Editorial
Lessons From Okonjo-Iweala’s Appointment
South African President, Cyril Ramaphosa, early this month announced the appointment of Dr Ngozi Okonjo-Iweala as a member of the expanded Presidential Economic Advisory Council (PEAC) put together by his government to rescue the country from its third recession since 2008. The country relapsed into recession at the end of December, 2019.
The council, chaired by Ramaphosa himself, and comprising local and international economic experts, was initially constituted on September 27, 2019, to “ensure greater coherence and consistency in the implementation of economic policy and ensure that government and society in general is better equipped to respond to changing economic circumstances”. It is also expected to advise the president and government more broadly, facilitating the development and implementation of economic policies that spur inclusive growth.
South Africa, the second largest economy on the continent has, in recent years, been rattled by a plethora of challenges, driven by lull in investor sentiment and lingering policy uncertainty, weak power, telecom and transportation sectors, and worsened by crisis in mining and manufacturing sectors. The problem is exacerbated by rising rate of official corruption, divisions in the ruling African National Congress (ANC), xenophobia nurtured by heightened unemployment and increasing insecurity.
Indeed, South Africa’s perilous public finance crisis has been engineered by four forces: stagnant economic growth; consistent tax revenue collection below forecasts; rising debt burden – the highest levels in post-apartheid era; and poor performance of state-owned enterprises, necessitating large-scale bailouts from lean government funds.
These have been triggered by three dynamics: slow recovery from shock of the 2008 global financial crisis; poor economic and public finance performance negatively affected by entrenched institutional destabilisation of Jacob Zuma’s presidency; and continued deterioration of economic indicators (growth and employment) along with further underperformance of revenue collection and public finances under the Ramaphosa government even with expansionary fiscal spending far above revenue generation. It is to address these challenges that Ramaphosa tapped Okonjo-Iweala to help rescue the country from economic doldrums.
The Tide joins millions of Nigerians and leaders across all continents in congratulating one of the world’s best economists and development experts on her meritorious appointment by Ramaphosa. We are proud to commend Okonjo-Iweala not just because she is a Nigerian and brilliant, but because her appointment represents a testament to her competence and experience. We say so because we are convinced that her pedigree and impeccable footprints in monetary and economic administration in Nigeria, many developing countries and at the World Bank stood her out for this sublime assignment.
The 1981 PhD graduate in Regional Economics and Development from Massachusetts Institute of Technology (MIT) spent 25 years of her career at the World Bank as a development economist, scaling the ranks to Number 2 position of managing director, Operations (2007-2011), with oversight responsibility for the bank’s $81 billion operational portfolio in Africa, South Asia, Europe and Central Asia. She spearheaded several World Bank initiatives to assist low-income countries during the 2008 – 2009 food crises and later during the financial crisis, and helped many recover from slow growth to robust economic state.
In 2010, she was Chair of the IDA replenishment, the World Bank’s successful drive to raise $49.3 billion in grants and low interest credit for the poorest countries in the world, and was also member of the Commission on Effective Development Cooperation with Africa. In the last two decades, she has served as senior adviser, executive director, director, chair or co-chair of more than 30 boards of world-class banks, academic and research institutions, development-driven organizations across all continents, including Harvard, Oxford, the Brookings Institution, African Union, World Economic Forum, United Nations, Rockefeller Foundation, Mercy Corps International; and in 2012, ran as the first-ever female candidate for president of the World Bank.
Okonjo-Iweala was a two-time minister of finance, serving under Olusegun Obasanjo (2003-2006), and Goodluck Jonathan (2011-2015). She was the first female to hold that position in Nigeria and her performance speaks for her.
During her first term, she spearheaded negotiations with the Paris Club of Creditors that led to the wiping out of $30 billion of Nigeria’s debt, including the outright cancellation of $18 billion. In 2003, she led efforts to improve Nigeria’s macroeconomic management, including implementation of an oil-price based fiscal rule where revenues accruing above benchmark oil price were saved in special “Excess Crude Account” which helped reduce macroeconomic volatility.
She also introduced the practice of publishing each state’s monthly financial allocation from the Federation Accounts in the newspapers, which increased transparency in governance. With support of the World Bank and IMF, she helped build an electronic financial management platform – the Government Integrated Financial Management and Information System (GIFMIS), including the Treasury Single Account (TSA) and the Integrated Payroll and Personnel Information System (IPPIS), helping to curtail corruption in the process.
As at December 31, 2014, the IPPIS platform had eliminated 62,893 ghost workers from the system and saved government about $1.25 billion in the process. Under the present administration, more than 70,000 ghost workers have been eliminated from the payroll system, and billions of Naira saved for investment in development initiatives. She was also instrumental in helping Nigeria obtain its first-ever sovereign credit rating (BB minus) from Fitch Ratings and Standard & Poor’s in 2006.
