Features
Understanding The Imperatives Of NDDC, PPP Summit
As an interventionist agency, the Niger Delta Development Commission (NDDC), with the mandate to drive the process of developing Nigeria’s oil-rich region was established by the NDDC Act of 2000. Of course, the mandate of the agency was unambiguous; it is to facilitate the rapid, even and sustainable development of the Niger Delta into a region that is economically prosperous, socially stable, ecologically regenerative and politically peaceful.
It is no longer news that the Niger Delta produces nearly 75per cent of the nation’s export earnings, but the news is that 43per cent of the region’s population still lives below poverty line. This paradox is due primarily to ecologically unfriendly exploitation of oil and gas resources that expropriate the region’s indigenous people and their right to these resources. Hence, the Niger Delta Development Commission is determined to change this narrative and bring back prosperity to its land and people.
There is no gainsaying the fact that the story of the oil rich region has changed for the better since the coming on board of Dr. Samuel Ogbuku as Managing-Director of the commission.
Since he took over the helm of affairs at the commission, he has been able to articulate the demands of the people of the area, embarked on practical initiatives to complete the gargantuan projects which he met and conceived and carrying out the execution of several other projects for the benefit of the people, and by so doing, calmed the restiveness which abinitio signposted the region.
At the Public Private Partnership (PPP) Summit which was held at the Eko Hotel, Lagos State on Tuesday, April 25, 2023, Ogbuku made it clear that since its inception, the NDDC has tried to faithfully deliver on its mandate to fast-track the development of the Niger Delta region as envisioned in its enabling Act.
Speaking on the theme of the Summit: “Rewind to Rebirth” and re-igniting the importance of stakeholders in the agency’s engagements, Ogbuku disclosed that as part of the efforts to renew and reposition the NDDC, the Governing Board has stepped up collaboration with various stakeholders.
“We have started engagement with the key stakeholders, such as the oil companies, who contribute three per cent of their operational budget to the Commission; the state governments, traditional rulers, Civil Society Groups, youth organisations and contractors.”
He disclosed that the NDDC has met with members of the Oil Producers Trade Section (OPTS), of the Lagos Chamber of Commerce and Industry, who are no doubt critical stakeholders of the Commission.
“This group, which embodies the International Oil Companies (IOCs), stand out for us because we need their cooperation to get full and prompt remittances of their contributions as prescribed by law,” the MD stated.
He maintained that it is was important to engage stakeholders in projects conceptualisation and execution, adding that the oil producers work in the communities and sometimes have first-hand information of the needs of the local people.
“We want them to engage with us in project selection. Also, we need the oil producers to sometimes avail us with their technical expertise in project management and monitoring. In other words, we are embarking on this journey of developing the Niger Delta with the full participation of all stakeholders.”
He was categorical when he said that the NDDC cannot shoulder the enormous responsibilities of developing the Niger Delta region alone, adding that all hands must be on the deck, especially to provide the necessary funds for the tasks.
Speaking further, he disclosed the agency’s collaboration plans with the stakeholders saying, “In working with stakeholders, we have resolved to make our 2024 budget an all-inclusive one that accommodates the interests of all key players in the Niger Delta region. To achieve this, we have charged our Budget Committee to give stakeholders the opportunity to tell the NDDC the kind of projects they want in their areas, so that they can be included in our budget.”Of course, it was against this background that the current Board and Management of the agency, in its bid to do things differently, so as to effectively drive sustainable development in the region, decided to adopt the Public Private Partnership (PPP) model to provide alternative source of funding for key development projects and programmes.
Ogbuku said “In January, 2023, we constituted a Management Committee on Public Private Partnership to drive our vision of fast-tracking the development of the Niger Delta region. The committee is expected to review all the commission’s existing partnerships as well as explore new partnerships that will result in enduring regional projects.
“Our approach to partnership is to engage specific sectors in their areas of strength. For instance, the private sector is better equipped with expertise, resources, and technology to drive economic growth and development. By partnering with this sector, we can successfully leverage these resources to implement our programmes and projects.
“Another stakeholder we cannot do without is the government at all levels. The government is critical in promoting sustainable development. By partnering with government agencies and departments, participating in government-led initiatives, and advocating for policies that promote sustainable development, we can access government resources, policies, and programmes that support our development objectives. We are keen on more collaboration with state and local governments to implement programmes and projects that address their communities’ specific needs,” he added.
