The New Diplomat

editorial commentsBuhari/Obama’s US Meeting: The Real IssuesConsidering the importance of the United States in global affairs today, rica, coming as close as Ghana and Senegal, ruption that were not being frontally addressed, of its personnel in such a way that indicated news of the July 20-22 state visit but conveniently side-stepping Africa’s most the summary dismissal of CBN chief, Sanusi that it was really not out, even when it was and scheduled meetings between populous nation, Nigeria. It was not incidental. Lamido Sanusi, and the lack of decisive govern- clearly not passionately involved.Nigerian President Muhammadu Buhari Uncle Sam was talking. And we were listen- mental reaction to the recruitment saga withinand American President, Barrack Obama in ing. the Nigerian Immigration Service that led to the The emergence of Muhammadu BuhariWashington, is indeed most welcome. death of several young people and aggravated as President has however led to a cooling of Some of the points of disagreement at that injuries for several others. the extant animosities from the United States Given the relative strain in relations that time had to do with questions of democracy and indeed a lot of the western world. This iswas about the norm during the immedi- and governance, but there were others relating Matters indeed were to come to a head when evidenced in the hearty outpouring of supportate past Goodluck Jonathan era, it is indeed to Washington’s perception that Nigeria had a on account of alleged atrocities being commit- for the administration in its drive to combatmost salutary that the visit is coming at this poor and fumbling leadership in place even as ted in the ongoing war against the Boko Haram the insurgents as can be seen in the recenttime. To be sure, relations between Nigeria the continuing escalation of a climate of impu- insurgency and concern over the Islamist sect’s post-election invitation that was extendedand the United States of America were not nity was gradually becoming most worrisome infiltration of the security services, the Obama to Buhari to participate in a meeting of thevery cordial nor were they impressive in the and quiet difficult for a globally acknowledged administration gave a decidedly cold shoulder to influential G-7 states in the Federal Repub-last dispensation. Twice for example, Presi- bastion of democracy and the rule of law as the Nigeria’s requests to purchase arms and ammu- lic of Germany. And now there is this trip todent Obama made whistle stop visits to Af- United States, to ignore. Some of the instances nition from the United States. Rather, it autho- America itself. at this time had to do with allegations of cor- rized relatively low-level advisory involvement continued on page 6diplomatthe new www.thediplomatonline.comJune 2015 vol. 2 no 4 ...N igeria ’s Glo bal V oice! ISSN 2560-8254 Presidency: Nigeria Yet to Receive $15m Arms Deal Money from S’Africa • Page 6Buhari Raises Concern, • EMPOWRINGQuestions About NDDC AFRICAN ENTREPRENEURS L-R: Vice President, Prof. Yemi Osinbajo; Founder, Tony Elumelu Foundation, Mr. Tony Elumelu and Kaduna State Governor, Mallam Nasir El-Rufai at the $100 Million Tony Elumelu Entrepreneurship Programme (TEEP) boot camp for 1000 entrepreneurs from 51 countries across Africa, Ota, Ogun State recently... inside• Set to summon commission’s mgt to Abuja • Workers protest against graft • utomi 4ABy Augustine Osayande (Abuja Bureau Chief) PthreesseidqenutesBtiuohnasri who raised NDDC to help for co-ordina- quiries are coming on the The World is Eager to when offi- tion and avoid duplication of heels of series of petitions Help Buhari Succeed,pparantly worried has raised questions about cials of the Ministry of Ni- roles and responsibilities, bordering on allegations of Says Utomi a situation which has ham- graft and massive corruptionabout the growing the role of the Niger Delta ger Delta Affairs led by its pered proper planning and against the Board and Man-level of under- de- Development Commission Permanent Secretary, Mrs co-ordinated developments agement of the Commission.velopment in the (NDDC) in the region vis- Fatima Bamidele briefed the in the Niger Delta amongst The New Diplomat gatheredNiger Delta Region and the a-vis the Ministry of Niger President on activities of the all existing government de- that this latest developmentneed to fast-track develop- Delta Affairs . Ministry specifically wanted velopment agencies. is already causing panic andments in the region, Presi- The New Diplomat au- to know the existing nexus 6dent Muhammadu Buhari thoritatively gathered that between the Ministry and the President Buhari’s in- continued on page 3 • otobo G l o b a l N e w s An a l y s i s . . . Nigeria After theNational Security Adviser: Appraising the US, Nigeria Models 2015 Elections (2)IBy Ifeanyi Nwosa, Lagos • Munguno • rice • Dasuki • kissinger 10• entwistle n recent times, there has been a growing Entwistle: Expanding interest in the under- the frontiers of ties standing of the concept between Nigeria, USof national security and roleof the Office of the NationalSecurity Adviser in Nigeriain that context. PresidentMuhammadu Buhari’sappointment of Major-Gen continued on page 3

2 the new diplomat vol. 2 no 4 • june 2015 GlobalNews• rice • bundy • Gusau • Brzezinski • azazi national security adviser: appraising the us, nigeria models continued from page 1 security and encompasses foreign Rice under President Bush junior, and Henry Kissinger who was NSA under sity as a political science professor andMonguno(PhD), a retired military affairs, international economic now Susan Rice in the second term Presidents Richard Nixon and Gerald the Thomas and Barbara Stephensonofficer as the new National Security policy and increasingly technological of President Obama). For a start, Ford. An American Diplomat and Senior Fellow on Public Policy at theAdviser, has renewed the question policy. McGeorge Bundy, who had a very Political Scientist of note, he was a Hoover Institution.[2][3] Since 2010,of what really constitutes National distinguished career as an American Professor of Government and Foreign she has been a faculty member at theSecurity? What is the role of the In the U.S. the appointment of Foreign Policy academic and served Relations at Harvard, where he took Stanford Graduate School of BusinessNSA? What should be the appropri- persons with military background as National Security Adviser under his PhD, when he was appointed into and a director of its Global Center forate background and credentials of a has been the exception rather than President John F. Kennedy was a Nixon’s administration as NSA. Business and the Economy.[4competent man or woman that would the rule: the military persons that Professor of Government and thereally discharge the functions of the have occupied the NSA position youngest Dean of the Faculty of Arts Zbigniew Brzezinski, a distin- The Current NSA, Susan Rice wasfunctions of that office creditably? were General Collin Powell under and Sciences as at 1953 at Harvard guished academics who was NSA until her appointment, US Ambas-What are the best examples we can President Ronald Reagan, Brent University. Also, Rostow who under President Jimmy Carter, set sador to the United Nations (UN). Shedraw from? Scowcroft underPresident Gerald served as National Security Adviser a national standard and made a great is a well known former diplomat and Ford and later President Bush senior, under Lyndon Johnsons had served impact in US National security policy former Brookings Institutions fellow. The National Security Adviser and James Jones who served for a as a professor and distinguished direction. He has since returned to(formally called Assistant to Presi- year in the first term of President academics at Cambridge University Johns Hopkins University where he is In Nigeria, the position of NSA hasdent on national security affairs) in Barack Obama. as the Pitt Professor of American His- currently Robert E, Osgood Professor almost become the exclusive preservethe United States of America, whose tory and Institutions and economic of American Foreign Policy at the of ex-military officers, with onepresidential system the Nigerian In the main, appointees to the History at the famous Massachusetts School of Advanced International former military officer having held thepresidential system is modelled after, NSA position in the U.S. have been Institute of Technology. His earth- Studies (SAIS) Centre for Strategic position three times. Appointing ex-coordinates defense, foreign affairs, very distinguished academics and shaking book,, The Stages of Eco- and International Studies.Condolezza military officers is thus the rule ratherinternational economic policy, and diplomats ( George McBundy under nomic Growth, which he published Rice, who was NSA under Bush Ju- than the exception.intelligence. This job description President Kennedy, Walter Rostow in 1960, has been quite contentious. nior, is a Professor of Political sciencereflects the recognition that national under President Johnson, Kissinger The same background goes for and a Diplomat. After her service, she Various arguments have beensecurity extends beyond military under President Nixon, Brzezinski has since returned to Stanford Univer- adduced for continuing to appoint under President Carter, Condolezza persons of military background as continued on page 3FromTheEditorialSuite THE NEW DIPLOMAT know your embassies (5)Nigeria on the march again! Editor: Olaolu Oladipo AlgeriaAfter a season in the dip- Director, Global Operations: Mike Uwechie Embassy of Algeria lomatic wilderness so to Business Development Mgr: Nwosa Ifeanyi Hamilton Address: 1398 Honorable Justice, speak, Nigeria returns Mamman Nasir Street Asokoro, Abuja with a bang this week and Abuja Bureau Chief: Austin Osayande Phone: +234 9 3142840, 3142841; Fax:at the highest peaks too. America Layout/Graphics: Peter Danjimoh +234 9 3142842is a leading nation in the world Production Officer: Titilayo Olusoga Angolatoday. As the world’s strongest Embassy of The People’smilitary and economic power and Creative Executive: Bimbo Odusanya Republic of Angola,holder of one of the very few and • Olaolu Oladipo Address: Plot 321, Diplomatic Drive, EDITORS-AT-LARGE Central Business Area, Abuja FCT, Nigeriaimmensely most prized United Na- EUROPE: Marvin Ithoken Phone: +234 9 4614731 Fax: +234 9tions Security Council seats, the nation is argu- 4611636.ably described as the foremost state on earth to- USA: Alex Kabba Email: [email protected]. NORTH AMERICA: Jamin Owhovoriole ArgentinaIt is within this context then that President Mu- Contributing Photographers: Udoka David, Henry Unini Embassy of The Argentine Republic,hammadu Buhari’s trip to the US on a state visit Address: Plot 1611 Yusuf Maitama Sulethis week is being regarded by The team at The EDITORIAL ADVISORY BOARD Street, Asokoro, AbujaNew Diplomat as a quite strong diplomatic state- Oma Djebah - Chairman; Prof. Ehiedu Iweriebor Phone: +234 1 9 3148680-81, 3148684;ment; and opportunity. Fax: +234 9 3148683But Nigerians worry. With the Islamist Boko (New York); Amb. Eloho Otobo) (New York); Email: [email protected] insurgents increasingly revving up their Bode Olufemi (Nigeria) Australiakilling pace and the economy stuttering on al- Australian High Commissionmost all fours, citizens of this enormously en- Prof. Onookome Okome (Canada); ABUJA: Oakland Center,dowed nation are surely looking for more than Prof. Ogaga Ifowodo (Texas) 48 Aguiyi Ironsi Street,reports of pledges made at high-level visits no Maitama District, Abujamatter how laudatory they may be. Prof. Duke Ophori (New Jersey); Eddy Odivwri (Nigeria); Phone: +234 9 4612780;want to see what the cerebral scholar-business- Dr. Nkiru Balonwu (California) Fax: +234 9 4612782man, Pat Utomi, refers to in our companion in- LAGOS: 76 Norman Williams Street,terview carried in this edition, as ‘real improve- Online Website Content Managed by SW Ikoyi, Lagos.ments in their lives and well-being.’ And here is Sharetray Data Networks Ltd. Phone: +234 1 2701919 ,8794142hoping that the summiteers are taking utmost Website: http://www.nigeria.heed. Project Consultants: The New Diplomat Multimedia Ltd. highcommission.gov.au/ Publication: The New Diplomat Multi-Media Ltd. AustriaOlaolu Oladipo Design/Repro: AgborisoGroup. Embassy of Austria,Editor Legal Adviser: Effy Solicitors ABUJA: Plot 9, Usuma Street, Media Houses: (Online) quicknews-africa, Maitama, Abuja SAHARA REPORTERS, premium times, Phone: +234 9 413 0772, 413 0773; POINTBLANKNEWS, FRONTIERS NEWS.com, Fax: +234 9 461 2715 KADUNA: 3a Kinkino Road, Kaduna THE WILL, THE NEW YORKMEDIA PARLEY CENTRE, Phone: +234 62 247 705; THE GLOBAL MEDIA FORUM, Fax: +234 62 243 921 THE INTERNET NEWSPAPER. (Print) THE NATION , THE GUARDIAN, THISDAY, LEADERSHIP, VANGUARD, PUNCH, DAILY INDEPENDENT. 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vol. 2 no 4 • june 2015 the new diplomat 3 GlobalNews• President Muhammadu Buhari meets with US Deputy Secretary of • L-R: Ambassador Pulat; President Buhari and Permanent Secretary,State, Anthony Blinken and Ambassador James Entwistle Ministry of Foreign Affairs , Mr. Paul Ololo during the farewell visit to the Presidential Villa, Abuja editorial comments continued from page 1 there have also been reduced demand as responsible friends and allies. preliminary need to properly deter- Nigeria would need to work with and As is to be expected, the present for, and purchase of crude oil by Already, Nigeria and the US have mine why the Bi-National commis- get the support of a crucial superpowervisit should afford both leaders, and America and other western nations sion may not have been functioning like the United States.indeed their accompanying national from Nigeria. a Bi-National Commission. Explor- optimally in the past few years. Theredelegations; time, space and latitude ing areas of cooperation in Nigeria’s is also ample need to resolve any This would be most invaluable into jaw-jaw on matters of critical im- While we are clearly not asking the evolving post-oil economy should handicaps that have been experienced ensuring basic progress and achieve-portance to them and indeed the rest Americans not to pursue policies that therefore feature strongly in the talks in this regard. These would be critical ment in the prosecution of the regularof the world. are in their national and group interest, at hand. towards ensuring that the new push diplomatic brinksmanship that rou- Along this line then, it is then we equally counsel that they remem- that is expected to come from the tinely comes with this territory. Presi-expected that the Nigerian delega- ber that the interdependent nature of It is a great peg upon which to talks has a firm footing upon which dent Buhari should therefore also de-tion would be composed of a most international relations also yet im- hinge the talks and an area that is ex- to stand. mand and get it from the Americans.ebullient and viscerally articulate poses a responsibility on the ‘depart- pected to significantly impact on the This would be the icing on the cake forset of leaders that will do justice to ing’Americans to yet ensure that they capacity of Nigeria to address some Finally is the issue of Nigeria’s a trip and a visit that needs to deliverthe agenda of the bilateral summit. continue to encourage a continued of its most severe economic difficul- forthcoming ascendancy of the Presi- more than the hitherto cursory mediaWhile there remains a basic chal- flourishing of the Nigerian state and ties that the currently is presently af- dency of the UN General Assembly. sound-bites for the Nigerian people.lenge in the fact of the administra- economy. It is the least they must do flicted with. To succeed in this exalted position,tion not having publicly nominatedand outdoored its core policy driving However, there would also be ateams, the expectation of The NewDiplomat is that this will be remedied national security adviser: appraising the us, nigeria modelsthrough the Presidency’s assemblageof a diverse and representative set of continued from page 2 with military background has been It is clear that that the definition International Relations or Diplomacynational leaders, from critical walks NSA: one is that they are better at less than spectularast best and most of national security promoted by our having earned graduate degrees inof life that will go out there to ade- forestalling insurgencies, they have dismal at worst. The National successive NSAs has been so mili- International Relations.Given thequately represent the greater interests a better sense of military, and they security Adviser must advise the tary-centered that the international new NSA’s background, we believeof the Nigerian state and her peoples. potentially offer better advice on president on the proper instrument(s) economic, technological and foreign he will do well if he follows through Again, while security, and indeed national security. to address a given crisis or problem. affairs dimensions have been lack- the proper and all-embracing conceptissues relating to the crippling Boko Not all crisis are amenable to use ing. It had been hoped that the new of National Security.Haram insurgency, are clearly ex- It is hard to say know how impres- of miliraty force. The militancy in president with an impressive militarypected to feature once again in these sive the record of the successiveNSAs Niger Delta was handled with brute background will move Nigeria closer We wish him well in his job.Notalks, there should of course also with military background have been force even though the agitation cried to the U.S. model of broader defini- country that wants to succeed or bebe, in our view, very exegetical dis- in forestalling threats to national secu- out for economic and environmen- tion of national security and staff the taken seriously persists in flawedcussions around the subject of the rity or insurgencies like Boko Haram. tal solutions. The Amnesty pro- position of NSA accordingly. experiments in nation-and state-relatively poor performance of the But if NSAs are appointed to forestall gramme implemented by a civilian building.We wish him well in hisNigerian economy at the moment. military restiveness; it would be a president(late President Umaru Hope remains that the new NSA job. But, if he fails, it will be time toIncidentally, some of this under-per- sign that the fate of Nigeria’s democ- Musa Yar’Adua) without military -- because he is a polyglot,highly abandon the practice of appointingformance is linked to American and racy is in the hand of soldiers and not background saved the reputation educated with advanced degree in former soldiers to that position. Nowestern effort to cut down on their the electorate. That is a scary thought of the military. The insurgency of international relations, former Com- country that wants to succeed or benatural oil dependency through the and evidence that are democracy is Boko Haram has hardly abated, even mander of Training and Doctrine, and taken seriously persists in flawedalternative exploration of shale gas not maturing. The last elections have though one of the former NSAs with former chief of Defence Intelligence experiments in nation-and state-deposits, the shift into this area of however clearly shown that Nigeria’s military background boasted that -- will understand his role better than building.emphasis has presently resulted not democracy is indeed maturity-- the Boko Haram insurgency will end his predecessors. We believe thatonly in a drop in global oil prices, leaders and the led. within months of his appointment. President Buhari may have opted That NSA has come and gone and for General Babagana Monguno continued on page 3 But on the central issue of Boko Haram atrocities have intensi- on account of his solid backgroundapprehension amongst top echolen maintaining national security, defined fied. as both a retired military officerof the NDDC management. The narrowly and incorrectly as military and a well educated professional inNew Diplomat gathered that the security; the performance of NSAsCommission has in recent timesbeen dogged by internal strives buhari raises concern, questions about nddcand Board room crisis, following call followed growing agitationsalleged attempts by the Managing sion. Special Adviser to the Presi- by a group known as Nigerians in Akpabio to be MD/CEO of the we speak, Mr President , new Con-Director of the NDDC, Mr Dan dent on Media and Publicity, Mr Diaspora for Justice (NDJ) who Commission. tracts amounting to N300bn haveAbia to query some directors for Femi Adesina, confirmed that the had called on TI l and Interpol re- been awarded and are being hackedalleged involvement in controver- President had sought to know the spectively to beam its intelligence The NDJ alleged that the Man- by agents of directors and memberssial contracts deals, including out- relationship between the Ministry search light on the activities of the agement has perfected the act of of the board. For some time now,right sales of contracts and splitting of Niger Delta and the NDDC dur- Niger Delta Development Commis- splitting contracts and awarding staff of the Commission have beenof same in exchange for upfront ing a meeting with officials of the sion (NDDC) in the last one year several frivolous contracts amount- wearing black cloths to work inpayments. Sources disclosed that Ministry of Niger Delta led by its over alleged fraudulent and non- ing to over N300bn in clear and protest against the impunity that issenior management team saw the Permanent Secretary, Mrs Fatima transparent financial deals amount- manifest violation of the Nigerian going on at the Commission.Theyqueries as part of the MD’s dra- Bamidele