For The Record
2016 Budget Seeks To Stimulate Nigeria’s Economy – Buhari
President Buhari
Being a text of the
2016 Budget presented to the National Assembly by President Muhammadu Buhari on Tuesday, December 22, 2015. Excerpts
I am honoured and privileged to present the 2016 Budget proposal. This is my first address before this joint session of the National Assembly. I have come here today, not only to address members of the National Assembly but also to speak directly to the men and women who placed us here.
I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years.
From those who have lost their jobs, to those young people who have never had a job, to the people in the Northeast whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation’s history, lessons that we must not forget or ignore as we plan for the future.
By June 2014, oil prices averaged 112 dollars per barrel. But as at today, the price is under 39 dollars per barrel. This huge decline is having a painful effect on our economy.
Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations. The small business owners and traders have been particularly hard hit by this state of affairs.
Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy and make the Federal Republic of Nigeria stronger than it has ever been.
The answers to our problems are not beyond us. They exist on our farmlands; our corporations; in the universities in the hearts and minds of our entrepreneurs; through the gallantry of our Armed Forces; and the resolute spirit of Nigerians, especially the youth, who have refused to give up despite all the obstacles confronting them.
This budget proposal, the first by our government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth and prioritising the welfare of Nigerians.
We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians.
In the medium to longer term, we remain committed to economic diversification through import substitution and export promotion. This will build resilience in our economy. It will guarantee that the problems we have today, will not confront our children and their children. This shall be our legacy for generations to come.
2015: A Year of Global and Domestic Challenges
Today, it is widely acknowledged that the global economy has slowed down. This is particularly the case with emerging markets such as Nigeria. However, despite the weak emerging market growth rates, our domestic security challenges, declining oil prices, and the attendant difficulties in providing foreign exchange to meet market demands, the Nigerian economy grew by 2.84 per cent in the third quarter of 2015.
We have, and will continue to implement strategies that will maintain macroeconomic stability and manage the oil price shocks we are experiencing.
Upon the inauguration of this administration on 29th May 2015, we engaged key stakeholders from various sectors of our economy and interfaced with the heads of Ministries, Departments and Agencies (MDAs) in order to understand the true state of our nation. What we found prompted us to take certain strategic decisions.
On the economy, we injected new leadership at the helm of our revenue generating agencies including the Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Nigerian Communications Commission (NCC), and the Nigerian Customs Service (NCS). We implemented the Treasury Single Account (TSA) which, so far, has provided greater visibility of government revenues and cash flows. We intervened to support states to navigate their fiscal challenges by restructuring their commercial bank loans and by providing facilities to enable them to pay salary arrears.
We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face. On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria. No matter where it is hidden. No matter how long it will take.
2015 Budget Performance
Distinguished and honourable members of the National Assembly, I now present a review of the 2015 Budget. That Budget was based on a benchmark oil price of 53 dollars per barrel, oil production of 2.28 million barrels per day and an exchange rate of N190 to the dollar.
The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion. Due largely to under-provisioning by the previous administration for fuel subsidy and the costs required to support the military operations in the Northeast, the government had to obtain National Assembly’s approval for a supplementary budget of N575.5 billion. I take this opportunity to thank all members of the National Assembly for the prompt passage of that bill.
2016: Budget Assumptions
After reviewing the trends in the global oil industry, we have set a benchmark price of 38 dollars per barrel and a production estimate of 2.2 million barrels per day for 2016. We have focused on non-oil revenues by broadening our tax base and improving the effectiveness of our revenue collecting agencies.
Also, with the full implementation of the Treasury Single Account, we expect significant improvements in the collection and remittance of independent revenues. To further support the drive for increased remittances, we will ensure that all MDAs present their budgets in advance, and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act.
We are determined to ensure that our resources are managed prudently and utilised solely for the public good. To set the proper tone, one of our early decisions was the adoption of a zero based budgeting approach, which ensures that resources are aligned with government’s priorities and allocated efficiently. This budgeting method, a clear departure from previous budgeting activities, will optimise the impact of public expenditure.
In addition to the proper linkage of budgeting to strategic planning, we are enhancing the utilisation of the Government Integrated Financial Management Information Systems (GIFMIS) to improve financial management. The recently established Efficiency Unit is working across MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies. We engaged costing experts to scrutinise the 2016 budget proposals. They have already identified certain cost areas that can be centralised for economies to be made.
