovernment is a stakeholder and you as codes are made. You that is now there. The Act said they arejournalists are also stakeholders just by here to streamline and coordinatethe fact that you want credible must carry the activities of even the other regulatorsinformation for the public. That is why stakeholders along in which means that in auditing you, theyin addition to the Act, there are also making those codes. If will audit you based on their owncorporate governance codes. But in you don't, you are template and they will also look at thesome societies, when a rule becomes other templates depending on whichgrounded, the next time they are going definitely going to sector you are. If you are a pensionto review the Act, it becomes part of the come out with a code funds administrator for instance, if thelaw. that will be FRC is going to audit you they will look at your compliance report fromSome have argued SEC that controversial. So, there PENCOM. IF PENCOM is not doingshould be in charge of must be a mechanism what it is supposed to do, they willestablishing the corporate that engages all the sanction you because they are the legalgovernance codes and enforcing stakeholders. entity appointed to oversee everythingthem like in some other as related to governance. Yes, that isjurisdictions. good because you cannot haveIn the United States, the Financial individual entities handling corporateReporting Council is under the SEC purview. In the UK, it governance and it is good to put everything together, and that islargely complies or gives reasons for non compliance; however why if you look at the membership of FRC, all thesethey hold the Board and the shareholders responsible and then, organizations or regulators that make codes of corporatethe Stock Exchange also brings the governance codes into their governance have representatives in it. That means the overallrules. And then, the tax authority, the Financial Reporting code that FRC will bring out will also conform with what SEC isCouncil takes care of full disclosure. In the US, of course, SEC doing for capital market, Central Bank is doing for banking,stands for full disclosure, transparency and accountability. UK NAICOM for insurance and so on.is a more deregulated market. Until now, they never had all theseFinancial Services Authority. It's self regulation. It is the Since the Federal Government has suspended theexperience of financial shenanigans of the Enrons and co which codes, what would be your advice on the wayled to the changes. Now, in the US there is Sarbanes- Oxley Act forward?which makes so many requirements for the auditors, for the One very important thing is how those codes are made. Youlawyers and so on. And the US SEC is warehousing Sarbanes- must carry the stakeholders along in making those codes. If youOxley Act. The Act is very tough and rugged and there are even don't, you are definitely going to come out with a code that willcomplaints about its rigidness. But in Nigeria, Central Bank, be controversial. So, there must be a mechanism that engages allSEC, Pensions Commission, Insurance Commission have the stakeholders. Also, the so much power that is given to anregulatory responsibilities over their different sectors. The individual in the enforcement of the code must be minimized,Financial Reporting Council came about from the National because the Chief Executive of FRC appears to be given soAccounting Standard Board, NASB and what they were doing much powers to act unilaterally. We must see how unilateralismwas trying to set accounting standards in Nigeria to be as close as can be minimized. The stakeholders should also participatepossible to the international accounting standards. Now, because if the churches have reviewed the codes very well, theybecause of the need for improved governance of both the will know that it is not compulsory for them to comply. If theypublic and private sectors, the lawmakers decided to add the force you, you will go to court, sue them and you will win- Goissue of devising and enforcement of corporate governance and check the code for not non-profit as related to religiouscodes to what NASB was doing and it became the Financial organizations- it is there- 'comply or give reasons for nonReporting Council. The only difference between NASB and the compliance.'37 NN I February 2017

BUSINESS & ECONOMYBy Akanimo Sampson RONT LINE environmental rights advocate, and Director of Health of Mother Earth Foundation (HOMEF), Nnimmo Bassey, is yet to be on the same page with the National Assembly on the controversial Petroleum Industry Bill (PIB). For him, it will stoke fresh communal uprisings in the Niger Delta, Nigeria's volatile oil and gas region. Bassey, a former Chair of the Friends of the EarthInternational (FoEI), a global federation of environmental rightsadvocacy groups is arguing that while no one can say that thecountry's petroleum resources sector is known for transparency,''most will readily agree that it wields a lot of power''.'The activist who was speaking with Nigeria Now said, ''the sectorhas effectively determined the political, economic, social andcultural paths of the nation since its ascendancy as major incomeearner for the nation. As its power rose, so the attendant impunity,including a murky treatment of financial matters. Governments BasseyPIB of Controversy hopethatthehurdlewillnever be reached within the life of this government or that the controversy would have died of its own accord by such a time. ''One complaint against the former PIB was that it washave bent backwards so much that the tail began to dictate to the rather voluminous. Having the bill split into four volumes mayhead. make reading easier for text-message or SMS generation.''To secure continuous flow of revenue from the sector, full military It could also be one way of displaying a bent towards unbundlingmight have been deployed to silence calls for dialogue from already the sector in all ramifications. Another plausible explanation couldtrashed communities and these have sometimes resulted in be that the sector is simply copying the industry's best practice inhorrendous sackings of communities in wasting operations by way other countries''.of flagrant and outright display of murderous rage at the slightest He is not yet done. According to him, ''the sore point of theprovocation. Today, citizens are intimidated by security forces into petroleum sector in Nigeria as in elsewhere is the serious impact itraising their hands in total surrender each time they come close to has on the environment, the communities and the people.oil pipelines of transnational corporations crossing their creeks''. ''The fact that our politicians could not agree on any allocation ofAccording to the HOMEF boss, ''the denial of dialogue can be said resources for host communities should not make the current legalto be a major precursor of the persistent conflict points in the Niger draughtsmen push consideration to back burners. The PresidentDelta. That was what the people of Umuechem requested for in doubles as the Minister of Petroleum Resources and he should1990. What they got was mayhem and deaths. clarify what the intentions are with regard to the communities and''The current outcry over the non-inclusion in the new PIB of the indeed the oil field environment. With the clean up of Ogoni andHost Communities Fund that was provided for in the “old PIB” is the Niger Delta about to commence, informing about the globaljustifiable. This will continue to agitate communities and observers environmental architecture would help.until the National Assembly or the Petroleum Resources Ministry ''A key point is to ensure that host communities are not defined asexplain what the fate of the communities will be in the new only the communities that host oil wells, pipelines, flow stations,dispensation''. waste pits and other oil industry appurtenances. Here is the reasonContinuing, he went on, ''what we have learnt from the grapevine is why this definition must be broadened. There are communities thatthat the new PIB will come in multiple parts so what is being do not have the physical presence of oil operations but are heavilydebated is not yet the whole story. However, the entire focus is on impacted by those operations.business and there is scant attention to the environment or the ''A case in point is Goi community in Ogoni. This community haspeople. These may remain the milk cows that should simply steel been severely impacted by repeated oil spills and related fires andthemselves for more squeezes. one section of the community has been deserted for over a decade''It is thought that the PIB will come in four parts arranged as now. Yet, Goi has no pipeline and no oil well. It simply sits on thefollows: bank of a creek that connects oil facilities that have spewed crude1. The Governance and Institutional Framework for Oil and Gas and devastated their environment. Would it be right to say that GoiBill is not a host community? My point is that any community that has2. The Fiscal Reform Bill the potential to be impacted by petroleum sector accidents has to be3. Licencing Rounds Bill classified as a host community. So, a host community is a4. Revenue Allocation and Management Bill community that hosts oil or industrial facilities as well as those that'' It is expected that the fourth bill may say something about the host pollutions.funds for communities. Perhaps the logic is to serve the ''Another case in point is that Exxon Valdez oil spill of 1989 in“controversial” consideration of oil field communities last with the Alaska. The spill so much impacted Prince William Sound and the38 NN I February 2017