Under her leadership, the National Bureau of Statistics carried out a re-basing exercise of the Gross Domestic Product (GDP), the first in 24 years, which saw Nigeria emerge as the largest economy in Africa.
With her record, we think that Ramaphosa made the right decision by appointing Okonjo-Iweala as a member of the country’s PEAC, to help fix its economy and inspire growth and development by advising stable policies that encourage investment.
We, therefore, urge her to pragmatically bring her wealth of experience to bear in helping the South African Government make history by reviving an economy that has been in limbo for about 12 years. She had done it for Nigeria before; she can as well do it for South Africa.
On the other hand, we challenge all tiers of government in Nigeria to emulate the South African Government in placing merit and competence far and above nepotism and tribalism in recruitment and appointment into various offices in order to fast-track development of the country.
We think that the nation’s economy can do better if governments eschew parochial sentiments and implement inclusive policies that recognise hardwork and excellence.
The delay in implementing President Bola Tinubu’s directive for zero customs duty and value added tax on food imports is unacceptable and highlights a concerning lack of urgency within the Federal Ministry of Finance and the Nigerian Customs Service. Over two months after the announcement, the policy remains stalled, despite the President’s clear intention for immediate enforcement. This prolonged delay, especially given the policy’s temporary nature (July – December), is inexplicable and detrimental to a hoi polloi already grappling with a severe economic crisis.
While the Comptroller-General of Customs attributes the delay to the Ministry of Finance finalising details, this explanation is insufficient. The dire need for food relief demands swift action, especially in the face of soaring fuel prices, rampant inflation, and skyrocketing food costs. The President’s promise of subsidised rice at N40,000 per 50kg bag remains elusive as well, pushing many Nigerians further into hardship. Accusations of deliberate slowdowns motivated by the government’s revenue goals are alarming and warrant serious investigation.
A circular from the Presidency has clarified the approved food items eligible for duty exemption, specifically maize, millet, rice, wheat, husked brown rice, grain sorghum, and beans. This strategic move aims to alleviate the financial burden on consumers and enhance food security. Previously subjected to import duties between five and 30 per cent, these commodities will now be more accessible, potentially stabilising prices in the local market.
It seems the execution of the policy is encountering obstacles due to bureaucratic processes. If the government fails to address this crisis with comprehensive and effective measures, the consequences could be catastrophic. The simmering discontent amongst Nigerians could easily boil over into widespread protests and social unrest, further destabilising an already fragile nation. Ignoring the cries of its citizens and the looming threat of social upheaval would be a grave mistake with potentially devastating ramifications.
Public officials insulated by privilege and detached from the everyday struggles of the people, have fostered a dangerous disconnect. For too long, they have failed to truly understand the harsh realities faced by the majority of Nigerians, the daily grind of poverty, the constant battle for survival, and the crushing weight of economic hardship. However, the current multifaceted crisis, with its clear manifestation of suffering, should serve as a jarring wake-up call, even to the most arrogant and out-of-touch.
The government’s ill-conceived and draconian policies, implemented without adequate consideration for the people, have created an intolerable situation that can no longer be swept under the rug or dismissed with platitudes. The widespread suffering is a stark indictment of their negligence, demanding a fundamental shift in perspective and a renewed commitment to the welfare of the Nigerian people.
The recent #EndBadGovernance protests serve as an obvious reminder that disregarding the plight of the people is a dangerous gamble. When basic needs like food and security are unmet, and the cries for change are silenced, the simmering discontent inevitably boils over. Escalating hunger and desperation create a fertile ground for unrest, a truth tragically illustrated by the protests. If the government continues to turn a blind eye to the suffering of its citizens, more widespread and possibly violent demonstrations are not only likely, but inevitable.
Furthermore, attempting to quell dissent through intimidation and persecution of protesters is a recipe for disaster, as it only serves to further inflame tensions and breed resentment. The path to stability lies not in suppression, but in genuine engagement with the concerns of the people and a commitment to addressing the root causes of their suffering.
The Federal Ministry of Finance, led by Olawale Edun, has a crucial role to play in improving the image of this government. Minister Edun and Customs Comptroller-General, Wale Adeniyi, must prioritise the fight against hunger by expediting the zero duty policy. This policy will allow the importation of food at a reduced cost and ease the burden on struggling families.