We have directed the extension of the Integrated Personnel Payroll Information System (IPPIS) to all MDAs to reap its full benefits. We will also strengthen the controls over our personnel and pension costs with the imminent introduction of the Continuous Audit Process (CAP). These initiatives will ensure personnel costs are reduced. Our commitment to a lean and cost effective government remains a priority, and the initiatives we are introducing will signal a fundamental change in how government spends public revenue.
2016: Laying the Foundation for Sustainable Growth
The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs.
We aim to ensure macroeconomic stability by achieving a real GDP growth rate of 4.37 per cent and managing inflation. To achieve this, we will ensure the aligning of fiscal, monetary, trade and industrial policies.
As we focus on inclusive growth, we are conscious of the current rate of unemployment and underemployment. This is a challenge we are determined to meet; and this budget is the platform for putting more Nigerians to work.
I can assure you that this administration will have a job creation focus in every aspect of the execution of this budget. Nigeria’s job creation drive will be private sector led. We will encourage this by a reduction in tax rates for smaller businesses as well as subsidised funding for priority sectors such as agriculture and solid minerals.
As an emergency measure, to address the chronic shortage of teachers in public schools across the country, we also will partner with state and local governments to recruit, train and deploy 500,000 unemployed graduates and NCE holders. These graduate teachers will be deployed to primary schools, thereby, enhancing the provision of basic education especially in our rural areas.
We also intend to partner with state and local governments to provide financial training and loans to market women, traders and artisans, through their cooperative societies. We believe that this segment of our society is not only critical to our plan for growing small businesses, but it is also an important platform to create jobs and provide opportunities for entrepreneurs.
Furthermore, through the Office of the Vice-President, we are working with various development partners to design an implementable and transparent conditional cash transfer programme for the poorest and most vulnerable. This programme will be implemented in phases.
Already, the compilation of registers of the poorest persons is ongoing. In the coming weeks, we will present the full programme, which will include our home-grown public primary school feeding and free education for science, technology and education students in our tertiary institutions. Indeed, this will mark a historic milestone for us as a nation.
The 2016 Budget
Distinguished members of the National Assembly, I now present, the 2016 Budget proposals of the Federal Government. Based on the assumptions I presented earlier, we have proposed a budget of N6.08 trillion with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion.
The deficit, which is equivalent to 2.16 per cent of Nigeria’s GDP, will take our overall debt profile to 14 per cent of our GDP. This remains well within acceptable fiscal limits. Our deficit will be financed by a combination of domestic borrowing of N984 billion and foreign borrowing of N900 billion totaling N1.84 trillion. Over the medium term, we expect to increase revenues and reduce overheads, to bring the fiscal deficit down to 1.3 per cent of GDP by 2018.
In 2016, oil related revenues are expected to contribute N820 billion. Non-oil revenues, comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, will contribute N1.45 trillion. Finally, by enforcing strict compliance with the Fiscal Responsibility Act, 2007 and public expenditure reforms in all MDAs, we have projected up to N1.51 trillion from independent revenues.
Although we are working to diversify our economy, we will not lose sight of the need to restructure the oil and gas sector which has been marred by corruption and plagued with inefficiencies. Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) to adjust its pricing template to reflect competitive and market driven components. We believe this can lower input costs
and attain efficiency savings that will enable PPPRA to keep the selling price for all marketers of petrol at N87 per liter for now.
The current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is very unfortunate. Government profoundly apologises to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.
I have also directed the NNPC to explore alternate funding models that will enable us to honour our obligations in Joint Ventures (JVs) and deep offshore fields. We are confident that these measures can be achieved and will lower the burden that the traditional cash calls have imposed on our budget and cash flows as well as contribute towards shoring up our national reserves.
To deliver our development objectives, we have increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion, in the 2016 budget.
Distinguished and honourable members of the National Assembly, for the first time in many years, capital expenditure will represent 30 per cent of our total budget. In future years we intend to raise the percentage allocation for capital expenditure.
This is a fulfillment of our promise to align expenditure to our long-term objectives, and a sign of government’s commitment to sustainable development.
This increased capital expenditure commits significant resources to critical sectors such as Works, Power and Housing – N433.4 billion; Transport – N202.0 billion; Special Intervention Programmes – N200.0 billion; Defence – N134.6 billion; and Interior – N53.1 billion. These investments in infrastructure and security are meant to support our reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.