BUSINESS & ECONOMY Companies and Petroleum Host Communities and Matters Connected to'; and an 'Act to Establish a Fiscal Framework thatcoastline that, despite all clean up efforts, 27 years after effect is still encourages further investment in the petroleum industry whilstthere and less than half of the wild life population is yet to recover. increasing accruable revenues to the Federal Government of''It is time for the National Assembly and the Ministry of Petroleum Nigeria.'Resource to come clean over the PIB. The draft bill(s) should be All three bills have been submitted to the House of Representativesposted online and made available to citizens. It would help the and are expected to undergo relevant readings as at the Houseministry, the National Assembly and the nation if citizens are able to resumed on January 10, with expectations that they could be passedscrutinise the bill(s) and make comments based on knowledge rather by June this year.on rumours. What are the provisions in the PIB for ending gas Available details show that the Petroleum Host community bill willflaring? What is in it for the communities? Certainly the oil business seek to establish a community fund to which 30% of royalties will becannot be allowed to be all about money to the detriment of life''. paid by a petroleum producing company on land within the territoryHowever, the year 2016 ended with a steam around resolving the of the upstream petroleum community. Additionally 20% of anregulatory uncertainty in the Nigerian oil and gas sector. The Senate aggregate total royalty accruing to the Federal Government forconcluded a public hearing on the Petroleum Industry Governance petroleum production would be evenly divided by the number ofBill (PIGB) and there was even expectation earlier that the bill will be local governments with oil facilities.passed before last March. There were indications that the executive It also provides that 50% of the amount payable to the Federalhas finally submitted its own version of three different draft bills on Government for pipeline rights of way shall be paid to localthe petroleum sector. governments within which pipelines are located, solely for theThe bills include: 'An Act of Legal and Regulatory Framework, benefit of these communities. Sources in the oil and gas industryinstitutions and Regulatory Authorities, as well as for the Operations believe that if this host community fund bill is passed, it wouldof the Upstream and Downstream Sectors of the Nigerian significantly reduce pipeline vandalism and agitation in the NigerPetroleum Industry'; 'An Act for Legislative Framework Relating to Delta.Petroleum Producing Host Community Participation, cost andBenefit Sharing amongst Government, Petroleum Exploration SPORT Warriors, Taraba United, Jigawa Stars, League (EPL) clubs like Chelsea, Arsenal, Nasarawa United and Kwara United, is Manchester United, Liverpool and Man-Continues from pg 18 about N500 million annually. City in Nigeria. Continuing, they said, ''these clubs are also Yet, the local premier league is capable ofCritics say the rating of the league, among entitled to title sponsorship and broadcast being like that of the English if wellother Africans' have been nosediving, and rights fees from the League Management managed. For instance, in the 2012/2013also led to the country's 'world class' Company. But from 2006 till date, none of season, out of the 380 matches played,referees persistently 'forgotten' by CAF them spent up to N250 million. The bulk only 18 away wins were recorded, whichand FIFA for international assignments. of the funds are diverted into private represents less than five percent.Nothing says it better than what follows in pockets of officials. Since 2006, unpaid It seems, the Premier League is the most-the matter of graft. On April 4, 2016, the contract fees, sign-on fees, salaries and watched in the world, broadcast in 212nation was jolted when National allowances of players dead or alive is over territories to 643 million homes. In theAssociation of Nigerian Footballers N2.00 billion from each of these clubs. 2014-15 season, the average match(NANF) invited anti-graft agencies to This is why we are inviting the anti-graft attendance exceeded 36,000, second“thoroughly” probe an alleged sharp agencies to investigate the rot in the soccer highest of any professional football leaguepractices of football officials. They are sector since 2006 till date.'' behind the Bundesliga's 43,500. Mostclaiming that over N50 billion have so far The last 15 years have equally been stadium occupancies are near capacity.ended up in private pockets. nightmarish for both players and fans. The league ranks third in the UEFA“There are strong indications that funds Complaints of poor officiating have coefficients of leagues based onaccruing to football at all levels from the accompanied different league matches performances in European competitionsNigeria Football Federation (NFF) to the especially for away teams. over the past five seasons.NPFL and the clubs are being diverted While home matches remain debacles in EPL is also the most competitive,into private pockets'', acting president of the hands of Nigerian referees, it is quite entertaining, have high turnout of clubs'the group, Larry Kubeinje, said in a disheartening that most football umpires supporters, huge transfer muscle, goodstatement. He claimed that majority of in the NPFL are never sanctioned by their officiating, breathtaking stadia with eitherclubs in the domestic league are owned by umbrella body, Nigeria Referees natural or synthetic turf, impeccablestate governments, who often use them Association (NRA). It is however, believed branding among others establishedmore as tools to score cheap political that the ills of officiating is worse. leagues in Europe, and in extensionpoints, rather than as professional and This, perhaps, explains why there is no worldwide.money-making ventures. much attachment to local clubs like the It would be interesting to see the NPFLAccording to NANF, funds appropriated foreign teams. There is a cult-like aspiring to become the EPL of Africa,to government clubs like Lobi Stars, 3SC, followership for the English Premier With a robust media coverage.Warri Wolves, Enugu Rangers, WikkiTourists, Bayelsa United, Kano Pillars,Plateau United, Heartland, Enyimba,Akwa United, Sunshine Stars, El Kanemi39 NN I February 2017

NATION40 NN I February 2017 FEDERAL MINISTRY OF FINANCE, ABUJASUMMARY OF GROSS REVENUE ALLOCATION BY FEDERATION ACCOUNT ALLOCATIOTaNble I COMMITTEE FOR THE MONTH OF DECEMBER, 2016 SHARED IN JANUARY, 2017 Distribution ofS/n Beneficiaries Statutory Exchange Gain NNPC Refund to FG 42.997 Billion VAT Total Difference Excess PPT Savings Account ? ???? ?1 FGN (see Table II) 105,761,142,523.15 24,811,954,943.30 6,330,393,548.39 19,706,448,883.30 11,415,407,513.49 168,025,347,411.632 State (see Table III) 53,643,464,848.49 12,584,955,126.90 - 9,995,374,224.79 38,051,358,378.30 114,275,152,578.483 LGCs (see Table IV) 41,356,862,869.72 9,702,472,889.75 7,706,014,559.53 26,635,950,864.81 85,401,301,183.814 13% Derivation Fund 15,503,609,337.61 5,746,573,651.88 5,589,676,892.86 - 26,839,859,882.355 Cost of Collection - NCS 3,563,950,643.33 - - - 3,563,950,643.336 Transfer to Excess PPT 23,832,437,590.38 - - - 23,832,437,590.387 Cost of Collections - FIRS 2,429,102,505.92 - - 3,170,946,531.53 5,600,049,037.458 Cost of Collection - DPR 2,545,246,031.35 - - 2,545,246,031.359 NCS Refund 79,486,780.00 79,486,780.00Total 248,715,303,129.96 52,845,956,611.82 6,330,393,548.39 42,997,514,560.47 79,273,663,288.13 430,162,831,138.77 Check!!The above information is also available on the Federal Ministry of Finance website www.fmf.gov.ng and Office of Accountant-General of theFederation website www.oagf.gov.ng. In addition, you would find on these websites details of the Capital and Recurrent allocations to all armsof Government including Federal Ministries and Agencies. The Budget Office website www.budgetoffice.gov.ng also contains informationabout the Budget. ............................... Kemi AdeosunSource: Office of the Accountant-General of the Federation Hon. Minister of Finance 1 Federal Ministry Of Finance, Abuja. Nigeria.