ing to about N300bn. Public procurement Act, Presiden- also split contracts, an act whichmatic moves ‘’to distance and save tial directives to the effect that the the Federal Government Bureau ofhis himself from on-going wrong- The NDDC has been in the news In a petition signed by Prof Mat- Commission must not award new Public Procurement recently con-doings in the Commission’’. in recent times for bad reasons . thew Okonta, Dr Best Imafidon and Contracts but should concentrate demned in strong and unequivo- Global watch-dog and Germany Humphrey Koripamu to Transpar- on completing existing ones as well cal terms. The split is so several. Investigations by The New based Transparency International ency International(TI) headquarters as the global fiscal responsibility Pls peruse the attached documentsDiplomat revealed that President had called on President Buhari to in Germany and the Interpol as well Whistle which Nigeria is a signa- detailing all the illegal contractsBuahri may be summoning the amongst others investigate the af- as President Buhari, the NDJ had tory to in Canada. and shady deals by the Board andManagement team of the NDDC to fairs of multi-billion naira inter- demanded an urgent and speedy in- management and you will appreci-Abuja soon to throw lights on the ventionist agencies like the NDDC vestigations into the activities of the ‘’The truth of the matter is ate what we are talking about sir.’’activities and role of the Commis- with a view to finding out why the interventionist Agency-NDDC-in that the Commission has already region has remained perpetually the last one year since the tenure of awarded far more than they can But a source within the manage- under-developed despite the huge the current management led by Bar- chew in new contracts and they are ment had blamed the crisis and funds allocated to the agency and rister Dan Abia, a former Attorney engaged in contract splitting, an of- spate of accusations on politics help to address issues and allega- General in Akwa Ibom State but fence punishable by jailing. It was which has its roots in the fight for tions of graft and corruption which was nominated to President Good- this same offence that sent Bode political control in Rivers State be- have continued to characterise op- luck Jonathan by Obong Godswill George to jail when he engaged in tween the APC and The PDP. erations of the Commission. TI’s contract splitting in NPA to evade FEC and presidential approvals. As

4 the new diplomat vol. 2 no 4 • june 2015 diplomaticplatform Born in Kaduna on February 6, • Utomi1956, the Ibusa, Delta State indigene,Professor Patrick Okedinachi Utomi The world is eager toalmost literally had greatness divinely succeed, says Utomiengrained in his persona from hisbeginnings. However, the process Can you kindly do an appraisal of into the search for alternatives like shale oil. the experience of 1982 and that we put someof practically achieving this com- the performance of the immediate There is also the fact that oil prices were very money away as savings. Early in the Obasanjomenced in Kano when he enrolled for past government, with specific ref- high over a significant period of time. This administration when prices began to go up,his primary education at St Thomas erence to the state of the nation’s should have alerted anybody involved in plan- there was an effort to keep back some moneySchool. He was there between 1960 economy? ning in Nigeria that other alternative means in a scheme that has come to be known as theand 1962 from where he proceeded of generating foreign exchange ought to have excess crude account. Unfortunately, the statesto Gusau in today’s Zamfara state. Between 2011 and 2015, Nigeria has had been developed. Somehow in our planning, were complaining that the law stated that allWhile there, he secured admission to to deal with a number of issues. Very critical this did not feature at all, and we just carried money being made by the country should beOur Lady of Fatima School in 1962 amongst the issues that the country has had to on as if we were in a party. Let me give you an shared. I remember saying very clearly at anand remained there until 1966 when deal with is the fact that crude oil prices suf- example to buttress this issue. event in Ibadan that it was crazy not to save.he moved to Onitsha and became a fered a downward plunge during the course of If money is kept as savings, it can be kept as astudent of the prestigious Christ the 2014. That downward turn showed the weak- I was a graduate student in the US in 1979. mutual bond, so that the portion that belongedKing College. He subsequently left for ness of economic planning in Nigeria and in- At that time, the Iranian revolution brought to the Federal Government or those that be-Ibadan in the former Western Region variably of the regime that was the incumbent about a spike in the price of oil and I remem- longed to the states could be kept so that at anyand while here, continued his educa- regime at that time. Oil prices had been at an ber clearly in 1980 coming home to see how time, the states could draw from their portions.tional journey at the popular Loyola all-time high over a significant period of time two major newspapers in the US wrote about If there is interest generated from the savingsCollege. He left in 1971. Utomi had in the life of the regime. One of the things that the looming crash of oil prices to about $40 or dividend incomes, it would be distributed tohis first degree certificate in mass was very obvious was that we were not plan- per barrel. Then, many believed it was impos- the owners as par with what the Constitutioncommunications from the University of ning well for the rainy day. For this was also sible. When I got to Nigeria, I saw madness says.Nigeria, Nsukka, (UNN) before moving a period when the price regime - which has on display; people were washing their handsoverseas to earn Master of Arts (MA), always been volatile - stayed high for a lon- with Champagne because we were laughing I made that observation very clearly. At aMaster in Public Administration (MPA), ger period than the usual spikes of the past, it off, and spending. By 1982, I had finished function during the regime of former Presi-and Doctor of Philosophy (Ph.D) essentially because of the ascendancy of In- my PHD and I had returned to Nigeria, oil dent Obasanjo, I was asked to make a remark,degrees. dia and China, which increased their demand prices had crashed. And a few months later, I raised the issue again, I complained about for petroleum products. At the same time that Nigerians were queuing up to buy essential what was wrong with how we were spending Upon his return to the country from demand was increasing from China and In- commodities. We had to create the Nigeria Na- our oil boom receipts. I argued specifically thatthe United States of America (USA) he dia, our major customer, the United States of tional Supply Company to provide the com- what we should be doing is to ensure that weheld several public and private appoint- America stated clearly that it wanted to reduce modities. With that kind of recent history still don’t damage the budget process by spendingments packing up robust experience its dependence on foreign oil. The US presi- fresh on our minds, you’ll think that the first more than 40 dollars per barrel of oil receiptsin diverse fields of human endeav- dent, Barack Obama has made it a major point thing anybody who is providing leadership in which should enter the Federation Account toours. He was Director of Research of his presidency to wean the US off its depen- our country would do when oil prices begin to be distributed to the three tiers of government.and Corporate Affairs, News Training dence on foreign oil. So, investments poured go up again is to make sure you don’t repeat I stated that the balance should go into what IConsultancy, Lagos and Chairman/Chief Executive Officer, Patike Com-munications Limited. In 1982, he wasappointed a special assistant to formerPresident Shehu Shagari on the econ-omy. When the military terminated theSecond Republic, he became Chair-man/Chief Executive Officer, UtomappHoldings Limited and Deputy Manag-ing Director, Volkswagen of Nigeria.A man imbued with intellectual depth,Utomi alongside others co-founded theLagos Business School, now the PanAfrican University in 1994. He wasscholar-in-residence at the AmericanUniversity, Washington DC, USA in1996 and a research associate at theHarvard Business School, Boston,Massachusetts, USA, 1996. By association, he belongs to manyprofessional bodies such as member-ship of reputable organisations suchas the Nigerian Institute of PublicRelations (NIPR), Institute of Directors(IOD), Nigerian Economic SummitGroup (NESG) and Nigerian Eco-nomic Society (NES). As an activist, he has and stillcoordinates the activities of numerouscivil society groups just as he has alsobeen instrumental to the establish-ment of others such as Transparencyin Nigeria (TIN), The Centre for Valuesin Leadership (CVL), The ConcernedProfessionals (CP), and the Resto-ration Group (RG). Utomi has alsoexcelled in the corporate world via hismembership of the boards of numer-ous blue chips companies in thecountry. He is an accomplished colum-nist, Chairman, BusinessDay MediaLimited and creator of Patito’s Gang,a television talk show. Utomi haspublished several books on politicaleconomy and management. A devoutCatholic, Utomi is happily married withchildren. In this interview with The NewDiplomat’s editor, Olaolu Oladipoand photographer, Udoka Agbaji,he speaks on wide ranging issuesbordering on the state of the nation,the economy, the prevailing politicalorder and diplomatic efforts of both thecurrent and past governments in thecountry. Excerpts:

