Editorial
Whither Nigeria @ 61?
After 61 years of Independence, the deplorable state of Nigeria has remained ubiquitous; insecurity, hatred, suspicion, dread of implosion, collapsing economy, disunity, authoritarianism, and deprivation, among others, are the talking points. So far, the optimistic followers of the tradition of “unity in diversity” are striving with the majority to encourage the country to revert to proper federal practice. In rural dwellings dominated by insurgents, bandits and militiamen, the facts on the ground have surpassed the debates.
Nigeria’s history is a narrative of a volatile union. Just as countries with disparate cultures, linguistic groups and nations are compelled to remain together, so is Nigeria confronted with survival challenges. Building a state is a long way off; the country has failed and has been taken by all kinds of criminals, and Nigerian society is in extraordinary unease. The harmful mixture of tribe, religion and corruption governs public sector affairs.
A political science professor, Femi Mimiko, once said: “Ours is the textbook definition of state capture, where a tiny governing elite runs the system in its interest and for its good. It is a system of political and economic exclusion, which fuels anger, and a feeling of marginalisation.” We agree no less with the submission of the erudite scholar. His thought simply reflects our true state.
The goals of a state — the protection of lives and property, the well-being of citizens, the realisation of individual and collective potential — are few and far between, and the situation is deteriorating daily. Erected on a foundation of oppression, fraud and a rigged administrative system, unity and inclusion have consistently been elusive. Never since before and after the Nigerian Civil War have the ethnic nationalities and major faiths been so mutually inimical.
Built on a tripod, the country had three active regions that competed successfully in terms of socio-economic development and the emancipation of their citizens. These regions were North, East and West. The North covered all parts of the 19 present-day Northern states and the Federal Capital Territory (FCT), Abuja. The Eastern Region had all the five states of the South-East geo-political zone including Rivers, Cross River, Bayelsa and Akwa Ibom. The Western Region comprised the six present-day states of the South-West zone, some parts of which were Lagos, Edo and Delta States. In 1963, through a referendum, a fourth region — Mid-West (covering present-day Edo and Delta) was carved out of the Western Region. Then, the nascent Nigerian nation was the envy of the world as the regions, embedded in fiscal federalism, struggled to out-do one another in terms of the provision of world-class infrastructure and facilities, and the welfare of their peoples.
However, political apathy set in and undermined virtually everything: crime has become massive, spotlighting a 12-year-old terrorist insurgency, heavily armed and organised bandits, Fulani herdsmen-militants converging in the country from all over West, North and Central Africa, kidnappers, cult gangs, growing separatist agitations and brutal gangsters. The Governors of Zamfara, Katsina, Niger, and Sokoto States previously conceded that bandits were controlling swathes of territory like the terrorists who once controlled 28 local government areas in the North-East.
The economy has for decades defied solutions, kept alive only by oil revenues obtained from the Niger Delta region and inequitably distributed by the 36 states, the FCT and the central government. This culture of sharing makes states indolent, ineffective and parasitical. At 61, Nigeria cannot claim to be pursuing its political integration or social commitment. In key areas of life, the miseries of missed targets are notable. Elections are a war, usually a farce. Courts repeatedly decide “winners” mostly on technicalities.
Many states and the Federal Government are in debt. The exchange rate, which was 71 kobo per dollar in 1960, 89 kobo in 1985, N22 in 1993, and N92 at the start of the Fourth Republic in 1999, has shot through the roof. Now, the dollar is officially traded for, at least, N410, and N560 on the parallel market. For a country heavily dependent on external sources for almost every need, including what it can produce, such as petroleum products, this is an economic disaster.
Domestic manufacturing has declined badly, causing terrible unemployment. At the time of Independence, the unemployment rate was 6.6%; however, due to the hovering population with no clinical plan to manage it, the country is faced with an exceptional unemployment time bomb. Today, our combined unemployment and underemployment rate is 55.7%. The textile industry hired 60,000 people in 1970; 165,000 in 1980; and peaked at 250,000 in 1985. But in 2015, it had just 5,000 employees. Today, that number is estimated to have further dropped by half.