NATION41 NN I February 2017FEDERAL MINISTRY OF FINANCE, ABUJADISTRIBUTION OF REVENUE ALLOCATION TO FGN BY FEDERATION ACCOUNT ALLOCATTIaOblNe I COMMITTEE FOR THE MONTH OF DECEMBER, 2016 SHARED IN JANUARY, 2017 Table II 1 2 3 4=2-3 5 6 7 8 9(4+5+6+7+8) Distribution of 42.997S/n Beneficiaries GrossStatutoryAlocation LessDeductions NetStatutoryAlocation ExchangeGainDifference NNPCRefundtoFG Billion Excess PPT VAT TotalNetAmount Savings Account1 FGN(CRFAccount) =N= =N= =N= =N= =N= =N= =N= =N=2 ShareofDerivation&Ecology3 Stabilization 97,369,313,067.06 9,115,063,778.44 88,254,249,288.62 22,843,200,735.57 5,828,095,806.70 18,142,801,268.79 10,654,380,345.92 145,722,727,445.614 DevelopmentofNaturalResources 2,007,614,702.41 - 2,007,614,702.41 470,993,829.60 120,166,923.85 374,078,376.68 - 2,972,853,832.545 FCT-Abuja 1,003,807,351.21 - 1,003,807,351.21 235,496,914.80 60,083,461.92 187,039,188.34 - 1,486,426,916.27 3,372,792,700.06 - 3,372,792,700.06 791,269,633.73 201,880,432.07 628,451,672.82 - 4,994,394,438.66 2,007,614,702.41 1,969,072,076.40 470,993,829.60 120,166,923.85 374,078,376.68 3,695,338,374.09 38,542,626.01 761,027,167.57Sub-total 105,761,142,523.15 9,153,606,404.45 96,607,536,118.70 24,811,954,943.30 6,330,393,548.39 19,706,448,883.30 11,415,407,513.49 158,871,741,007.18The above information is also available on the Federal Ministry of Finance website www.fmf.gov.ng and Office of Accountant-General ofthe Federation website www.oagf.gov.ng. In addition, you would find on these websites details of the Capital and Recurrent allocations toall arms of Government including Federal Ministries and Agencies. The Budget Office website www.budgetoffice.gov.ng also containsinformation about the Budget. ............................... Kemi Adeosun Hon. Minister of FinanceSource: Office of the Accountant-General of the Federation Federal Ministry Of Finance, Abuja. Nigeria. 2

NATION42 NN I February 2017 Table III FEDERAL MINISTRY OF FINANCE, ABUJA DISTRIBUTION OF REVENUE ALLOCATION TO STATE GOVERNMENTS BY FEDERATION ACCOUNT ALLOCATION COMMITTEE FOR THE MONTH OF DECEMBER, 2016 SHARED IN JANUARY, 201712 34 5 6=4+5 78 9 10=6-(7+8+9) 11 12 13 14=6+11+12+13 15=10+11+12+13 Gross Total Distribution of 13% Share of Deductions Net Statutory 42.997 Billion Derivation (Net) =N= AllocationS/n Beneficiaries No. of Gross Statutory External Debt Contractual Other Deductions Excess PPT Distribution of Gross VAT Allocation Total Gross Amount Total Net Amount S/n LGCs Allocation =N= Obligation (ISPO) (see Note) =N= Savings Account Exchange Gain =N= =N= =N= =N= =N= =N= =N= =N= =N=1 ABIA 17 1,324,636,061.83 121,101,070.52 1,445,737,132.35 27,791,809.06 0.00 342,667,359.87 1,075,277,963.42 311,555,913.79 357,696,783.15 792,485,969.38 2,907,475,798.67 2,537,016,629.74 12 ADAMAWA 21 1,409,184,976.91 - 1,409,184,976.91 40,267,508.50 0.00 330,357,169.14 1,038,560,299.27 262,573,106.27 330,600,004.12 823,062,868.48 2,825,420,955.78 2,454,796,278.14 23 AKWA IBOM 31 1,422,280,422.15 4,721,580,198.80 6,143,860,620.96 102,056,197.85 0.00 977,490,067.63 5,064,314,355.48 1,043,578,590.11 2,131,125,776.83 885,111,221.24 10,203,676,209.14 9,124,129,943.66 34 ANAMBRA 21 1,406,545,034.76 - 1,406,545,034.76 47,476,123.15 0.00 107,021,602.06 1,252,047,309.55 262,081,206.46 329,980,663.93 894,127,442.12 2,892,734,347.27 2,738,236,622.06 45 BAUCHI 20 1,692,120,801.60 - 1,692,120,801.60 68,666,222.36 305,669,380.00 519,349,334.31 798,435,864.93 315,292,472.13 396,977,794.36 919,558,937.76 3,323,950,005.85 2,430,265,069.18 56 BAYELSA 8 1,251,688,437.89 3,154,039,072.48 4,405,727,510.37 29,767,995.89 1,241,107,428.57 131,217,538.11 3,003,634,547.80 1,531,633,126.97 1,420,134,327.20 689,445,003.85 8,046,939,968.39 6,644,847,005.82 67 BENUE 23 1,586,472,637.01 - 1,586,472,637.01 21,701,687.61 103,855,987.23 478,172,499.15 982,742,463.02 295,607,074.40 372,192,344.46 893,819,981.94 3,148,092,037.82 2,544,361,863.83 78 BORNO 27 1,757,584,318.05 - 1,757,584,318.05 17,423,313.20 0.00 323,071,065.26 1,417,089,939.59 327,490,273.79 412,335,777.28 878,187,498.88 3,375,597,868.00 3,035,103,489.54 89 CROSS RIVER 18 1,422,522,979.80 - 1,422,522,979.80 244,736,974.35 633,134,951.92 681,212,459.20 (136,561,405.67) 265,058,373.22 333,729,148.90 809,435,090.02 2,830,745,591.94 1,271,661,206.47 910 DELTA 25 1,436,351,282.20 3,089,468,308.35 4,525,819,590.54 25,464,533.23 1,098,907,642.20 1,145,011,172.37 2,256,436,242.74 1,489,319,754.08 1,495,879,081.55 930,857,266.96 8,441,875,693.13 6,172,492,345.33 1011 EBONYI 13 1,265,586,034.65 - 1,265,586,034.65 35,498,938.73 0.00 123,201,116.97 1,106,885,978.95 235,816,349.03 296,911,161.50 733,946,514.54 2,532,260,059.72 2,373,560,004.02 1112 EDO 18 1,322,740,240.94 211,940,349.08 1,534,680,590.01 75,080,451.68 520,000,000.00 390,751,098.76 548,849,039.57 312,615,289.07 378,330,448.72 876,363,116.91 3,101,989,444.71 2,116,157,894.27 1213 EKITI 735,176,018.03 2,532,474,785.36 1,548,576,260.95 1314 ENUGU 16 1,264,871,871.83 - 1,264,871,871.83 47,601,751.58 499,654,808.01 436,641,964.82 280,973,347.42 235,683,279.24 296,743,616.27 860,927,827.17 2,882,412,781.83 2,475,803,518.75 1415 GOMBE 736,934,286.98 2,630,276,958.39 1,929,577,100.57 1516 IMO 17 1,422,645,753.14 - 1,422,645,753.14 53,038,322.20 294,205,123.98 59,365,816.90 1,016,036,490.06 265,081,249.54 333,757,951.98 883,374,459.70 3,248,722,303.48 2,372,147,093.87 16 11 1,332,463,991.14 - 1,332,463,991.14 52,141,918.38 361,446,152.47 287,111,786.97 631,764,133.32 248,277,702.98 312,600,977.29 27 1,470,806,254.01 119,419,390.45 1,590,225,644.46 48,270,510.71 0.00 828,304,698.90 713,650,434.85 386,949,073.72 388,173,125.6017 JIGAWA 27 1,581,988,564.37 - 1,581,988,564.37 29,470,718.38 0.00 89,972,595.59 1,462,545,250.40 294,771,558.19 371,140,364.44 943,625,268.04 3,191,525,755.04 3,072,082,441.07 1718 KADUNA 23 1,853,483,604.95 - 1,853,483,604.95 185,220,321.15 0.00 203,254,936.77 1,465,008,347.03 345,359,165.43 434,834,104.45 1,141,179,474.00 3,774,856,348.83 3,386,381,090.91 1819 KANO 44 2,243,848,251.89 - 2,243,848,251.89 55,017,472.08 0.00 492,513,610.80 1,696,317,169.01 418,095,718.55 526,415,093.46 1,816,159,821.24 5,004,518,885.14 4,456,987,802.26 1920 KATSINA 34 1,738,918,535.40 - 1,738,918,535.40 108,273,484.09 0.00 239,496,312.02 1,391,148,739.29 324,012,282.89 407,956,715.68 1,034,577,921.91 3,505,465,455.89 3,157,695,659.78 2021 KEBBI 21 1,493,739,697.46 - 1,493,739,697.46 38,309,346.52 0.00 264,239,440.81 1,191,190,910.13 278,328,167.52 350,436,854.09 810,022,582.52 2,932,527,301.59 2,629,978,514.26 2122 KOGI 21 1,563,494,517.56 - 1,563,494,517.56 25,425,394.33 246,132,000.00 190,704,301.22 1,101,232,822.01 291,325,566.79 366,801,592.71 821,885,152.85 3,043,506,829.91 2,581,245,134.36 2223 KWARA 16 1,259,232,584.19 - 1,259,232,584.19 29,243,176.42 0.00 340,313,959.43 889,675,448.34 234,632,512.10 295,420,618.54 741,053,380.88 2,530,339,095.71 2,160,781,959.86 2324 LAGOS 20 1,895,075,413.71 - 1,895,075,413.71 904,642,257.12 2,000,000,000.00 - (1,009,566,843.41) 353,108,957.41 444,591,696.51 