vol. 2 no 4 • june 2015 the new diplomat 5 diplomaticplatformo help Buhari ple emerge as leaders in the country? depleted under the last government. Though Really, it is a very serious issue that must there were many things we could also have termed, the stabilisation fund to be created, so such courage? The whole Jonathan govern- done differently during the regime of President that if what happened in the early 1980s oc- ment was essentially about a spending policy be addressed. It is really a function of how Olusegun Obasanjo but things got worse dur- curred, we will be able to handle it. Govern- which has put the country in trouble. the leaders set the tone of recruitment, when ing the last regime. ment can always draw from the fund when politics and politicking remains ‘kill and go’, prices drop to say 10 Dollars per barrel. All of Are you indicting the political class? ‘come and chop’, you’ll have the kind of peo- Flowing from your submissions, will it be us have watched how the Saudis built up their Yes…the political class stands to be in- ple that have emerged in the political space right to conclude that President Muhamma- fund to nearly a trillion dollars. I concluded that dicted. The truth is that our political class has here. A country like South Korea solved that du Buhari inherited a comatose economy? we need to have that kind of strategy but when not tried enough to educate itself on the art of problem long ago. At a time in their history, the then Minister of Finance stood up to talk, governance and the implications of political politics was like what we have today here in Those words are emotive words; the truth of she (Dr. Ngozi Okonjo-Iweala) talked about choices they make in governance. Recently, Nigeria but things were sorted out through the matter is that we were in a difficult posi- the frustration of the government regarding the during the crisis between Greece and the Eu- their electoral commission. Their electoral tion. There were definitely significant financial financial demands of politicians to always dole ropean Union, I watched the Chancellor of commission decided to institute debates at ev- gaps in Nigeria but the fundamentals of the out money. I turned to the person sitting next Germany, Angela Merkel discuss the issues ery level. By the time it got to a stage, those country’s economy remained basically strong to me to ask why it was wrong for her to have involved even better than the way a profes- who didn’t have any ideas to offer ran away such that they (the fundamentals) could be built resigned her position to send a signal that will sor would have done. As a student in the US, I from politics and then politics now became a on going forward. I think that we were not in make the system realise that we need to be seri- served as an intern in the US Congress and one vocation for marketing ideas. I raised this is- a life threatening situation. In the main, there ous in the way we behave. Resigning is not the of my lessons from that experience was that sue with the past chairman of the INEC, Pro- are serious leakages all over the place. A typi- end of the world to anybody and I gave the ex- the average American lawmaker though he is fessor Attahiru Jega at a function sometimes cal example of my position is the recent finan- ample of Malaysia where a certain young min- an engineer or farmer and serves as a commit- last year and he saw reason with me, saying cial bailout to the states that had not paid sala- ister, called Mahathir Mohammed disagreed tee member in the Banking Committee, after INEC should do more in that direction. ries for months that the Federal Government with the policies of the then Prime Minister on one or two terms, that person is as capable of sourced from NLNG. I think there was some foreign policy. The policy was give and take discussing banking the way any professor of But some people blame the electorate for high level complicity or lapses in the past that with the Chinese. Mohammed disagreed, was banking would do. the leadership deficit in the country and ensured that governors who could not pay sala- expelled from the party and dropped as a min- Are you now faulting the leadership re- they hinge their position on a perceived ries for six to seven months now began to trav- ister. So, he (Mohammed) went out and wrote cruitment process in the country? lack of voter awareness… el in chattered jets to Abuja. Before we used to a book titled the ‘The Malay Dilemma’. The Of course, absolutely; the major difficulty see governors and ministers routinely on com- book sparked civil unrest prompting the Prime the country has is the problem of recruiting I agree that in most climes, the electorate mercial flights but all of that has disappeared Minister to resign. Mohammed was brought leaders into the political class. do not really understand the issues that are completely. There was profligacy that we did back into the cabinet and since then, Malaysia How do we then ensure that quality peo- thrown up during the electoral process, and not manage well, so when oil prices went be- has not been the same because of that. Why that explains why the elite are there to always low the benchmark, we were caught off guard. don’t our intellectuals in government exhibit take the required leadership. If you have the opportunity of meeting Back to the state of the nation’s econo- President Buhari now, what would you ad- my; will it be right to conclude that you are vise him to do as a priority? indicting the immediate past government for the current state of affairs? First of all, I will advise him to plug the holes, the leakages. As at today, Nigeria is leaking It won’t be fair to blame the last govern- like a basket. The country is leaking from ev- ment solely for the downturn but I think it got erywhere. I was going to give some illustration worse during the last regime. Former Presi- from the NLNG experience. Few years ago, I dent Obasanjo was responsible for building was on a retreat with one of the NNPC sub- up the foreign accounts but it was used up sidiaries and one of the officials of the affected completely under the last government. The nation’s foreign reserves were significantly continued on page 10

6 the new diplomat vol. 2 no 4 • june 2015 GlobalOpinionNcontinued from last edition Nigeria After the 2015 Elections (2) igeria has a tax to gross domestic prod- uct ratio of 2 percent compared to an • Otobo improving the economic, social and environ- range of public works programmes that would African average of 17 per cent. If Ni- mental conditions of Niger Delta. Yet because employ more youth. geria were collecting taxes at the Afri- By Eloho Otobo successive governments failed to grasp this factcan average, it would garner about US$86.7bn and allowed the problems to fester, the resort to In the short term and with variations as mayworth of taxes in its US$510 billion economy. environmental damage in Niger Delta. Tackling the use of force became the default position. Suc- needed in each state or geo-political zone, theMaking progress in corporate sector tax collec- the environmental damage in the Niger Delta cessive federal government’s approach to the Ni- public work programmes should be designedtion may be stiffly resisted by vested interest, so has been made potentially worse by the fact that ger Delta provides a striking illustration of using around getting secondary school graduates tothe government will have to show more resolve. most of the international oil companies that cre- a wrong instrument to address a wrong problem. undertake tasks related to greening the environ- ated the environmental damage have sold their After Boko Haram would have been militarily ment by planting trees and flowers by street The second source is to ensure that local and on-shore holdings to Nigerian firms apparently defeated, the time would be ripe to re-examine pavements as well as building flower beds inforeign firms operating in the oil sector pay all with weak or no clauses in the sales transaction- the use of the military in managing domestic cri- cities and towns; writing street names and town/their dues -- royalties, profit taxes, duties and sr on the responsibility for legacy problems.All sis, including in the electoral process. village sign posts; numbering houses in townsbonus signature commitments that are still out- this means that there can no complacency on ad- and villages; and training as Health Extensionstanding. This effort should be coupled with re- dressing the challenges of the Niger Delta. The The often repeated assertion that the police workers or Public Health Assistants to improvenewed effort to curb oil theft, which has robbed next government has to overcome lethargy and force is not up to the task of maintaining domes- public health delivery in the rural communities.the treasury huge sums of money. take needed policy actions on the derivation and tic law and order has lost its potency. The police environmental repair issues. will only rise to the challenge, if it is adequately The public work programmes for university The third measure is intensifying efforts at funded and equipped for the task. The renewed graduates should build on YOUWIN by provid-combating corruption, as considerable leakage Security Sector Reforms. In a piece entitled effort at the reform of Nigeria’s security sector ing workshop spaces for those in the technicalstill occurs through that source. The government The Crisis in Our National Security Policy pub- has to be anchored on three central premises. fields and office spaces for those in the servicewill benefit greatly by taking steps to implement lished in THISDAYon 15 June 2014,Ambassa- The military’s role should be strengthened to de- sector. In the long term, however, more employ-some of the recommendations of the Mbeki-led dor Omoregie and I argued for addressing “the ter external aggression and defend Nigeria’s ter- ment opportunities will have to be generated byHigh Level Panel Report on Illicit Financial underfunding of the security forces, noting the ritorial integrity. The police should be reinforced establishing manufacturing and agro-allied in-Flows from Africa which was released in Janu- remark by the President at the World Economic to serve as the primary agent for maintaining dustrial clusters in various parts of the country.ary 2015. Combating corruption should focus Forum, in Abuja in May 2014 that the military domestic law and order in the country. And the Also in the medium term, the cost of borrowingmore on ‘recovery of assets’ rather than ‘sen- has been underfunded for the past 20 years. Al- intelligence agencies should support the police’s (lending rates) would have to be drastically re-tencing of individuals’. Ill-gotten wealth enables though efforts have been made in the last three efforts to detect, prevent and punish perpetrators duced to enable both small and medium enter-beneficiaries to climb the rungs of the ladder of years to increase allocation to the security forces; of crimes. A country that aspires to build and prises as well as large firms to thrive. High inter-wealth faster and higher. Vigorous ‘recovery’ef- yet at annual average of about a trillion Naira a consolidate its democratic processes must be est rate is constraining the growth of the privateforts would help tobring such beneficiaries back year, the allocation is relatively inadequate both very wary of using military forces for the man- sector in Nigeria, and hence job creation.to the rung of the ladder they would have been in relation to the needs of the military establish- agement of domestic crises. Frequent resort towithout the ill-gotten wealth. ment, and in comparison to other African coun- military forces in domestic contexts raises seri- Improving the Social Services. Significant tries.” We also noted that “the over commitment ous doubt about the ability and commitment of improvement in the delivery of social services is The need for action in these three areas has of the military for domestic purposes with the a civilian