Ogbuku also said that Civil Society Organisations (CSOs), and Community-Based Organisations (CBOs), are essential partners to be courted.
“These organisations understand the needs and aspirations of people in the Niger Delta region. By collaborating on specific programmes and projects, drawing from their knowledge and resources, and involving them in planning and implementation, we can ensure that our programmes and projects align with the needs and aspirations of people in the region.”
Ogbuku, a man with the Midas touch, fully appreciates the significance of institutional collaboration as a way for promoting sustainable development in the region.
“We need the assistance of foreign institutions such as multilateral agencies, foreign government agencies, donor agencies and multinational corporations, to promote sustainable development in the Niger Delta region. Multilateral agencies such as the World Bank, African Development Bank (AfDB), United Nations Development Programme (UNDP), and International Monetary Fund (IMF) can provide technical support, funding, and policy advice to the NDDC. These agencies have wide experiences promoting sustainable development in developing countries and can give us valuable insights and direction.”
Other foreign government agencies he was looking at include the United States Agency for International Development (USAID), the Department for International Development (DFID) in the UK, and the German Agency for International Cooperation (GIZ), which he disclosed, could equally partner with NDDC to promote sustainable development in the region.
“These agencies can provide funding, technical assistance, and policy guides, as well as collaborate with us on specific programmes and projects. Multinational corporations such as Shell, Chevron, ExxonMobil, and Total, have a significant presence in the Niger Delta region. We expect them to collaborate more with us in executing legacy projects. They have what it takes to provide funding, technical assistance, and expertise in environmental management, community development and corporate social responsibility.
“Our ‘Rewind to Rebirth’ initiative, which is the theme of this summit, is a strategic vision designed to recalibrate our engagement with the Niger Delta and the Commission’s overall intervention implementation plan. Embedded in this initiative include exploring more avenues for funding, for better technical expertise, for higher yielding varieties of crops, as well as opportunities for collaboration and investment in the Niger Delta region. This initiative aligns with the NDDC mandate, as well as the Sustainable Development Goals 17, which focuses on partnerships. This is the stirring story of our partnership with the SPDC Joint Venture on the celebrated Ogbia-Nembe Road, in Bayelsa State.
“As we share ideas on how to ‘Rewind to Rebirth’ for the sustainable development of the Niger Delta region, we are looking forward to partnering with both local and foreign investors, captains of industries, and the corporate world in building a better future for the region. With a region as blessed with immense natural and mineral riches, with boundless youthful energy and optimism, and the remarkable possibilities of our shared dreams here, the future of the Niger Delta looks bright, indeed.”
As a realist, he did not forget to mention some of the challenges confronting the NDDC development roadmap which he said included inadequate funding for the commission, emanating from inconsistent statutory contributions from the Federal Government and failure of some oil and gas companies operating within the region to remit their contributions in line with the NDDC Act; Failure of ownership of the Masterplan by the sub-nationals and other key stakeholders; Frequent changes in the leadership of the commission and consistent delays in the passage of the commission’s budget by the National Assembly, among others.
He assured: “Today, we have introduced a lot of innovations that have helped in boosting the morale of our staff. We have also restructured the administrative system of NDDC by going back to the 13 Directorates recognised in the NDDC Act. It was necessary to reorganise the administration to enhance better service delivery. We are showing in our operations, through our example and conduct, how diligence, due process and transparency are key ingredients to building confidence and trust among all partners and stakeholders. We are committed to not just being transparent, but we want to be seen to be transparent.”
According to the Managing Director, since the rejuvenation of the agency, there has been lots of achievements by the orgainsation leading to the commissioning of several completed projects. Recently, we commissioned three roads in Bayelsa State to mark the beginning of many other project inaugurations across the nine Niger Delta states. In the coming weeks, some of our major projects will be commissioned. Among such is the the 132/33KVA sub-station constructed by the commission in Okitipupa, which will provide electricity for over 2,000 communities spread across five local government areas in Ondo State.
“Another key project that and ready for inauguration is the Ogbia-Nembe Road, which was jointly funded by the Shell Petroleum Development Company (SPDC), and the NDDC. That partnership delivered the 25.735-kilometre road, running through the most challenging terrains imaginable in the region. The project has seven bridges, 53 culverts and traverses 9.15 kilometres of swampy terrain. Apart from showcasing our mega projects, we have also developed a new concept of working with the Niger Delta Chamber of Commerce in the training of youths and young entrepreneurs in the Niger Delta region.
