A friend once told me how tomatoes and other stuff literally rot away in the sun in Benue after harvest. Thus I was very happy when President Good Luck, Governor Suswan attended Tony Elemelu and Transcorps new Terago Juice Plant opening, a new first of it's kind, juice concentrate facility in Nigeria in Benue. The plant I hear can produce 26,000 metric tons of orange, mango juice concentrate per annum. I also hear Nigeria spends $1b importing juice concentrates so this is a good example of import substitution and a welcome jobs, jobs, jobs to Benue.
I am also reading how Governor Amechi of Rivers is getting into joint venture with folks to turn Rivers to an Agric exporter, he has a Cassava initiate with the Dutch, large scale poultry with the Zambians, a banana plantation with the Mexicans, large scale fish farming in Buguma, an upcoming sea fish project with the Chinese and the injection of N20b into RISONPALM. The $140m Israeli backed farm settlement system involves the creating of an Agro Industrial City Project. The Israeli firm LR Group will contribute $40m and Rivers $100m. It involves over 3000 hecters of virgin land which will be developed, and will build from scratch 100 homes in 3 centers close to each other, with water, power, schools, hospitals etc. These centers will do commercial and Agro processing. The selected farmers will work for the project but will also have their own 2 hectare farms within The complex. In effect a kibbutz. Again Jobs jobs jobs
The Lagos state government is now tapping into the FGN rice transformation plan, Governor Babatunde Fashola has a Special Assistant on Rice, and the chap is developing rice fields, putting graduates to work in farms and Fashola even wants to buy land outside Lagos (in the Ogun Osun River Basin Authority) to grow rice. The State has also set up a joint Private and Public sector Rice transformation committee to benefit from the FGN NIRSAL project. All I see is jobs jobs jobs
I am also reading how the TY Danjuma foundation is launching a Agro Business grant scheme with the NYSC that will provide seed grants to NYSC graduates interested in starting sustainable Agro business. Yep jobs jobs jobs
If you notice, I have posted Private sector, State and Individual initiates all tapping into agriculture. Agriculture is 44% of our GDP and employs 80% of Nigerians. Any push or vision to industrialize and reduce poverty in Nigeria that does not focus on Agriculture is a non starter. Keke Napep cannot eliminate poverty, Agriculture can.
So ask your Governor, even your LGA what they are doing about Agriculture today.
Showing posts with label nigeria. Show all posts
Showing posts with label nigeria. Show all posts
Wednesday, March 14, 2012
Saturday, July 2, 2011
fix the fiscal federalism
Fix the Fiscal Federation
Executive Summary
The Federal government has abrogated to itself massive power over virtually every economic activity in Nigeria. This makes the states and Local Governments useless and makes the cost of running the federal government obscene. A key figure to take away is that the FGN spends 63% on its workers to provide these services to the Nigerian people.
The proposal is for the President to present a Bill to reduce the powers, specifically the fiscal powers of the Federal Government by devolving tax powers to states and Local governments.
What is the problem with Nigeria fiscal structure?
1. The Federal Government legislates and collects all fiscal revenue.
Nigeria is a federal republic In Nigeria, the fiscal power should be based on a three-tiered structure of federal, state and local governments but this is not so. The Nigerian tax system favours the federal government, as pointed out by the Study Group on Tax Reform (2003), the federal government accounts for 99% of the tax revenue in Nigeria.
All fiscal enactment powers are held by the Federal Government e.g. Personal income tax (PIT) is legislated by the federal government, payable by individuals, but collected by state authorities. For concurrent taxation such as the capital gains tax and stamp duties, the federal government retains legislative power, while sharing administrative powers with the states. The federal government has jurisdiction for such taxes as VAT and Education tax. The federal government taxes corporate bodies while state and local governments tax individuals.
The state and local governments have had no freedom to introduce new taxes because matters dealing with taxation are on the Exclusive list of the constitution. They may enact laws only with the concurrence and approval of the National Assembly
Why is this problem?
1. It deprives the states and Local governments the ability to use taxation as a means of earning revenue or attracting investment.
States like Lagos earn almost 80% of their income from the PIT, but they cannot determine the rate to apply to attract investment. The Company Income Tax CIT and the VAT are collected in states. Lagos State may build roads and attract multinationals to Lekki but the federal government will take the revenues generated by these multinationals.
It also put all the states in the same bracket in terms of tax policy. Ogun state for instance cannot use a lower VAT or CIT rate as an incentive to attract investors from Lagos to Ogun. Yobe state cannot declare a tax free zone to attract Dangote Industries to set up a factory there.
States like Lagos also see no incentive to enforce the payment of taxes as these taxes are sent to the centre. The CBN estimates that Lagos has about 60% of the manufacturing and commercial activity in Nigeria. Lagos is the generator of the highest VAT and the highest Customs duty, but it does not see these tax benefits. It is, instead, shared anchored on such factors as equality of states (40 per cent), population (30 per cent), landmass and terrain (10 per cent), social development needs (10 per cent), and internal revenue efforts (10 per cent). This sharing formula, discouraging revenue drive, particularly for federally adjudicated taxes e.g. VAT.
2. The federal government is reckless with spending.
The tax (and revenue) collected is used to pay federal workers.
Take the figures for 2010, the total receipts for Companies Income Tax, VAT and Customs duty was N1.40t (net of cost of collection, gross collection was N1.52t). Let us now look at the total non-debt cost of the federal government (salaries, pensions) that is N2.54t.
In effect, the total tax revenues of the nation are swallowed up by personal cost of the federal government. An argument can be made that oil revenues are actually paying the salaries of the federal workers but keep in mind that non-oil revenues made up 34% of the total revenue in 2010.
In addition, how many federal workers do we have in Nigeria? The federal workers take home 63% of the total revenues of the nation, (tax and oil receipts).
3. It makes Local governments ineffective.
The current fiscal structure created a situation where the Local governments must exist at the mercy of the federal and state government.
Primary schooling is the exclusive responsibility of local governments; the constitution states, “The functions of a local government council shall include the provision and maintenance of primary, adult and vocational education”. We then wonder how Nigerian children can be educated by taxes charged on items such as fees on marriages, motor parks and bicycles.
Unlike States who can charge Personal Income Taxes generate billions of Naira (like Lagos), the Local governments have been “allocated” very poor means of livelihood and are thus unable to serve the citizens of the LGA.
What can GEJ do about it?
• Amend the constitution to allocate to the three theirs of the federation appropriate income-generating taxes to enable them fulfil their constitutional requirements. The federal government cannot simply tax the wealth of Nigeria and spend it on only the federal workers. Such a move will discourage the payment of taxes.
• Devolve most of the powers from the exclusive list to the concurrent and the forth schedule or and duties of the Local governments e.g. Insurance, stamp duties as a whole, and VAT.
• The states and Local governments should share VAT
• States to determine and charge Personal Income Tax
• Local Governments to charge Property taxes, charge, and collect the education taxes
• Pass a law that will cap how much of the federal, state or Local Government earnings can be allocated to recurrent expenditures. This is specifically to forestall a situation where taxes are charged just to maintain the lifestyle of workers.
It’s important to note that The former president of the NBA has presented a private bill to the National Assembly for an Act to alter the Constitution of the Federal Republic of Nigeria 1999 by creation of the States Court of Appeal, introduction of Federal and State Legislative Lists and adjustments/modifications of legislative powers of government between the Federal and State Governments."
Agbakoba said the present "bloated federal system" had made governance too expensive to support any meaningful development in the country.
The bill seeks to replace the "Exclusive Legislative List" with "Federal Legislative List" with respect to powers limited to the federal government and introduced the "State Legislative List" for powers exclusive to the state governments.
Issues recommended in the bill for devolution to the states include natural and mineral resources, excluding petroleum and gas; agriculture; micro finance banks; municipal police, state appeal courts; solemnisation of marriages; incorporation of business enterprises with state objects; taxes on income and profits within states, other than income and profits of companies; regulation of labour and industrial relations at the state level, including prescription of minimum wage; and evidence.
It is our problem and we will fix it.
Executive Summary
The Federal government has abrogated to itself massive power over virtually every economic activity in Nigeria. This makes the states and Local Governments useless and makes the cost of running the federal government obscene. A key figure to take away is that the FGN spends 63% on its workers to provide these services to the Nigerian people.
The proposal is for the President to present a Bill to reduce the powers, specifically the fiscal powers of the Federal Government by devolving tax powers to states and Local governments.
What is the problem with Nigeria fiscal structure?
1. The Federal Government legislates and collects all fiscal revenue.
Nigeria is a federal republic In Nigeria, the fiscal power should be based on a three-tiered structure of federal, state and local governments but this is not so. The Nigerian tax system favours the federal government, as pointed out by the Study Group on Tax Reform (2003), the federal government accounts for 99% of the tax revenue in Nigeria.
All fiscal enactment powers are held by the Federal Government e.g. Personal income tax (PIT) is legislated by the federal government, payable by individuals, but collected by state authorities. For concurrent taxation such as the capital gains tax and stamp duties, the federal government retains legislative power, while sharing administrative powers with the states. The federal government has jurisdiction for such taxes as VAT and Education tax. The federal government taxes corporate bodies while state and local governments tax individuals.
The state and local governments have had no freedom to introduce new taxes because matters dealing with taxation are on the Exclusive list of the constitution. They may enact laws only with the concurrence and approval of the National Assembly
Why is this problem?
1. It deprives the states and Local governments the ability to use taxation as a means of earning revenue or attracting investment.
States like Lagos earn almost 80% of their income from the PIT, but they cannot determine the rate to apply to attract investment. The Company Income Tax CIT and the VAT are collected in states. Lagos State may build roads and attract multinationals to Lekki but the federal government will take the revenues generated by these multinationals.
It also put all the states in the same bracket in terms of tax policy. Ogun state for instance cannot use a lower VAT or CIT rate as an incentive to attract investors from Lagos to Ogun. Yobe state cannot declare a tax free zone to attract Dangote Industries to set up a factory there.
States like Lagos also see no incentive to enforce the payment of taxes as these taxes are sent to the centre. The CBN estimates that Lagos has about 60% of the manufacturing and commercial activity in Nigeria. Lagos is the generator of the highest VAT and the highest Customs duty, but it does not see these tax benefits. It is, instead, shared anchored on such factors as equality of states (40 per cent), population (30 per cent), landmass and terrain (10 per cent), social development needs (10 per cent), and internal revenue efforts (10 per cent). This sharing formula, discouraging revenue drive, particularly for federally adjudicated taxes e.g. VAT.
2. The federal government is reckless with spending.
The tax (and revenue) collected is used to pay federal workers.
Take the figures for 2010, the total receipts for Companies Income Tax, VAT and Customs duty was N1.40t (net of cost of collection, gross collection was N1.52t). Let us now look at the total non-debt cost of the federal government (salaries, pensions) that is N2.54t.
In effect, the total tax revenues of the nation are swallowed up by personal cost of the federal government. An argument can be made that oil revenues are actually paying the salaries of the federal workers but keep in mind that non-oil revenues made up 34% of the total revenue in 2010.
In addition, how many federal workers do we have in Nigeria? The federal workers take home 63% of the total revenues of the nation, (tax and oil receipts).
3. It makes Local governments ineffective.
The current fiscal structure created a situation where the Local governments must exist at the mercy of the federal and state government.
Primary schooling is the exclusive responsibility of local governments; the constitution states, “The functions of a local government council shall include the provision and maintenance of primary, adult and vocational education”. We then wonder how Nigerian children can be educated by taxes charged on items such as fees on marriages, motor parks and bicycles.
Unlike States who can charge Personal Income Taxes generate billions of Naira (like Lagos), the Local governments have been “allocated” very poor means of livelihood and are thus unable to serve the citizens of the LGA.
What can GEJ do about it?
• Amend the constitution to allocate to the three theirs of the federation appropriate income-generating taxes to enable them fulfil their constitutional requirements. The federal government cannot simply tax the wealth of Nigeria and spend it on only the federal workers. Such a move will discourage the payment of taxes.
• Devolve most of the powers from the exclusive list to the concurrent and the forth schedule or and duties of the Local governments e.g. Insurance, stamp duties as a whole, and VAT.
• The states and Local governments should share VAT
• States to determine and charge Personal Income Tax
• Local Governments to charge Property taxes, charge, and collect the education taxes
• Pass a law that will cap how much of the federal, state or Local Government earnings can be allocated to recurrent expenditures. This is specifically to forestall a situation where taxes are charged just to maintain the lifestyle of workers.
