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Faroukgate: Shame Of A Nation

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If you are wondering why Nigeria’s ailing economy has continued to defy all known solutions, or why Nigeria’s ruling class has deliberately dithered to maintain the nation’s refineries, or build new ones that would save the world’s sixth largest oil producing nation the economic misfortune of refining its crude oil overseas, the Hon. Farouk Lawan led adhoc committee’s report on fuel subsidy management has laid that puzzle to rest.

If Farouk Lawan  led committee’s report is anything to go by, Nigerians need not scratch their heads too far to know that with the present cabal of political and economic elite, it is not yet Uhuru for Nigeria and its downtrodden masses, and that all the preachments about Nigeria becoming economic haven by 2020 are just mere political rhetoric’s that are not worth anybody’s breath.

Notwithstanding the current episode that threatens Lawan’s hard-earned integrity, his committee deserves a standing ovation for letting us know some of the financial vultures in high places that have been fleecing the nation through the oil subsidy. The courageous revelations and the outstanding manner the public hearing on the oil probe was conducted made the committee an uncommon hero. The fuel subsidy probe is arguably, the most outstanding breakthrough the nation’s legislature has recorded in the past 13 years of our fledgling democracy.

The startling revelations that thundered forth from the probe report saw mind-boggling increases in payment under the subsidy regime; from N261.1billion in 2006 to N278.8 billion in 2007; and from N346 billion in 2008 to as high as N2.5 trillion in 2011. As if these increases are mere token to warrant public backlash, N999 million was allegedly paid out in a total of 128 cheques amounting to N127.872 billion within a 24-hour period on the 12th and 13th of January, 2009. It all looked like a fiction too surreal to believe.

But the fleece was not over yet. Further revelations from the report show that different departments of government could not agree on the exact  amount paid the oil barons within the period of probe . While the official quoted amount was N1.3 trillion, the Accountant-General of the Federation put the figure at N1.7 trillion. Then, the Central Bank of Nigeria (CBN) came out with a different figure of N1.8 trillion. But the Lawan’s committee revealed that the actual amount paid the oil magnates was N2.5 trillion.

What other revelations do we need to ascertain that what was being subsidized over these years by the Nigerian State was not fuel subsidy, but high-level corruption of unimaginable proportion?

That Nigeria’s political class is infected  by moral leprosy is a bitter truth ordinary Nigerians have learnt to swallow on daily basis. What perhaps remains a puzzle and which might weigh heavily on people’s minds is the new episode the fuel subsidy probe has entered. The twist of event reads like a well-acted Hollywood movie. I doubt if the Hollywood stars would not extend their invitation to the major actors in what has become Faroukgate.

It is a sad irony to accept that the House of Representatives has become a victim of its own trap. The $3 million-bribery allegations dangling on the neck of the two principal officers of the probe committee has made the hunter the hunted. Or how do one situate the inglorious tune the committee’s chairman, Lawan Farouk and secretary, Anthony Emenalo  are currently dancing to, even naked, with their suspect, Mr Femi Otedola?

The video clip showing Farouk Lawan receiving $500,000 bribe from Femi Otedola at about 4am on April 24, and Emenalo, receiving another $120,000 bribe from the same man  four hours later, totaling $620,000 out of the $3 million bribe deal, represents the ugliest moments of a nation gripped by moral leprosy. Both men, Otedola and Farouk, made a mockery of purity the while clothes they wore in the video represent.

It was not the first time Nigeria’s legislature would feast on scandal, nor the only time the well-starched apparels of our lawmakers carved in different forms of babariga, kaftan, agbada and eti’bo would be soiled. The nation has lost count of such mess in both the upper and lower chambers of the legislative arm – the Buharigate, the Etteh  saga the Bankole scam and lately the pensions fund fraud and the capital market scandal that led to the fall of its investigative committee chairman, Herman Hembe. But none of these arguably, calls to question the integrity of the nation  as much as the current scandal. The Faroukgate reminds one of the Watergate scandal in the United States in terms of sophistication.