“For optimization of the youth programme, the NDDC Youth Volunteer programme was changed to a Youth Internship Programme where youths will be attached to organisations for one year to learn different skills.
“To facilitate this new scheme, we are developing a database that will capture unemployed youths and entrepreneurs in the region. Indeed, we have young entrepreneurs in the region that we want to showcase to the world.
Stakeholders and political leaders used opportunity offered by the summit to shower encomiums on the minister of Niger Delta Affairs, Umana Okon Umana and the Managing-Director of the commission, Ogbuku, for engendering public confidence in the agency through their commitment to good governance.
The chairman of the Senate Committee on Appropriations, Sen. Matthew Urhoghide; Senator-elect and former chairman of the All Progressives Congress (APC), Adams Oshiomhole; former Managing Director of the NDDC, Mr Timi Alaibe and former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr. Dakuku Peterside, were among those, who acknowledged the transformation of the commission under Umana and Ogbuku leadership.
The participants and stakeholders commended President Muhammadu Buhari for returning sanity and order in the running of the NDDC and noted the salutary impact of the president’s action on peace and stability in the Niger Delta.
The former Governor of Edo State, Oshiomhole wondered why anyone would run a government agency for three years with a handpicked Sole Administrator where there was no provision for such aberration in the enabling law that set up the agency, noting that such anomaly could never inspire public confidence in the NDDC. All the key speakers at the summit commended the Minister and the Management of the NDDC for the positive trend at the commission.
Earlier, while declaring the summit open on behalf of the Vice-President, Umana said his decision to reset and reposition the NDDC has made the commission attractive to development partners in the private sector “because it is now run on the template of international best practices in public governance.”
He emphasised that high on the template of good governance which he brought to the NNDC was ensuring there was a clear distinction between supervision and interference.
“I have made sure there is no ministerial interference in the management of the NDDC,” Umana said.
He said that the proof of the rising positive perception of the NDDC is evident in the enthusiastic response of private sector players to the invitation to dialogue on the way forward for the development of the Niger Delta.
“The event we are witnessing today ties back to my Action Plan to reset and reposition the NDDC, following my appointment as Minister,” Umana said, adding “I have faithfully implemented the Action Plan for which the Commission was inaugurated.
“We also set in motion an era of accountability and transparency by publishing in national newspapers, a list of 2,506 completed projects executed by the Commission under the Buhari administration from 2015 to 2022. The feedback to this level of commitment to openness in public governance has been tremendous.
“And today, we are witnessing an enthusiastic response by stakeholders and development partners to the invitation to dialogue on the development of the Niger Delta because there is trust in public institutions that are run according to law and due process. Public-Private Partnership would not be realistic in a government institution that is burdened with trust deficit”.
In his goodwill message at the summit, former NDDC Managing Director, Chief Timi Alaibe, expressed delight at the PPP initiative of the new leadership of the Commission.
He said: “This is the first time in 15 years that I am attending an NDDC function. This is because the new board is charting a new course that is impressive. Far back, after the implementation of the Master Plan, we decided on an implementation plan which involved all key stakeholders. We decided that the Master Plan cannot be funded by the government alone. We needed the private sector; that is why I support holding the summit in Lagos, Nigeria’s financial capital. The concept of rewinding and rebirth is sweet to the ears.”
In another goodwill message, the former Managing Director of NIMASA, Dr. Dakuku Peterside, applauded the NDDC Board and Management for striving to leave legacies in the region.
According to him, “the founding fathers of the NDDC intended that the NDDC should be a catalyst for development. The PPP arrangement is a new way of engendering positive outcomes. There must be a fusion between the private sector and the public sector. It is important to bring in the resources and expertise of the private sector.”
Meanwhile, more accolades have come the way of the commission with the signing of a memorandum of understanding with the United States Consulate and a United States-based firm, Atlanta Global Resources Inc., AGRI, to build a railway network that will connect the nine states of the Niger Delta region.
The ceremony, which was part of the one-day Public Private Partnership Summit organized by the Commission in Lagos on Tuesday, will provide locomotives, construct railway lines and operate same in the oil producing states of Rivers, Ondo, Edo, Delta, Bayelsa, Akwa Ibom, Cross River, Imo and Abia.