It’s important to note that The former president of the NBA has presented a private bill to the National Assembly for an Act to alter the Constitution of the Federal Republic of Nigeria 1999 by creation of the States Court of Appeal, introduction of Federal and State Legislative Lists and adjustments/modifications of legislative powers of government between the Federal and State Governments."
Agbakoba said the present "bloated federal system" had made governance too expensive to support any meaningful development in the country.
The bill seeks to replace the "Exclusive Legislative List" with "Federal Legislative List" with respect to powers limited to the federal government and introduced the "State Legislative List" for powers exclusive to the state governments.
Issues recommended in the bill for devolution to the states include natural and mineral resources, excluding petroleum and gas; agriculture; micro finance banks; municipal police, state appeal courts; solemnisation of marriages; incorporation of business enterprises with state objects; taxes on income and profits within states, other than income and profits of companies; regulation of labour and industrial relations at the state level, including prescription of minimum wage; and evidence.
It is our problem and we will fix it.
Saturday, June 11, 2011
repeal the Land Use Act
An Act to Vest all Land compromised in the territory of each State (except land vested in the Federal government or its agencies) solely in the Governor of the State , who would hold such Land in trust for the people and would henceforth be responsible for allocation of land in all urban areas to individuals resident in the State and to organisations for residential, agriculture, commercial and other purposes while similar powers will with respect to non urban areas are conferred on Local Governments.(27th March 1978) Commencement.
1. Repeal the land Use Act.
In simple terms, the Land Use Act places a government official between a legal contract of ownership and sale of land. It places all land in the hands of government and specifies that future transfers or sale of land must be authorised by a government official irrespective of the value of the transaction. "It shall not be lawful for any customary right of occupancy or any part thereof to be alienated by assignment, mortgage, transfer of possession, sublease or otherwise howsoever -
(a) Without the consent of the Governor in cases where the property is to be sold by or under the order of any court under the provisions of the applicable Sheriffs and Civil Process Law; or
(b) in other cases without the approval of the appropriate Local Government."
Land Use Act
The main issues of the Land Use Act of 1978 is that it transfers title and ownership of land from individuals and communities to the Governors of the states who hold the land in trust. It also makes acquisition of land by individuals and corporate bodies for commercial, agricultural and economic development purposes extremely difficult.
This leads to transaction bottlenecks, cumbersome and tiresome processing of title documents and negative wealth as all land without a C of O cannot be brought into any formal transaction. Consider that if a client wanted to buy or sell a Rolls Royce or an oil Refinery, the transaction would involve both parties' legal teams, but crucially it would not need the consent or accent of any government official before the sale is approved.
Another contentions issues is the changing of the legal status of the Nigerian land "user" from ownership to that of statutory occupancy. In effect no Nigeria owns any land, we simply have a statutory right to use it, this limits the rights of the "user" i.e. your proprietary interests are extinguished.
The argument against repel will rest with the issues government has in securing land from private citizens for the greater public good e.g., building a road over private land. These concerns can be address by passing a bill to give the Federal and State Government the power to acquire land under the Right of Eminent Domain, i.e. the superior dominion of the sovereign over individual property rights. The Land Use is in fact a universal application of this Eminent Domain right.
The repeal of the Land Use Act will immediately give millions of Nigerians "equity". They can own, transfer and/or sell the land they live on, put up that land as collateral, bring the land into the formal market place and make property transactions easier to finance via financial institutions.
The Repeal will boost Nigeria mortgage market, it will create jobs as realtors, surveyors, estate agents, and builders will have more opportunities and more property to bring into the market.
Most importantly, the repel of the Act will open agricultural land otherwise "locked" up in administrative red tape in the Local Governments. Farmers can negotiate directly with the local community for sale or lease of hectares of arable land to grow food, considering that 70% of Nigerians labour is agricultural based, the bottle neck of ownership of land if removed will instantly increase the acreage of land available to agriculture.
Its important to note that that Late President Umaru Musa Yar'Adua had sent 14 Amendment clauses (titled Land Use Act (Amendment) Act 2009 or the Constitution (First Amendment) Act 2009) to the National Assembly for the purpose of amendment.
So i would like the president to push the 7th congress to consider and pass these 14 amendment clauses or simply sponsor a new bill to repel the Land use Act.
Without land, there is no wealth.
Its our Problem, we will fix it.
1. Repeal the land Use Act.
In simple terms, the Land Use Act places a government official between a legal contract of ownership and sale of land. It places all land in the hands of government and specifies that future transfers or sale of land must be authorised by a government official irrespective of the value of the transaction. "It shall not be lawful for any customary right of occupancy or any part thereof to be alienated by assignment, mortgage, transfer of possession, sublease or otherwise howsoever -
(a) Without the consent of the Governor in cases where the property is to be sold by or under the order of any court under the provisions of the applicable Sheriffs and Civil Process Law; or
(b) in other cases without the approval of the appropriate Local Government."
Land Use Act
The main issues of the Land Use Act of 1978 is that it transfers title and ownership of land from individuals and communities to the Governors of the states who hold the land in trust. It also makes acquisition of land by individuals and corporate bodies for commercial, agricultural and economic development purposes extremely difficult.
This leads to transaction bottlenecks, cumbersome and tiresome processing of title documents and negative wealth as all land without a C of O cannot be brought into any formal transaction. Consider that if a client wanted to buy or sell a Rolls Royce or an oil Refinery, the transaction would involve both parties' legal teams, but crucially it would not need the consent or accent of any government official before the sale is approved.
Another contentions issues is the changing of the legal status of the Nigerian land "user" from ownership to that of statutory occupancy. In effect no Nigeria owns any land, we simply have a statutory right to use it, this limits the rights of the "user" i.e. your proprietary interests are extinguished.
The argument against repel will rest with the issues government has in securing land from private citizens for the greater public good e.g., building a road over private land. These concerns can be address by passing a bill to give the Federal and State Government the power to acquire land under the Right of Eminent Domain, i.e. the superior dominion of the sovereign over individual property rights. The Land Use is in fact a universal application of this Eminent Domain right.
The repeal of the Land Use Act will immediately give millions of Nigerians "equity". They can own, transfer and/or sell the land they live on, put up that land as collateral, bring the land into the formal market place and make property transactions easier to finance via financial institutions.
The Repeal will boost Nigeria mortgage market, it will create jobs as realtors, surveyors, estate agents, and builders will have more opportunities and more property to bring into the market.
Most importantly, the repel of the Act will open agricultural land otherwise "locked" up in administrative red tape in the Local Governments. Farmers can negotiate directly with the local community for sale or lease of hectares of arable land to grow food, considering that 70% of Nigerians labour is agricultural based, the bottle neck of ownership of land if removed will instantly increase the acreage of land available to agriculture.
Its important to note that that Late President Umaru Musa Yar'Adua had sent 14 Amendment clauses (titled Land Use Act (Amendment) Act 2009 or the Constitution (First Amendment) Act 2009) to the National Assembly for the purpose of amendment.
So i would like the president to push the 7th congress to consider and pass these 14 amendment clauses or simply sponsor a new bill to repel the Land use Act.
Without land, there is no wealth.
Its our Problem, we will fix it.
Friday, March 11, 2011
of Jobs and Government
I just saw a news article that the Ekiti state Governor Kayode Fayemi conducted a survey and discovered that 250,000 youths in his state were unemployed; hence, he "employed 25,000 of them into the Ekiti Volunteer Corp.
The Governor must be commended for showing the need to inquire about employment figures in his state but i fear his solution is short term and a mirage because no government Federal State or Local govt can create jobs.
you hear it all the time, GEJ says he will create jobs, Fashola says he created jobs, but the reality is that if those jobs are not created in the private sector then really no job has been created, the government (state of federal) has simply taken tax revenues which could have built roads or hospitals, and converted them to recurrent expenditures.
A job is created when a demand exists and an entrepreneur hires a person to fill that vacancy. The government by collecting tax revenue has reduced the amount of jobs that entrepreneur can create.
In the short term, Ekiti and others can employ to reduce poverty, but a longer-term plan is to reward companies that employ by giving them tax breaks or concessions. The State can simply grade companies according to how much PAYE the company remits and then do a 50% tax break back to them.
Dangote just signed an agreement with BOI to advance billion to them to loan out at zero interest rates to small scale manufactures, a better approach is to tell Dangote he will get a 50% import duty waiver on every bag of rice he imports for every staff he remits PAYE for based on the minimum wage, same for Shell and Co, reduce the fees the pay to the NNPC, and Department of Petroleum Resources based on how many Nigerian they submit PAYE based on minimum wage.
To submit PAYE they must employ remember.
Ekiti certainly does not have many private sector companies so their challenge is to use their FAAC Oil allocation to build infrastructure and attract Dangote out of high tax states like Lagos to Ekiti. Using the oil money to pay salaries only starts a vicious cycle of high taxes to pay salaries, which drive off private sector investors.
It is our problem we have to fix it
The Governor must be commended for showing the need to inquire about employment figures in his state but i fear his solution is short term and a mirage because no government Federal State or Local govt can create jobs.
you hear it all the time, GEJ says he will create jobs, Fashola says he created jobs, but the reality is that if those jobs are not created in the private sector then really no job has been created, the government (state of federal) has simply taken tax revenues which could have built roads or hospitals, and converted them to recurrent expenditures.
A job is created when a demand exists and an entrepreneur hires a person to fill that vacancy. The government by collecting tax revenue has reduced the amount of jobs that entrepreneur can create.
In the short term, Ekiti and others can employ to reduce poverty, but a longer-term plan is to reward companies that employ by giving them tax breaks or concessions. The State can simply grade companies according to how much PAYE the company remits and then do a 50% tax break back to them.
Dangote just signed an agreement with BOI to advance billion to them to loan out at zero interest rates to small scale manufactures, a better approach is to tell Dangote he will get a 50% import duty waiver on every bag of rice he imports for every staff he remits PAYE for based on the minimum wage, same for Shell and Co, reduce the fees the pay to the NNPC, and Department of Petroleum Resources based on how many Nigerian they submit PAYE based on minimum wage.
To submit PAYE they must employ remember.
Ekiti certainly does not have many private sector companies so their challenge is to use their FAAC Oil allocation to build infrastructure and attract Dangote out of high tax states like Lagos to Ekiti. Using the oil money to pay salaries only starts a vicious cycle of high taxes to pay salaries, which drive off private sector investors.
It is our problem we have to fix it
Thursday, October 21, 2010
remembering Rosa Parks, dont stand up
A decision is a powerful thing, a decision leads to events, and events are not singular, they affect people far removed from the decision maker, events lead to history.
At 6pm on the 1st of Dec 1955 in Montgomery Alabama, Rosa Parks decided to break the law; she refused to stand up and give up her seat, as was the law since 1900 to a white passenger on a public bus in Montgomery, Alabama, in response she was arrested by the police.
Her arrest led to the Montgomery bus boycott, which was coordinated by a young unknown black preacher, named Martin Luther King. The success of the boycott promoted Martin Luther King to national prominence made him the father of the Civil Rights movement, and led to the “i have a dream speech” and ultimately the passage of the Civil Rights Bill and the election of Barack Obama as the 44th President of the United States. Therefore, you see a premeditated decision is the most powerful thing in the world.
Back to Rosa Parks, it was bad for her, following the success of the boycott she suffered, she was in jail, sacked from her job, her husband also had to quit, and she had to leave Montgomery because she could no longer get a job there. She was hounded, they both suffered from ulcers, they never had children. when she was 91, she lived in a flat, could not pay her rents, she was about to be evicted, but the owners gave her the flat rent free, she survived on charity. Nevertheless, when she died in October 2005 she was laid in honour in the Rotunda of the US capital, the first woman in the USA to receive the honour. So a good decision might bring you pain, but offers great reward.
I do not think Rosa Parks knew her action that day would be so far reaching, in fact she had never met Martin Luther King before the boycott, Martin Luther was a new comer to Montgomery. She didn’t refuse to stand up from her seat because she wanted to help elect a black man into the White House in 2008, No, she just wanted to fight her own little fight in her little Montgomery.
In life, we will be presented with choices to make a decision, and sometimes the decision may not seem material at first, we could be asked to pay a bribe for a vote, we could be asked to take a bribe in return for a vote, the decisions we make will have far-reaching consequences.
We must not only fight the “Abuja” fight, we also should stay focused on our Local Government Areas and Wards . Rosa Parks was a civil rights activist, in fact, she was the Secretary of the local NAACP, but she did not take her fight for civil rights first to Washington, then Alabama then Montgomery, she started small in Montgomery then Alabama then Washington.