Faroukgate, I presume,  must be an interesting movie to watch. By the accounts given by Otedola and Lawan, both men have already whet the appetite of their prospective audience. We are not interested in who approached who for what. The two major actors have established the fact, that one approached the other and something exchanged hands. The sudden deletion of Otedola’s Zenon Oil and Gas Company and Synopsis Enterprises Limited from the list of 15 indicted companies that collected forex from PSF but did not import fuel, few hours after the ‘sting operation’, has justified the purpose. Zenon and Synopsis were said to have collected $232.975,385 and $51.449,977 respectively from the PSF without importing fuel.

But what could have led Farouk Lawan into this shady affair given his high pedigree? Could it be fear of poverty? Certainly not. The diminutive lawmaker cannot be said to be poor having been serving his Kano Federal Constituency as a four-time legislator since 1999. Going by the jumbo allowances and other estacodes the lawmakers receive, Lawan must have saved enough wads in his local and foreign accounts.

May be, he was driven by greed. But common sense ought to have dictated to him that he who goes to equity must do so with clean hands. The pint-size lawmaker ought to know that the oil mafia whose toes he had stepped on would do everything humanly possible to get back at him, and if possible, cut him to size.

I sympathise with Lawan because of his past records. He had played the hero’s script several times. He is one man who had oiled the engine of a true democracy with his alluring,  sweet-sounding voice and people-responsive posture of an activist. His heroic role in the Etteh saga when his group spearheaded the removal of Patricia Etteh as the Speaker is still fresh in our memory. What then suddenly came over Farouk Lawan?

By the suspension order slammed on Lawan, the House of Representatives has tried to wash its hands off the dirty deal. The Kano-born lawmaker is now carrying his cross all alone. But the allegory of this scandal is that the Faroukgate is not just a shame of individuals. It is the shame of the entire nation.

The scam has merely extended the rogue appellation former President Olusegun Obasanjo used to designate the nation’s lawmakers to the entire nation. Of what use is a nation whose political elite are rogues and common criminals? The nation can only be derobed of this ugly appellation if the current scandal is not used as an alibi to either rubbish or overshadow the fuel subsidy probe report, as many people have speculated. After all, you don’t throw away the baby with the bath water.

There is no doubt that the Mafia’s net has caught Farouk Lawan. What is not certain yet is whether or not they would succeed in cutting the pint-size lawmaker to size. But if the $3 million scam turns out to be the curtain on Lawan’s promising political career and a final zeal on his gubernatorial ambition, Femi Otedola and his cabal of oil barons who had fleeced the nation through phantom oil subsidy must not be spared either. A bribe giver is as culpable as the bribe taker.

 