We will invest to safeguard lives and property.
We will invest in equipping our farmers with the right tools, technology and techniques.
We will invest in empowering and enabling our miners to operate in a safe, secure and humane environment.
We will invest in training our youths, through the revival of our technical and vocational institutions to ensure they are competent enough to seize the opportunities that will arise from this economic revival.
Indeed, the future looks bright. And I ask that we all work together to make this vision a reality. The 223 per cent year on year growth in capital expenditure demonstrates our desire to make Nigeria more competitive, and start the journey to deliver sustainable development in our country.
In fulfillment of our promise to run a lean government, we have proposed a 9 per cent reduction in non-debt recurrent expenditure from N2.59 trillion in the 2015 Budget to N2.35 trillion in 2016. Furthermore, we have budgeted N300 billion for Special Intervention Programmes, which takes the total amount for non-debt recurrent expenditure to N2.65 trillion.
As I mentioned earlier, the Efficiency Unit set up by this Administration together with effective implementation of GIFMIS and IPPIS will drive a reduction of overheads by at least 7 per cent, personnel costs by 8 per cent and other service wide votes by 19 per cent. Distinguished and honourable members, this budget will be executed to provide optimum value by ensuring every naira spent by this government, counts.
We will devote a significant portion of our recurrent expenditure to institutions that provide critical government services. We will spend N369.6 billion in Education; N294.5 billion in Defence; N221.7 billion in Health and N145.3 billion in the Ministry of Interior. This will ensure our teachers, armed forces personnel, doctors, nurses, police men, fire fighters, prison service officers and many more critical service providers are paid competitively and on time.
Distinguished and honourable members of the National Assembly, our 2016 borrowings will be principally directed to fund our capital projects. Furthermore, the sum of N113 billion will be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. This calls for prudent management on our part, both of the debt portfolio and the deployment of our hard earned foreign exchange earnings.
I am aware of the problems many Nigerians currently have in accessing foreign exchange for their various purposes – from our traders and business operators who rely on imported inputs; to manufacturers needing to import sophisticated equipment and spare parts; to our airlines operators who need foreign exchange to meet their international regulatory obligations; to the financial services sector and capital markets who are key actors in the global arena.
These are clearly due to the current inadequacies in the supply of foreign exchange to Nigerians who need it. I am however assured by the Governor of Central Bank that the bank is currently fine-tuning its foreign exchange management to introduce some flexibility and encourage additional inflow of foreign currency to help ease the pressure.
We are carefully assessing our exchange rate regime keeping in mind our willingness to attract foreign investors but at the same time, managing and controlling inflation to level that will not harm the average Nigerians. Nigeria is open for business. But the interest of all Nigerians must be protected. Indeed, tough decisions will have to be made. But this does not necessarily mean increasing the level of pain already being experienced by most Nigerians.
So to the investors, business owners and industrialists, we are aware of your pains. To the farmers, traders and entrepreneurs, we also hear you. The status quo cannot continue. The rent seeking will stop. The artificial current demand will end. Our monetary, fiscal and social development policies are aligned.
Conclusion
Mr. Senate President, Mr. Speaker, distinguished members of the National Assembly, in spite of the global economic uncertainties; we must remain steadfast in our commitment to steer this country back to greatness.
The Nigerian economy needs to move away from dependency on oil. Our growth must be inclusive. Nigerians must be part of the growth story. As a government, we shall deliver security, jobs and infrastructure. This is the right of all Nigerians.
I know many people will say “I have heard this before”. Indeed, trust in government, due to the abuse and negligence of the past, is at an all-time low. This means we must go back to basics. Our actions will speak for us. My team of dedicated, committed and patriotic Nigerians is well aware of the task ahead and I can assure you that we are taking on the challenge.
We will not betray the trust reposed in us.
We will welcome and be responsive to your feedback and criticisms.
We are here to serve. And indeed, Nigerians will get the service they have longed for and which they rightly deserve.
We as a government cannot do it alone. We will require the support of all civil servants, the organised labour, industry groups, the press and of course, our religious and traditional institutions. This is a call for all of us to stand and serve our country.
This budget represents a major step in delivering a new opportunity for Nigeria. It demonstrates our confident optimism that despite the challenging times, we have the will, resourcefulness and commitment to deliver prosperity to our people. And by the Grace of Almighty God and the sheer will and determination
of the Nigerian people, we will come out stronger and more united than ever.