government to peaceful resolution of usually one of the main avenues that people feelbeen obvious for some time. But intensified establishment of the Joint Task Forces ( JTFs) disputes, tarnishes the reputation of the military the dividends of democracy.efforts in tackling these issues are made more in various parts of the country [Niger-Delta, and, quite often, makes the military ill-preparedurgent both because of the deteriorating fiscal Middle Belt and Northeast] and wondered for its principal tasks of deterring and defeating The social contract between the elected andsituation and because of the need to increase whether deploying the military for internal do- foreign aggressors. the electorate is manifested, on one hand, byrevenue in order for the successful candidate to mestic purposes represents an appropriate use of the extent that government provides safety anddeliver on his promises to the people. the military whose primary function is defense Power Supply. Nigeria, a country of 173 mil- security and, on the other hand, by its ability to of the country against external aggression.” We lion people and a national economy of $510 improve the quality and quantity of education, Boko Haram. Boko Haram presents a mufti- further observed that “the use of the military for billion, produces 5,000MW in its national grid. health and housing. These three main compo-prong challenge; as such the fight against Boko domestic purposes has created a fresh problem: This amount of power supply is far less than is nents of social sector are in the concurrent ratherHaram ineluctably has to be multi-tiered. The our armed forces are increasingly being accused produced for some of the biggest and busiest than the exclusive list of the national constitution.response should, thus, include continuing the by segments of the international community, airports around the world. Reliable and efficientmilitary action to recover territory under its con- including NGOs, of human rights violations in power holds the key to increased agricultural, in- Over the years, the federal government hastrol and protect lives of Nigerians endangered by their own country.” dustrial and commercial production, in addition assumed too many responsibilities for second-Boko Haram, rescuing the women and children to improved supply for domestic use. Years of ary education, done too little to promote publicheld as hostages, launching a sensitisation and Successive governments have used military inadequate public investment and public own- health regulation and advance research in publicawareness campaign aimed at de-radicalising force unnecessarily in the Niger Delta and ap- ership of electric production have hindered the and curative health, and fallen far short in its ef-youth that may be tempted to join the group, plied military force against Boko Haram non- growth in the power sector. With the privatisa- forts to tackle the huge unmet needs in housing.and undertaking a major effort for the rehabili- strategically leading to resentment in the Niger tion of the power sector and the establishment of The Federal government must launch compre-tation and reconstruction of the areas that have Delta and very poor initial results in the North several power generation and power distribution hensive initiatives to redress these problems andbeen worse affected by the Boko Haram insur- East. companies; the government needs to strengthen delineate clear roles for itself, in relation to thegency. The last of these proposals generated a its roles as a regulator of the power sector and state governments, at a time of limited financiallot of controversy at the 2014 National Political The Niger Delta struggle was always about promoter of public partnerships in support of resources.Conference, when it was recommended that the increased electricity production. The ambitionfederal government should make financial allo- to grow the economy will critically depend on The 2015 elections will be a watershed eventcation for that purpose. Yet we cannot deplore progress in the power sector. in Nigeria not because the country will rupturethe heinous activities of Boko Haram, one hand, but because citizens of the country are now moreand resist helping its victims, on the other. Five Unemployment. High unemployment is the politically aware of their civic rights, are growingper cent of the federal government allocation, bane of Nigeria’s economic situation and re- impatient for results, and are more determined tonot of the consolidated revenue, was proposed mains central to the paradox of a growing econ- hold all tiers of government responsible for theirat the 2014 National Political Conference to omy with high poverty rate. Nigeria’s overall actions or inactions. Slowly but steadily theaddress this matter. The proposal failed to com- unemployment is estimated at 24 percent with scope for electoral manipulations and economicmand consensus. But the states that have been youth unemployment rate of 37 percent and an malfeasance will decrease.devastated by the activities of Boko Haram will extreme poverty rate of 54 percent. Reflectingsurely need federal assistance. the need to create more jobs, the federal govern- That will make the political process less prone ment has implemented such programmes as the to outbreak of violence but it will not make gov- Niger Delta. There is a false popular notion National Action Plan on Employment Creation ernance less challenging not least because of thethat the Niger Delta crisis has been overcome with a target of creating 5 million new jobs an- accumulated challenges that the government-of-because of the 2009 amnesty deal negotiated nually within 3 years; the Skills Acquisition the-day will have to cope with.under the late President Yar’Adua. If anyone Centres; the YOUWIN programme to supportneeded reminding about the potency of the thousands of youth entrepreneurs to grow their Those who will be (re)elected to power duringagitation in Niger Delta for a fairer economic businesses; and the Graduate Internship Pro- the 2015 elections will need to summon an un-and environmental deal, one need go no further gramme to enhance the employability skills of common courage, commitment, patriotism andthan the deliberations of the 2014 National Po- new graduates. In addition to expanding these political will to lead.litical Conference. The 2014 National Political programmes, consideration has to be given to aConference barely avoided the fate of the 2005 Provided they show a sincerity of purpose andNational conference. At the 2005 conference take policy measures to improve the safety andSouth-South delegates argued for 25 percent security of Nigerians as well as their economicderivation share. Instead, the conference recom- and social conditions, they will earn the respectmended 17 percent and this was also rejected, and enjoy the support and goodwill of all Nige-prompting the South-South delegation to walk rians.out of that conference. At the 2014 conference,18 percent for derivation was recommended not By Olaolu Oladipo, Lagos and Augustine Presidency: Nigeria Yet to Receiveonly for the oil producing areas but everywhere $15m Arms Deal Money from S’Africamineral resources are produced or to be pro- TOsanyande, Abuja duced. There was no agreement on this recom- he Presidency has denied receiving Jonathan. government had been released to themendation and the matter was transmitted to the the sum of $15m from the Govern- The funds were confiscated at Lanseria country.president for further review. ment of South Africa being the money taken away from the coffers Airport, northwest of Johannesburg and the Relations between Nigeria and South Af- The huge environmental damage to the Ni- of the Federal Government ostensibly to funds are currently being held at the coun- rica have not been at their best, particularlyger delta crisis remains essentially unresolved. purchase weapons for the nation’s security try’s central bank. between the Zuma and Jonathan administra-For example, the UNEP Environmental Report services. tions.on Ogoniland in 2011 recommended the cre- But the denial from the Presidency cameation of an Environmental Restoration Fund for Immediate past regime of President from the Special Adviser to President Mu- Reacting to the claim, Adesina denied,Ogoniland, with an initial capital injection of Goodluck Jonathan had been at loggerheads hammadu Buhari on Media and Publicity, saying when the money is eventuallyUS$1billion to cover the first five years of the with the South African regime regarding the Mr. Femi Adesina in an exclusive telephone returned, the Presidency would announce toclean-up of contaminated land areas in Ogo- funds which was confiscated by the Inland chat with our correspondent who stated that the world.niland, with the restoration of heavily-impacted Revenue Service of the former Apartheid the funds had neither been recovered normangrove stands and swamplands of Niger country. returned. Adesina who refused to be drawn into theDelta expected to take up to 30 years. Yet the details of the diplomatic protocols being car-environmental devastation in Ogoniland is a tip South African Government had, on South African Ambassador to Nigeria, ried out for the return of the funds howeverof the ice-berg of and a metaphor for the larger September 5, 2014, seized $9.3m cash Lulu Mnguni had stated while addressing stated that “The money has not been recov- belonging to Nigeria concealed in a private the media recently that the seized money ered or returned (as the case may be). It will plane owned by some religious leaders obtained from some Nigerians by his home be made public issue once that is done.” close to former administration of Goodluck

vol. 2 no 4 • june 2015 the new diplomat 7 news• President Bu • President • PresidentBUHARI receivePresident• Preside • Presiden • President Buhari r• President • President• Presid • Presiden President Buhari receiving letters of• President Buhari r • President Buhari r • President Buhari r