Corruption is a monster that cannot be ignored. The Human Environment Development Agency has stated that Nigeria lost $600billion to corruption between 1960 and 2019. The efforts of successive regimes in the fight against corruption have failed miserably. PricewaterhouseCoopers (PwC) concluded that corruption has the potential to cost Nigeria up to 37 per cent of GDP by 2030. The result has been mass poverty.
In 2018, Nigeria surpassed India to become the world’s extreme poverty capital. The living standards of 80million of its citizens were below the threshold of $1.90 per day. The World Poverty Clock had projected that by mid-2020, this number would rise to 105million. This makes life expectancy as low as 55 years, ranking fifth in the world. In 1960, Nigeria’s peers; Cuba, Singapore and Malaysia were 78, 83 and 76 years, respectively. UNICEF reports that our country is now the world’s capital of under-five deaths, taking over from India.
As the foundation of social development, education is a mess. Although Nigeria today has 161 (82 public, no less than 79 private) universities, and only the University of Ibadan and the University of Nigeria at the time of Independence, the country has about the most negative distinction of having the most out-of-school children in the world. By 2018, the illiteracy rate was 62percent, which is a huge problem. Also, with a population of over 200million, and a central police force of about 370,000 (representing approximately 1 policeman to 541 citizens), most Nigerians are virtually unpoliced.
The rating of the Fragile States Index (previously the Failing Countries Index) published by the United States think tank, Fund For Peace (FFP), reflects the country’s horrible performance. Because of factors such as a weak or ineffective central government losing control of parts of its territory, lack of public services, widespread corruption, crime, refugees, and continued economic adversity, Nigeria was ranked the 14th most vulnerable country globally. All the social, economic and political considerations mentioned by the FFP are present in their entirety. Politically, the country no longer has any legitimacy.
Nigeria stands proud as a federation. But in all honesty, it cannot say it is practising anything close to true federalism. Besides Lagos and Rivers, other states are wholly dependent on statutory allocations. We have a centralised police and correctional (prisons) system, creating an anomalous situation where, for instance, a person commits a state offence; he is arrested by federal police, tried by a state court, and sentenced to a federal correctional facility. Our federalism is abnormal. Its content suggests a unitary system.
During an interdenominational church service in commemoration of the 61st Independence Anniversary at St. Paul’s Anglican Church, which was held in Port Harcourt, last Sunday, the Rivers State Governor, Chief Nyesom Wike, succinctly captured the mood of the nation when he declared that Nigeria was at such point of extinction that only God, not man, could reverse the impending disintegration. He said it was unfortunate that at the age of 61, Nigeria had continued to struggle with leadership failure.
Hear him: “This is the time Nigeria needs God more. The country is gone. Insecurity everywhere. Everyone needs to say, God, we need you because man’s leadership has failed this country. At 61 years, Nigeria is full of enmity, full of divisions, hatred, ethnicity, a country that cannot put itself together. Everybody has responsibility, so ask yourself questions, have I played my own part?” Absolutely! Bad leadership and followership account for plenty of our misfortunes. To achieve the Nigeria of our dream, our leaders at all levels must act right while the followers must hold them accountable.
Time has come to undertake the reforms needed to return to the pre-1966 era of autonomy, with the 36 states as autonomous and efficient sub-national units. Nobel Prize laureate, Professor Wole Soyinka, agreed with former President Olusegun Obasanjo that the country was falling apart and needed to be fixed urgently to avert implosion, though Obasanjo missed the opportunity to reform Nigeria. Some, like Cardinal John Onaiyekan, and the pan-Yoruba socio-cultural group, Afenifere, believe the main national issue should be restructuring and not the 2023 elections. Of course, they are right!