Thank you and God bless the Federal Republic of Nigeria.
For The Record
BROADCAST BY HIS EXCELLENCY, SIR SIMINALAVI FUBARA, GSSRS ON TUESDAY, 18TH JUNE, 2024
For The Record
An Open Letter To President Bola Ahmed Tinubu On The Imperative Of Revisiting The Eight-Point Resolution Brokered As Truce For The Rivers Political Crisis
Your Excellency, as belated as it may come, please, do accept my congratulations on your victory in the last Presidential election, and the seamless swearing-in ceremony that ushered you in as the sixth democratically elected President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria.
Of course, your victory did not come as a surprise to many, given your antecedents as a democrat, astute administrator and, a go-getter. Whereas your track record as a political activist, especially in the wake of the annulled June 12, 1993 presidential election is self-evident; your exceptional performance as Governor of Lagos State is a clincher any day.
It is my prayer therefore, that the good Lord, who has brought you this far, guide and direct your ways to steer the ship of state aright.
That being said, Your Excellency, please permit me to commence this correspondence with an allegory drawn from our recent past. A few years ago, Chief Olusegun Obasanjo was elected Nigeria’s President on the platform of the Peoples Democratic Party (PDP). You were equally elected Governor of Lagos State on the platform of the Alliance for Democracy (AD). This electoral upshot inevitably placed you in opposition to the government at the centre.
The dust raised in the wake of the elections was yet to settle before you disagreed with then President Obasanjo. The bone of contention transcended personal vendetta, or so it seemed. Again, it happened at a time when our democracy could rightly be described as nascent. You had approached the court to seek judicial interpretation on some grey areas of our constitution, as provided for, in the concurrent list.
Much as Obasanjo would have loved to have things go his own his way, he was apparently restrained by the grundnorm. And he recognized it was within your right to seek judicial interpretation as to whether he wasn’t exercising his powers as president ultra vires. That was the rule of law at play; a classic specimen of what we fondly refer to as the beauty of democracy in our political parlance.Above all, it underscored the centrality of the constitution in resolving state matter.
Nigerians gave you thumbs up for engaging Obasanjo and the federal government all the way up to the Supreme Court. Moreover, happening at a time when the fear of President Obasanjo and the unwritten federal might were considered the beginning of political wisdom in our polity. Of course, the constitution came handy as a leveler between your good self and former President Obasanjo.
In light of the above, Nigerians naturally expect a clear departure from what the Obasanjo era and the immediate past regime offered them as constitutional democracy. Whereas it is still early in the day to rate your performance in this regard, one cannot but acknowledge that you have so far shown that you have some listening ear. Your intervention in what could have degenerated into a total breakdown of law and order in Rivers State late last year comes as a reference point. For me, stepping in to halt the ship of state from completederailment is an eloquent attestation to the fact that you place the security of lives and property, peace and harmony, and national cohesion over and above partisan interest.
You could equally have looked the other way and allow the crisis fester, since Rivers State is a PDP state. But you hearkened to the voice of reason, and that of well-meaning Nigerians, particularly, Chief Edwin Kiagbodo Clark, the leader of the Ijaw nation, and, the Ijaw National Congress (INC) to halt the drift. Notwithstanding your tight schedule, you took out time to summon the governor of Rivers State, Sir Siminalayi Joseph Fubara, his predecessor, now FCT minister, Barr. Ezebunwo Nyesom Wike and Hon. Martins Amaewhule who were the principal actors in the crisis to the Villa, and have them subscribed to a peace deal.
Although I had my reservations over the eight-point resolution ab initio, I refrained myself from joining the bandwagon in pointing out some of the obvious limitations in the document at the time. My position was informed by the following reasons. First, I didn’t see it as the wisest thing to do at a time when the crisis was raging like a wildfire. For me, nothing could have been more paramount than bringing the situation under control, which the armistice effectively accomplished. Second, I trusted your judgment, and honestly believed that you brokered the deal in good faith. I was therefore willing to give the truce the deserved benefit of the doubt by putting it to test. Finally, and most importantly, the governor who was in the eye of the storm was unwavering in restating his commitment to the terms of the truce.