Boye Salau

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Opinion

Fubara: Another Landmark Decision

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On Friday August 16, 2024, at the swearing-in of six new permanent secretaries in the Executive Council Chamber, the Executive Governor of Rivers State, Sir Siminalayi Fubara said that his government will no longer approve contract services for retired Permanent Secretaries in the State so as to give room for others on the line to progress. According to the Governor, if the government continues to give contract to retired permanent secretaries there won’t be room for those who are coming behind, adding that as soon as any permanent secretary retires a new person will be appointed to replace the office. The Governor Fubara’s decision is a “Daniel come to judgement”. It is a commitment to seamlessly drive succession in the civil service. In my considered opinion, it also demonstrates the end of unnecessary bureaucratic gaps in the chain of progression in the civil service.
The civil service as an organised, structured and well coordinated machinery, helps every government in power to achieve policies and Programmes. This however, cannot be achieved if the machinery of government is ineffective and inefficient. A situation where those who are supposed to have left the civil service having attained the statutory retirement age and service years are still being retained in the service speaks volumes of lack of functional succession plan in the service. In the Civil service, ranking is transitional such that a staff on a rank today is expected to transit to the next level in three or four years if he or she meets the promotional requirements. By this subsisting policy there should not be a lacuna in the chain of progression in the service. The functionality of the arrangement makes training and retraining of staff inevitable to enable staff meet the statutory requirements of their anticipated job.
Where there is regular manpower or capacity development training for staff the civil service cannot suffer dearth of efficient and qualified personnel that will necessitate the retention of a civil servant who ought to have retired from the civil service. Retention of retired civil servants implies that those retained are indispensable and that no person in the service was qualified enough to assume that position. The tacit belief that the exit of a retired staff will create a vacuum in the chain of production only reveals a systemic dysfunction. It shows that the exit of such “indispensable” staff was not anticipated so that any vacuum that the absence of such staff would create would have been taken care of well ahead of retirement of such staff. Nothing happens fortuitously in an Organised, functional system.
Retaining those who have retired on their position while there are undoubtedly, staff who are qualified for the same position, does not foster career progression in the service. An efficient and effective service should ensure that no succession gap exists in an organization. And this is achievable by the training and retraining of staff in anticipation of their next level job roles and demands. If a superior officer proceeds on an annual or casual leave any person who acted in his or her absence should be deemed eligible to fill that position when the substantive officer retires. Some civil servants rarely proceed on annual leave because of the false beliefs that the absence of such officer would affect the smooth running of the office. The false belief that a staff is indispensable unwittingly shows that someone has not done what he or she was supposed to do to fill the gap. Should such officer die, will the office be closed? Will someone next in line not be posted to take charge?
Another reason why retention of some categories of staff seem inevitable is when there is lack of manpower in that area. To check such situation, service providers and employers of labour should identify areas where there is lack of manpower and fill them early enough, so the newly employed will understudy their superiors and acquire the desired relevant knowledge on the job that will make them progress and assume a higher responsibility. After all knowledge can be generated informally on the job, as the workers are trained and understudy their superiors.The Governor’s decision should serve as a wake-up call to train and retrain workers. Funds should also be made available to the manpower development experts in the service to end the retention of staff who have retired.