There is an urgent need for the National Assembly to review and amend the 1999 Constitution to reflect the yearnings and aspirations of Nigerians today, as the present Constitution does not address the fundamental issues of justice, equity and fairness. There is no question that the Constitution, produced by the military, contains several defects that must be corrected. What Nigerians desire is a people’s Constitution that complies with democratic norms and principles. The proposed Constitution must enshrine the cardinal principles of true federalism, the devolution of powers and the rule of law.
It is either the country reforms or breaks up. To avoid disintegration, the union must be intrinsically reworked into competitive federalism in which all units become productive, manage and take their destiny in their hands. But is there a will? Somehow, the critical mass is galvanising in many parts of the country to save it from collapsing. But the groups that are imperiously standing against restructuring, especially the Northern elite, should not push other nationalities to a position where negotiation becomes impossible and secession inevitable.
Therefore, at 61 years, Nigeria must take proactive actions to resolve the many vexatious issues waiting to tear the nation apart. First, it must resolve the current Value Added Tax (VAT) collection imbroglio in favour of states. The judiciary, through the matter instituted by Rivers State Government, has already shown that it is the right direction to go. The Federal Government should therefore stop fighting the will of the people and constitutional provisions on the collection of VAT and other taxes.
The constitutional amendment process at the National Assembly must also accommodate e-transmission of election results and put stringent measures in place to check fraudulent activities before, during and after elections. The Federal Government must implement reforms in the oil and gas sector that underpin fairness and justice for the people that bear the brunt of exploration and production operations. The Presidency must ensure political inclusion of minority groups in key public offices and strategic military and para-military command leadership positions. Stakeholders at all tiers of government must jettison corruption, nepotism and tribalism, and entrench rule of law in public life to drive good governance and ensure that the governments are accountable to the people. Above all, the security forces must exterminate acts of terrorism, banditry, gangsterism, and kidnapping in Nigeria.
Editorial
A New Dawn For Rivers’ Workers
Workers in the Rivers State civil service have been eulogising Governor Siminalayi Fubara for delivering on his promise to implement a new minimum wage of N85,000, which was reflected in the salaries paid for November. This increase is N15,000 higher than the national minimum wage of N70,000. This represents not only an enhancement in the financial welfare of civil servants but also a recognition of their hard work and dedication to public service. The raise has been met with widespread jubilation among the workforce, who have long advocated for a better wage to cope with rising living costs and economic challenges.
As the news spread, offices filled with laughter and sigh of relief, as employees exchanged stories of how this financial boost would positively impact their families and dependants. The new minimum wage is not just a number; it symbolises the government’s commitment to improving the standards of living for civil servants and fostering a more equitable workforce. Many workers expressed their gratitude for the governor’s timely intervention, highlighting how important it is for public servants to feel valued and adequately renumerated.
Governor Fubara’s decision is expected to reinforce morale within the civil service, fostering greater productivity and dedication among employees who contribute significantly to the state’s development. With the new wage in place, there is a renewed sense of optimism among civil servants, who now feel more empowered to serve the government and the citizens with greater enthusiasm and commitment.
The Governor had declared an increase in salaries for state workers, emphasising that this adjustment is not only a reflection of the government’s commitment to improving the welfare of its employees but also a strategic move fueled by the state’s enhanced Internally Generated Revenue (IGR). He assured workers that the financial backing for this increment is sustainable, stemming from the state’s focused efforts to bolster revenue through various initiatives, including tax reforms and enhanced efficiency in public service delivery.
Furthermore, the governor’s promise of funding the increment solely through increased IGR signifies a commitment to fiscal responsibility and transparency. It reassures the people that the government is proactively managing resources while investing in their future. As the state continues to explore opportunities for revenue enhancement, Fubara’s administration remains focused on ensuring that these initiatives translate into tangible benefits for the workforce, ultimately fostering a more motivated and dedicated public sector.
The decision by Fubara to be the first in Nigeria to implement the new national minimum wage is a commendable step that reflects a proactive approach to governance and an understanding of the pressing needs of the workforce. In an economy where many families struggle to make ends meet, especially in the face of rising living costs, this enterprise will improve the quality of life for workers and also set a precedent for other states to follow.