However, three months after the deal was struck, I dare say, Your Excellency; that it has failed in attaining the ultimate goal of reconciling the warring factions.Instead, it had become the template for the palpable tension the state has since been grappling with. This outcome is by no means surprising to any discerning mind. And the reasons are not far-fetched. First, as I mentioned earlier, it would appear that in a bid to halt to the looming anarchy, the constitution which is the grundnorm was not properly consulted in forging the eight-point resolution. Also, a reexamination of the document reveals a certain degree of political fiat in its construct.
That the eight-point resolution has since triggered a plethora of litigations is only natural. That it has induced a near state of anomie clearly points to the inherent flaws in the document. That it has thrown up desperadoesand warmongers like Chief Tony Okocha and Engr. Samuel Nwanosike who now disparage, distract and outrightly abuse a sitting governor with reckless abandon is equally expected. As for Wike, the man believes the governor is his lackey, therefore, tongue-lashing, and outrightly threatening to give the governor sleepless nights are privileges he believes are within his right. But most worrisome, is the fact that Wike doesn’t make empty threats. In other words, backtracking on getting the governor out of office, either by hook or crook isn’t just an option.
The truth is, some of the articles in the eight-point resolution stealthily stripped the governor of the powers and aura of his office;thus exposing him to the ridicule we see today. For instance, article three directed the governor to reinstate former members of the state executive council,who had earlier resigned their appointments from the state cabinet. Truth be told, such directive to a sitting governor, in the very least, leaves a sour taste in the mouth. Perhaps, it would have been a different kettle of fish had the governor whimsically sacked the commissioners because he suspected their allegiance lay with the FCT minister. But here, these supposed honourable men and women resigned their appointments on their own volition, citing “personal grounds”.
One would have expected Your Excellency toresolve the issue a little differently given your groundedness in public and private administration; knowing that trust and mutual respect took flight the moment those commissioners handed in their resignation letters. In other words, people with obvious reservations against each other cannot truly work as a team.
The constitution expressly confers the powers to appoint commissioners on the governor of a state. It follows therefore that commissioners owe their loyalty to the governor who appoints them. While in the saddle, Wike was unequivocal in demanding a hundred percent loyalty from his commissioners. And that was what he got during his eight-year reign. Granted that the commissioners in question were all nominated by the FCT minister as we now know; the question is, was it also within his right to direct their resignation at will, and then re-direct their reinstatement because the plot to remove the governor failed?
If you ask me, requesting Wike, the nominator, to nominate fresh persons in their stead would have created more semblance of statecraft, seriousness in governance and, more importantly, saved the governor’s face. It also would have gone a long way to demonstrate that some things are beyond trifles. Put differently, the notion that a crisis of that magnitude could be resolved absent collateral damage rest on a faulty premise.
Again, article six of the eight-point resolution apparently puts the governor in a catch 22 situation. Directing the governor to re-present the state Appropriation Bill that has already been passed and signed into law to Hon. Martins Amaewhule and his co-travelers, in my humble opinion, was another sore point in the document. I doubt it was a fitting consideration for a failed impeachment that shouldn’t have happened in the first place; not after the courts have already made pronouncements on the issues.
Your Excellency, I honestly believe you didn’t intend the current stalemate between the executive and the legislative arms of government in Rivers State. Nevertheless, that is the reality on ground, as the governor, on one hand, governs the state with an infiltrated state civil service; and Martins Amaehule with his ‘Assembly’ members, working at cross-purposes with the governor, dish out all the anti-executive bills they can imagine. A case in point is the latest piece of legislation coming from the ‘Assembly’. Again, one wonders,what Assembly worth its salt, wouldseekto elongate the tenure of the current local government chairmen and councilors; knowing they were elected and sworn into office for a three-year term that expires in June? The question is, do we now enact our laws retroactively?
Now, to the crux of the matter, Wike is a man with a history of political violence. His politics thrives in an atmosphere of strife and rancour. It cannot be over emphasized that he presently seeks to overheat the Rivers polity, and possibly make the state ungovernable. He is hell bent on accomplishing the intendment of a failed impeachment. His penchant for violence explains why Rivers State under his reign wore the appalling badge of a conquered territory. The state hasn’t exploded yet, given its current tenuous peace of the graveyard,is because, Gov. Siminalaye Fubara has refused to swallow Wike’s bait. In fact, his refusal to join issues with the man he calls master, and probably heat up the polity explains why restive Wike wants 2027 switch place with 2024 in the Nigeria political calendar.