The lessons for Nigerians who just as Rosa Parks are living in the bondage of no roads, power or hospitals, is first make a premeditated decision to cause a change, then act local first with a global strategy in mind.
For example, go online to the Ministry of Finance Website www.fmf.gov.ng or Accountant General of the Federation www.oagf.gov.ng or the budget office www.budgetoffice.gov.ng. Print out 100 copies of the allocation your LGA receives monthly, go to your bad road/street, and distribute the copies to every house hold and challenge the ward chairman to get the LGA chairman to fix the bad road. Will it work? I do not know but at the least, the Ward Councillor will make a mental note to patch the road before those troublesome street tenants “spoils his gari”
Imagine if every ward Councillor was hounded in Aba to fix the roads, imagine if every Ward Councillor in Aba was hounded to clear rubbish from the streets?, imagine if every ward chancellor was hounded to set up a primary health care clinic in Aba? Imagine if every ward chancellor in Aba was hounded to set up a small SME for the “boys”? Just imagine if all Aba councillors were hounded for the 10 years we have had this democracy, there would have been no kidnapping in Aba.
Our problems are local, not international, your ward chancellor has no police escort, he still lives and sleeps in your area, his kids still go to the school next door, do you know him?
As we remember the First Lady of the Civil Rights Movement Rosa Parks, i ask you to make a decision not to stand up.
Let us fix our problem Nigeria.
Kalu A.
At 6pm on the 1st of Dec 1955 in Montgomery Alabama, Rosa Parks decided to break the law; she refused to stand up and give up her seat, as was the law since 1900 to a white passenger on a public bus in Montgomery, Alabama, in response she was arrested by the police.
Her arrest led to the Montgomery bus boycott, which was coordinated by a young unknown black preacher, named Martin Luther King. The success of the boycott promoted Martin Luther King to national prominence made him the father of the Civil Rights movement, and led to the “i have a dream speech” and ultimately the passage of the Civil Rights Bill and the election of Barack Obama as the 44th President of the United States. Therefore, you see a premeditated decision is the most powerful thing in the world.
Back to Rosa Parks, it was bad for her, following the success of the boycott she suffered, she was in jail, sacked from her job, her husband also had to quit, and she had to leave Montgomery because she could no longer get a job there. She was hounded, they both suffered from ulcers, they never had children. when she was 91, she lived in a flat, could not pay her rents, she was about to be evicted, but the owners gave her the flat rent free, she survived on charity. Nevertheless, when she died in October 2005 she was laid in honour in the Rotunda of the US capital, the first woman in the USA to receive the honour. So a good decision might bring you pain, but offers great reward.
I do not think Rosa Parks knew her action that day would be so far reaching, in fact she had never met Martin Luther King before the boycott, Martin Luther was a new comer to Montgomery. She didn’t refuse to stand up from her seat because she wanted to help elect a black man into the White House in 2008, No, she just wanted to fight her own little fight in her little Montgomery.
In life, we will be presented with choices to make a decision, and sometimes the decision may not seem material at first, we could be asked to pay a bribe for a vote, we could be asked to take a bribe in return for a vote, the decisions we make will have far-reaching consequences.
We must not only fight the “Abuja” fight, we also should stay focused on our Local Government Areas and Wards . Rosa Parks was a civil rights activist, in fact, she was the Secretary of the local NAACP, but she did not take her fight for civil rights first to Washington, then Alabama then Montgomery, she started small in Montgomery then Alabama then Washington.
The lessons for Nigerians who just as Rosa Parks are living in the bondage of no roads, power or hospitals, is first make a premeditated decision to cause a change, then act local first with a global strategy in mind.
For example, go online to the Ministry of Finance Website www.fmf.gov.ng or Accountant General of the Federation www.oagf.gov.ng or the budget office www.budgetoffice.gov.ng. Print out 100 copies of the allocation your LGA receives monthly, go to your bad road/street, and distribute the copies to every house hold and challenge the ward chairman to get the LGA chairman to fix the bad road. Will it work? I do not know but at the least, the Ward Councillor will make a mental note to patch the road before those troublesome street tenants “spoils his gari”
Imagine if every ward Councillor was hounded in Aba to fix the roads, imagine if every Ward Councillor in Aba was hounded to clear rubbish from the streets?, imagine if every ward chancellor was hounded to set up a primary health care clinic in Aba? Imagine if every ward chancellor in Aba was hounded to set up a small SME for the “boys”? Just imagine if all Aba councillors were hounded for the 10 years we have had this democracy, there would have been no kidnapping in Aba.
Our problems are local, not international, your ward chancellor has no police escort, he still lives and sleeps in your area, his kids still go to the school next door, do you know him?
As we remember the First Lady of the Civil Rights Movement Rosa Parks, i ask you to make a decision not to stand up.
Let us fix our problem Nigeria.
Kalu A.
Friday, March 19, 2010
Queen Turai the Magnificent
Queen Turei the Magnificent walked into her presidential library in Tureina. It had been a short drive from the state house where she had just presided over the weekly Executive meeting of the Kingdom of Negeria.
She took a glance at the cashew trees; she recalled planting them 20 years ago, when Negeria was still a republic, it made her smile, but it also stiffened her, it made her remember her motto in life, keep pushing until something happens. KPUSH. That motto has made her the richest and most powerful women in Africa, Queen Turei preferred to be called the richest woman in the World but her handlers knew that one of her daughters who had been the minister of petroleum for 20years and had carved out a state for herself out of Bachi was far richer, but they kept mum.
Queen Turei had always pushed, when she saw her brother in law and father in law enter politics she pushed Maru to get into politics, she silly man wanted to become a chemistry lecturer she chuckled. When unfortunately her Brother in law died in jail, she pushed Maru to take up the family mantle to govern Tureina. Maru absence for medical reasons had enabled her to enter into the world of Negeria governance, and she discovered a dark secret about men. They would do anything for money. Money was important to her, but that someone was willing to forgo future wealth for immediate cash was a lesson she attached t her KPUSH mantra.
She had planned to teach the manta to her sons for them to apply, but suddenly in the dead of night a phone call came in from BOJ, Maru had taken the call he was surprised, then more surprised, then a bit happy. curious she asked him “who was that” “oh he replied “ it was BOJ, he asked me if i wanted to become the president, i told hem i had already gotten a letter of appointment to teach Chemistry in University, i said i would consider it” that was the first time she got a heart attack. She scrambled, called BOJ back and said of course Maru was interested in the job, of course his Doctors had declared him fit, and Maru became President, Just like that.
That Presidency has tested her wits, it had started off well enough, Maru had as usual gone academic with the agenda thing, he had even managed to bring truce to the Neger Delta, and then it all changed, Maru “issue” started again. The Western hospitals said yes come over, but she was worried about their pesky freedom of information ideas, they might give some idiot online paper an interview. So she went to where reporters were not allowed; Saudi Arabia. She had hoped the folks in Abaja would take care of things, but the common folk kept asking for see Maru, to talk to Maru some even asked he write some letter! Did they elect him? What was their business? She simply ignored them.
When she was awaken with news that Lady Pat was now the acting First lady, it made her decision easy. She drew on all the tenets of KPUSH and her knowledge of men, the funds in the appropriations bill she had signed came into use. She brought back Maru for them, abi they want him to come back? Well he is back.
She then moved quickly, she got 3 months to allow Maru rest, she used the courts to change the rules, and Lady Pat was made the Second lady again. She adopted 36 new daughters, and married them off to 36 young men in 36 states and simply sent to names to Owu, he knew how to get them elected as Governors. She then went to the PaDP and asked for an early election, she asked her bankers to give anyone with a title in Abaja $10million each, and by May it was done. Her son-in-law was the candidate for the Presidency, Andoakaa was made his running mate, it was a landslide, the Senators and Honourables, Judges, Press and Army were busy buying houses in Dubai and UK, they did nit interface.
She promptly made her son in law appoint her Senate President, it was really too easy, “Ghana Must Go” flowed and the Constitution was changed, and only Senators and Honourables could contest elections into the Presidency, of course she being the Senate President was first in line, by 2014 she was President and Commander in Chief.
She zoned the Armed Forces and police to the North, Civil service and Judiciary to the West and Commerce and Banking to the East, she was being equitable she opined. She eliminated the federal character principle and appointed her daughters Min of Finance, Petroleum and CBN Governor. She passed a freedom of Information bill hence all newspapers, radio and TV stations were banned, “since freedom is free, why should anybody make profit from it?” To sanitise the banking system she closed the entire banks apart from one, the Turei Trust Bank, she directed all foreign reserves be transferred there, federation units, and customers doing business with Negeria were mandated to open accounts there. “Well its easier for the CBN to inspect one bank, we have killed off bank failures” she said
all new bank notes now bore the image of Queen Turei, as she said this was to only was to ensure it was not faked. she made supreme courts justices a life time appointment, reduced the judges to two and appointed her adopted daughters as the first Supreme court justices, “it was to empower women she said, the UN had mandated it in the MDG”.
By 2022, she sent a resolution to the Parliament to convert Negeria into a Monarchy, As usual the people had shouted, wrote editorials, went on marches, went to court etc she just smiled. The Parliament by voice vote affirmed her request , Turei, became Her Royal Excellency, Field Marshal, Dr, Chief, Eng, Queen Turei the Magnificent, MNI, PSS, Queen of Negeria and West Africa excluding Ghena .
It was now 2030, the federal capital had been moved to Tureina, as it was nearer to Seudi Arebia, she had solved the power problem by banning Air Conditioners s and Deep freezers, “AC are ruining the ozone layer”, she said. She had solved unemployment by hiring everybody into the federal civil service, to get a salary, you than had to swear an oath of allegiance, not to her but to her office ooh! Education was free, as no one went to school anymore, as everyone was guaranteed a job in the civil service. She sometimes wondered why men who taught they were smarter could not manage to solve these “problems”.
But today in the Turei Presidential library, she was on a peacekeeping mission, her daughters were fighting again, these girls were really embarrassing her, first it was about which states they wanted as 15 year wedding anniversary gifts, then it was about who would get to monopoly to import petrol and shut down NNPC, she was tired. One daughter had had asked the mint to put her picture on the other side of the N1,000,000,000 note, another then simply asked them to create a N1,000,000,000, 000 note and put her picture.
She signed as she opened the door to meet with her warring daughters, it was her problem, and she would fix it.
She took a glance at the cashew trees; she recalled planting them 20 years ago, when Negeria was still a republic, it made her smile, but it also stiffened her, it made her remember her motto in life, keep pushing until something happens. KPUSH. That motto has made her the richest and most powerful women in Africa, Queen Turei preferred to be called the richest woman in the World but her handlers knew that one of her daughters who had been the minister of petroleum for 20years and had carved out a state for herself out of Bachi was far richer, but they kept mum.
Queen Turei had always pushed, when she saw her brother in law and father in law enter politics she pushed Maru to get into politics, she silly man wanted to become a chemistry lecturer she chuckled. When unfortunately her Brother in law died in jail, she pushed Maru to take up the family mantle to govern Tureina. Maru absence for medical reasons had enabled her to enter into the world of Negeria governance, and she discovered a dark secret about men. They would do anything for money. Money was important to her, but that someone was willing to forgo future wealth for immediate cash was a lesson she attached t her KPUSH mantra.
She had planned to teach the manta to her sons for them to apply, but suddenly in the dead of night a phone call came in from BOJ, Maru had taken the call he was surprised, then more surprised, then a bit happy. curious she asked him “who was that” “oh he replied “ it was BOJ, he asked me if i wanted to become the president, i told hem i had already gotten a letter of appointment to teach Chemistry in University, i said i would consider it” that was the first time she got a heart attack. She scrambled, called BOJ back and said of course Maru was interested in the job, of course his Doctors had declared him fit, and Maru became President, Just like that.
That Presidency has tested her wits, it had started off well enough, Maru had as usual gone academic with the agenda thing, he had even managed to bring truce to the Neger Delta, and then it all changed, Maru “issue” started again. The Western hospitals said yes come over, but she was worried about their pesky freedom of information ideas, they might give some idiot online paper an interview. So she went to where reporters were not allowed; Saudi Arabia. She had hoped the folks in Abaja would take care of things, but the common folk kept asking for see Maru, to talk to Maru some even asked he write some letter! Did they elect him? What was their business? She simply ignored them.
When she was awaken with news that Lady Pat was now the acting First lady, it made her decision easy. She drew on all the tenets of KPUSH and her knowledge of men, the funds in the appropriations bill she had signed came into use. She brought back Maru for them, abi they want him to come back? Well he is back.