6,558,998,376.61 9,251,774,444.24 6,347,132,187.12 2425 NASSARAWA 13 1,304,567,663.00 - 1,304,567,663.00 30,518,383.97 101,637,860.22 124,304,116.61 1,048,107,302.20 243,079,786.70 306,056,395.60 725,751,466.02 2,579,455,311.32 2,322,994,950.52 2526 NIGER 25 1,675,659,078.53 - 1,675,659,078.53 41,529,007.21 0.00 361,843,417.52 1,272,286,653.80 312,225,163.13 393,115,813.28 894,433,194.78 3,275,433,249.72 2,872,060,824.99 2627 OGUN 20 1,314,256,689.34 - 1,314,256,689.34 79,041,453.31 0.00 1,133,331,119.97 101,884,116.06 244,885,140.71 308,329,476.99 872,380,605.11 2,739,851,912.14 1,527,479,338.86 2728 ONDO 18 1,316,860,379.02 814,929,524.98 2,131,789,904.00 50,347,398.74 725,882,360.59 265,608,277.39 1,089,951,867.28 610,815,311.71 622,180,295.40 826,565,066.27 4,191,350,577.38 3,149,512,540.66 2829 OSUN 30 1,290,163,751.90 - 1,290,163,751.90 101,846,100.07 945,881,467.00 1,369,816,095.87 (1,127,379,911.04) 240,395,909.32 302,677,184.81 824,703,833.23 2,657,940,679.26 240,397,016.32 2930 OYO 3,514,194,236.04 2,823,058,186.19 3031 PLATEAU 33 1,586,647,923.35 - 1,586,647,923.35 131,626,342.71 99,912,935.00 459,596,772.14 895,511,873.50 295,639,735.46 372,233,467.28 1,259,673,109.95 2,964,102,412.00 1,684,881,773.17 3132 RIVERS 9,746,090,002.86 7,916,328,550.10 3233 SOKOTO 17 1,477,221,502.85 - 1,477,221,502.85 21,048,390.79 609,914,612.08 648,257,635.96 198,000,864.02 275,250,336.19 346,561,624.58 865,068,948.37 3,060,848,609.78 2,843,630,154.86 33 23 1,525,620,267.31 3,271,131,422.97 4,796,751,690.28 44,310,447.83 0.00 1,785,451,004.93 2,966,990,237.52 1,966,063,563.80 1,550,347,426.10 1,432,927,322.68 23 1,559,045,413.24 - 1,559,045,413.24 36,433,190.12 0.00 180,785,264.80 1,341,826,958.32 290,496,566.22 365,757,816.39 845,548,813.9334 TARABA 16 1,362,670,829.51 - 1,362,670,829.51 16,034,832.47 0.00 516,032,835.58 830,603,161.46 253,906,136.09 319,687,613.22 746,972,750.79 2,683,237,329.62 2,151,169,661.57 3435 YOBE 17 1,404,738,699.87 - 1,404,738,699.87 42,704,803.66 0.00 89,972,595.59 1,272,061,300.62 261,744,632.51 329,556,891.09 749,473,354.14 2,745,513,577.61 2,612,836,178.36 3536 ZAMFARA 14 1,407,730,383.13 - 1,407,730,383.13 22,931,827.38 488,822,936.86 423,088,717.97 472,886,900.92 262,302,072.15 330,258,751.04 797,544,431.04 2,797,835,637.35 1,862,992,155.14 36 Total (States) 53,643,464,848.49 15,503,609,337.61 69,147,074,186.10 2,930,958,606.83 10,276,165,646.13 16,339,529,761.39 39,600,420,171.75 15,585,051,117.67 18,331,528,778.80 38,051,358,378.30 141,115,012,460.88 111,568,358,446.53* Other Deductions cover; National Water Rehabilitation Projects, National Agricultural Technology Support Programme, Payment for Fertilizer, State Water Supply Project, 2 State Agricultural Project and National Fadama ProjectSource: Office of the Accountant-General of the Federation 3

NATION43 NN I February 2017 FEDERAL MINISTRY OF FINANCE, ABUJASUMMARY OF DISTRIBUTION OF REVENUE ALLOCATION TO LOCAL GOVERNMENT COUNCILS BY FEDERATION ACCOUNT ALLOCATION COMMITTEE FOR THE MONTH OF DECEMBER, 2016 SHARED IN JANUARY, 2017 12 3 4 5 6 7 8 9(4+5+6+7+8 ) S/nS/n Beneficiaries Distribution of Value Added Tax Total Net Amount No. of Gross Statutory Exchange Gain Deduction ? 42.997 Billion 1 LGCs Allocation Difference from Excess PPT 2 =N= Savings Account 3 =N= =N= - =N= =N= 4 - =N= 470,853,555.68 1,690,597,105.38 51 ABIA 17 858,410,040.05 201,386,168.20 - 159,947,341.45 560,409,044.01 2,098,940,470.23 6 - 201,750,615.05 775,460,310.99 2,824,693,762.38 72 ADAMAWA 21 1,082,761,063.61 254,019,747.55 - 268,719,963.83 611,533,577.28 2,158,379,390.45 8 - 202,840,896.77 613,883,941.83 2,369,860,041.27 93 AKWA IBOM 31 1,442,174,110.71 338,339,376.84 230,264,557.52 246,080,666.91 10 (139,538,498.52) 646,242,306.59 960,827,213.96 114 ANAMBRA 21 1,088,612,419.19 255,392,497.20 - 93,726,103.36 705,747,449.01 2,417,477,574.46 12 250,563,476.33 497,933,314.27 2,780,275,146.08 135 BAUCHI 20 1,235,790,518.61 289,921,023.31 (38,551,266.10) 272,036,847.41 699,238,185.57 1,796,764,715.34 14 - 175,373,587.48 362,082,620.68 2,412,902,263.50 156 BAYELSA 8 503,011,975.13 118,008,468.56 224,716,099.93 538,314,362.57 1,313,668,105.05 16 (37,724,022.02) 129,730,077.65 416,985,838.81 1,849,499,327.99 177 BENUE 23 1,344,731,345.98 315,478,944.07 - 171,938,231.95 513,221,864.74 1,458,114,250.63 18 - 136,525,191.40 331,529,158.28 1,845,405,282.99 198 BORNO 27 1,459,975,257.89 342,515,591.77 - 174,691,799.87 705,874,242.31 1,190,358,609.47 20 119,698,943.28 743,682,445.68 2,491,296,364.50 219 CROSS RIVER 18 941,200,065.52 220,809,014.17 (53,983,557.43) 234,125,871.69 803,309,829.22 2,619,436,488.22 22 - 245,971,271.90 1,571,842,864.63 2,912,772,865.27 2310 DELTA 25 1,206,012,895.20 282,935,082.80 - 276,617,986.29 931,377,371.65 4,930,288,811.09 24 - 440,399,541.91 554,213,808.46 3,488,219,436.25 2511 EBONYI 13 696,239,150.61 163,340,278.13 - 335,283,667.49 561,141,137.16 2,167,855,600.44 26 - 211,599,983.24 420,009,840.16 2,138,985,530.53 2712 EDO 18 922,763,099.64 216,483,633.83 - 218,704,082.07 3,726,053,267.17 1,600,165,055.14 28 154,756,046.20 353,786,738.65 5,736,443,177.29 2913 EKITI 16 732,707,364.52 171,895,855.90 (89,972,595.51) 263,626,334.80 677,647,987.89 1,367,450,468.10 30 - 138,069,066.10 576,898,186.49 2,626,488,106.78 3114 ENUGU 17 937,541,027.95 219,950,590.44 - 255,555,191.09 514,077,000.64 1,851,416,730.61 32 182,312,149.33 719,330,834.02 1,794,720,013.45 3315 GOMBE 11 642,403,767.16 150,710,298.19 (39,238,127.24) 174,119,634.66 1,033,731,042.98 2,430,636,911.64 34 - 235,849,447.46 514,491,526.44 3,218,793,076.40 3516 IMO 27 1,256,513,531.72 294,782,718.78 297,505,675.97 950,566,133.51 1,936,694,181.27 36 (115,776,950.40) 186,496,197.25 613,582,750.49 2,713,465,166.68 3717 JIGAWA 27 1,320,085,769.82 309,697,000.81 (47,177,126.82) 231,172,375.27 422,345,975.26 2,317,116,854.89 (87,259,873.06) 232,826,361.81 441,167,558.06 1,753,098,294.81 418 KADUNA 23 1,484,561,447.13 348,283,602.64 (83,688,581.46) 174,504,137.11 427,264,293.19 1,779,122,391.72 - 175,448,616.78 1,384,039,833.54 1,636,195,925.1919 KANO 44 2,363,549,059.26 554,497,345.30 - 158,529,553.68 26,635,950,864.81 1,917,987,799.50 (71,978,076.34) 84,596,412,508.9120 KATSINA 34 1,799,410,129.80 422,148,267.31 - 70,017,634.16 - 7,706,014,559.5321 KEBBI 21 1,135,620,939.03 266,420,869.70 - -22 KOGI 21 1,173,747,423.04 275,365,483.77 (804,888,674.90)23 KWARA 16 830,549,245.88 194,849,922.9024 LAGOS 20 1,414,837,474.40 331,926,100.9225 NASSARAWA 13 740,993,076.12 173,839,714.4726 NIGER 25 1,371,521,025.81 321,763,901.9827 OGUN 20 978,438,140.90 229,545,204.2928 ONDO 18 934,470,315.11 219,230,189.8529 OSUN 30 1,265,763,668.23 296,952,835.0030 OYO 33 1,596,662,107.11 374,582,831.8031 PLATEAU 17 1,000,893,210.87 234,813,246.7132 RIVERS 23 1,240,662,621.29 291,064,036.6133 SOKOTO 23 1,249,539,284.36 293,146,534.5734 TARABA 16 936,533,874.04 219,714,308.4035 YOBE 17 941,602,734.96 220,903,481.9136 ZAMFARA 14 850,801,015.43 199,601,062.8937 FCT, ABUJA 6 375,772,673.65 88,157,658.15 Total LGCs 41,356,862,869.72 9,702,472,889.75Source: Office of the Accountant-General of the Federation