In recognising the various drives and support provided by Fubara’s government, it is necessary that the workers reciprocate by embodying a spirit of productivity and commitment to the current administration’s goals. They should align their daily operations with the administration’s objectives to enhance effectiveness and foster an environment of collaboration and trust. This reciprocal relationship can lead to innovative solutions and efficient service delivery, ultimately benefiting the state and strengthening public trust in government institutions.
Surprisingly, despite the political challenges the government has been navigating, alongside the myriad of ambitious projects it is embarking on, it has managed to raise funds to implement a minimum wage of N85,000 This achievement reflects a commendable level of resilience and resourcefulness within the government’s fiscal strategies. In a nation often marred by economic volatility and political discord, finding a way to sustain and even elevate the livelihoods of its employees is no small feat.
Workers in the state have truly found themselves in a remarkably advantageous position under this administration, especially when compared to the previous regime. The immediate past government’s blatant refusal to implement the minimum wage of N30,000 left many employees disheartened and struggling to meet their basic needs. What was even more disconcerting was the absence of meaningful negotiations with labour representatives, leaving workers feeling unheard and undervalued. In contrast, the present administration has prioritised dialogue and engagement with labour unions, recognising the importance of fair wage for workers’ contributions to the state’s economy.
With the current government’s commitment to improving wages and working conditions, it is clear that a major shift has taken place. This renewed focus on the welfare of workers empowers them and instils a sense of hope and optimism for the future, as they can now look forward to a more equitable and supportive work environment. Ultimately, the ongoing trajectory suggests a promising era for labour relations in the state, one where workers are valued and their rights upheld.
Siminalayi Fubara has consistently demonstrated his dedication to workers’ welfare since taking office in May last year. Unlike his predecessor, who left many employees feeling overlooked and unsupported, Fubara wasted no time in addressing the longstanding stagnation of promotions that had plagued the workforce for eight years. He took further steps towards financial justice by initiating the long-overdue payment of gratuities that were neglected during the last administration.
Similarly, we urge the governor to take another step forward by reviewing the stipends received by pensioners. The current pension amounts have become woefully inadequate, leaving many of them who dedicated their lives to public service struggling to make ends meet. These dedicated individuals who have contributed to the development of our dear state now find themselves in a precarious financial situation, receiving stipends that are alarmingly low and insufficient to cover basic living expenses. The rising cost of living has rendered their pensions nearly meaningless. Therefore, a comprehensive reevaluation of these stipends is a required measure to ensure that those who have served our state with honour can live their remaining years with dignity and security.
Editorial
Another Look At Contributory Pension Scheme
In a report from the National Pension Commission (PenCom), it was disclosed that only 26 states in Ni-
geria have implemented the Contributory Pension Scheme (CPS), two decades after the Pension Reform Act (PRA) 2004 was passed. The report highlights the inconsistent espousal of the CPS across states, with some states partially adopting the scheme, others not yet participating, and some facing challenges in getting the bill approved in their state legislative assemblies.
In 2012, the Rivers State Government, under the leadership of former Governor Chibuike Rotimi Amaechi, embarked on a critical initiative by enforcing the Contributory Pension Scheme. This strategic move aimed to establish a sustainable pension system by requiring contributions from both the employer and the employee. The arrangement was designed to ensure that employees have a secured and reliable source of income post-retirement, fostering financial security and stability for the workforce.
Following the introduction of the plan, the government adopted a three-year transition that aimed to fully implement the scheme by 2015. During this transition period, the authorities focused on educating both employers and employees about the benefits and responsibilities of the CPS. This included workshops, seminars, and public awareness campaigns to ensure that all stakeholders were well-informed about the scheme.
The creation of the CPS represents an important milestone in the ongoing efforts to overhaul and enhance the state’s pension system, aiming to establish a more robust and secure retirement savings framework for its workforce. The primary objectives of the CPS are to effectively tackle the inherent shortcomings of the former pension system, including limited coverage, insufficient benefits, and financial uncertainty. This strategic framework is designed to ensure that employees receive sustainable and dependable retirement benefits.