She then moved quickly, she got 3 months to allow Maru rest, she used the courts to change the rules, and Lady Pat was made the Second lady again. She adopted 36 new daughters, and married them off to 36 young men in 36 states and simply sent to names to Owu, he knew how to get them elected as Governors. She then went to the PaDP and asked for an early election, she asked her bankers to give anyone with a title in Abaja $10million each, and by May it was done. Her son-in-law was the candidate for the Presidency, Andoakaa was made his running mate, it was a landslide, the Senators and Honourables, Judges, Press and Army were busy buying houses in Dubai and UK, they did nit interface.
She promptly made her son in law appoint her Senate President, it was really too easy, “Ghana Must Go” flowed and the Constitution was changed, and only Senators and Honourables could contest elections into the Presidency, of course she being the Senate President was first in line, by 2014 she was President and Commander in Chief.
She zoned the Armed Forces and police to the North, Civil service and Judiciary to the West and Commerce and Banking to the East, she was being equitable she opined. She eliminated the federal character principle and appointed her daughters Min of Finance, Petroleum and CBN Governor. She passed a freedom of Information bill hence all newspapers, radio and TV stations were banned, “since freedom is free, why should anybody make profit from it?” To sanitise the banking system she closed the entire banks apart from one, the Turei Trust Bank, she directed all foreign reserves be transferred there, federation units, and customers doing business with Negeria were mandated to open accounts there. “Well its easier for the CBN to inspect one bank, we have killed off bank failures” she said
all new bank notes now bore the image of Queen Turei, as she said this was to only was to ensure it was not faked. she made supreme courts justices a life time appointment, reduced the judges to two and appointed her adopted daughters as the first Supreme court justices, “it was to empower women she said, the UN had mandated it in the MDG”.
By 2022, she sent a resolution to the Parliament to convert Negeria into a Monarchy, As usual the people had shouted, wrote editorials, went on marches, went to court etc she just smiled. The Parliament by voice vote affirmed her request , Turei, became Her Royal Excellency, Field Marshal, Dr, Chief, Eng, Queen Turei the Magnificent, MNI, PSS, Queen of Negeria and West Africa excluding Ghena .
It was now 2030, the federal capital had been moved to Tureina, as it was nearer to Seudi Arebia, she had solved the power problem by banning Air Conditioners s and Deep freezers, “AC are ruining the ozone layer”, she said. She had solved unemployment by hiring everybody into the federal civil service, to get a salary, you than had to swear an oath of allegiance, not to her but to her office ooh! Education was free, as no one went to school anymore, as everyone was guaranteed a job in the civil service. She sometimes wondered why men who taught they were smarter could not manage to solve these “problems”.
But today in the Turei Presidential library, she was on a peacekeeping mission, her daughters were fighting again, these girls were really embarrassing her, first it was about which states they wanted as 15 year wedding anniversary gifts, then it was about who would get to monopoly to import petrol and shut down NNPC, she was tired. One daughter had had asked the mint to put her picture on the other side of the N1,000,000,000 note, another then simply asked them to create a N1,000,000,000, 000 note and put her picture.
She signed as she opened the door to meet with her warring daughters, it was her problem, and she would fix it.
Saturday, February 20, 2010
of schools
Last week, Hon Emmanuel Bello from Adamawa state presented a bill to the House of Representatives to prohibit the children and wards of public officials from attending schools outside Nigeria. Hon Bello point is simple, If YarAdua’s kid was in the University of Katsina, ASUU would not be on strike.
But can forcing the decision makers to sleep in the bed they make improve the bed? If we banned generators would NEPA work? If we banned jeeps, would we have good roads? If all the big men from Anambra had their kids in Anambra and didn’t have police escorts, would we still hear of kidnapping in Anambra? I suspect that this banning could work ooh.
I know of a school in Jos that was founded in 1980, it was a dream; the school was not only free but paid the students. The school had modern laboratories, sports facilities and lodgings. The students were pampered with swimming, equestrian, and map reading lessons. The uniforms, books, excursion, medical care and food was free, the students travelled to Lome to study French, and even air transportation to Jos was provided free of charge! Now this is clearly unbelievable but trust me, the school exists, (now it has fallen somewhat, students now pay fees and there is no free air transport as the planes are rotting away on some tarmac in Lagos.) I have a theory that the promoters of this school, who were “big men” seeing their wards were in this very school, showered all the perks imaginable on it, because they had a vested interest in the school.
On the flip side we saw the senators in Abuja cut the education and health budget to build a 10 lane expressway in Abuja. One of the reasons the senators arguing for the “viament” as it was called was that the Senators spend hours in traffic going to their home states, but this makes sense, they don’t use the school or hospitals but they use the road, so it had to be fixed. Heaven forbid a Senator has to spend hours in his A/c convoy negotiating a two lane expressway.(one senator could not take the punishment anymore and simply bought a plane to fly him home)
There is a clear correlation between the increase in Nigerian kids schooling offshore and the standard of government education in Nigeria, as more UK schools come over to Nigeria to do school fairs, the failure rate in the WASC keeps increasing. The current pass rate in WASC is put at 20% i.e. only 2 in 10 students have 5 credits! The Punch newspapers carried a story that N137billion was spent on tuition in two years for about 50,000 Nigerian students in the UK and US alone , the total education budget for the same period was put at N459billion for almost 100m students in Nigeria do the maths. I could stake my lunch money that no Minister has his kids in a Nigerian federal, state or Local govt school, thats astonishing, It’s like saying no Toyota top Exec drives a Toyota.
It does seem that Hon Bello is clearly unto something.
I know for a fact that if the Ministers had to send their sons to queue for 9 hours by 4am to buy 4 litres of fuel, there would be no fuel scarcity; I also know that if generators were banned, we would be talking of 60,000 mw, not 6,000mw. So it does follow if we banned foreign medical trips, the National Hospital in Abuja would rival John Hopkins, if we banned Jeeps, Lagos to Calaber road would look like a German autobahn, and hence if we banned public officials sending their kids offshore, then University of Markudi will rival Harvard. It’s so simple to fix Nigeria abi?
But you do not need to be grounded in politics in Nigeria to know this bill will not even pass first reading in the House Hon Bello belongs to, it will be killed off like the FOI and Electoral reform bills. And that why it’s so hard to fix Nigeria.
Sign! It’s our problem, we will fix it
But can forcing the decision makers to sleep in the bed they make improve the bed? If we banned generators would NEPA work? If we banned jeeps, would we have good roads? If all the big men from Anambra had their kids in Anambra and didn’t have police escorts, would we still hear of kidnapping in Anambra? I suspect that this banning could work ooh.
I know of a school in Jos that was founded in 1980, it was a dream; the school was not only free but paid the students. The school had modern laboratories, sports facilities and lodgings. The students were pampered with swimming, equestrian, and map reading lessons. The uniforms, books, excursion, medical care and food was free, the students travelled to Lome to study French, and even air transportation to Jos was provided free of charge! Now this is clearly unbelievable but trust me, the school exists, (now it has fallen somewhat, students now pay fees and there is no free air transport as the planes are rotting away on some tarmac in Lagos.) I have a theory that the promoters of this school, who were “big men” seeing their wards were in this very school, showered all the perks imaginable on it, because they had a vested interest in the school.
On the flip side we saw the senators in Abuja cut the education and health budget to build a 10 lane expressway in Abuja. One of the reasons the senators arguing for the “viament” as it was called was that the Senators spend hours in traffic going to their home states, but this makes sense, they don’t use the school or hospitals but they use the road, so it had to be fixed. Heaven forbid a Senator has to spend hours in his A/c convoy negotiating a two lane expressway.(one senator could not take the punishment anymore and simply bought a plane to fly him home)
There is a clear correlation between the increase in Nigerian kids schooling offshore and the standard of government education in Nigeria, as more UK schools come over to Nigeria to do school fairs, the failure rate in the WASC keeps increasing. The current pass rate in WASC is put at 20% i.e. only 2 in 10 students have 5 credits! The Punch newspapers carried a story that N137billion was spent on tuition in two years for about 50,000 Nigerian students in the UK and US alone , the total education budget for the same period was put at N459billion for almost 100m students in Nigeria do the maths. I could stake my lunch money that no Minister has his kids in a Nigerian federal, state or Local govt school, thats astonishing, It’s like saying no Toyota top Exec drives a Toyota.
It does seem that Hon Bello is clearly unto something.
I know for a fact that if the Ministers had to send their sons to queue for 9 hours by 4am to buy 4 litres of fuel, there would be no fuel scarcity; I also know that if generators were banned, we would be talking of 60,000 mw, not 6,000mw. So it does follow if we banned foreign medical trips, the National Hospital in Abuja would rival John Hopkins, if we banned Jeeps, Lagos to Calaber road would look like a German autobahn, and hence if we banned public officials sending their kids offshore, then University of Markudi will rival Harvard. It’s so simple to fix Nigeria abi?
But you do not need to be grounded in politics in Nigeria to know this bill will not even pass first reading in the House Hon Bello belongs to, it will be killed off like the FOI and Electoral reform bills. And that why it’s so hard to fix Nigeria.
Sign! It’s our problem, we will fix it
Thursday, December 10, 2009
of Duke and Dubai
Vision is more important than knowledge, for it was Leonardo da Vinci vision of men flying that lead to the Wright Brothers flying at Kitty Hawk. It is the vision of men to choose their own kings enshrined in the English Magna Carta that lead to democracy and rule of law.
A nation that has a vision can say “we will place a man on the moon in 10 years”, and do it. A nation that has a vision can build an oasis of financial, economic and political stability on a barren rock, no not Dubai, Singapore. It is a nation without vision that wants to return to the “golden ages” by killing all her citizens that can read or write, no not Boko Haram, Cambodia under Pol Pot.
Thus we can say that a nation without vision is a nation that will never be first.
Vision is what saves lives, creates jobs, and builds wealth. That’s why Africa and Nigeria in particular are where we are. No written vision.
Let’s consider what visionary projects has Nigeria done in 49 years, I can count 3, Abuja, the Development of the Lagos Marina and the ongoing dredging of the Niger River. Kalu just hold on, what about the Lagos Ibadan express road? What about the federal universities and the unity schools? National Theatre? The Teaching hospitals? The National stadia? Pally these are all what our leadership is obligated to provide with the oil money we have in Nigeria, we can hardly clap for them. Are there no roads, universities or stadia in Chad republic? Difference is the quantity my brother. By Vision, why didn’t they build a subway in Lagos in the 70’s, why don’t we have a deep water container port in Onitsha? Why haven’t we tapped solar power in Sokoto? Why didn’t we build a mobile network when we built NITEL?
Because men of vision are so rare in Nigeria, when i see one, i sit up.
I have been a great admirer of Tinapa. Tinapa is a vision by the people of Cross River under Donald Duke. Duke became the governor of a state known for pineapples and “apples of the eye”. The state is a marginal oil producing state, with 90% of the citizens rural based? Duke imagined a better state of affairs and put in a plan to transform the state into the tourism and serviced based economic hub of Nigeria. Tinapa is a $450m bet to transform the state into a Dubai.
But sadly Tinapa is not working, do you know why? Kalu the idea was bad to start with; can Nigerians afford the expensive oyibo goods to be sold there? Thing is, Nigeria is a consumer nation, we love to spend on western stuff, Tinapa basic idea is simply to bring the same shops Nigerians travel to in UK, US and Dubai to Calaber. Let the Nigerians fly in (no visa), stay in a hotel, shop, eat, party and fly back to Lagos and Abuja. The state generates huge VAT, creates jobs in hospitality, trade, real-estate and services, the states transform her economy from dependence on “Abuja” money to taxes, that’s vision.
Ok Kalu so it’s a good idea, but has the state delivered? Have they built the structures? Maybe that why it has not worked. Pally, I have been to Tinapa; it is 100% completly built, it’s a beauty. Shops, hotels, film studio, serene near a lake, even the big man, our President YarAdua declared that he would use it as his own “camp David” to host visiting heads of state, now that a presidential endorsement. Akwa Ibom sef has invested $300m in a brand new airport they say is to service cargo transport to Tinapa. (Nice excuse to spend govt money).
Ok so, it’s a good idea, the state has delivered the infrastructure, tenants have moved in, so why has it not worked? Oh a little document called a Procedure and Guidelines (P& G) document, what’s that? Well that the FGN gazetted framework that will guide the operations of Tinapa, without that the chaps in Tinapa cannot import or sell anything as the customs guys will seize it.