8 the new diplomat vol. 2 no 4 • june 2015diplomaticplatformThe World is Eager to Help Buhari Succeedcompany made a point that NLNG was paying • Utomi For instance in Benue state and other ar- government activities and intentions is not asa dividend of about $1b a month. I have never at areas where the regions have comparative eas in the North Central area where we have good as it could be. The power of signalling isseen in public conversations of government re- advantage in terms of production. Another sesame seeds. A lot of plantations can be put what makes governments achieve results.ceiving such significant revenue inflow. What thing is that we should break Nigeria into sev- in place to process it and package it for exporthappened would have been that when the gov- eral development centres along the six zones to Europe and America. Nigeria has the best President Muhammadu Buhari is billedernors were shouting that they had no money of the country. In every zone, you look at the soil for the cultivation of the crop. With this, to be a guest to President Barak Obama into meet up their financial obligations, and then economic endowment, how government can you will discover that you are earning an in- a few days time. What do you think shouldthe management of the NLNG showed up to exploit and explore the endowments by de- credible amount of foreign exchange from just be the talking point?state that the company had dividends that were veloping a value chain of products and their targeting MacDonalds in the US alone.due and the President then decided that the competitiveness. Nigeria is a global player that should lever-money should be shared. If such revenues had This is by making sure that the bulk of ses- age on areas of its comparative advantage inbeen coming in the past, somehow, the states ame seeds used in America and Europe come core areas where it can make revenue to runand the Federal Government would not have from Nigeria. If you go to the South-South, the itself.been in this financial difficulty. endowments of the area are rubber, palm oil, and the hydrocarbon value chain. Take only The US had Nigeria in mind when it initiat- But the PDP, which was in power stated those three and forget anything else. Look at ed and enacted the Africa Growth and Oppor-that no money accrued to the government the palm oil value chain; look at what Malay- tunity Act (AGOA) but Nigeria has not madeas the NLNG Company was on tax holiday sia has done with rubber. Today, every time any benefit in that regards. All is not lost, therefor 10 years and that the tenure lapsed this an aeroplane lands, you are putting money in are considerations bordering on the need toyear… Malaysia being one of the biggest producers renew AGOA. When the act was enacted, the of tyre. Nigeria has the best yield of rubber per idea was to provide access to US markets by As I stated earlier, someone in the NNPC hectare, so why don’t we become the major businesses. Unfortunately, all other countriestold me that NLNG was paying dividends of supplier of rubber to car manufacturers across are profiting more from it than Nigeria.$1b per month to the Federal Government. It the world?was actually at that retreat that I heard for the What are the expectations of the interna-first time the comment that the NLNG was the There are many components of the motor tional community from Buhari?most profitable company in Africa. car that are rubber based and Nigeria can pro- duce them for you at the lowest cost. In the The whole world is anxious to help Buhari Do you support the call then for a thor- end, we could end up creating more jobs in the address the numerous problems plaguing theough probe of the NLNG as is being country and earning more foreign exchange country; problems such as the economy, in-clamoured for by the APC? than from crude oil. Coming to crude oil ex- security and the likes, and it is important for portation, the country is losing about $1,900 him to take the advantage of the goodwill that Absolutely, we need to find out what has per barrel owing to non-utilisation of the value exists in the international community to makebeen going on there. It is not only NLNG, chain in the product. What I mean is that we the Nigerian economy to be successful andthere are many other revenue yielding agen- can set up various refineries and petrochemi- competitive again.cies that are not following laid down rules cal plants in the coastal areas of the country asand procedures in their day-to-day business a way of exploiting the value chain. After four years, what are the thingsengagements. They use their revenues for all you’ll like to judge the current governmentkinds of things without authorisation. To be Looking at the two month old regime of by?frank, when the ministers want to do anything President Buhari, how well do you thinkthey begin to raid all those agencies for money. he has the ability and desire to address the I want to see a situation whereby changeSo, plug all the holes going forward. problems confronting the country? has moved from being a mantra to the real- ity of improvement in the quality of life of the What else can the president do? Looking at his activities, he has been doing average Nigerian. I will like to see stakehold- Another thing is that we need a clear na- some of the things I have in mind like block- ers evaluate government and score its perfor-tional development strategy. What he can do ing leakages in government. For example, the mance above average.in this direction is for him to look at develop- idea of one central account will help in block-ment from the perspective of what the com- ing leakages. The bailout of the states was very We will like to see the diversification ofponent units can bring to the table; to look important in my thinking. This is because you the economy begin. We have talked about the need to stimulate economic activities in the af- need for diversification in the past but I want fected states. However, the communication of the government to begin the process in con- crete terms. nigeria after the 2015 elections (2) continued from page 12 to improving the country’s power capacity, fuel funeral so that a new institution, active and nim- ciples for the industry. Specific matters can thenity of refined product supplies. What subsidy has homes and industries, create jobs and improve ble, can promptly replace it. NNPC’s subsidiar- be based on subsidiary legislation, regulationsachieved is create a huge hole in the budget and export earnings. We must be ambitious about ies and associated companies can be reviewed, and agreements. Complex and densely wordeda new array of overnight billionaires. The down- what we can achieve here. restructured and privatized or commercialized laws conduce to opacity and should therefore bestream oil business in Nigeria has morphed as appropriate consistent with national interest avoided.into one optimised for the pursuit of subsidy We similarly need to encourage more local re- and objectives.payments. We see thinly-disguised periodic fining, and not just to assure stability in the sup- I am by no means underestimating the titanichostage-taking as the subsidy barons seek to pry ply of refined products for the domestic market The government should review the Joint struggles that might be necessary to change theopen government coffers. It is time to tackle the but to cut costs and save jobs. We also have un- Venture strategy, with the governing principle Nigerian oil industry. The vested interests willcorruption in the subsidy regime. tapped potentials in petrochemicals, which can being to shift the financing and operational risks be all out to thwart change and uphold the sta- help fast-track domestic industrial activity and to the markets and operators respectively. Gov- tus quo. The media and civil society organiza- We can discuss how the resulting subsidy sav- improve export earnings. ernment should avoid owing the oil companies, tions (CSOs) have the major role of pushing forings will be spent to improve lives, while guar- and should more proactively review the terms transparent disclosures and adherence to dueanteeing stability of supply to the domestic mar- In short, we must take steps to reposition our and implementation of the Production Sharing process. No other institutions have the powerket. We have a president with both the integrity oil and gas sector as one that is properly integrat- Contracts (PSCs) and concentrate on collecting of CSOs and media to advocate, educate andto responsibly manage the savings and the expe- ed into the national economy, helping to create the royalties and taxes due to it. enlighten the public to support and demand therience of managing special interventions based jobs, raise skills level, drive industrialization and most pragmatic, rational and effective measureson subsidy savings. Let us say bye to foreign earn more from exports. The rents therefrom can No one is better qualified to do this than that can make Nigeria’s oil fortune become theexchange drains, opaque crude swaps, offshore then be applied towards investments in human the person that birthed the NNPC through the people’s fortune. The media in particular mustprocessing agreements and other devices that capital, physical infrastructure and economic merger of the NNOC and the Ministry of Pe- lead from the front in this effort.have derailed and distorted the subsidy regime, diversification. troleum in 1977 - President Buhari himself. Noto our national detriment. one can appreciate the gap between the vision To be in a position to accurately educate, How do we attain this wish list? of NNPC’s founding fathers, the beautiful baby the media must itself be knowl-edgeable about Reverse missed opportunities: I have already We need a mix of fresh strategic thinking and of 1977 and the 38 year-old monster it has be- the issues. Apart from the obvious advantageshighlighted the fact that our country has neither a firm commitment to reform. We need to de- come better than President Buhari. The NNPC of having specialists leading the reporting ofsaved nor wisely invested oil proceeds from the fine exactly what we want the oil industry to be of today must make Chief Sunday Awoniyi of certain industries, the media performs an im-five oil booms that my sister Oby Ezekwesili and to achieve, and then define the structure that blessed memory squirm in his grave. Something mense service when it affords the public the re-identified. I may only add that the oil industry it- can best deliver it. An efficient and productive fundamentally decisive must be done to tame sources to partake in informed debate. And theself is a victim of this lack of proper investment. oil sector, able to create jobs, spur industrializa- this monster. media must enhance its capacity for follow-up,We have been as unable to utilize what it yields tion and earn more revenues requires that we to focus on an issue long enough to report itsus as we are remiss about expanding what it can tackle the monster that the NNPC has become. We must have the political will to make all resolution. It must use the Freedom of Informa-yield us, by prudent and focused re-investment. This country can no longer afford to maintain an oil industry transactions transparent. There tion Act maximally to ensure that wrong-doing NNPC that arrogantly, unlawfully and uncon- should be clear rules and processes for licens- and impropriety are not protected by official Nigeria’s oil reserves are not growing at a fast stitutionally spends an unhealthy proportion of ing, concessioning, procurement and contract- secrecy. If we successfully remake the oil in-enough pace. The gas potential is still largely national oil earnings on itself. ing. Opaque systems tend to be corrupt, and it is dustry, we would have significantly