The highpoint of the summit was the signing of an MOU by the Managing Director/CEO of the NDDC, Dr. Samuel Ogbuku, on behalf of the Commission; Mr. Chamberlain Eke, on behalf of the United States Consulate, and Mr. Tony Akpele, on behalf of AGRI, for the construction of a railline across the NDDC mandate states.
Work on the feasibility stages of the project, perhaps the biggest in the history of the commission, is expected to start immediately.
During the signing of the MoU, Ogbuku disclosed that the NDDC was determined to re-navigate the process of its intervention in the Niger Delta so that it can achieve its mandate “of facilitating the rapid, even and sustainable development of the Niger Delta into a region that is economically prosperous, socially stable, ecologically regenerative and politically peaceful.”
He stated that the MOU represented a big harvest for the NDDC from the PPP Summit.
Other dignitaries that graced the occasion included the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, who also delivered a paper titled “Innovative Funding and Sustainable Development for the Niger Delta”. Wabote, prior to his appointment, was an Executive Director of the Shell Petroleum Development Company (SPDC) Nigeria Limited, and the General Manager, Business and Government Relations of Shell Group in Nigeria.
Others who delivered keynote addresses included Kayode Kyalidson. He was the man who advised the federal and state governments on a donor-funded transport initiative between 2009 and 2016. Prior to that, he was Team Lead for Transport sector reform at the BPE, where he was responsible for developing and implementing PPP concession strategy; Nimi Wilson-Jack. Mr Wilson-Jack is a sound legal practitioner of more than 39 years experience and a former Secretary-General of the Nigerian Bar Association (NBA). He is also a former Director of the Rivers State Bureau for Public Procurement. He formerly served as Special Assistant to the former Minister of Aviation.
Janita Ferentinos is a certified PPP Consultant and trainer with over 20 years’ experience. She is passionate about teamwork and the creation of effective partnerships and the stakeholder engagement, especially for the benefit of the underserved in the health, education and agricultural sectors; and Oliver Everett, a former CEO of Common Wealth Enterprise and Investment Council and Chair of Commonwealth Business Forum, Kigali 2020 Taskforce.
He has vast international experience working with multi-state organisations, including government, private and wider public sector operations; and Abubakar Suleiman, popularly called Abu.
He a Nigerian Banking and Economics professional and the current Managing Director/Chief Executive Officer of Sterling Bank, a leading Commercial Bank in Nigeria were among other crème de la crème in the society and industry gurus.
Features
Vocational Education And Nigeria’s Economy
The importance of vocational training to the development of any nation cannot be over emphasised. Technical education experts define vocational education as any form of educational program or course that focuses on teaching the specific skills and knowledge required for a particular job or trade. Unlike traditional academic education, which is often broader and theoretical, vocational training is practical, hands-on, and tailored to prepare individuals for specific careers or industries. They also argue that the dearth of trained vocational and middle-level technical manpower represents a very serious gap in the development of third-world countries, including Nigeria. This argument, perhaps, underscores the Federal Government’s bold move towards educational reforms in Nigeria which includes the inculcation of vocational education into the schools curriculum as a way of equipping students with practical skills and enhancing their employability.
A recent statement released by the National Orientation Agency (NOA), indicated that the government has added 15 vocational subjects to the Basic Education curriculum. These additions which take effect from January, 2025, they said, are designed to promote hands-on learning and better prepare students for the job market. The new subjects include: Plumbing, tiling and floor works, POP installation, Event decoration and management, Bakery and Confectionery, Hairstyling, Makeup, Interior Design, GSM Repairs, Satellite/TV Antenna Installation. Others are: CCTV and intercom installation and maintenance, solar installation and maintenance, garment making, agriculture and processing, which covers crop production, beekeeping, horticulture, and livestock farming (e.g., poultry and rabbit rearing) and Basic Digital Literacy, incorporating IT and robotics.
The former Minister of Education, Prof Tahir Mamman, who earlier hinted on the new curriculum for basic schools during a meeting with stakeholders in Abuja, last October, said under the new curriculum, pupils in basic schools will be required to acquire at least two skills. According to the former minister, “The idea is that by the time children finish school, they should have at least two skills. Students should be able to finish school with a minimum of two skills so that they can have a very productive life. “The basis for the curriculum is the National Skills Framework, and it has been approved. It’s a very big project; it affects all schools in Nigeria, public and private.“Whether in the public sector or private sector, all schools are going to implement it. So, this is already determined. It doesn’t require anybody’s consent or any institution can depart from it.