Igbiki Benibo

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Mrs Fubara: Model Of Selfless Leadership

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In recent years, Nigeria has faced a persistent challenge that has significantly impacted the cost of living for its citizens—the fluctuating price of Premium Motor Spirit (PMS), commonly known as petrol. The direct correlation between the price of PMS and the overall cost of living has become increasingly apparent, prompting a crucial need for measures to stabilise these fluctuations. The socio-economic implications of this phenomenon highlight the urgency to explore the impact of volatile PMS prices on the cost of living in Nigeria and advocate for strategies to stabilise these prices for the benefit of the entire nation.The price of PMS plays a pivotal role in shaping the economic landscape of Nigeria. As a major source of energy for transportation and power generation, any fluctuation in petrol prices has a ripple effect on various sectors of the economy. The transportation industry, in particular, heavily relies on petrol, and any increase in fuel costs leads to elevated transport fares, directly impacting the cost of goods and services.
One of the primary consequences of volatile PMS prices is the inflationary pressure it imposes on the economy. When the price of petrol experiences sharp and unpredictable increases, it triggers a chain reaction, causing the prices of essential goods and services to rise. This inflationary spiral, in turn, erodes the purchasing power of consumers, making it increasingly challenging for them to meet their basic needs. Additionally, the impact of fluctuating petrol prices extends beyond the immediate economic realm. It affects businesses’ operational costs, leading to reduced profit margins or, in some cases, business closures. This, in turn, contributes to unemployment and economic instability, amplifying the socio-economic challenges faced by the nation.
To address these issues, it is imperative to explore strategies to stabilise the price of PMS. One key approach is to enhance transparency and accountability in the pricing mechanism. A transparent pricing structure that reflects global oil market dynamics and eliminates hidden charges or subsidies can contribute to a more stable and predictable pricing regime. The earlier the government considered diversifying the energy mix to reduce over-reliance on petrol, the better. Investing in alternative and renewable energy sources can help mitigate the impact of petrol price fluctuations and create a more resilient energy sector. This approach aligns with global trends towards sustainable and eco-friendly energy solutions.
Moreover, regulatory measures should be implemented to curb hoarding, smuggling, and other illicit activities that contribute to artificial scarcity and price manipulation in the petroleum market. By enforcing stringent regulations and penalties, the government can create a more competitive and fair marketplace, fostering stability in PMS prices. Collaboration with key stakeholders, including oil marketers, transport unions, and consumer advocacy groups, is crucial in developing and implementing effective policies. Engaging these stakeholders ensures that the perspectives of all parties are considered, and policies are crafted to address the diverse challenges associated with petrol price stabilisation.
Also, investing in the expansion and maintenance of domestic refineries is essential for achieving a more stable petrol pricing environment. By reducing dependence on imported refined products, Nigeria can exert greater control over its energy security and insulate itself from external market fluctuations. On the international front, diplomatic efforts to negotiate favourable terms with oil-producing nations can also play a role in stabilising petrol prices. Establishing strategic partnerships and agreements that provide Nigeria with a more stable and predictable supply of crude oil can contribute to maintaining stable petrol prices domestically.
Howbeit, stabilising the price of PMS is a critical step towards alleviating the burden of the rising cost of living in Nigeria. The government, in collaboration with relevant stakeholders, must adopt a multi-faceted approach that encompasses transparency, regulatory measures, diversification of energy sources, and international collaboration. By doing so, Nigeria can create a more resilient and sustainable economic environment that benefits its citizens and fosters long-term growth and prosperity.