So who prepares this P&G stuff? Well the Federal Governments of course, the same Federal Govt that signed agreement with the Cross River state in Oct 2007, the same Federal Government who commissioned the project.
Hang on Kalu, you mean a non oil investment of $450m, was made by Cross river state, probable the largest non-oil investment in Africa, the money was not “chopped”, but a world class shopping, hospitality and entertainment facility was built from scratch, and the site is now wasting because some fart in Abuja cannot sign a damm P & G document? Wait it gets worse
Imitation they say is the best compliment, the Dubai folk seeing the potential harm Tinapa will do to them , have moved swiftly to build a “Tinapa” in Senegal for $800m,they want to make Senegal the hub of their West African business deals. They also want to take over the Ghana Free Trade Zone. The chaps sense that Nigerians will simply stop coming over and they will lose in air travel, Accommodation and shopping expenses of Nigerians. So they are bringing Dubai closer to the market (never mind Dubai is already in Nigeria via Tinapa)
Kalu this is incredible, do you know what I am thinking, just as we hear the generator importers pay NEPA to “off” the power so their generators will sell, could these Dubai guys be paying the fellow in Abuja to sit on the P& G until they build the Senegal and Ghana Free Trade Zones?
Bros, what can we say to these things? If the Federal Government is against you, who can be for you?
It’s our problem, we have to fix it.
A nation that has a vision can say “we will place a man on the moon in 10 years”, and do it. A nation that has a vision can build an oasis of financial, economic and political stability on a barren rock, no not Dubai, Singapore. It is a nation without vision that wants to return to the “golden ages” by killing all her citizens that can read or write, no not Boko Haram, Cambodia under Pol Pot.
Thus we can say that a nation without vision is a nation that will never be first.
Vision is what saves lives, creates jobs, and builds wealth. That’s why Africa and Nigeria in particular are where we are. No written vision.
Let’s consider what visionary projects has Nigeria done in 49 years, I can count 3, Abuja, the Development of the Lagos Marina and the ongoing dredging of the Niger River. Kalu just hold on, what about the Lagos Ibadan express road? What about the federal universities and the unity schools? National Theatre? The Teaching hospitals? The National stadia? Pally these are all what our leadership is obligated to provide with the oil money we have in Nigeria, we can hardly clap for them. Are there no roads, universities or stadia in Chad republic? Difference is the quantity my brother. By Vision, why didn’t they build a subway in Lagos in the 70’s, why don’t we have a deep water container port in Onitsha? Why haven’t we tapped solar power in Sokoto? Why didn’t we build a mobile network when we built NITEL?
Because men of vision are so rare in Nigeria, when i see one, i sit up.
I have been a great admirer of Tinapa. Tinapa is a vision by the people of Cross River under Donald Duke. Duke became the governor of a state known for pineapples and “apples of the eye”. The state is a marginal oil producing state, with 90% of the citizens rural based? Duke imagined a better state of affairs and put in a plan to transform the state into the tourism and serviced based economic hub of Nigeria. Tinapa is a $450m bet to transform the state into a Dubai.
But sadly Tinapa is not working, do you know why? Kalu the idea was bad to start with; can Nigerians afford the expensive oyibo goods to be sold there? Thing is, Nigeria is a consumer nation, we love to spend on western stuff, Tinapa basic idea is simply to bring the same shops Nigerians travel to in UK, US and Dubai to Calaber. Let the Nigerians fly in (no visa), stay in a hotel, shop, eat, party and fly back to Lagos and Abuja. The state generates huge VAT, creates jobs in hospitality, trade, real-estate and services, the states transform her economy from dependence on “Abuja” money to taxes, that’s vision.
Ok Kalu so it’s a good idea, but has the state delivered? Have they built the structures? Maybe that why it has not worked. Pally, I have been to Tinapa; it is 100% completly built, it’s a beauty. Shops, hotels, film studio, serene near a lake, even the big man, our President YarAdua declared that he would use it as his own “camp David” to host visiting heads of state, now that a presidential endorsement. Akwa Ibom sef has invested $300m in a brand new airport they say is to service cargo transport to Tinapa. (Nice excuse to spend govt money).
Ok so, it’s a good idea, the state has delivered the infrastructure, tenants have moved in, so why has it not worked? Oh a little document called a Procedure and Guidelines (P& G) document, what’s that? Well that the FGN gazetted framework that will guide the operations of Tinapa, without that the chaps in Tinapa cannot import or sell anything as the customs guys will seize it.
So who prepares this P&G stuff? Well the Federal Governments of course, the same Federal Govt that signed agreement with the Cross River state in Oct 2007, the same Federal Government who commissioned the project.
Hang on Kalu, you mean a non oil investment of $450m, was made by Cross river state, probable the largest non-oil investment in Africa, the money was not “chopped”, but a world class shopping, hospitality and entertainment facility was built from scratch, and the site is now wasting because some fart in Abuja cannot sign a damm P & G document? Wait it gets worse
Imitation they say is the best compliment, the Dubai folk seeing the potential harm Tinapa will do to them , have moved swiftly to build a “Tinapa” in Senegal for $800m,they want to make Senegal the hub of their West African business deals. They also want to take over the Ghana Free Trade Zone. The chaps sense that Nigerians will simply stop coming over and they will lose in air travel, Accommodation and shopping expenses of Nigerians. So they are bringing Dubai closer to the market (never mind Dubai is already in Nigeria via Tinapa)
Kalu this is incredible, do you know what I am thinking, just as we hear the generator importers pay NEPA to “off” the power so their generators will sell, could these Dubai guys be paying the fellow in Abuja to sit on the P& G until they build the Senegal and Ghana Free Trade Zones?
Bros, what can we say to these things? If the Federal Government is against you, who can be for you?
It’s our problem, we have to fix it.
Thursday, November 12, 2009
of nature and nurture
In the field of behavioural psychology, the jury is still out on why humans behave the way they do. Is it nature or nurture that causes a man to steal? Better put, if a man is a thief is it because the genes his parents gave him had a “stealing” chromosome or did he just grow up around thieves?
It’s a tough call to make, if you had twins and you put one in the US and the other in the Nigeria, would they behave the same? No, why? well the environment in the US is different than Nigeria, ok we can postulate that both factors; your genes (your family) and your environment plays a role in your behaviour and views on life. I however will have to vote that the environment where you are raised carries a greater percentage share in determining your behaviour.
A psychologist BF Skinner who introduced us to the term “conditioning”. Simply put conditioning is the process where you can be made to behave in a certain way through the application of an external pressure or circumstance or habit, I explain. A Nigerian is conditioned to jump a queue, once a Nigerian see a queue his mind automatically ask” how can I get ahead”, it does not matter if it’s an online queue to get an appointment date for Visa, a fuel line, or a supermarket queue, Nigerians hate queues, we have been conditioned over the years to hate queuing. Well think about it, do “bigmen” queue up?
Children also learn by observation, notice how your baby boy puts your phone to his ear and says “hello”, he can even tell a fake phone from a real phone. What the child, sees can influences his behaviour, that his environment. If he sees the governor doing “one way” with sirens, he will do “one way”, if the senator does not pay his taxes, he won’t pay his taxes also.
So let’s put all what we have together. We know that behaviour is part genes, part environment, we know that the environment can “hot wire” us to respond to situations in a predetermined manner, i.e. conditioning, we also know that we learn by observation.
Ok that done, if I asked you to describe to me how a Nigerian boy, what would you say?
First of all the boy would be illiterate, not innumerate, just illiterate. How do we know? the last NECO scores just released last month shows a general pass rate of just 10.7% (pass rate in some states was 5%). He would be illiterate because his government takes money from the education budget to build roads in Abuja. He would be an illiterate because there are no more teachers, Kalu where the teachers go? The govt is taking some to South Africa, Some are on strike, others are on "Nyger Sings" as judges, a professor make N753,549 a year, D banj make N10m in a week! Do the maths.
He would be aggressive, aggressive? How do you know that? You have to be aggressive to catch the only bus from Iyan Ipaje to Ikoyi by 4am every day, you have to be aggressive to get your baby to see a doctor in a govt run “free” clinic, you have to be aggressive to even cast your vote in a tiny LGA with 10,000 armed police and army men all around. You have to be aggressive to challenge a LASTMA official.
He would be an optimist, optimist? Please explain, only an optimist can hear that the budget for 2009 was only implemented by 25% as at November 09 and still believe the road to his village will be fixed before Christmas. Only an optimist can see Iwu as head of INEC and believe 2011 will be ok, only an optimist can believe we will have 6,000mw by December (there is a thin line between optimism and stupidity you know).
He would be an expert engineer, now I am lost, he is illiterate how can he be an engineer? Have you not seen 1970 Volvo’s still running in Aba? Have you not seen houses powered by truck batteries in Lagos? Have you not seen destroyed tyres “vulcanised” back to life in Kano?
He would probably want to be a kidnapper, senator or a footballer than a doctor, lawyer or engineer. Kalu what’s wrong with being a footballer? Nothing, I wanted to be Spider Man when I was 7. But when all the kids want to be footballers or actors just so they can feed their family, then you have a problem. His role models matters, if he sees a graduate, first class student from University of Ife, driving a state taxi cab, and he see a “exmilitant” earning N65,000.00 a month plus benefits for just chilling, which would he want to be?
He would be a quick learner, yes notice how quickly he learns how to email business letters to oyibos asking for 10% advance, all this without entering an economics or IT class. most telling he would learn that no one would ever call him to “eat” food on the family dinner table, rather his father will cook and take the food to his master bedroom to “eat” alone, it’s up to him to either “steal” food while it’s still on the fire, wait for his dad to finish “eating” and get the scarps or even “kidnap” the dad for a ransom of the food.
Kalu stop. So where does genes come in. My theory is this, under normal circumstance there is no difference between the Nigerian in the 1960’s and the Nigerian in 2009. Both Nigerians were born of the same “father” hence the same genes.
The Nigerians (1960 and 2009 models), was simply exposed to different environments, while the Nigerian in the 60’s saw oyibos giving him, roads, education, honest police and civil servants, he became conditioned to excellence and produced Wole Soyinka, Chike Obi and Ememgwali. He was a healthy, honest, educated, and organised Nigerian.
but the oyibos left and his new “father” gave him NEPA, INEC, Mobile Police, PDP, NNPC he became aggressive, illiterate, unruly, corrupted and angry and produced Iwu, Boy loaf, and Tafa. What a difference a “father” makes.
It’s our problem, we can fix it
It’s a tough call to make, if you had twins and you put one in the US and the other in the Nigeria, would they behave the same? No, why? well the environment in the US is different than Nigeria, ok we can postulate that both factors; your genes (your family) and your environment plays a role in your behaviour and views on life. I however will have to vote that the environment where you are raised carries a greater percentage share in determining your behaviour.
A psychologist BF Skinner who introduced us to the term “conditioning”. Simply put conditioning is the process where you can be made to behave in a certain way through the application of an external pressure or circumstance or habit, I explain. A Nigerian is conditioned to jump a queue, once a Nigerian see a queue his mind automatically ask” how can I get ahead”, it does not matter if it’s an online queue to get an appointment date for Visa, a fuel line, or a supermarket queue, Nigerians hate queues, we have been conditioned over the years to hate queuing. Well think about it, do “bigmen” queue up?
Children also learn by observation, notice how your baby boy puts your phone to his ear and says “hello”, he can even tell a fake phone from a real phone. What the child, sees can influences his behaviour, that his environment. If he sees the governor doing “one way” with sirens, he will do “one way”, if the senator does not pay his taxes, he won’t pay his taxes also.
So let’s put all what we have together. We know that behaviour is part genes, part environment, we know that the environment can “hot wire” us to respond to situations in a predetermined manner, i.e. conditioning, we also know that we learn by observation.
Ok that done, if I asked you to describe to me how a Nigerian boy, what would you say?
First of all the boy would be illiterate, not innumerate, just illiterate. How do we know? the last NECO scores just released last month shows a general pass rate of just 10.7% (pass rate in some states was 5%). He would be illiterate because his government takes money from the education budget to build roads in Abuja. He would be an illiterate because there are no more teachers, Kalu where the teachers go? The govt is taking some to South Africa, Some are on strike, others are on "Nyger Sings" as judges, a professor make N753,549 a year, D banj make N10m in a week! Do the maths.
He would be aggressive, aggressive? How do you know that? You have to be aggressive to catch the only bus from Iyan Ipaje to Ikoyi by 4am every day, you have to be aggressive to get your baby to see a doctor in a govt run “free” clinic, you have to be aggressive to even cast your vote in a tiny LGA with 10,000 armed police and army men all around. You have to be aggressive to challenge a LASTMA official.