Speaking on implementation, the Mamman said, “We do not expect comprehensive, full implementation from January because, when you roll out something new, there’s a lot of preparation that has to take place by the schools, acquiring new things, equipment, and small things that they will need,” adding that plans were underway to ensure teachers were well-equipped for the new curriculum. He also spoke on the benefits of the curriculum, noting that it would rekindle the desire of parents and students to acquire formal education. Hear him, “Some parents do not want to send their children to school. Right now, part of the problem why schooling has become unattractive is because people finish and there’s no change in their lives. “They cannot be employed. They can’t do anything on their own. So, parents question the value of spending money to send their children to school. “Now it’s going to change that game altogether.
And we have seen how these things resonate with parents. When they are successfully implemented, you will see students will want to run to school every morning. Parents want to take their children to school because they are learning practical things while in school.”The Acting Executive Secretary of the Nigerian Educational Research and Development Council, Dr Margret Lawani, had also disclosed during the same event that the newly introduced subjects fell under the vocational and entrepreneurship studies framework, which has been designed to expose pupils to various trades across multiple sectors. In the views of some vocational training experts, the decision to include vocational education into the basic school curriculum is plausible as it comes at a time when the nation’s education system is facing mounting criticism for its inability to adequately prepare students for real-world challenges.
They opined that by introducing vocational training at an early age, Nigeria has an opportunity to bridge the gap between formal education and practical skill acquisition. They however noted that the success of this initiative hinges on thoughtful implementation and sustained support. “The problem of Nigeria has never been a dearth of ideas or policies on how to move the country forward. In the past some educationists came up with the idea of 6-3-3-4 system of education whereby Students would be taught introductory technology and other forms of vocational skills at the junior secondary school level to better equip them for the real world in future. What happened to that brilliant idea? How many schools have well-equipped laboratories and well-trained teachers to handle these technical and vocational subjects? “The idea of setting up technical schools and polytechnics across the country is for them to serve as a grooming ground for young Nigerians in the area of technology.
How has the government, both federal and states, supported these schools to succeed? So, our problem is lack of implementation, fragmented policies and lack of sustenance not lack of ideas”, posited one expert. He advised that for the new curriculum to bear positive fruits, the government must take time to sensitize heads and owners of schools, teachers, parents and pupils of both public and private schools on the importance of the subjects and assist the schools in acquiring the necessary equipment and tools for the smooth running of the curriculum. “These subjects being introduced cannot be taught only theoretically as we are used to in this country. They require regular practical classes which will cost some money. Government, via the ministries of education, must vote out money for these practical classes and be ready to supervise schools to ensure that they are doing the right thing,” he added
Noting the importance of vocational training in today’s Nigeria where the rate of unemployment is high, Mr. Abel Ikiriko, a basic technology teacher in a Private School at Trans Amadi, Port Harcourt, regretted that vocational training is often seen as a last resort for those who fail academically, leading to low enrolment. He said, “I say this because I am a teacher and I know what we see in school every day. When these vocational subjects are introduced, you will see parents who will go to their children’s schools to make trouble because the children are compelled to learn maybe Hairstyling or something like that. Every parent wants their children to be doctors, lawyers, engineers and other professions and never skilled persons because for our society, skilled jobs are for the dullards.” “One of the most pressing issues in our labor market is the skills gap. Employers often struggle to find workers with the right skills, despite high unemployment rates. Yet many youths are not willing to be trained in a vocation. They prefer to search for the unavailable white-collar jobs. So unfortunate,” he continued.
Ikiriko said that the inclusion of vocational training in primary schools has benefits that extend beyond future job prospects. “Hands-on activities help children develop critical thinking, problem-solving, and creativity—skills that are essential in any field. Vocational subjects can also provide an alternative pathway for students who may not excel in traditional academic subjects, ensuring that no child is left behind in the education system. Moreover, these subjects can instill a sense of dignity in manual labor and shift societal perceptions about the value of skilled trades.”He advocated for public awareness campaigns so as to change perceptions about vocational education, and showcase its potential to lead to successful careers. Mrs. Meg Amadi, a mother of three pupils is concerned about the curriculum of the primary schools being overloaded, stressing that that is a potential risk.