remade ourthat, an untapped potential amidst pressing We should replace the NNPC with brand new time to shine the light. The president has already country. And our poverty stricken majority willneeds. Since Bonny LNG we have not been able organizations that are fit for purpose: - among taken the commendable step of directing that be the better for it. This, ladies and gentlemen,to complete and commission any other - Brass others - a commercialized and corporatized all revenues be remitted either to the Federation is the burden of responsibility placed on us asand Olokola LNG projects remain on the draw- national oil company and new industry regula- Account or the consolidated revenue fund as leaders in our various spheres of influence.ing board. The implementation of the national tors. This new national oil company should be required by sections 80 and 162 of the Constitu-gas master-plan has stalled since 2009. capitalized once and for all, and then freed to tion. President Buhari is therefore clear that oil • Malam Nasir El-Rufa’i, governor of Ka- fend for itself like other national oil companies industry revenues will no longer be treated as duna State spoke at the 1,000 emerging Afri- And so there is simply not enough natural do, seeking its financing independently from some slush fund of the federal government. can entrepreneurs from 51 African countriesgas collected and dried to feed our power tur- the financial markets and paying due taxes and under the auspicies of The Tony Elumelubines, industries and households. There has to royalties. The corruption and nonchalance that It is the national consensus that we arrive Fondation held at Covenant University, Otta;be a commitment to sustained investments to have hobbled the NNPC are symptoms that its at regarding the oil sector that we can finally Ogun State recently.stimulate a proper gas sector. The multiplier ef- best days are over. We should give it a deserved codify in a new petroleum act, which shouldfects of this will be immense, from contributions be a simply worded, concise piece of legisla- tion that spells out the general governing prin-

vol. 2 no 4 • june 2015 the new diplomat 9 Summer Holiday 2015

10 the new diplomat vol. 2 no 4 • june 2015diplomaticplatformEntwistle: Expanding the frontiers ofties between Nigeria, USBy Augustine Osayande • Entwistle Apart from promoting smoothAmongst others, the cardinal re- relations in sponsibility of envoys on ac- diverse areas such credited to foreign countries is as trade and for them to ensure seamless rela- investment, youthstionship between their home nation and the empowerment, im-host sovereign country. proved quality of family planning and By virtue of their assignment, they are reproductive healthto ensure that not only is their host nation services, and ex-enjoying friendly relations with their home panding access tocountry, they (the envoys) must also make immunisation forsure that maximum benefits are secured children and wom-from such diplomatic engagements while en, he has contin-at the same taking measures to ensure that ued to emphasisesuch benefits are mutually shared between on the importancethe two nations. of the US and Ni- geria relations This truism aptly describes the role thathas been played by the Ambassador of the the country build sturdy democratic insti- your communities and leverage the networks cumstances.United States of America (USA) to Nige- tutions that are critical for ensuring good you have established to their maximum po- Apart from promoting smooth relationsria, James F. Entwistle. Not only has his governance. tential.coming been beneficial to the two friendly in diverse areas such as trade and invest-nations, it has also in no small way en- The role of the US mission under his “Many of you are already making an im- ment, youth empowerment, improvedriched diplomatic engagement between watch; prior, during and after the last pact in your communities, indeed, that is quality of family planning and reproduc-the two nations in diverse areas of mutual rounds of the general elections are worthy why we selected you” he said. tive health services, and expanding accessinterest. of note, especially the series of technical to immunization for children and women, and logistical assistance to the Independent He mentioned that one of the new fellows, he has continued to emphasize the impor- For the envoy, his posting to the country National Electoral Commission (INEC) to Chinonso Ibe, has been working with her tance of very cordial U.S-Nigerian rela-on October 28, 2013 had been preceded by deliver on credible polling by the mission team of volunteers to provide educational tions.an illustrious career that started with his are pointed to this. support to 150 internally displaced childrenswearing into the diplomatic service of the in the Federal Capital Territory area. He has also consistently hammered onUnited State Foreign Service in January, Other areas of intervention include na- the need to partner in areas of shared in-1981. tional food safety, Nigeria’s safe schools He noted that volunteering also benefits terest such as security, trade and develop- initiatives, malaria prevention and treat- businesses and helps to maintain employee ment, access to education for all Nigerians, Entwistle is not new to the African ment and the elimination of counterfeit engagement in a productive corporate cul- and the upholding of democratic principlescontinent; in fact, he started work on the drugs. He has also promoted initiatives that ture, develop employee skills, and enhance for the achievement of free and fair elec-continent when he was posted to serve have facilitated increased foreign direct in- their brand and reputation. tions.in the Cameroons, precisely in Yaounde vestments from his home country to Nige-and Douala; from where he subsequently ria especially in the water sector. The US mission has also shown empathy Appraising his scorecard this far, diplo-moved to Niamey, Niger Republic. He and commitments to the plights of those dis- matic analysts had faulted the diplomat asserved in the two countries between 1981 As a passionate friend of the country, he placed from their communities in the wake having achieved little in the area of facili-and 1986. has also helped in human capital develop- of the continued civil strife in the North east- tating the visit of President, Barack Obama ment, by facilitating the selection of sev- ern part of the country. to Nigeria before the present dispensation. Between 1986 and 1990, Entwistle eral young Nigerians to participate in themoved up in the diplomatic hierarchy when 2015 Mandela Washington Fellowship. Recently at a stakeholder’s meeting with The last time Obama was on a visit tohe was made a watch officer in the Bureau community leaders and local humanitar- Africa, Nigeria was excluded from the listof Intelligence and Research in the State The Mandela Washington Fellowship is ian organisations, Entwistle said his country of countries he toured. Despite the strongDepartment and later as the Desk Officer in the flagship programme of the President’s was committed to working with Nigerians to partnership between the two countries,charge of Kenya and Uganda in the Bureau Young African Leaders Initiative (YALI) help over 10,000 displaced persons in vari- Obama preferred to visit Senegal and notof African Affairs of the same department. and a key component of President Barack ous communities, including individuals in Nigeria. Obama’s commitment to invest in the fu- government-run camps, to regain their lives He headed the Refugee Assistance Unit ture of Africa. from the horrors they have suffered at the This was the second time Nigeria wasat the U.S Embassy in Bangkok between hands of Boko Haram. being excluded from such a U.S presiden-1991 and 1994. The posting also took him Speaking during a pre-departure orienta- tial visit and the then developing trend hadon extensive travel to adjourning countries tion event for this year participants, Entwis- To underscore his commitment, the am- raised serious concerns amongst Nigerianssuch as Cambodia. He later came back to tle urged them to be good representatives bassador, alongside his wife, Dr. Pamela about the nature and importance of Nige-Africa, specifically, the Central Africa Re- of not only the nation but also of their fami- Schmoll has visited one of the camps shel- ria in the strategic thinking of the US as apublic, serving as Deputy Chief of Mission lies and communities. “You will have the tering displaced persons in Yola, Adamawa key partner in global affairs. This concernin Bangui between 1994 and 1995. opportunity to meet hundreds of bright and State. of analysts may be one factor for the pro- inspiring minds, just like yourselves, from posed visit of President Buhari to the U.S Entwistle was soon reposted to the State other parts of Africa,” he stressed. Before leaving the camp, he commend- later this month but they also insist thatDepartment where he worked this time in ed the efforts of the National Emergency for Ambassador James Entwistle to rankthe Bureau of Consular Affairs between He also admonished them to “take ad- Management Authority (NEMA) and other among the most successful US envoys that1993-2003. After this, his next stop was as vantage of the opportunity to learn, to volunteer organisations such as the Nige- have served in Nigeria, he must ensure thatCounselor for Political Affairs at the US share, and to expand your network. Upon rian Red Cross and the International Res- President Obama also visits Nigeria beforeEmbassy in Kuala Lumpur, Malaysia. your return, we hope that you will share cue Committee, a U.S. based humanitar- the end of his tenure as US President. what you have learned with members of ian group, for bringing relief to people who From 2003-2006 he served as Deputy found themselves in very unfortunate cir-Chief of Mission at the US mission inColombo, Sri Lanka with simultaneousaccreditation to Maldives. As a careermember of the Senior Foreign Service, hewas the Deputy Chief of Mission at the USEmbassy in Bangkok, Thailand from July2007 to June 2010. From 2010-2013 hewas the substantive US Ambassador to theDemocratic Republic of the Congo. Prior to his foray into the diplomaticservice, Entwistle had equipped himselfadequately for the tasks ahead, graduatingfrom Davidson College in North Carolina.As a budding diplomat, he also equippedhimself with foreign languages such asFrench and Thai. Since his resumption in Nigeria, Entwis-tle has focused on efforts aimed at partner-ing with Nigeria to develop measures thatwould more effectively fight the scourge ofcorruption and advance the course of trans-parent and accountable governance. Hehas also engaged and interfaced effectivelywith relevant government agencies to help

vol. 2 no 4 • june 2015 the new diplomat 11