He would be an optimist, optimist? Please explain, only an optimist can hear that the budget for 2009 was only implemented by 25% as at November 09 and still believe the road to his village will be fixed before Christmas. Only an optimist can see Iwu as head of INEC and believe 2011 will be ok, only an optimist can believe we will have 6,000mw by December (there is a thin line between optimism and stupidity you know).
He would be an expert engineer, now I am lost, he is illiterate how can he be an engineer? Have you not seen 1970 Volvo’s still running in Aba? Have you not seen houses powered by truck batteries in Lagos? Have you not seen destroyed tyres “vulcanised” back to life in Kano?
He would probably want to be a kidnapper, senator or a footballer than a doctor, lawyer or engineer. Kalu what’s wrong with being a footballer? Nothing, I wanted to be Spider Man when I was 7. But when all the kids want to be footballers or actors just so they can feed their family, then you have a problem. His role models matters, if he sees a graduate, first class student from University of Ife, driving a state taxi cab, and he see a “exmilitant” earning N65,000.00 a month plus benefits for just chilling, which would he want to be?
He would be a quick learner, yes notice how quickly he learns how to email business letters to oyibos asking for 10% advance, all this without entering an economics or IT class. most telling he would learn that no one would ever call him to “eat” food on the family dinner table, rather his father will cook and take the food to his master bedroom to “eat” alone, it’s up to him to either “steal” food while it’s still on the fire, wait for his dad to finish “eating” and get the scarps or even “kidnap” the dad for a ransom of the food.
Kalu stop. So where does genes come in. My theory is this, under normal circumstance there is no difference between the Nigerian in the 1960’s and the Nigerian in 2009. Both Nigerians were born of the same “father” hence the same genes.
The Nigerians (1960 and 2009 models), was simply exposed to different environments, while the Nigerian in the 60’s saw oyibos giving him, roads, education, honest police and civil servants, he became conditioned to excellence and produced Wole Soyinka, Chike Obi and Ememgwali. He was a healthy, honest, educated, and organised Nigerian.
but the oyibos left and his new “father” gave him NEPA, INEC, Mobile Police, PDP, NNPC he became aggressive, illiterate, unruly, corrupted and angry and produced Iwu, Boy loaf, and Tafa. What a difference a “father” makes.
It’s our problem, we can fix it
Sunday, October 18, 2009
of wags and waziri
“Wag the dog” is a term used to describe a situation where the tail is wagging the dog or purposely diverting attention from a bigger event to a smaller event in order to refocus the public attention, so that the smaller event assumes a greater role than the bigger event. Like a doctor treating an AIDS patient for headache not the AIDS, thus the Headache gets more attention than the AIDS.
“Wagging the dog” is done all the time, we do it, you promise your son a gift if he comes first in his maths class, he comes first, you forget the gift and when your son asks you immediately fire back that he has not had his bath. Your wife tells you to buy diapers for the baby, you buy beer forget the diapers and when she asks you remind her that your own mother did not use diapers, you get pulled over for driving one way by LASTMA, you immediately challenge them “do you know who I am”? “Why are you calling me Mr”? Don’t you know I am a “Chief”?
But the most adept at playing this game (“yes it’s a game”) are public officials, The ability to play this game is key to your progress through the corridors of power, Examples abound, like you ask the minster of power why there is no power and he says its militants, to take your attention away from the fact that almost $20b has been spent, for 10 years and we are still at less than 3,000MW. you have to be able to say “bitumen” to charges of not repairing Lagos roads and “water goddess” to charges of ocean surges at the bar beach (true, a Lagos state governor said the cause of the ocean surge was that when the ocean goddess see’s her reflection on Fin Bank building, she sends waves to attack the “imposter”. Another governor came and built a wave breaker, same environment, different response).
Ok but for my money (no pun intended) the biggest “wag the dog” is the CBN war on private jets. The EFCC has been in a coma after Ribadu left, yep we have had lots of arrests but curiously no convictions, we have instead had plea bargains, a lot of plea bargains. We have heard of numerous international scandals involving Nigerian public officials, we have the Halliburton saga, the Siemens shocker, we have the N300million Min of Health affair, the N5B Rural Electrification case, the $16bn NIPP power scandals. All these scandals but the EFCC has mobilised the Chairman, 80 operatives and has moved to Lagos to collect bank debts.
“Madam” has given more interviews, more resources more time on these banking crises than any another scandal. Madam even travelled to the IMF conference in Turkey, yes the IMF conference to explain why her commission was collecting bank debts, debt collections is now an “achievement”.
The press has played along, Nigerians no longer talk about ASUU, it’s better to talk about 2 new jets ordered by an ex-bank chief, we don’t talk about electoral reform, it’s better to talk about bonus paid to ex bankers, we don’t realise that there is a Cholera, yes Cholera outbreak in Bornu state its better too argue about what a nonperforming loan is, the National Assembly nko? They too not wanting to be left out of the “loop” last week they actually debated if females should be allowed to work in banks as marketers, in the 21 century Nigeria this is what our lawmakers are debating! but again every time spent on this insane debate is another day not spent on constitutional review or land use reform.
Let’s ask a serious question what is the contribution of the entire financial institutions (banks, insurance, mortgage & stock broking) to our GDP from 1998 to2008? Answer its only 3.93%, Agriculture meanwhile is 41.53%, ok what about the % contribution to GDP growth well for financial institutions its just 1.79%, Agriculture is 45.86%.
No Kalu I don’t believe your figures, how can you say First Bank, Zenith, IGI, Stanbic IBTC and Co only have a 3% share of our GDP? Where are you getting your figures from?
Well consider this, is there is bank in your village? Ok is there a farm in your village? How many people do you know that can walk into a bank a get a loan of N50,000? ok how many people do you know can walk into a village and start planting yams.Banks are huge business but because they are so small when compared to the general wealth and activity of Nigeria their impact is insignificant. So by implications the FGN, the press, the Parliament, EFCC, even we have focused on 3.93% of the economy while 41% languished in non attention. “Wag the dog”?
N200billion for Agriculture to feed 150million, N420million to feed 5 banks “wag the dog”?
Hang on Kalu, even if your figures are correct the US passed Tarp $700b, Obama has jumped into bonus paid to bankers, the whole press in the US focused on AIG, banks have been discussed in the Congress, Michael Moore even has a new film on evils of Capitalism, yep, but the US banking sector short term liabilities alone is 15% of US GDP and 43% of the entire National Debt, Consumer spending is 78% of the GDP of America, almost all the shoppers use Credit cards, debit cards, Bank cards etc, would you allow 78% or 42% of your economy freeze? Ooh Agriculture is 0.9% of the US economy
The EFCC circus with the bank debtors, the public trial on the pages of the papers is a stimulus package to the newspapers and the TV news, and a distraction. It has made all Nigerian experts in risk management (everybody now knows what non-performing loan is) it has enabled Sanusi live out his sheriff desire but at what cost?
Bank lending to the private sector is down, Nigerian letters of credit are not worth the paper they are faxed on, Nigerian banks, (all of them the cleared and uncleared), are now viewed with grave suspicion, the stock market has tanked, consumer credit is over,$2b to be spent on “stimulus” and heck unemployment will rise. Was the crises caused by the banks or is the bank crises an effect of falling oil price? Where would Nigerian economy be of we still had 84 moi moi banks when this crises hit? But i digress.
Ok Kalu but are you saying because its 3% of GDP is not important its not important? Isn’t N420b real money? Oh no! Far from it, i am mealy asking that we don’t only “eat the bankers” lets ensure the “efficiency” of the EFCC spreads around, surly this is a democracy.
The real wag the dog, the villains are the bank CEO’s not the guys mentioned in Siemens, Halliburton, and NIPP etc.
It’s our problem, we will fix it
“Wagging the dog” is done all the time, we do it, you promise your son a gift if he comes first in his maths class, he comes first, you forget the gift and when your son asks you immediately fire back that he has not had his bath. Your wife tells you to buy diapers for the baby, you buy beer forget the diapers and when she asks you remind her that your own mother did not use diapers, you get pulled over for driving one way by LASTMA, you immediately challenge them “do you know who I am”? “Why are you calling me Mr”? Don’t you know I am a “Chief”?
But the most adept at playing this game (“yes it’s a game”) are public officials, The ability to play this game is key to your progress through the corridors of power, Examples abound, like you ask the minster of power why there is no power and he says its militants, to take your attention away from the fact that almost $20b has been spent, for 10 years and we are still at less than 3,000MW. you have to be able to say “bitumen” to charges of not repairing Lagos roads and “water goddess” to charges of ocean surges at the bar beach (true, a Lagos state governor said the cause of the ocean surge was that when the ocean goddess see’s her reflection on Fin Bank building, she sends waves to attack the “imposter”. Another governor came and built a wave breaker, same environment, different response).
Ok but for my money (no pun intended) the biggest “wag the dog” is the CBN war on private jets. The EFCC has been in a coma after Ribadu left, yep we have had lots of arrests but curiously no convictions, we have instead had plea bargains, a lot of plea bargains. We have heard of numerous international scandals involving Nigerian public officials, we have the Halliburton saga, the Siemens shocker, we have the N300million Min of Health affair, the N5B Rural Electrification case, the $16bn NIPP power scandals. All these scandals but the EFCC has mobilised the Chairman, 80 operatives and has moved to Lagos to collect bank debts.
“Madam” has given more interviews, more resources more time on these banking crises than any another scandal. Madam even travelled to the IMF conference in Turkey, yes the IMF conference to explain why her commission was collecting bank debts, debt collections is now an “achievement”.
The press has played along, Nigerians no longer talk about ASUU, it’s better to talk about 2 new jets ordered by an ex-bank chief, we don’t talk about electoral reform, it’s better to talk about bonus paid to ex bankers, we don’t realise that there is a Cholera, yes Cholera outbreak in Bornu state its better too argue about what a nonperforming loan is, the National Assembly nko? They too not wanting to be left out of the “loop” last week they actually debated if females should be allowed to work in banks as marketers, in the 21 century Nigeria this is what our lawmakers are debating! but again every time spent on this insane debate is another day not spent on constitutional review or land use reform.
Let’s ask a serious question what is the contribution of the entire financial institutions (banks, insurance, mortgage & stock broking) to our GDP from 1998 to2008? Answer its only 3.93%, Agriculture meanwhile is 41.53%, ok what about the % contribution to GDP growth well for financial institutions its just 1.79%, Agriculture is 45.86%.
No Kalu I don’t believe your figures, how can you say First Bank, Zenith, IGI, Stanbic IBTC and Co only have a 3% share of our GDP? Where are you getting your figures from?
Well consider this, is there is bank in your village? Ok is there a farm in your village? How many people do you know that can walk into a bank a get a loan of N50,000? ok how many people do you know can walk into a village and start planting yams.Banks are huge business but because they are so small when compared to the general wealth and activity of Nigeria their impact is insignificant. So by implications the FGN, the press, the Parliament, EFCC, even we have focused on 3.93% of the economy while 41% languished in non attention. “Wag the dog”?
N200billion for Agriculture to feed 150million, N420million to feed 5 banks “wag the dog”?
Hang on Kalu, even if your figures are correct the US passed Tarp $700b, Obama has jumped into bonus paid to bankers, the whole press in the US focused on AIG, banks have been discussed in the Congress, Michael Moore even has a new film on evils of Capitalism, yep, but the US banking sector short term liabilities alone is 15% of US GDP and 43% of the entire National Debt, Consumer spending is 78% of the GDP of America, almost all the shoppers use Credit cards, debit cards, Bank cards etc, would you allow 78% or 42% of your economy freeze? Ooh Agriculture is 0.9% of the US economy
The EFCC circus with the bank debtors, the public trial on the pages of the papers is a stimulus package to the newspapers and the TV news, and a distraction. It has made all Nigerian experts in risk management (everybody now knows what non-performing loan is) it has enabled Sanusi live out his sheriff desire but at what cost?
Bank lending to the private sector is down, Nigerian letters of credit are not worth the paper they are faxed on, Nigerian banks, (all of them the cleared and uncleared), are now viewed with grave suspicion, the stock market has tanked, consumer credit is over,$2b to be spent on “stimulus” and heck unemployment will rise. Was the crises caused by the banks or is the bank crises an effect of falling oil price? Where would Nigerian economy be of we still had 84 moi moi banks when this crises hit? But i digress.