According to her, primary school students are at a formative stage of their development, and overloading them with too many subjects could lead to cognitive fatigue. She maintained that careful planning is required to ensure that the new vocational subjects complement rather than compete with core academic learning; that they are seamlessly integrated into the broader curriculum without overwhelming students. To maximize the impact of this initiative, she offered the following suggestions: the government must invest in training and retraining teachers to deliver vocational subjects effectively, collaborating with vocational training institutes and NGOs for better result; government should begin with pilot programs in select schools to identify best practices and address challenges before scaling up nationwide; the private sector should be engaged to provide funding, equipment, and expertise for vocational training in schools.
Nonetheless, some analysts are of the view that the addition of 15 vocational subjects to the basic school curriculum is a visionary step toward transforming the nation’s education system and improving the nation’s economy. they hold that if implemented effectively, the initiative will equip young Nigerians with the skills needed to thrive in a rapidly changing world while fostering a culture of innovation and self-reliance. They said that with collaborative effort, strategic planning, and unwavering commitment from all stakeholders and the right execution, this bold move could serve as a model for other nations seeking to align education with the demands of the 21st century.
Calista Ezeaku
Features
A Farewell To Arms In Ogoni
For three decades or more, there has been a cessation of oil production activities in Ogoni land. But recent meeting of President Bola Tinubu with notable sons and groups may return Ogoni to renewed oil-production once again. Ogonis are weary of perennial neglect. Days after the meeting, President Tinubu gave a nod to the establishment of a University of Environmental Technology in Tai in the Ogoni area. He had earlier-on approved appointments into some federal boards in which some notable Ogonis were among the beneficiaries. The President’s actions and speeches so far have indicated good faith and good intentions. This has urged hard-nosed and irrepressible resistant leaders like Attorney Ledum Mitee, one-time President of the Movement for the Survival of Ogoni People (MOSOP), to be in complete agreement with the return to oil production.
He was heard on the news calling on all well- meaning sons and daughters of Ogoniland to accept the offers coming their way. Many Ogonis however, are still doubtful about the President’s intentions. They have said it is all geared towards the Federal Government having access to the rich oil and gas deposits in Ogoni soil. There is also distrust by some who have yet to heal from past injustices inflicted on the land by previous governments in cahoots with the oil majors. Since 1993 when oil production stopped in Ogoni land following intensive protests from the Ogoni people, the Nigerian government and the oil majors stopped reaping from millions of dollars in proceeds from the oil and gas. Lawson Hayford, a veteran journalist, who has reported the Niger Delta for over four decades, particularly the Niger Delta and the Ogoni crisis, said Nigeria has lost revenue amounting to over N30 trillion for the 32 years that oil has not been mined in Ogoni land.
Writing in the Southern Examiner, Hayford said, “While oil exploration and production in the Niger Delta region began in the late 1950s, operations were suspended in Ogoniland in the early 1990s due to disruptions from local public unrests with oil fields and installations remaining largely dormant for about 34 years, leading to a loss of revenue of over N30 trillion. “There are a total of 96 oil wells connected to five flow stations across the four local government areas of Khana, Gokana, Tai, and Eleme in Ogoniland. They were being operated by the Shell Petroleum Development Company, SPDC of Nigeria, a subsidiary of the Royal Dutch Shell.” That story is presently being rewritten by the remediation efforts of the Hydrocarbon Pollution Remediation Project (HYPREP) and the work of Prof Nenibarini Zabbey, its Project Coordinator.
“Over 50 communities are now enjoying potable water.” As though this was not magic enough, contractors are working hard toward mangrove regeneration not to leave out empowerment programmes for women and people with disabilities. These are stories too good to be true. In addition, the Petroleum Industry Act has also been introduced to take care of some basic needs of the oil communities, especially by tying development of the communities to the operational budgets of the oil companies. The establishment of a host community development trust as a condition for oil mining license holders regarding community development, may well be the magic wand required to turn things around for the Ogonis. A trying present is most likely to give way to a prosperous future. The future of the land and peoples of oil-bearing communities appear brighter with possibilities within this framework.