SylviaThankGod-Amadi

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Opinion

Curtailing Wastage In Governance

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After the election of Bola Tinubu as the President of Nigeria, his highly elated wife, Oluremi, told the nation that her family is rich and does not need the wealth of the nation to survive. She said, “Nigeria’s wealth is the commonwealth of all. It belongs to everyone. God has blessed my family. We don’t need the wealth of Nigeria to survive but to do the right thing. And I promise you on this altar, that with your help, with the help of God, we will set this nation on the right path.” As a matter of fact, many Nigerians rooted for Tinubu as the president because they believed that he was very wealthy and would have no need for the nation’s wealth. Some say he was richer than the country and that there was no better person to manage and grow the country’s economy than Tinubu, a “successful business man.”
Incidentally, the administration’s persistent habit of extravagancy belies these claims. From the reforms that have impoverished millions of Nigerians, to the budgeting of billions of Naira for the purchase of presidential yacht, luxury vehicles for the president, his wife, the vice-president, renovation of the VP’s official residence in Lagos and now the purchase of a multi-million Dollar presidential jet, it seems like our billionaire president, his family and hangers are actually there to use the taxpayers money to maintain their lavish lifestyle despite the economic pain of such to the nation.For ten days at the beginning of this month, Nigerians were on the streets across the country protesting bad governance, hunger and economic hardship.
They made several demands, which include a return of fuel subsidies, improvements in living standards, cuts in the cost of governance, reduction in electricity tariffs, and solutions to escalating insecurity, among others. Not less than seven people died during the protest. And the government that could not meet these demands, went ahead to purchase a jet for the president? If that is not the height of insensitivity to the citizens’ plight then tell me what to call it.The same government that lavishes money on things that do not align with the needs and priorities of the people have been choking the people with all manner of taxes and has been preaching to the citizens to endure the hardship and consider it as a sacrifice being made for the nation’s brighter future.
The worst is that the authorities keep taking the citizens for granted. When the idea of a new presidential jet was muted by government officials who claimed that Boeing B737-700 (BBJ) was in bad shape and no longer safe for the president, Nigerians opposed it on the basis of the harsh economic realities of the country. But the government, as usual, neglected their opinion and went ahead with the purchase secretly. Perhaps, Nigerians would have still been kept in the dark about the purchase of the Airbus A330 but for the Nigeria-Ogun-Chinese Company embarrassing controversy. No transparency. No accountability.Expectedly, the presidency has been defending the purchase of the jet. The Special Adviser to the President on Information and Strategy, Bayo Onanuga wants Nigerians to jubilate because, “The new plane, bought far below the market price, saves Nigeria huge maintenance and fuel costs, running into millions of dollars yearly.”
Onanuga and some other government officials have also justified the purchase of the jet based on the age of Boeing and safety of the President and other of its users. Nigerians love their president and other leaders and wish them well but Nigerians also expect their leaders to show leadership by example and sacrifice for the betterment of the country. They want the president and other leaders to prioritise the welfare of the people over short-term political gains. Nigerians want their leaders to prioritise the needs of the country in view of the nation’s scarce resources. And in doing that, food, security, power, functional government refineries, welfare of workers, good roads, adequate power supply and other basic needs of the masses should be given utmost attention than a presidential jet.
Nigerians want their president to be transparent and accountable to the citizens that put him in power. As the 2023 Presidential Candidate of the Labour Party, Peter Obi admonished, “Now that the jet is here, Nigerian taxpayers whose money was used to purchase it need to be privy to how much it costs, how old the aircraft is and how long it’s been in operation. “In addition, Nigerians also deserve to know about how the old jets are being disposed of, how many of them, how old they are, and why they are being sold. Transparency and Accountability should be the hallmark of any genuine leadership.” And talking about age, reports have it that the Boeing B737-700 (BBJ) which has operated for 19 years is just four years older than the new jet which is 15 years old.
This makes one agree with the opinion of some experts that age should not be a detrimental factor as long as the maintenance schedule is strictly adhered to and spare parts are provided as at when due.  Isn’t the Boeing 747 (the Air Force One) used by the US President, said to be 34-year-old and has served no fewer than six Presidents, including the incumbent Joseph Biden? Therefore, without a good maintenance culture, the new aircraft will not last as long as expected. We must discard the habit of handling government’s property with negligence. People must be made to sit up and carry out their duties diligently to avoid the wastage of scarce resources.Wasteful spending not only drains the nation’s coffers but also erodes public trust in the government.
When citizens witness the lavish lifestyles of public officials—characterised by fleets of luxury vehicles, endless foreign trips, and grandiose state events—they justifiably question whether their leaders have their best interests at heart. This erosion of trust can fuel public discontent and even destabilise governance. The economic repercussions of wasteful spending are severe. Every naira spent on unnecessary luxury is a naira that could have been invested in critical sectors like healthcare, education, infrastructure, and security. Nigeria’s infrastructure deficit is estimated to be in the billions of dollars. Yet, instead of channeling resources towards closing this gap, successive administrations have prioritised short-term, high-visibility projects that offer little long-term value.
Furthermore, wasteful spending contributes to the nation’s growing debt burden. Nigeria’s debt profile has ballooned in recent years, with a significant portion of the national budget now dedicated to debt servicing. This leaves little room for capital expenditure and social programmes that could uplift millions of Nigerians out of poverty. The cycle of borrowing to finance wasteful projects is unsustainable and jeopardises the country’s economic future. To curtail wasteful spending, the budget process must be overhauled to eliminate non-essential expenditures. This means cutting down on excessive allowances for public officials, reducing the number of government agencies and the president announced, and prioritising spending on projects that have a clear, measurable impact on the populace.
Strengthening institutions that monitor and evaluate government spending is crucial. Agencies like the Economic and Financial Crimes Commission (EFCC) must be empowered and adequately funded to carry out their mandates. Public access to government spending data should be improved, allowing citizens to track how their money is being used, while lawmakers at all levels must wake up to their responsibilities of checking the excesses of the executives instead of acting like partners in crime. Reducing wasteful spending is not just a matter of fiscal prudence; it is a moral and economic imperative that could determine the future trajectory of the nation. As President, governors and local government chairmen, our leaders have the power to set the tone for the nation’s administration. By adopting a modest lifestyle and eschewing unnecessary extravagances, they can send a powerful message that wasteful spending will not be tolerated. This could inspire a broader culture of prudence within government circles and can restore public trust.

By: Calista Ezeaku

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