Already, his vicious supporters are on the prowl, momentarily rehearsing vandalism and arson of public and private properties, with no qualms, even in broad day light. Sadly, the license to take laws into their hands springs from standing on Wike’s mandate. This much is evident in a video that has gone viral on the cyberspace. One would have dismissedthe ongoing rampageas the man’s political trademark, except that wily Wike claims to be standing on your mandate, even though he has been most cautious in defecting to his supposedly ‘cancerous’ APC.
Your Excellency, is it not curious that Wike and his supporters are the only band daily chanting “On your mandate we shall stand, Jagaban”, one year after you had contested and won the February 25, 2023 presidential election?
Of utmost concern is the disturbing silence of the Police, the DSS and other security agencies in the face of Wike’s supporters running amok. Rather, than live up to their constitutional billing, they seem to unwittingly nudge the people to resort to self-help. And while they continue in their ostrichism, the fire is being steadily stoked by the man who thinks Rivers State is his sole enterprise, and to balm his bruised ego could unleash the unimaginable.
It is however reassuring that Your Excellency is no stranger to Rivers politics and its combustive nature. As Dr. Peter Odili’s contemporary as governors, you were well abreast of what transpired in the state from 1999-2007. You were also a major player in the Amaechi-Wike debacle while the former was the occupant of Brick House. In fact, you were purported to have saved Amaechi’s skin from the Jonathans, when, in cahoots with Wike, they unleashed the federal might.
You saw Rivers State went upin flame from 2013-2019, all for Wike to succeed his Ikwerre brother as governor in a multi-ethnic state. You were also witnessto how thepolitically induced inferno incredibly extinguished itself as soon as Wike’s vaulting ambition was achieved. But while the carnage last, Rivers people lost their lives in their hundreds.
As governor, and for eight years, Wike ruled like a demigod, and the state, his footstool. He literally vetoed the constitution on Citizens’ Rights, Freedom of Speech, Freedom of Association, Procurement, and Social Justice. In fact, one of the lion-hearted among us aptly tagged the Wike-era as the years of the Rivers of Blood.
Your Excellency, there is no better way to say Rivers State is presently sitting on a keg of gunpowder, while drifting daily towards the precipice. And if something is not done urgently to avert a repetition of its recent ugly past, tomorrow may be too late.
I have personally bemoaned the lot of the Rivers man since the dawn of the fourth republic in my book: The Rivers Season of Insanity. I would spare you the details therein. However, it may interest Your Excellency to know that as a Rivers man; I have tremendous respect for you, just as I envy what you have made of Lagos State. I’m therefore genuinely bothered that Rivers State may just be the odd state out as you are set to replicate the Lagos wonder across the federation. Rivers State can only andtruly share in the Renewed Hope, if Wike is restrained from plunging it into another round of bloodletting.
Much as it is the truth, I hate to reiterate, that in all her abundance, Rivers State can only boast of the loudest and most vaulting chief executives ever, since 1999. The allure to graduate from Brick House to Aso Villa has become an elixir, which those we elect to govern have not been able to extricate themselves from. And to make a bad situation worse, it remains the only state in Nigeria that flaunts an obnoxious injunction that insulates her past and serving governors from the ethics of good governance, such as transparency, accountability and probity.
I have no doubt in my mind that you already saw through Wike and his antics. And it is only a matter of time before you reined him in. My concern however, is that it shouldn’t happen only after he must have thrust the state into another round of massacre. Need I say, that going by his claim, what Wike delivered in last year’s election were Rivers votes, not his votes.
Ask the Jonathans if their alliance with Wike was worth the trouble, given the benefit of hindsight, and your guess will be as good as mine.
In a nutshell,Your Excellency, Rivers State has had more than her fair share of bloodletting since 1999. It is against this backdrop that I most fervently pray that the blood of Dr. Marshall Harry, Chief A. K Dikkibo, Hon. Monday Ndor, Hon. Charles Nsiegbe, Amb. Ignatius Ajuru, Hon. Monday Eleanya, Barr. Ken Aswuete and several other victims of assassination be allowed to water the peace initiative and advocacy of the incumbent governor.
Finally, Your Excellency, in view of the above, it is my humble submission that the eight-point resolution be revisited with the hope that it guarantees sustainable peace and harmony in the Rivers polity.
“The time is always right to do what is right.”