However, to ensure fairness and protect the rights of all workers, it is imperative that the effective date of the contributory pension law be prospective, applying only to workers hired in or after 2012. This would allow those employed before 2012 to continue to benefit from the provisions of theDefined Benefit Scheme (DBS), while ensuring that new hirees are subject to the updated pension provisions.
Unfortunately, the pension programme has experienced several challenges. Despite monthly deductions being taken from civil servants’ salaries for their counterpart funding, the government has not fulfilled its obligation to contribute its share. This has impeded the advancement of the scheme and has left many civil servants without sufficient pension arrangements upon retirement.
As a result, the state pension law has undergone multiple revisions to address the issue of retiring civil servants who ordinarily should be covered by the contributory scheme. The amendments have aimed to accommodate these individuals within the DBS which provides a guaranteed level of pension, based on years of service and salary grade level.
The inability of the contributory pension scheme to gain traction has sparked worries about the long-term viability of the state pension system. The absence of government contributions has resulted in a funding shortfall that jeopardises the government’s capacity to fulfil its pension commitments to employees in the future.
Even if the CPS was created to address the perceived shortcomings and lack of sufficient funding of the DBS by combining funds from employers and employees’ contributions to pension funds custodians, retirees under the scheme have not experienced better outcomes than those who retired under the DBS. On the contrary, the execution of the CPS is different from what its advocates led employees to expect.
The complaints regarding the implementation of the CPS are varied and concerning. Retirees are underpaid despite years of dedicated service, with some having served for the mandatory 35 years. Corruption is rampant within the system, and many state governments and employers are not complying with the provisions of the Reform Act, 2014. Labour leaders in the country have criticised the scheme as being anti-workers and retirees welfare. The Association of Senior Civil Servants of Nigeria (ASCSN) has even called for the scheme to be scrapped, labelling it as a “huge fraud.”
Similarly, we urge the Rivers State Governor, Siminalayi Fubara, to completely abolish the contributory pension scheme in the state, as it will not benefit civil servants. We are particularly concerned about the future of workers who will retire under this scheme, especially since the current legislation allowing for the Defined Benefit Scheme will be obsolete in June next year, when the contributory pension law will be effective.
Moreover, the state government is deducting and remitting workers’ contributions to the pension scheme, but failing to contribute their own counterpart funds as required by law. This action is a violation of the rights of contributors as outlined in section 4(1) of the Pension Reform Act 2014. According to this section, employers are mandated to contribute a minimum of 10 per cent of an employee’s monthly salary to their pension fund administrators. Employers are also required to deduct a minimum of eight per cent from the employee’s salary and remit it to the fund administrator.
A government that supports labour rights, like the current one, should not allow workers to suffer from a failed retirement scheme. Workers who are close to retirement age should not have to face unnecessary challenges. The failure of the scheme is evident from the number of agencies that have withdrawn from it. Therefore, it is important for the state leadership to revoke the legislation.
Unlike previous administrations that may have disregarded the experiences of workers in the state, the present government has consistently recognised and appreciated their contributions. The labour-friendly policies of this government have shown its dedication to the well-being of workers. However, the failed retirement scheme remains a critical issue that needs to be addressed.
Editorial
Making Rivers Investment Destination
Determined to make a difference in governance, Rivers State Governor, Sir Siminalayi Fubara, has signed an Executive Order aimed at the establishment of an investment agency. This initiative is poised to coordinate the growing number of enquiries and business interests expressed by local and foreign investors who now consider the state a destination of first choice. The Governor has endorsed Executive Order No. 002 of 2024, establishing the Rivers State Investment Promotion Agency (RIPA), presented by the Attorney General and Commissioner for Justice, Dagogo Israel Iboroma, SAN.