NATION the deputy director, TSA Collection Funds Department, Sylva Okolieaboh also noted thatDeepening The the huge sums of money paid as interest on money borrowed from banks had since beenTransparency Agenda stopped with the introduction of the initiative. TSA has also helped to avoid the under-ACCOUNTANT General of the Federation (AGF), Ahmed Idris, aggressively declaration of revenues by MDAs, stopping theimplements initiatives aimed at ensuring elimination of waste and situation in which some of the agencies ofmismanagement of national revenue in accordance with the anti‐corruption drive government were running huge revenues andof President Muhammadu Buhari's administration. spending outside the budgetary process. S the training arm of his Ahmed The Federal Government had also Office and the Auditor- introduced the Integrated Payroll and General of the Federation, (TSA). Described as the unified banking Personnel Information System, IPPIS as a Federal Treasury Academy, arrangement that gives consolidated and means of controlling ballooning recurrent Orozo, in Abuja has been centralized cash position of the country at any expenditure and freeing up resources for crucial in the provision of point in time, TSA is a single account in the growth-related capital expenditure. This is by competent accountants, custody of the Central Bank of Nigeria, CBN creating a centralized database system for finance officers and where all cash outflows and inflows are Nigerian Public Service with single, accurateauditors for Nigerian’s public sector executed. source of employee information that providesorganisations. integration with other business application. Indeed, during a recent visit to Ahmed The Office of the Account General ofIdris, the AGF, a delegation of young officers the Federation as the implementing agency of Idris has aggressively implemented IPPISof the Nigerian Navy who were on a four-week the initiative on behalf of the Federal by ensuring increased enrolment into thetraining course on Public Financial Government has been able to rake in over system since he was appointed the AGF.Management at the academy in 2016 had N4.36 trillion into the TSA as at November However, the implementation of IPPIScommended the quality of training at the 2016. received a major boost early 2017 withschool which they said greatly enhanced their announcement by Idris that the Police, theunderstanding of Public Financial At a workshop in Lagos with the theme: largest single agency of Government in NigeriaManagement. ''Operation, Implementation and Challenges and Africa, with over 300,000 workers are But, as crucial as it is, basic facilities for of Treasury Single Accounts” organised by the already being keyed into IPPIS and othersmooth running of such institutions were Institute of Chartered Accountants of Nigeria Public Finance Reforms initiatives beingeither non existent or broken until Idris began (ICAN) in Lagos last year, the AGF said TSA as implemented by the OAGF. The military andto intervene following his appointment in a cash planning and management tool has paramilitary agencies are also perfecting the2015. The transformation that has taken place helped the country to reduce theft of public process of enrollment into IPPIS.in the academy was acknowledged by the funds. Idris who noted that the country lostActing Director, Egbokhale Kadiri when Idris N70 billion to failed banks in 2011 when the At a recent meeting with medical doctorsrecently led the members of Governing Board country was not operating a TSA system, in the employment of Federal Government,of the institution on a familiarization tour. recalled that in the past, MDAs operated more the AGF assured that his office is working to “The school had witnessed the than 10,000 accounts that were mostly ensure that all government's workers arereconstruction of its classroom blocks, dormant with balances of taxpayers' money captured in the IPPIS. Idris noted that thoughmodern hostel blocks for both male and female not utilized for the development of the government's plan is to ensure that allstudents. Also, the upgrading of power country. categories of staff are enrolled, the process isfacilities with the donation of a giant generator being done in phases to ensure thatand transformer,'' Kadiri said, echoing earlier Idris, who was represented at the event by transparency, accuracy and due process arecommendation of the AGF for the bold followed.initiatives taken so far in addressing theinfrastructural challenges of the academy by In line with his determination to helpmembers of the board of the institution. The engender transparent management of publicAGF promised that the academy would not just revenue, the AGF recently pledged that he willcontinue to receive boost in infrastructural reform the Internal Audit process in thedevelopment, it would be repositioned as a MDAs, by fully implementing the Internalcentre of academic excellence in public finance Audit modernization process which was mutededucation in Nigeria. in 2010. The AGF has also demonstrated similarzeal in the implementation of various initiatives He noted that out of all the Publicaimed at ensuring greater transparency, Finance Reforms introduced in Nigeria inelimination of wastage and mismanagement of 2010, the Internal Audit modernizationnational revenue in accordance with the anti process was the only one not followed through,corruption drive of President Buhari's a situation he attributed to lack of will toadministration. implement it. The AGF who noted that Key among such initiatives and perhaps, Internal Audit function is important inmost popular, was the Treasury Single Account ensuring transparent and accountable management of public finance in the MDAs44 NN I February 2017 said reform of the process will be one of his legacies. According to him, Finance Minister, Mrs. Kemi Adeosun, has given approval to commence the implementation of the Internal Audit modernization process. By Abdulsalam Mahmud