Environmentalist and lawyer, Iniro Wills, however, strongly thinks that the community-friendly clause in the PIA is only a tiny drop that cannot quench the thirst of the people’s appetite. Only time will tell. A lot of work needs to be done to bring every party in the Ogoni scenario to the table. Some groups are yet to agree with the return of oil production in Ogoniland, while others do not quite agree with the modus operandi adopted to initiate the process. They would all need to be brought together to ventilate their positions so that everyone is taken along together. Last Saturday, the committee that emerged to kickstart a process of the consultations initiated by President Tinubu convened a meeting at Freed Centre, Bori in the heart of Ogoniland. Though it was well attended, proceedings had to be hurried as a group of protesters stormed the venue.
Blessing Wikina, a long time public communications expert from Ogoni however, noted that the Bori meeting was a good landing. He said he was there. He dismissed the slanted reports about the meeting which he said were done to create social media content. He said in his social media handle that the committee deliberately avoided founding the consultations along old ‘loyalty blocs’ and ‘groups of people with entitlement blood.’ “Every Ogoni was to attend as an individual, not as a member of a camp. This approach meant no one would claim success or failure.”
Several factions exist in Ogoniland, including the leading pressure group, MOSOP, and they all need to get involved in the consultations, including those sulking for not being invited to the Abuja parley with the President.
Factional MOSO President, Fegalo Nsuke, recalled how MOSOP championed the Ogoni struggle from the beginning and wondered why MOSOP was not invited to Abuja or the Bori meeting. Hayford said, “sidelining MOSOP in the move to re-enter Ogoniland for oil and gas production could create distrust in the hearts of the Ogoni people, cautioning against rushing the process in order not to generate tension, anxiety and crisis in the landscape of Ogoni area.” Certain that the current process led by President Tinubu would yield good fruit for the Ogoni, Wikina says, he silently prays that “this oil resumption comes sooner, so that our people will participate in productive ventures around our oil economy…..and get benefits like our brothers in Orashi area, Bonny axis, etc.”
He cast a glance at the Bodo-Bonny road that will link mainland Nigeria with the vital island port of Bonny that is passing through Ogoniland. “Shall we wait, watch, as vehicles drive through here, to where lucrative oil businesses are happening…without our involvement? Every party will have to sheathe their sword and embrace the ongoing consultation process that will lead to a prosperous future for the land and the people.
Dagogo Josiah, Olayinka Coker and Emmanuel Obe
Josiah, Coker and Obe wrote in from Port Harcourt.
Features
Contributory Pension Scheme: Time For Review
For decades, Nigeria grappled with a pension crisis that left countless retirees in financial insecurity and despair. The unfunded pension system led to delayed payments and inadequate retirement funds, especially for public sector employees. In response, the federal government, under the leadership of former President Olusegun Obasanjo, enacted the Pension Reform Act of 2004, introducing a contributory pension scheme (CPS) designed to overhaul the system and secure a dignified retirement for Nigerian workers.
According to the Pension Reform Act, 2004, Contributory Pension Scheme (CPS) is an arrangement where both the employer and the employee contribute portions of an employee’s monthly emolument towards the payment of the employee’s pension at retirement. The CPS covers employees in the public service of the Federation, Federal Capital Territory, States, Local Governments and private sector organisations with three or more employees.
Only Judicial Officers, members of the Armed Forces, the Intelligence and Secret Services of the Federation; retirees under any pension scheme existing before 30 June 2004; and employees who had three or less years to retire as at June 30, 2004 were exempted from the scheme.
The objectives of the CPS according to Section 2 of the Pension Reform Act, 2004, are to ensure that every retiree of the Nigerian Public Service receives his/her retirement entitlements as and when due; assist an improvident person to save against old age; and ensure a uniform set of rules and regulations on issues relating to the administration and payment of pension to retirees.
According to Section 85 of the Pension Reform Act, 2014, which effectively repealed the 2004 Act, “All contributions made under this Act shall be invested by the Pension Fund Administrators with objectives of safety and maintenance of fair returns on amount invested”.
Analysts and some retirees have questioned the usefulness of this section of the Act when the retirees are kept in the dark about the investments made with their contributions and hardly reap the dividend of the investment. A group of retirees known as Contributory Pensions Retirees Forum, recently described the CPS as a “modern day slavery; an instrument of economic annihilation of workers to death in abject poverty after retirement.”