Ok Kalu but are you saying because its 3% of GDP is not important its not important? Isn’t N420b real money? Oh no! Far from it, i am mealy asking that we don’t only “eat the bankers” lets ensure the “efficiency” of the EFCC spreads around, surly this is a democracy.
The real wag the dog, the villains are the bank CEO’s not the guys mentioned in Siemens, Halliburton, and NIPP etc.
It’s our problem, we will fix it
Wednesday, June 24, 2009
of balls and barrels
If a mosquito perched on your left ball (Blokus) what would you do? Would you slap the mosquito hard? Well you will kill the mosquito alright, but your balls might bust, would you leave it? Not likely, the bugger will suck your future children away, so what? Well an option is to first make the mosquito fly away from your left ball (blokus), then smack it in the air, far away from your balls. It’s a no brainer abi?
What if you had a MEND in your oil fields what would you do? Would you slap the MEND hard? Well you will kill the MEND? But your oil output might fall, would you leave MEND alone? Not likely, the bugger will create a state within a state, so what? Well an option is to first make the MEND irrelevant so they lose local support, then you smack them, far away from your oil fields balls. It’s a no brainer abi?
You see if its man to man fight in an open field the Nigerian Army (JTF) will finish off MEND and have time to do a beer or two, but JTF is not fighting an army, it is fighting an insurgency. Mao said an insurgency must avoid direct confrontation with the ruling powers because they will lose, but the insurgency must move like a toad in a swamp, in and out of water, and weaken the enemy to a point where they lose the will to fight. Modern counter insurgency principles are built around “draining the swamp” that feeds the insurgency.
In Malaysia the British starved off the Malay Communist by sequestering the villages into dedicated villages, which were then heavily defended. This strategy deprived the communist of food, information and most importantly local support. In Iraq, General Patreaus -using lessons learned from the NYPD in defeating gang members in New York- inserted US troops inside Iraq neighbors, enclosed the neighbors with walls and just sat there, this allowed the residents to feel confident that the US was there to stay and they turned on Al Qaeda.
After 2 months of JTF action what are the results? Well we are not in Gbaramatu so we don’t know how effective the routing of the militants had been, what we know is this;
1. Falling government oil earnings; a 39.5% drop from last quarter
2. Deficit in governments fiscal (tax) operations, 31.5% drop in preceding quarter
3. Depreciating value of the Naira
4. Expanded FGN debt, N2.5 trillion up 28.7%
5. Fall in commercial bank credit to private sector from (plus) 16.7% to (minus) 2.6%
6. Inflation rate of 13.1% in first quarter compared with 5.8% in corresponding period in 2008
7. Fall in the Nigerian stock market by 36.9% from the preceding quarter
8. Fall in FOREX inflow by 46.9%
9. Fall in oil output from a installed capacity of 3mbpd to almost 1.23mbpd
10. No power (light) in the country, because no gas from the creeks to power the gas turbines.
So who dunnit? One reason only one, a fall in oil output, caused by MEND. Nigeria earns 90% of our foreign earnings from oil, Nigeria is also import dependent and a heavy consumer , we earned $5.72 billion from January to March 2009, impressive abi? but we spent $11.26 billion, that’s why our reserves are now %45 billion from a high of $65 billion plus.
So a MEND reducing how much we can earn from oil is the proverbial mosquito on the balls. We would be fools to discount that MEND has the ability to significantly reduce how much we would earn in the next quarter. Chevron has shut in output, now shell has shut in output also. Even if Iran boils and oil gets to $200 a barrel, Nigeria might see output restricted further. Our brave soldiers nor matter how trained and equipped they may be (with or without unmanned drones) cannot guard every inch of pipeline in the Niger Delta. All it takes is for a MEND guy (or gal) to ride a bicycle to a pipeline into a forest, set a local fuse , and boom, 200,000 barrels are shut in, and the stats above gets worse.
So what can we do?
1. Yar Adua need to do a “Sadat”, and fly into the creeks and visit that area, call the global MDs of Shell, AGIP, ExxonMobil and Chevron to accompany him. Let him go there are tell the people Nigeria wants to “reset” relationship with them, let the MD of Shell and Co with the FGN invoke a “Marshall plan”, let them announce a multi billion offer to cleanup and develop the area, let Julius Berger announce it wants to hire 100,000 ND citizen to build a 8 lane, rail and road network in the creeks, let GE announce plans t build a massive 5,000 power plant in Gbamaratu kingdom employing 2,000 ex militants, let the Army replace the JTF with the Army Corp of Engineers to build jetties and fish ponds, let start to build a gigantic sports facility to host Africa in 2035, lets make the militants and the citizens of the Niger Delta dizzy with imagining how that area will be if they put down the RPG. What a morale booster this will be to the Nigerian troops in the JTF, what a morale booster it will be to the fisherman in the creeks who has not seen a fish since 1970 in his creek. Such a visit will change overnight the tone in the creeks. The symbolism and significance cannot be imagined.
2. Declare the entire Delta a federal zone i.e. Bayelsa Rivers and Delta State become the Delta federal republic (about the size of Florida); allocate 25% of the budget or oil earnings to develop the area, this is not derivation, it’s just an appropriation vote. Drain the swamp of kidnappers and militants, employ them in Julius Berger, Siemens, and Shell, take a census and pay every Nigerian from Delta, Rivers, and Bayelsa a special dividend being shareholders of the nations wealth. Cancel the states let only the local governments remain, that way the representation goes around
3. Set in a plan to return Nigeria to a fiscal federalism. This means that we live out the meaning of a federation, where the federating units have exclusive powers to create wealth, and pay a tax to the central government. This will mean that the Federal government hands over Education and Health to the local governments, the local government will fund health education with their resources and then pay a tax to the federal government. No state and in consequence individual will work if he knows his sweat will be taxed away to Abuja.
4. Pull the Army away from the land, I find it funny that we are using the army when the stolen oil will eventually find its way unto a barge and then t a ship on the high sea. Invest in the Navy; if we stop the barges leaving the creeks to the sea, we stop the bunkering.
5. Equip the police, the courts, and the laws. Let rule of law be a verb not a noun.
Do this all at once, don’t delay, if we can give FIFA a presidential guarantee that we will develop 6 stadia in 6 cities in one month to host a junior World Cup, then we can guarantee the Niger Delta People that we will develop 6 states in 6 months with N6 trillion and create 6 million direct jobs.
Kalu these are radical measures, it will cause the Nigerian government trillions to implement, we would have rewarded militancy and would appear unfair to other parts of Nigeria who depend on federal grants to survive, if I recall only I state (Lagos) generates enough internal revenue to pay salaries and build infrastructure.
Yes it’s a tough choice, but what’s the option, wait till MEND takes output down to 100,000bpd?
It’s our problem, we will fix it
What if you had a MEND in your oil fields what would you do? Would you slap the MEND hard? Well you will kill the MEND? But your oil output might fall, would you leave MEND alone? Not likely, the bugger will create a state within a state, so what? Well an option is to first make the MEND irrelevant so they lose local support, then you smack them, far away from your oil fields balls. It’s a no brainer abi?
You see if its man to man fight in an open field the Nigerian Army (JTF) will finish off MEND and have time to do a beer or two, but JTF is not fighting an army, it is fighting an insurgency. Mao said an insurgency must avoid direct confrontation with the ruling powers because they will lose, but the insurgency must move like a toad in a swamp, in and out of water, and weaken the enemy to a point where they lose the will to fight. Modern counter insurgency principles are built around “draining the swamp” that feeds the insurgency.
In Malaysia the British starved off the Malay Communist by sequestering the villages into dedicated villages, which were then heavily defended. This strategy deprived the communist of food, information and most importantly local support. In Iraq, General Patreaus -using lessons learned from the NYPD in defeating gang members in New York- inserted US troops inside Iraq neighbors, enclosed the neighbors with walls and just sat there, this allowed the residents to feel confident that the US was there to stay and they turned on Al Qaeda.
After 2 months of JTF action what are the results? Well we are not in Gbaramatu so we don’t know how effective the routing of the militants had been, what we know is this;
1. Falling government oil earnings; a 39.5% drop from last quarter
2. Deficit in governments fiscal (tax) operations, 31.5% drop in preceding quarter
3. Depreciating value of the Naira
4. Expanded FGN debt, N2.5 trillion up 28.7%
5. Fall in commercial bank credit to private sector from (plus) 16.7% to (minus) 2.6%
6. Inflation rate of 13.1% in first quarter compared with 5.8% in corresponding period in 2008
7. Fall in the Nigerian stock market by 36.9% from the preceding quarter
8. Fall in FOREX inflow by 46.9%
9. Fall in oil output from a installed capacity of 3mbpd to almost 1.23mbpd
10. No power (light) in the country, because no gas from the creeks to power the gas turbines.
So who dunnit? One reason only one, a fall in oil output, caused by MEND. Nigeria earns 90% of our foreign earnings from oil, Nigeria is also import dependent and a heavy consumer , we earned $5.72 billion from January to March 2009, impressive abi? but we spent $11.26 billion, that’s why our reserves are now %45 billion from a high of $65 billion plus.
So a MEND reducing how much we can earn from oil is the proverbial mosquito on the balls. We would be fools to discount that MEND has the ability to significantly reduce how much we would earn in the next quarter. Chevron has shut in output, now shell has shut in output also. Even if Iran boils and oil gets to $200 a barrel, Nigeria might see output restricted further. Our brave soldiers nor matter how trained and equipped they may be (with or without unmanned drones) cannot guard every inch of pipeline in the Niger Delta. All it takes is for a MEND guy (or gal) to ride a bicycle to a pipeline into a forest, set a local fuse , and boom, 200,000 barrels are shut in, and the stats above gets worse.
So what can we do?
1. Yar Adua need to do a “Sadat”, and fly into the creeks and visit that area, call the global MDs of Shell, AGIP, ExxonMobil and Chevron to accompany him. Let him go there are tell the people Nigeria wants to “reset” relationship with them, let the MD of Shell and Co with the FGN invoke a “Marshall plan”, let them announce a multi billion offer to cleanup and develop the area, let Julius Berger announce it wants to hire 100,000 ND citizen to build a 8 lane, rail and road network in the creeks, let GE announce plans t build a massive 5,000 power plant in Gbamaratu kingdom employing 2,000 ex militants, let the Army replace the JTF with the Army Corp of Engineers to build jetties and fish ponds, let start to build a gigantic sports facility to host Africa in 2035, lets make the militants and the citizens of the Niger Delta dizzy with imagining how that area will be if they put down the RPG. What a morale booster this will be to the Nigerian troops in the JTF, what a morale booster it will be to the fisherman in the creeks who has not seen a fish since 1970 in his creek. Such a visit will change overnight the tone in the creeks. The symbolism and significance cannot be imagined.
2. Declare the entire Delta a federal zone i.e. Bayelsa Rivers and Delta State become the Delta federal republic (about the size of Florida); allocate 25% of the budget or oil earnings to develop the area, this is not derivation, it’s just an appropriation vote. Drain the swamp of kidnappers and militants, employ them in Julius Berger, Siemens, and Shell, take a census and pay every Nigerian from Delta, Rivers, and Bayelsa a special dividend being shareholders of the nations wealth. Cancel the states let only the local governments remain, that way the representation goes around
3. Set in a plan to return Nigeria to a fiscal federalism. This means that we live out the meaning of a federation, where the federating units have exclusive powers to create wealth, and pay a tax to the central government. This will mean that the Federal government hands over Education and Health to the local governments, the local government will fund health education with their resources and then pay a tax to the federal government. No state and in consequence individual will work if he knows his sweat will be taxed away to Abuja.
4. Pull the Army away from the land, I find it funny that we are using the army when the stolen oil will eventually find its way unto a barge and then t a ship on the high sea. Invest in the Navy; if we stop the barges leaving the creeks to the sea, we stop the bunkering.
5. Equip the police, the courts, and the laws. Let rule of law be a verb not a noun.
Do this all at once, don’t delay, if we can give FIFA a presidential guarantee that we will develop 6 stadia in 6 cities in one month to host a junior World Cup, then we can guarantee the Niger Delta People that we will develop 6 states in 6 months with N6 trillion and create 6 million direct jobs.
Kalu these are radical measures, it will cause the Nigerian government trillions to implement, we would have rewarded militancy and would appear unfair to other parts of Nigeria who depend on federal grants to survive, if I recall only I state (Lagos) generates enough internal revenue to pay salaries and build infrastructure.
Yes it’s a tough choice, but what’s the option, wait till MEND takes output down to 100,000bpd?