COMENTARIAT Federalism: Is In The Eyes of The Beholder By Abubakar Umar ERHAPS in contemporary governments, etc) that govern issues of Kari, PhD Nigeria, few social constructs local concern. are so flagrantly used, Nigeria has misused and abused, as well It is distinguished from confederalism, in evolved from a as paraded and invoked under which central government is subordinate union of three all sorts of interests and to the smaller subdivisions, or unitary regions to a guises as Federalism. system, where the subdivisions are federation of subordinate to the centre. Around the 36 states and Discussion on federalism – or on the type, world federal states include Argentina, the Federal nature and shape the country`s political Australia, Austria, Brazil, Belgium, India, Capital structure should take – inevitably evokes Mexico, Russia, and even the European Territory – passion, elicits a canvass of rainbow Union. Those commonly referred to, mainly as a reactions, or gets mired in controversies. however, are the United States, Canada, consequence of Germany and Switzerland. intermittent Debates on federalism pitch elite groups Military against one another, often without The federal power-sharing arrangement tinkering with consensus reached, and both informed and is preferred by plural societies in a bid to the structure. not-so-informed analysts and weld together their diversity under one commentators make interventions that polity, while at the same time preserving45 NN I February 2017 most times flounder on the rock of their primary identity. It is a means of ambiguity and uncertainty. unifying diverse peoples, without altering or disrupting their real features and ties to Hence in the end the issue gets muddled up the sub-national group, while hopefully and adds to the confusion on what serving as a solution for conflicts and federalism is actually all about. Little tensions arising from differences among wonder that our most recent political cultural or ethnic communities. experience has been dominated by mainly self-serving discourses on versions such as Although hardly admitted – or “Ethnic'', “Linguistic'', “True'', and “Fiscal' conveniently ignored - by many here, federalism, and allied concepts such as each federal entity is unique in its own “Restructuring'', “Resource Control'', ways, thus giving lie to the notion of “Devolution'', e t c. “true” federalism. For example, India (like Nigeria and Brazil) is 3-tiered, with But then, federalism is simply a system of panchayats as the third tier, while most government in which a given territory is others operate two levels of authority. controlled by two or more levels of Also, as in Nigeria, the Indian government. There is a national (or central constitution provides three Lists, which or federal) government that governs issues delimits the subjects of each level of that affect the entire country, and smaller government; but while in India subdivisions (regions, states, cantons, Agriculture and Police fall exclusively municipalities, provinces, local

COMENTARIATunder the jurisdiction of states, Education is in the delegates from the different regions duringConcurrent List much like Nigeria. Evidence that negotiations for self-rule from British colonialism,Federalism evinces more particularity and and at the several constitutional, “political reform”exceptionalism rather than universalism is that while and “national” conferences after Independence.American and Swiss federalism is “symmetric,” India While some favour a return to the regions of old,runs an “asymmetric” federal system, where states others prefer strong peripheral constituent units – aare granted different powers, or some possess sort of loose federation. And while some wouldgreater autonomy than others. In Germany, as rather have six geo-political zones replace states,opposed to most other federal entities, members of others prefer retention of the existing arrangement,the upper house, the Bundesrat, are neither elected albeit with a devolution of power, responsibilitiesnor appointed but comprise delegates of and resources away from the centre. In almost 57governments of their constituents. Also, unlike in years, Nigeria has evolved from a union of threethe U S, Switzerland and Australia, states are regions to a federation of 36 states and the Federalunequally represented in the Capital Territory – mainly as aBundesrat – needless to state that There is no single, consequence of intermittentin Nigeria it is three senators per Military tinkering with thestate. Indeed, should we go ahead almighty formula structure.and abolish the senate – as or uniform system But by far the most contentiouscanvassed by some who believe of resource issue in the Nigerian federalismthat the bicameral legislature we allocation that controversy is resource allocationrun is too expensive – we would applies in – what gets to which constituentonly be toeing the line of America, unit, when and how fromVenezuela, another federal state - Germany, Canada especially financial resourcesalthough purists may insist that and elsewhere. In accrued to the nation`s coffers –unicameralism is strange to other words, or what is called fiscal federalism.federalism. Interestingly, our fiscal federalism There is clearly no consensus byfederal character principle (unique, is relative in the elite and non-elite alike on theinnovative and without parallel context and mode of sharing. And truth isanywhere), belongs in the realm of application. usually the first casualty as passion,the exception rather than the rule, propaganda, threats and evenaffirming the fact that federalism outright deployment of violencethrives more in peculiarities than usually take centre-stage. Theany other consideration. reality however, is that differentOn the whole, there is a noticeable federal states have differentvariation between European and American formulas and ways of allocating resources andfederalism, with the latter appearing to favour a responsibilities to their constituent units. There is nostronger central government. This dovetails into the single, almighty, formula or uniform system ofidea that federalism is an evolving phenomenon – in resource allocation that applies in America,any case, the U S evolved from dual federalism Germany, Canada and elsewhere. In other words,(where federal and state governments are co-equals, fiscal federalism is relative in context andeach sovereign) to one of assertive federalism, application. Federal states solve this knotty problemfavouring a strong federal government. through the time-honoured democratic norms :Our political history at several junctures has been consultation, negotiation, consensus and periodicpunctuated by agitation and often contrasting and review. Nothing else.diametrically opposing ideas and prescriptions on In a nutshell, a country`s federalism is what thethe mode, colour and basis for the country`s federal people make it to be. Period!structure. This was obvious from the submissions of46 NN I February 2017