-Martin Luther King Jr.
Thank you for time and consideration.
Yours Respectfully,
Caleb Emmanuel Fubara
Fubara hails from Opobo Town
Background
On Thursday, February 15, 2024 at its 109th Legislative sitting, the House passed into Law, the Rivers State House of Assembly Service Commission (Amendment) Bill, 2024. The Bill repealed the Rivers State House of Assembly Service Commission (Amendment) Law, No. 3 of 2006 and further amended the Rivers State House of Assembly Service Commission Law of 1999. The Bill was sent to the Governor for his assent and after the statutory 30 days, the House re-passed the Bill into Law on 22nd March, 2024.
The Rivers State House of Assembly Service Commission was established by the Rivers State House of Assembly Service Commission Law of 1999. Section 2 provides:
“The Commission shall comprise a Chairman and four other members who shall in the opinion of the Speaker be persons of unquestionable integrity.
“The Chairman and members of the Commission shall be appointed by the Rivers State House of Assembly acting on the advice and recommendation of the House Committee of Selection and shall in making the appointment be guided by the geographical spread and diversity of the people of Rivers State.”
The above section was repealed by the Rivers State House of Assembly Service Commission (Amendment) Law No 3, 2006. In Sections 2 and 3, the Amendment Law provides that:
S. 2 “Section 2 of the Principal Law is amended by repealing subsection (1) and substituting the following subsection:
“(1) The Commission shall comprise a Chairman and 4 (four) other members.
S. 3 “Section 2(2) of the Principal Law is amended by repealing subsection (2) and substituting the following subsection:
“(2) The Chairman and members of the Commission shall be appointed by the Governor subject to the confirmation by the House of Assembly and shall in making the appointment be guided by the geographical spread and diversity of the people of Rivers State.”
The import of the 2024 Amendment Bill passed into Law by the House is that the Governor will no longer have the power to appoint the Chairman and members of the Rivers State House of Assembly Service Commission and the power of appointment shall be vested in the House of Assembly.
Legal Issues
The first issue to consider is the Constitutional power of the Governor. Section 5(2) of the Constitution of the Federal Republic of Nigeria, 1999 provides that the executive powers of the State shall be vested in the Governor of that State.” Further, Section 176(2) provides that: “The Governor of a State shall be the Chief Executive of that State.”
This follows that the Governor is the Chief Executive Officer of the State Government and by the powers vested on him, is responsible for making appointments into various executive bodies, subject to the provisions of the 1999 Constitution and other statutes. All Commissions and other parastatals are executive bodies under the control of the Governor. The House of Assembly Service Commission is an executive body and as such, the Chairman and members can only be appointed by the Governor. The House of Assembly has no powers to make any appointment into an executive body as no statutory body is under the control of the legislature. The Rivers State House of Assembly should not mistake the presence of the building of the Service Commission in its premises as conferring powers on the House to appoint the Chairman and members of the Commission.
The second issue to consider is the Constitutional alteration of 2023. In that alteration, the Third Schedule was amended to include State Houses of Assembly Service Commissions, which invariably follows that a State House of Assembly Commission is one of State bodies established by section 197 of the 1999 Constitution. Let’s be reminded that Section 198 of the 1999 Constitution gives the Governor the power of appointment into various executive bodies, subject to confirmation by a resolution of the House of Assembly of a State. The job of the Rivers State House of Assembly ends with the confirmation of the appointees.
The alteration to the Third Schedule, paragraph 1A provides that the composition, tenure, structure, finance, functions, powers, and other proceedings of the Commission shall be as prescribed by a law of the House of Assembly of the State. Notice that the appointment of the Chairman and members of the Commission is not listed. Therefore, it can be safely inferred that the power to appoint the Chairman and members of the House of Assembly Service Commission lies with the Governor, as is the case with the other bodies listed under Section 197 of the 1999 Constitution.
There is nothing in the Alteration that, by any stretch of imagination, can be inferred to confer the power of appointing the Chairman and members of the Rivers State House of Assembly Service Commission on the Rivers State House of Assembly, notwithstanding the fact that the law creating the Commission was enacted by the Rivers State House of Assembly.