The Governor explained that what he had just done was to give force to one of the recommendations in the report submitted to him by the committee that handled the organisation of the Rivers State Economic and Investment Summit in May. He said it was undisputed that the summit served as a veritable platform to open up the state for economic advancement, adding that the Investment Promotion Agency would be a one-stop shop to handle all related activities seamlessly in the state.
Fubara said: “This will enable investors, when they come in; they won’t need to run around, and maybe, fall into wrong hands or associations that will want to rip them off their investment stakes. With this, they will have an agency that they could go to, liaise with and the agency will have the required answers to whatever it is that they will need to address concerns before it.”
It is common knowledge that Rivers State is rich in natural resources and has a thriving economy primarily driven by oil and gas. However, beyond these industries, there is an abundance of other untapped opportunities in agriculture, tourism, and technology. Yet, despite its wealth of resources, the state has faced numerous challenges such as infrastructural deficits, poor governance in the past, and an economy heavily reliant on oil. As a result, diversifying the economy has become obligatory.
This development is a significant step towards making Rivers State a premier investment destination, with the Agency expected to play a critical role in attracting and retaining businesses, creating jobs, and driving economic growth. Fubara’s action points to the fact that beyond organising the summit, his administration can live up to fulfilling its promise of making Rivers State great again, economically. Any wonder the Governor stated he was not going to end with the signing of the Executive Order alone but would drive it to a conclusive end to achieve the desired fulfilment that Rivers people expected.
The recent inauguration of RIPA’s board marks a watershed moment in the state’s economic trajectory. Fubara’s decision to set up the Agency reflects his administration’s commitment to reversing the economic decline that has plagued the state for years. By appointing a new board, the government aims to inject fresh ideas and perspectives into the establishment, promoting a culture of transparency, efficiency, and accountability.
Entrepreneurial drive is strong in our state, leading to the daily rise of small-scale enterprises and new entrepreneurs. In today’s world, aspiring business owners frequently face challenges like insufficient funding, limited access to information about available resources, bureaucratic obstacles, and a lack of supportive government policies. The current administration should acknowledge these challenges and be dedicated to stimulating a favourable investment climate.
While the Governor’s vision and the Agency’s efforts are critical, achieving sustainable economic transformation will require collective engagement from all stakeholders. The active participation of the community, local businesses, and civil society is essential for the realisation of these goals. Community involvement is pivotal in ensuring that the needs and aspirations of the populace are integrated into the economic policies and initiatives. Creating avenues for public participation not only empowers citizens but also nurtures a shared sense of responsibility towards the development of the state.
The role of the media cannot be understated in this collective effort. The media serves as a watchdog and an informer, ensuring that the government remains accountable and that citizens are aware of opportunities and challenges in the economic landscape. As with any ambitious vision, several challenges may impede the speed to economic transformation in the state. These challenges must be acknowledged and addressed to ensure that progress is sustainable. The government, alongside the Agency, must proactively identify the barriers and develop strategic solutions.
Corruption remains a vital hurdle in many sectors in Nigeria, and Rivers State is no exception. To combat this, the government must demonstrate unwavering commitment to transparency and accountability, ensuring that funds allocated for development are utilised effectively. Also, the state must prioritise infrastructure development, which is foundational to economic growth. By investing in modern infrastructure, the government can lay the groundwork for enhanced productivity and attract local and foreign investors, nourishing an environment conducive to economic development.
Fostering partnerships with international organisations and development agencies can provide valuable resources and expertise. Such partnerships can facilitate technology transfer, capacity building, and investment opportunities that enrich the local economy. Furthermore, the message of economic transformation must be communicated to all residents of the state. Building awareness and consensus around the vision for the state will galvanise support and encourage collective participation in the transformation endeavour.
Undeniably, Fubara’s leadership and vision have given Rivers people hope for a better economic future and his initiative has put the state on the path to realising its full potential. Its commitment to creating an investment-friendly environment is necessary to attract investors and stimulate economic growth. RIPA’s mandate to return Rivers State to its rightful place as an economically viable entity is a challenge that requires collective effort and support.
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