NEWSN8b Rip-off At NDDC‐ NEITI ESPITE being NEITI lamented that over the years commission's retreat pointed out that a vociferous about public perception of NDDC was more total of $1.98 Billion were remitted to their of an agency with huge revenue the NDDC between 2007 and 2014. determination to resources but with little impact on the This was in addition to the sum of N594 make the lives of the people of the Niger Delta. billion paid to the commission in local difference, officials currency during the same period. of the The Executive Secretary who was represented by NEITI's Director, The breakdown of the remittancesNiger Delta Development Commission Communications, Dr. Orji Ogbonnaya shows that NDDC received N594(NDDC), an interventionist agency, are Orji urged the new team at the NDDC Billion from 2007 to 2011 while $559very busy in plundering the to carry out a corruption risk Million was paid to the Commission incommission. assessment that will enable the agency 2012. develop a framework to strengthen itsThe Nigeria Extractive Industries operations. NEITI Report findings also show thatTransparency Initiative (NEITI) is in 2013, the NDDC received $563already accusing past officials of the The NEITI Reports presented to the Million while in 2014, the sum of $865development agency of embezzling the Million were remitted to thesum of N7.4 billion. The breakdown of Commission. the remittancesNEITI Executive Secretary, Waziri shows that NDDC The NEITI urged the new board andAdio, disclosed this worrisome received N594 Billion management of the NDDC to carry outallegation at a Management Retreat of from 2007 to 2011 an independent project implementationthe commission held in Port Harcourt, while $559 Million audit, commit to good corporatethe Rivers State capital. The retreat was was paid to the governance and the principles of theattended by members of National Commission in 2012. global extractive industries transparencyAssembly, Ministers, the media, civil NEITI Report findings initiative.society and development partners. also show that in 2013, the NDDC NDDC Managing Director, Mr. NsimaThe watchdog organisation said that received $563 Ekere, welcomed the emergingfrom the Fiscal Allocation and Statutory Million while in partnership between NEITI and theDisbursement Audit Report covering 2014, the sum of NDDC and pledged to use the NEITI2007-2011, the sum of N7.4 Billion $865 Million were Reports as major tools to enthroneallocated to member states of the remitted to the accountability and corporateCommission for grass root Commission. governance.development projects could not beaccounted for while twenty two of such He gave the assurance that the NDDCprojects valued at N1. 19 Billion were under the new Board and managementduplicated. will fully embrace the principles of the global Extractive IndustriesAdio noted that the NDDC and NEITI Transparency Initiative (EITI) towere set up with similar mandates reverse the resource curse syndrome intargeted at addressing the syndrome of the Niger Delta, through efficientresource curse, a situation where resource utilization, corporatecountries like Nigeria blessed with governance and project delivery.abundant natural resources find theirlarger population living in abject povertyas a result of over – dependence on thenatural resource and mismanagementof revenues accruing from the resource.47 NN I February 2017

FOREIGNAl-Shabaab fighters ITH little over six KenyaAl-Shabaabing months to go until the general elections in juncture where Kenya borders both Somali initial attack, though a police reservist who Kenya, the terror threat and Ethiopia. Since June 2016, there have responded was shot dead. from Al-Shabaab and its been at least seven incidents in or around the affiliates remains town, both from firefights between KDF The 27 January attack on the KDF'sserious. On January 23, the town of Mandera troops and Al-Shabaab fighters in the rural Kulbiyow base in Somalia was far morebecame the victim of another coordinated surroundings, and coordinated attacks on significant. The base lies just 50 kms northattack, killing one police reservist. Just four the town. of Lamu, on the Somalian side of the border.days later, an unknown number of Kenya The base is part of the African UnionDefence Forces (KDF) soldiers were killed The 23 January attack was well Mission to Somalia (AMISOM) which isat their base in southern Somalia (near the coordinated and targeted outsiders, by supporting Somalia's stabilisation.Kenyan border), during an attack attacking a guest house in the town. To slow Confusingly, KDF, Al-Shabaab, and theorchestrated by Al-Shabaab. The same day, the response, the attackers left three Somali National Army (SNA) all givewhat was purported to be an internal police Improvised Explosive Devices (IEDs) on differing accounts.memo started circulating on social media, the street before attacking the guest houseclaiming that Al-Shabaab was planning an and a local bank. Nobody was injured in the By Menas Associatesattack on a Nairobi educational institution.The memo was most probably false. Al-Shabaab's activities in Somalia,north and eastern Kenya, remain asignificant security threat to the region, butalso to Nairobi. The risk of attack on highprofile projects — such as the Early Oil PilotScheme — cannot be discounted. Mandera, located in the north east, is a48 NN I February 2017

NEWSFood aid for crisis victims in the North‐East urgent need to get aid to the affected areas.Nigeria: ''We must bring an end to this crisis, and reverse the downward spiral we are seeing inCrisis Shakes the region. The conference has three aims:Germany, Norway to raise awareness about the crisis, to gain more support for humanitarian efforts, and ERMANY, Norway, and mobilise greater international involvement to secure greater political commitment to Nigeria are currently and increased funding for humanitarian improve the situation'', said Mr Brende. making frantic efforts to efforts to prevent the situation from prevent the crisis situation deteriorating further''. In addition to focusing on emergency relief in the North-East axis of efforts, the Oslo conference will have three Nigeria, where a terrorist Over 10.7 million people are in urgent need priority areas: food security; humanitarian group, Boko Haram, has of humanitarian assistance in the Lake Chad protection and access to aid; and education been making life miserable, region, which borders Nigeria, Cameroon, in situations of crisis and conflict.from degenerating further. Niger and Chad. Almost a quarter of these people have been forced to flee their homes ''Norway is organising the conference jointlyThey will be hosting an international donor as a result of conflict or food shortages. with Nigeria and Germany, and in closeconference in Oslo this coming February cooperation with the UN. Foreign ministers24. The Boko Haram campaign of terror in the from the region, representatives of the North-East, combined with a period of African Union and the EU, representativesNorway's Foreign Affairs Minister, Børge economic decline have led to great hardship of donor countries, and the heads of UNBrende, said ''a major humanitarian crisis is and suffering. organisations have all been invited.unfolding in Nigeria and the Lake Chadregion. This crisis has been largely The UN, the Red Cross and other ''The day before the conference, there willoverlooked. We are therefore seeking to humanitarian organisations have launched be a meeting for civil society, which will major emergency appeals, and there is an bring together representatives of local organisations in the four affected countries, and Norwegian and international aid organisations. ''The recommendations from this meeting will be presented at the donor conference.major humanitarian crisis is unfolding in Nigeria and the Lake Chad region. This crisis has been largely overlooked'', said Brende.49 NN I February 2017