12 the new diplomat vol. 2 no 4 • june 2015view point BY nasir el-rufa’iNigeria: A country and its oil fortuneThere is every danger that addressing a topic like this might yield another ex- 2011 at USD 99 billion. Indeed in the five Jona- 2.2 million barrels of crude oil per day, while so relaxed that it takes up to 24 months or more ercise in vain lamentation when what thanian years, Nigeria earned nearly USD 500 importing most of its daily consumption of 43.5 to make decisions on vital oil industry projects? our country needs to do is take and give billion from crude oil and gas sales. million litres of refined petroleum products. Why is it that in this most crucial of sectors iteffect to rational decisions about the oil sector. That reliance on imports of refined products has has been possible for briefcase companies toFor instance, the discourse around the resource The 2014 earnings of $77 billion is rather seen unsustainable expenses on questionable walk away with big assets, billion naira subsidycurse has had a deep resonance for many Ni- small compared to the $246 billion that Saudi subsidy payments, exemplified by USD 8.99 payments and ‘local content’ contracts? Can angerians because it vividly sums up the paradox Arabia made, but it cannot be sniffed at. So there billion in the 18 months between January 2012 oil industry with virtually no serious barriers tobetween the huge earnings from oil and the re- are oil fortunes and there are oil fortunes. What and June 2013. entry yield fortunes beyond a narrow circle? Forality of poverty and underdevelopment for most we need to interrogate is how responsibly we so great are the miracles that oil has performedNigerians. have managed that fortune, how diligently we About N971 billion was budgeted for sub- in the lives of a few, there is not much left for have tried to expand and sustain it and whether sidy payments in 2014 alone (more than twice the many. Thus we have jobless growth, a fact that sta- having that national fortune has impacted sig- that was eventually paid). You all recall howtistics touting high GDP growth rates tend to nificantly on the fortune of the average Nigerian. trillions of Naira were paid out as oil subsidy Having strayed into lamentation in describingobscure but which is painfully real for many in 2011, when only N254 billion was appropri- the Nigerian oil industry let me quickly return topeople. And we continue to suffer the conse- About 40% of Nigerians are estimated to be ated. No one has been successfully prosecuted trying to draw lessons and to suggest ways byquences of our affliction with the Dutch dis- very poor. That is about 70 million living people for this scam. Huge deficits in gas supply have which we may successfully navigate a differentease. The easy money from oil has led to the living below the poverty line in a country that ensured that the country’s thermal plants cannot track. We can agree that what passes for the oilneglect of other endowments, most especially has earned at least 1trillion in current dollars produce power at optimal levels. In the eight industry is a mismanaged, costly, corrupt andagriculture. from oil in 50 years. For our vast masses, oil is years leading up to 2014, joint venture produc- grossly inefficient operation. These negatives are no fortune. It is more of a mirage, but a more tion declined by 50.4%. Some 100,000 barrels not the way to grow or retain fortune. Yet talk we must when a problem persists insidious kind, because the fortune is visible in per day, about five percent of total production,in the embarrassing dimensions that Nigeria’s the lifestyles of a few thousands of the privi- is estimated to be lost to organized theft. And So what should we consider doing?oil debacle represents, in the hope that we can leged elite but is stubbornly inaccessible to tens we all dread the ease and rapidity with which Let us first learn the appropriate lessons. Wedeepen understanding about the precise nature of millions of ordinary people. Our rich enjoy supply shortages lead to endless queues, wide- are neither immune from the laws of economicsof the problem, and build national consensus the lifestyles of the richest in the world, while spread panic and mortal consequences for the nor from the consequences of sheer folly. Nowabout the possible solutions. Even the crafters our poor are truly the wretched of the earth. This many victims of tanker accidents. that more countries are producing and selling oilof the topic of this lecture imply that something inequality is most unfortunate. and gas, we can safely assume that barring a newis rotten in the governance and outcomes of Ni- The long and short of the situation of our phase of explosive global economic growth, oilgeria’s oil industry. Yet they helpfully infuse an That wide gulf in living standards is clearly oil industry is best exemplified by the parallel will remain relatively cheap at the $50-$60 perair of optimism by not describing it as oil mis- problematic. It is, in my view, a major respon- government called the NNPC. In 2012, it sold barrel range, for the foreseeable future. Whatfortune. sibility of a democratic government to strive to N2.77 trillion of ‘domestic’ crude oil but paid do we intend to do with these diminished earn- move more people away from the attrition that only N1.66 trillion to the Federation Account. ings? If we persist in indulging our appetite to Thus I approach this assignment not as an extreme poverty inflicts. This is not attained by In 2013, it earned N2.66 trillion but paid N1.56 consume rather than save, import rather thanfortune-teller, but as a Nigerian who has had the wishful thinking, or by merely affirming the trillion to FAAC, in 2014 N2.64 trillion but re- produce domestically, or neglect to prioritizeduty and the interest to pay more attention to intent. It is about managing our resources in a mitted N1.44 trillion, while between January capital investments, we will simply sink deeperthis issue than most of my compatriots. During way that sustainably builds our people, dili- and May 2015, it earned N733.36 billion and re- into poverty. We must resolve to spend wiser,the Obasanjo years, I had the responsibility to gently collecting revenues and applying them in mitted only N473.2 billion! That means that the and do more with less.constitute Oil and Gas Implementation Com- a determinedly cost-effective and result-oriented NNPC only remitted about 58% of the monies Our general national orientation has beenmittee that led to the drafting of the original manner. The best fortune a country can have is earned between 2012 and the first half of 2015. impacted for worse due to our attitude to the oilPetroleum Industry Bill as an instrument for its people. But like many gems, they have to be Acompany with the audacity to retain 42% of a cash cow. Let us firmly resolve that growing ourreforming the oil sector. polished and nurtured for their talents to glow. country’s money has become a veritable paral- people’s potentials will be a primary goal, and Spending efficiency and effectiveness is best re- lel republic! that in the pursuit of that aim, we shall commit Eight years after the exit of that government, flected in outcomes such as more educated and to an efficiently and transparently managed oilthe PIB has not become law, mainly through healthy people, living longer lives productively The NNPC feels entitled to consume more industry. We can demonstrate this new purposethe wilful neglect of the successor governments and happily. resources than the 36 states, the FCT and the by slaying three huge dragons: (1) A fixationthat prioritized their personalized stranglehold Federal Government combined! The example with public ownership and control of every ma-on the sector’s revenues above its reform and That, for me, is the major reason we must seek just given is only with respect to domestic crude jor oil asset, (2) the corruption and distortion thatefficient performance for national benefit. to enhance and responsibly manage Nigeria’s oil oil sales. Similar leakages exist in NPDC, NA- oil subsidy is inflicting on our economy, and (3) fortune. It must become the people’s fortune. PIMS procurement and subsidiary budgets. the NNPC in its current form is in our collective We now have another chance to anchor our national interest.oil sector reform agenda on the current and Sketching the Oil Industry How could a country so dependent on oil End the fixation with public ownership: Youprojected realities in that sector. And we must Let us examine some statistics to give us a revenues have been so lax about the proper will recall the outcry when the Obasanjo govern-do that in the knowledge that the world is not picture of the oil industry in Nigeria. In 2014, governance, efficiency and security of its oil in- ment sold two of our refineries shortly before itwaiting for us, that while we dallied new suppli- Nigeria was producing on the average about dustry? How can a mono-product economy be left office in 2007. The successor-governmenters have come in to the global oil business and reversed the sale. Eight years and millions ofbuyers have more choice. dollars in turn-around maintenance later, the refineries are at best a minor component of our Some of our traditional customers have be- supply sources for refined products while re-come self-sufficient, while others have devel- maining a suction pump of our resources. Oneoped alternatives thus reducing their reliance on of the men whose purchase of the refineries wasour ‘light, sweet crude oil’. aborted is now building his own, and it can be expected to be more modern, far more efficient Is there an oil fortune? and more productive than the public facility we In fiscal terms, the answer is a massive yes. turned into an object of baseless veneration. LetThat the revenues have de-clined, or not been us be realistic enough to choose the most prag-used to build human capital or enduring physi- matic options when we confront national prob-cal infra-structure is another matter. Nigeria’s lems. We should incentivize competent investorsoil reserves relative to our population is puny to acquire majority shares and management con-by comparison to the Gulf States. trol in all our refineries and sell to them crude oil But you only need to imagine what national at market prices, and remit the proceeds directlybudgets would look like without the oil receipts into the Federation Account!to appreciate the fact that some oil is better than Tackle the corruption and distortion in subsidyno oil. And we are not talking peanuts here. regime: I daresay that the oil subsidy regime has Despite a 60% fall in oil price between June neither grown our people nor guaranteed stabil-2014 and the end of that year, Nigeria stillearned USD 77 billion from oil exports in 2014. continued from page 3The Punch newspaper of 2 April 2015, quotingfigures from the United States Department ofEnergy, placed oil export earnings for the year