Officials must accord precedence to the well-being of citizens over bureaucratic processes. The current economic hardship is undeniable, and the callous indifference displayed by those in power, who seem shielded from the harsh realities ordinary Nigerians face, is deeply troubling. The government must act decisively to expedite this critical policy and provide the much-needed relief to a population struggling with hunger, poverty, and misery. Continued delay is a betrayal of Tinubu’s promise and a grim reminder of the disconnect between those in power and the suffering Nigerians.
The delay in implementing President Bola Tinubu’s directive for zero customs duty and value added tax on food imports is unacceptable and highlights a concerning lack of urgency within the Federal Ministry of Finance and the Nigerian Customs Service. Over two months after the announcement, the policy remains stalled, despite the President’s clear intention for immediate enforcement. This prolonged delay, especially given the policy’s temporary nature (July – December), is inexplicable and detrimental to a hoi polloi already grappling with a severe economic crisis.
While the Comptroller-General of Customs attributes the delay to the Ministry of Finance finalising details, this explanation is insufficient. The dire need for food relief demands swift action, especially in the face of soaring fuel prices, rampant inflation, and skyrocketing food costs. The President’s promise of subsidised rice at N40,000 per 50kg bag remains elusive as well, pushing many Nigerians further into hardship. Accusations of deliberate slowdowns motivated by the government’s revenue goals are alarming and warrant serious investigation.
A circular from the Presidency has clarified the approved food items eligible for duty exemption, specifically maize, millet, rice, wheat, husked brown rice, grain sorghum, and beans. This strategic move aims to alleviate the financial burden on consumers and enhance food security. Previously subjected to import duties between five and 30 per cent, these commodities will now be more accessible, potentially stabilising prices in the local market.
It seems the execution of the policy is encountering obstacles due to bureaucratic processes. If the government fails to address this crisis with comprehensive and effective measures, the consequences could be catastrophic. The simmering discontent amongst Nigerians could easily boil over into widespread protests and social unrest, further destabilising an already fragile nation. Ignoring the cries of its citizens and the looming threat of social upheaval would be a grave mistake with potentially devastating ramifications.
Public officials insulated by privilege and detached from the everyday struggles of the people, have fostered a dangerous disconnect. For too long, they have failed to truly understand the harsh realities faced by the majority of Nigerians, the daily grind of poverty, the constant battle for survival, and the crushing weight of economic hardship. However, the current multifaceted crisis, with its clear manifestation of suffering, should serve as a jarring wake-up call, even to the most arrogant and out-of-touch.
The government’s ill-conceived and draconian policies, implemented without adequate consideration for the people, have created an intolerable situation that can no longer be swept under the rug or dismissed with platitudes. The widespread suffering is a stark indictment of their negligence, demanding a fundamental shift in perspective and a renewed commitment to the welfare of the Nigerian people.
The recent #EndBadGovernance protests serve as an obvious reminder that disregarding the plight of the people is a dangerous gamble. When basic needs like food and security are unmet, and the cries for change are silenced, the simmering discontent inevitably boils over. Escalating hunger and desperation create a fertile ground for unrest, a truth tragically illustrated by the protests. If the government continues to turn a blind eye to the suffering of its citizens, more widespread and possibly violent demonstrations are not only likely, but inevitable.
Furthermore, attempting to quell dissent through intimidation and persecution of protesters is a recipe for disaster, as it only serves to further inflame tensions and breed resentment. The path to stability lies not in suppression, but in genuine engagement with the concerns of the people and a commitment to addressing the root causes of their suffering.
The Federal Ministry of Finance, led by Olawale Edun, has a crucial role to play in improving the image of this government. Minister Edun and Customs Comptroller-General, Wale Adeniyi, must prioritise the fight against hunger by expediting the zero duty policy. This policy will allow the importation of food at a reduced cost and ease the burden on struggling families.
Officials must accord precedence to the well-being of citizens over bureaucratic processes. The current economic hardship is undeniable, and the callous indifference displayed by those in power, who seem shielded from the harsh realities ordinary Nigerians face, is deeply troubling. The government must act decisively to expedite this critical policy and provide the much-needed relief to a population struggling with hunger, poverty, and misery. Continued delay is a betrayal of Tinubu’s promise and a grim reminder of the disconnect between those in power and the suffering Nigerians.
All looks set for the conduct of the Rivers State local government election scheduled to take place tomorrow in the 23 local government areas of the state. A total of 18 political parties will vie for various council positions in the polls to be conducted on Saturday. The Rivers State Independent Electoral Commission (RSIEC) had initially listed 19 political parties for the election, but the Peoples Democratic Party (PDP) discontinued the contest. Chief Emeka Beke’s faction of the All Progressives Congress (APC) has said that it will participate in the ballot.