COLUMN Chickens Come Home leader as opposed to their interests, and plotted to overthrow and assassinate him. President Eisenhower and the DullesBy Patrick Wilmot bitches, but our sons of bitches. brothers at the State Department and CIA decided that they, Defying the will of the people they've installed greedy not the people of Congo, had the right to choose theirWhen the sons of bitches without intelligence, principles or self- 'democratic' leader, and sent a CIA chemist to poison hisAmericans revolted control. The only quality the Americans demanded was toothpaste.against the British that their clients served the interests of American Since Lumumba, like most Africans, used a chew stick, theyin 1776 in the business, not the needs of their people. And they did not were forced to organize a rebellion led by Mobutu, thename of equality, limit themselves to cyberwar but used gunboats, tanks, capture and torture of the Prime Minister, and his handoverthey did not cannons, explosives and machineguns. to the Belgians who shot him, dismembered his corpse, andcondemn the It is therefore ironic that 'democratic' Americans now dissolved it in sulfuric acid. Mobutu's rule, guaranteed by theEuropeans in whine themselves hoarse accusing the Russians of USA and apartheid was a long saga of unequalled massacresSouthern Africa, hacking computers and disseminating information to and corruption.because their twist the electoral process in favour of a candidate By the time he died in exile, wearing nappies due torepublic too was unqualified to run their country. The peoples of Latin incontinence, his country had regressed from the appallinglybuilt on African America, Africa, Iran, the Philippines and a hundred low level the Belgians had bequeathed him, millions of hisslavery. other countries must be grinding their teeth in despair. people had been killed, pitiable infrastructure had collapsed In 1655 Europeans imposed themselves on the peoples and the only economic activity consisted of mineral exports, RESIDENT of South Africa, exploiting their human and material payments for which were lodged in his personal accounts in Donald J. resources to create a paradise on earth for European South Africa. Trump of settlers. Their justification was that Africans were not Donald Trump would have approved of his lifestyle, his the United human, not very intelligent, and therefore had no right to village of Gbadolite equipped with every luxury, like the gold States is not share in the bounties produced by their labour. Africans plated bathroom fixtures of Trump tower, his twin very were not equal to super Europeans. Concordes and Boeing 747s for shopping trips to Europe intelligent, When the Americans revolted against the British in 1776 and America, his $10,000 dollar bottles of Chateau Petrus, has no in the name of equality, they did not condemn the bespoke suits by Francesco Smalto, and his barber flownimpulse control, is obsessed Europeans in Southern Africa, because their republic too twice monthly from New York.with ostentatious display, is a was built on African slavery. After hundreds of years of As the Americans whine about the 'mad mullahs' in Iran, theysexual predator, a apartheid, Americans never once questioned the conveniently forget about the role they played in installingmegalomaniac and nepotistic. inequality of the system. When the ANC fought for the regime. Like Lumumba, Mohammad Mossadegh wasHe has no experience in independence the CIA betrayed Mandela to the regime. elected by the Iranian people to develop their country andgovernment, no moral sense, With economic and military support the Americans and make it an honored member of the global community. Butdiscipline or modesty. Money, their allies helped the racists repress the African majority the Americans, still led by Eisenhower and the Dullespower and sex drive his and their fight for equality. In alliance with Portugal, their brothers, objected.insatiable appetites. He could NATO ally, they surrounded apartheid with buffer states They fomented rebellion, removed Mossadegh, and installedbe a dictator in Africa, Asia or committed to racism, imperialism and every form of the Shah whose megalomania made Mobutu's depredationsLatin America. repression. When Angola freed itself, they supported look positively middle class. Again, Trump would haveIn fact for the past hundred South Africa to reverse freedom. approved. So comprehensively disastrous was the Americanyears or so dictators with Without the political and military support of Nigeria and backed rule of the Shah that Ayatollah Khomeini and histhese qualities have been Cuba, the apartheid regime would have fulfilled its boast zealots were welcomed as heroes by the people. The rest isAmerica's favourite to capture Nigeria and even Egypt. Given its commitment history.candidates for imposition on to racism the United States would have assisted in the The final irony is that Putin, now accused of interfering withthe peoples of Africa, Asia racist suppression of the freedom struggle in Congo, the democratic process, would never have been in powerand Latin America: Batista, Angola, Namibia and South Africa, and Mandela would without American machinations. With the fall ofMarcos, Samosa, the Shah of have died in prison. communism, the new rulers wanted to avoid their countryIran, Mobutu, leaders of The American whining about Russian hacking should be falling from the communist frying pan into the capitalist fire.Apartheid South Africa, considered in light of the role they played in the capture, So, they divided shares in state owned enterprises and gaveTrujillo, ul Haq…In the torture and murder of Patrice Lumumba, the them to the people.words of a distinguished democratically elected Prime Minister of Congo. After It was the American and Israeli governments which suppliedPresident – they're sons of hundreds of years of horrendous colonialism, in which the capital to chosen people to allow them to buy these Belgian racists failed to educate the Africans, Lumumba commonly held shares and create the oligarchs whose mobilized the people and won 67% of the votes. lifestyles sometimes exceed those of Donald Trump and his Lumumba was elected by the people of Congo, with no entourage in the extent of their excess. Putin's power is the regard to ethnic or religious considerations. With support result of popular reaction to this American manufactured of the tiny educated class, the workers and peasants, oligarchy. Lumumba was prepared to defy Belgian and other But like most evildoers, purveyors of 'democracy' are blind to Western imperialist interests and develop the human and the origin of their iniquity, and they cannot see the 'Made in material resources of his phenomenally wealthy country. America' label. They cannot see the irony in their declaration Congo would have prospered. of independence – 'all men are created equal, endowed by But the Americans considered this popularly elected their creator with certain inalienable rights, amongst which are life, liberty and the pursuit of happiness.' Such noble illusions.50 NN I February 2017