Thirdly, is the Rivers State House of Assembly Service Commission and its staff under the control of the State Government? To answer this question, we will take our voyage to Section 318 of the 1999 Constitution. That section gives the definition of a Public Service of a State to mean: “the service of the state in any capacity in respect of the government of the state and includes service as: clerk or other staff of the House of Assembly; member of staff of the High Court, the Sharia Court of Appeal, the Customary Court of Appeal or other courts established for a state by the Constitution or by a law of a House of Assembly; member or staff of any Commission or authority established for the state by this Constitution or by a law of a House of Assembly; staff of any Local Government Council; staff of any statutory corporation established by a law of a House of Assembly; staff of any educational institution established or financed principally by a government of a State; and staff of any company or enterprise in which the government of a State or its agency holds controlling shares or interest.
The purport of this section is that the Assembly Service Commission is not an appendage of the legislature but under the control of the State Government. Even at the national level, the members of the National Assembly Service Commission are appointed by the President in collaboration with the National Assembly.
Fourthly, what is the position of the Rivers State House of Assembly Service Commission Law vis-à-vis the National Assembly Service Commission Act? Section 4(5) of the 1999 Constitution provides: “If any Law enacted by the House of Assembly of a State is inconsistent with any law validly made by the National Assembly, the law made by the National Assembly shall prevail, and that other law shall, to the extent of inconsistency, be void.”
Further, in A.G Bendel v AG Federation & 22 Ors (1982) 3 NCLRI, the Supreme Court held per Fatayi Williams CJN (as he then was) “neither a State nor an individual can contract out of the provisions of the Constitution. The reason for this is that a contract to do a thing which cannot be done without a violation of the Law is void.”
The fifth issue is: “can a statute revive a repealed statute?” In the case of Idehen v University of Benin, Suit No FHC/B/CS/120/2001, delivered on 19th December, 2001, the court held that:
“Contrary to the contention of the University, the effect of a repealing statute is to erase the repealed statute from the statute book. When a statute is repealed, it ceases to exist and no longer forms part of the laws of the land. In other words, the effect of the repeal is to render the repealed statute dead and non-existent in law. Like a dead person, it cannot be revived.”
The court also held in Onagoruwa v IGP (1991) 75 N.W.L.R (pt. 193) 593 that in law, a non-existent statute is dead and cannot be saved or salvaged by the court.
In Madumere v Onuoha (1999) 8 NWLR (Pt. 615) Pg 422, the Court of Appeal held that:
“the effect of repealing a statute is to obliterate it completely from the records of the Parliament as if it had never been passed. Such a law is to be regarded legally as a law that never existed…This means in effect that when a statute is repealed, it ceases to be an existing law under the Constitution of the Federal Republic of Nigeria.”
For the purpose of reviving your memory, the provision giving the Governor the power to appoint the Chairman and members of the Rivers State House of Assembly Service Commission under the repealed 2006 Law provides in its opening paragraph:
“3. Section 2(2) of the Principal Law is amended by repealing section 2 and substituting the following section…” (emphasis mine).
Further, Section 6(1)(a) of the Interpretation Act provides:
“(1) The repeal of an enactment shall not revive anything not in force or existing at the time when the repeal takes effect.”
Please note that Section 318(4) of the 1999 Constitution provides that “The Interpretation Act shall apply for the purposes of interpreting the provisions of this Constitution.”
It follows from the above that the House cannot repeal Sections 2 and 3 of the Rivers State House of Assembly Service Commission (Amendment) Law No 3, 2006 to revive the already repealed provisions of the 1999 Law.
Conclusion
In conclusion, the Rivers State House of Assembly lacks the powers, legal or otherwise, to remove the power of appointment of the Chairman and members of the Rivers State House of Assembly Service Commission from the Governor and vest that power on themselves. The provision in the Rivers State House of Assembly Service Commission (Amendment) Law, 2024 seeking to vest that power on the House is in clear contravention of the 1999 Constitution, and therefore, a nullity in the eyes of the Law. See the case of MacFoy v UAC (1961) 3 All ER 1169 where the court held that you cannot put something on nothing and expect it to stand.
In that case, Lord Denning stated: “If an act is void, then it is in law a nullity. It is not only bad, but incurably bad. There is no need for an order of court to set it aside. It is automatically null and void without more ado, though it is sometimes more convenient to have the court declare it to be so. And every proceeding which is founded on it is also bad and incurably bad. You cannot put something on nothing and expect it to stay there. It will collapse.”
Rt Hon Ehie is Chief of Staff, Government House, Port Harcourt.
By: Edison Ehie