According to them, the CPS denies retirees of a lump sum of their money after retirement and dispenses a paltry monthly pension to retirees across the board. They narrated the case of a retiree who served the Federal Government from July 15, 1981 and retired on July 15, 2016 on salary grade Level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years.
For all the years he put in, the total balance standing to his credit was N6,745,823.34. Out of this, he was paid 25 per cent which amounted to N1,686,455.84 while the balance of 75 per cent was retained by Pension Fund Administrator (PFA) for investment in the capital market and other large institutions. The retiree has been receiving a paltry sum of N26,703.15 monthly since 2016 till date despite the huge profits declared every year from the investment.
“Unfortunately, the sad part of this is that every day prices of goods and services are on the increase. While workers and retirees under the old scheme – Defined Benefit Scheme had their salaries and pension increased across all levels, we in the CPS are abandoned to our fate. We do not get increase”, lamented a retiree.
A public affairs analyst, Bonny Harrison, described such treatment of the retirees, who spend their active years serving the country as unfair and inconsiderate, noting that such attitude will discourage the people still in service from putting in their best. “They may be lured into bribery and corruption, knowing that the country will not cater for them when they retire”, he opined.
Section 7, Sub Section 1, Paragraph (a) of the Pension Reform Act, 2014 provides that unlike the former Defined Benefit Scheme, the CPS is to be jointly funded by both the employer and the employee. Each worker has an individual Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA).
It also made provision for state governments to migrate to the CPS and stipulates that employees contribute eight per cent of their monthly earnings, and employers add 10 per cent, totalling 18 per cent of the employee’s monthly income. The funds are managed under the oversight of the National Pension Commission (PenCom), with the aim of ensuring transparency and accountability.
Two decades down the road, getting the state governments to key into the scheme has been a Herculean task. Reports show that only about five out of the 36 states in the country have fully complied with the CPS Act. Some have not even enacted their CPS laws while some enacted the law without contributing anything to their workers’ RSA. PenCom and Pension fund operators have reportedly made frantic efforts to have them key into the scheme since 2014 but that yielded little or no results.
A recently retired civil servant in Rivers State narrated that the past governments in the states did not key in fully into the scheme. While the eight per cent of the employees’ salary was deducted, the government failed to contribute its own 10 per cent, thereby making retirees from the state ineligible to benefit from the CPS scheme.
The retiree was however glad that the total amount he contributed over the years was paid to him without any deduction and that the State government has put keying into the CPS on hold. He advised that the state government should not be part of the CPS as it is confusing and not favourable to government workers. “Contributory Pensions Scheme cannot work in our states where the governors run the states like their personal businesses. A governor today may decide to contribute and another governor tomorrow may choose not to. What happens to the retirees in such a situation? He queried.
Low compliance in the informal sector has also been noted as one of the challenges of the scheme. The informal sector, which represents over 80 per cent of Nigeria’s workforce, often lacks the structure or financial stability to commit to monthly contributions. Many informal workers are unaware of the benefits of joining the scheme, highlighting a gap in outreach and education.
Analysts have also observed that fluctuations, especially inflation, often erode the value of retirement savings. Although PFAs invest in various assets, ensuring inflation-adjusted returns remains challenging, impacting retirees’ purchasing power, they said.
They therefore, canvassed for a halt of the CPS or reforms and initiatives to make it effective and worth the while. These include:
Expansion of CPS outreach programmes and incentives, such as flexible contribution options to increase informal sector enrollment; improved awareness and education which will drive greater participation among self-employed and informal workers; increasing transparency in fund management and imposing stricter penalties for misconduct so as to improve public confidence; introducing innovative investment options like green bonds and infrastructure development projects to help pension funds achieve better returns.
Others are: a more aggressive investment strategy that offers inflation-protected returns, benefiting retirees in the long term by PenCom in order to mitigate inflation’s effects, and PenCom offering financial education to pensioners so as to help them manage their funds effectively. PenCom should offer financial planning resources, ensuring that retirees fully understand the structure and benefits of the CPS.
Analysts have also argued that for CPS to succeed and live up to its objective of being a cornerstone of economic stability and prosperity, embodying the hope of dignified and secured retirement for all, PenCom must wake up to her duty of ensuring that the retirees are not short-changed by the pension administrators and that non-complaint employers (that fail to make deductions) as stipulated in PRA 2014 are duly punished.
Calista Ezeaku