Ahead of tomorrow’s council election, various lawsuits have resulted in conflicting rulings about how the election should be conducted. A recent judgment by a Federal High Court in Abuja has prohibited the Independent National Electoral Commission (INEC) from providing the voters register to RSIEC and instructed the police to withdraw security for the ballot. Similarly, the court has barred RSIEC from getting the voters register from INEC. However, in a counter ruling, a High Court in Port Harcourt has mandated that the state electoral commission continues with the election, requiring INEC to hand over the voters register and ordering police protection for the event.
As voters in the state prepare to head to the polls tomorrow, the conflicting rulings and legal battles have cast a shadow of uncertainty over the election process. With INEC and RSIEC at odds over claims regarding the issuance of the voters register by the former and security arrangements for the ballot, there is a need for clarity and resolution to ensure a free and fair election. The conflicting court rulings have added further complications to an already challenging situation, raising concerns about the integrity of the electoral process. As all stakeholders navigate these legal challenges, the focus remains on upholding the democratic principles and ensuring that voters are able to cast their ballots without interference.
Intense preparations have characterised Saturday’s polls. The election is expected to be conducted in line with the provisions of the Rivers State electoral laws. Speaking at a meeting with stakeholders, the RSIEC chairman, Justice Adolphus Enebeli (Rtd), hinted that the commission had complied with relevant sections of the law in all its preparations for the task. He implored political parties and politicians to ignore acts that could jeopardise the electoral process.
While we wholeheartedly endorse the move to ensure that democratic practice, norms and values always prevail at the local government level, we are truly elated by the level of earnestness and commitment exhibited so far by the Justice Enebeli-led commission to conduct credible, free and fair election in the 23 local government councils. Indeed, RSIEC can execute credible elections if it resists pressures from different quarters.
Despite the Federal High Court order, the state electoral commission’s parley with security agencies, especially with the police, and other stakeholders is, to say the least, heart-warming and reassuring. We expect this cooperation and partnership to continue even after the election. Going by Enebeli’s antecedents, we strongly believe that the commission will not fail to provide a level playing ground for political parties and politicians to test their popularity in a free, fair and tension-free contest.
The state electoral body must, therefore, strive to adopt an open-door policy where complaints would be entertained on their merit during and after the election. As anticipated, we hope the commission embarked on massive voter education and training of electoral and ad hoc staff that would man the 23 local government areas. It is advised that adequate preparations should be made for the security of sensitive and non-sensitive electoral materials, particularly given the tensed atmosphere in the state.
RSIEC is reminded that the success or otherwise of any election depends largely on the authenticity of the updated voter’s register which the commission has reportedly obtained ahead of the election from the Independent National Electoral Commission (INEC). The news that as many as 18 political parties in the state will participate in the council polls is cheering. The parties are urged to support and cooperate with the commission in ensuring a smooth and credible election.
It is expedient that Governor Siminalayi Fubara releases all the funds appropriated for the conduct of the local government election to the commission and ensure that he does not interfere in the workings of the RSIEC, or even influence the outcome one way or the other. Members of the commission should work harder to uphold the law without fear or favour; let or hindrance.
Incidents of missing ballot or result sheets, late arrival of materials and other logistics will only serve to discourage the electorate who already entertain a deep mistrust for the electoral process in the country. The lack of confidence in the system is largely responsible for the attitude of most Nigerians refraining from playing an active role of either voting for candidates of their choice or vying for political office. RSIEC must guard against those lapses.
Politicians, on their part, must understand that irrespective of their party affiliations, the common goal is the provision of good governance for the people. An election should never be a ‘‘do or die affair’’ and no aspirant is worth spilling blood for. Political positions are a call to service, not personal enterprises motivated by profits or bloody sports for which violent and fatal competitions are means. Experience has shown that arms provided for political thugs during elections, end up being tools for robberies and kidnappings after the election.
The idea of security agents acting the script of political actors should no longer amount to something in our polity. The nation currently faces perhaps its worst security challenges, and the police as well as other security agencies need the trust of Rivers people to enable them to carry out their duties effectively throughout the polls.
Law enforcement agents must protect both voters and election materials because it is their constitutional role to do so. The recent #Endbadgovernance protest, along with the violence that ensued, is a manifestation of the dissatisfaction of Nigerians with police operations. These security agencies must learn to commit themselves to their constitutional obligation and oath in the sustenance of democracy, rather than to any government official.
We must realise that ultimate power rests with the people, and the best way to exercise this power is through the electoral process. Hence, Rivers people must own the electoral operation, first by acquiring their permanent voters’ card, turn out en masse tomorrow to vote for candidates of their choice, and guarantee that their votes count. They have to elect responsible and responsive persons whose utmost interest will be the security and welfare of the people.