It’s our problem, we will fix it
Monday, June 8, 2009
“Liberalizing the possession of guns will make the ordinary citizens more equipped to fight crime” Orji Uzor Kalu
The above statement was by Orji Uzor Kalu the former (believe it or not) Governor of Abia state. He made that statement while advocating for a law to allow all Nigerian carry guns , this he said will stop Kidnapping and the like….ok what’s wrong with that? Heaven they say helps those who help themselves” abi?
Lets stretch Kalu's Argument, if we can allow citizens to carry arms cause of kidnapping surly we can allow citizens buy SUV to get over bad roads, surly we can allow citizens “manufacture” their own “pure” drinking water, surly we can allow citizen set up their own schools, surly we can allow citizens drink Agbo as primary health care………….abi the government cant protect us so he wants us to carry guns.
By last count Abia gets N3billion a month from Abuja, so he got give or take N288billion in 8 years. now if the 2 time governor had invested just 1% of this just (N2.8b) in building a small 1,200kva power plant to provide power to the Barbers, Hairdressers, Tailors, Artisan, Bar owners, Welders, Vulcanisers, does he know how many jobs he would have created? Or better still how many kidnappers he would have given a job?
Had he spent another 1% in rural roads surely the Aba palm oil industry could have gotten palm kernels out of the forests faster and cheaper, more jobs created, less kidnappers abi
had he spent another 1% in free hospitals in the local governments (i.e. N164 million per Local Government) surly people would not have to kidnap to pay hospital bills, you see has he even spent just 10% of what he got in Education, Health, Roads, Power then there would not be any case of Kidnapping in Abia state. Now imagine if all the Governors spent just 10% on education, power and health care…..just imagine.
The Niger Delta militants opened our eyes, the Inspector General of Police told us that kidnappers made $100m between 2006 and 2008 , 2 years N17.5 billon, pure profit , no cost of production (ok a phone) , no taxation. Now Kidnapping has become a business, because the state has failed to provide an alternative. Outside the Niger Delta, the South East now especially Anambra State is the HQ of Kidnapping, Orji Kalu state is a close second, hence you see his point in allowing guns. Guy for the record It’s jobs , not carrying guns that will stop kidnapping.
People like Orji Uzor Kalu are very dangerous, how? Well guy and the rest of the class of 1999-2007 have promoted a theory called “let them carry guns”, or simply “put give us the money, the people can take care of themselves” please explain
You see this “let them have guns theory can be seen in say, we allocate money for Rural Electrification but Elumelu and Co (Alleged) say “let them have candle” we allocate N240 billion for boreholes across the federation but they say “let them drink pure water”. We allocate N300m for health but Iyabo Obansanjo and Co (Alleged) says “let them drink Agbo”. We allocate $billions for Turn Around Maintenance of Nigerian Refineries but a few Nigerian say “let them have fuel lines”
The list is endless FIFA says “host the world cup”, NFA and the Sports Ministry say “let them watch it on DSTV” Yar Adua tell us that he want us to have electoral reforms the parliament says “let them have INEC”
The two richest Nigerians (according to Forbes) both made their wealth on the inefficiency of the government, Dangote makes money on the failure of the government to promote local production of Rice and feed her populace, Otedola make money by inefficiency in NNPC, so Nigeria says “let them eat Abakaliki rice” Dangote say no “let them eat Thai par boiled rice” the government says “let them have NEPA” Otedola says “let them use Zenon Diesel”. (I no dey vex with them ooh! No be them spoil am!)
What of Power i.e. Light, well the government says let them have NEPA but Mikano, Mantrac, Perkins, Jubalia, FG Wilson says “let them use generators” Do you know that Nigerians spent $12.3m (that N339b) in just 2 weeks importing Generators! (Source CBN report FOREX usage form 11 May to 22 May 2009)
Wow! This is so similar to what the queen of France told the masses in France, when they did not have bread, she said “let them eat cake” well sort of, but we put an African twist to ours.
The thing is that the French masses refused to eat cake, but the Nigerian has certainly eaten a lot of cake. We the people of Nigeria have eaten and like the cake the Orji Kalu are feeding us. We have eaten bad roads, no power, no hospital, no schools, and we are still hungry. And its get better, should they allow us carry guns, who do you think will import and sell it? You or them?
It’s our problem, we can fix it
ps
Agbo is that stuff young girls carry about and sell in mostly Western Nigeria. Agbo (so they claim) can cure everything so a cup a day keeps the doctor away.
The above statement was by Orji Uzor Kalu the former (believe it or not) Governor of Abia state. He made that statement while advocating for a law to allow all Nigerian carry guns , this he said will stop Kidnapping and the like….ok what’s wrong with that? Heaven they say helps those who help themselves” abi?
Lets stretch Kalu's Argument, if we can allow citizens to carry arms cause of kidnapping surly we can allow citizens buy SUV to get over bad roads, surly we can allow citizens “manufacture” their own “pure” drinking water, surly we can allow citizen set up their own schools, surly we can allow citizens drink Agbo as primary health care………….abi the government cant protect us so he wants us to carry guns.
By last count Abia gets N3billion a month from Abuja, so he got give or take N288billion in 8 years. now if the 2 time governor had invested just 1% of this just (N2.8b) in building a small 1,200kva power plant to provide power to the Barbers, Hairdressers, Tailors, Artisan, Bar owners, Welders, Vulcanisers, does he know how many jobs he would have created? Or better still how many kidnappers he would have given a job?
Had he spent another 1% in rural roads surely the Aba palm oil industry could have gotten palm kernels out of the forests faster and cheaper, more jobs created, less kidnappers abi
had he spent another 1% in free hospitals in the local governments (i.e. N164 million per Local Government) surly people would not have to kidnap to pay hospital bills, you see has he even spent just 10% of what he got in Education, Health, Roads, Power then there would not be any case of Kidnapping in Abia state. Now imagine if all the Governors spent just 10% on education, power and health care…..just imagine.
The Niger Delta militants opened our eyes, the Inspector General of Police told us that kidnappers made $100m between 2006 and 2008 , 2 years N17.5 billon, pure profit , no cost of production (ok a phone) , no taxation. Now Kidnapping has become a business, because the state has failed to provide an alternative. Outside the Niger Delta, the South East now especially Anambra State is the HQ of Kidnapping, Orji Kalu state is a close second, hence you see his point in allowing guns. Guy for the record It’s jobs , not carrying guns that will stop kidnapping.
People like Orji Uzor Kalu are very dangerous, how? Well guy and the rest of the class of 1999-2007 have promoted a theory called “let them carry guns”, or simply “put give us the money, the people can take care of themselves” please explain
You see this “let them have guns theory can be seen in say, we allocate money for Rural Electrification but Elumelu and Co (Alleged) say “let them have candle” we allocate N240 billion for boreholes across the federation but they say “let them drink pure water”. We allocate N300m for health but Iyabo Obansanjo and Co (Alleged) says “let them drink Agbo”. We allocate $billions for Turn Around Maintenance of Nigerian Refineries but a few Nigerian say “let them have fuel lines”
The list is endless FIFA says “host the world cup”, NFA and the Sports Ministry say “let them watch it on DSTV” Yar Adua tell us that he want us to have electoral reforms the parliament says “let them have INEC”
The two richest Nigerians (according to Forbes) both made their wealth on the inefficiency of the government, Dangote makes money on the failure of the government to promote local production of Rice and feed her populace, Otedola make money by inefficiency in NNPC, so Nigeria says “let them eat Abakaliki rice” Dangote say no “let them eat Thai par boiled rice” the government says “let them have NEPA” Otedola says “let them use Zenon Diesel”. (I no dey vex with them ooh! No be them spoil am!)
What of Power i.e. Light, well the government says let them have NEPA but Mikano, Mantrac, Perkins, Jubalia, FG Wilson says “let them use generators” Do you know that Nigerians spent $12.3m (that N339b) in just 2 weeks importing Generators! (Source CBN report FOREX usage form 11 May to 22 May 2009)
Wow! This is so similar to what the queen of France told the masses in France, when they did not have bread, she said “let them eat cake” well sort of, but we put an African twist to ours.
The thing is that the French masses refused to eat cake, but the Nigerian has certainly eaten a lot of cake. We the people of Nigeria have eaten and like the cake the Orji Kalu are feeding us. We have eaten bad roads, no power, no hospital, no schools, and we are still hungry. And its get better, should they allow us carry guns, who do you think will import and sell it? You or them?
It’s our problem, we can fix it
ps
Agbo is that stuff young girls carry about and sell in mostly Western Nigeria. Agbo (so they claim) can cure everything so a cup a day keeps the doctor away.
of Slyvia and Chavez
of “Bayelsa has Oil and Gas, rich soil for oil palm and rice cultivation. We guarantee peace, power and natural resources and favorable operating environment, with first world opportunities. What more do you want? Come and invest in Bayelsa State”.
Gov Timipreye Sylvia at the South South Economic forum held in Tinapa, 27th April 2009
Last week the democratic first world Governor Timipreye Sylvia ordered Conoil Nigeria Limited to immediately stop operations in Bayelsa State, and her staff to vacate the state without further delay!
Please what happened in 2 months? What caused this governor that practically sold his state as a heaven of first world opportunities and operating environment suddenly change to become a Chavez? What was Conoil offense sef? Well the MD of Conoil failed to attend a special meeting the first world governor held with all the oil companies in the state. That’s it? They did not attend a meeting so they should pack out? Yes now! The governor said the meeting was called to discuss ways of addressing mutual challenges with a view to ensuring that oil coys produce at full capacity.
Many things come to mind when one reads this
1. Can anybody ask a Nigerian Citizen to leave a state in Nigeria? Can YarAdua ask a Nigerian citizen to leave Nigeria?
2. Can a state ask a company registered in the Corporate Affairs Commission (Federal) to leave its state i.e. not to operate there? If the state did not register them can they ask them to leave?
3. Conoil operates a franchise business also hence Conoil only supplies the PMS and AGO to the marketers who are Bayelsa indigenes, so are the indigenes to leave the state cause they work for Conoil?
4. Is failure to attend a meeting a ground for the expulsion of a company paying taxes and employing citizens of a state?
The truth is this action exposes the lack of appreciation of the role business play in the development of a state.
I checked my facts Bayelsa receives N9 billion monthly from Abuja, out of this figure only N274m is VAT, Bayelsa is the state with the lowest VAT receipts in Nigeria , they get lower than the poorest state in Nigeria (Jigawa) but that a topic for another day. Bayelsa generates just N1 billion monthly from internally generated Revenue as at January 2008, as at Oct 2007 the state was generating a paltry N250 million a month!. Hence internally generated revenue in Bayelsa is just 11% of total revenues i.e. they only generate N11 of every N100 they spend.
Bearing in mind that Abuja money is dependant on the price of Oil, One would presume that the governor would seek to diversify his resource base. Keep in mind that tax Conoil pays tax which goes to Abuja and come back as 13% Derivation to the state, and also pay Corporate and Local tax and VAT. Corporate tax and VAT go to the Abuja and return, but local taxes especially Pay As You Earn and other levies and dues will stay in the state 100%.
Internationally we see how the Governors and Mayor in the US are lobbying GM to keep their plants open in states they have interest in, why? Cause Jobs are king. we see Lagos developing Badagry, Lekki and even the slums to attract investors, why? Jobs are king, we see the VP in far away as Finland seeking for foreign investors to come to Nigeria why? Jobs are King.
It is a serious breach of protocol and ungentlemanly too not to attend a meeting with your chief executive, in some private companies you can be sacked, but we cannot cut of our nose to spite our face, this action is rash and not well thought out, can’t Conoil be finned, can’t they be made to do more CSR? Ok cant the MD alone be banned? Must the whole company and staff leave also? can Sylvia ask Shell to leave the state cause they did not attend a meeting? Can he?
I am beginning to suspect this Sylvia; he was the same governor that was involved in the abduction of a Lagos based journalist that wrote critical stories about his interests. Gov you are first class, prove it, don’t just say it.
Conoil please apologize to the Governor and the state, Our Gov please take it easy ooh, Na devil cause am.
It’s our problem, we can solve it
Gov Timipreye Sylvia at the South South Economic forum held in Tinapa, 27th April 2009
Last week the democratic first world Governor Timipreye Sylvia ordered Conoil Nigeria Limited to immediately stop operations in Bayelsa State, and her staff to vacate the state without further delay!
Please what happened in 2 months? What caused this governor that practically sold his state as a heaven of first world opportunities and operating environment suddenly change to become a Chavez? What was Conoil offense sef? Well the MD of Conoil failed to attend a special meeting the first world governor held with all the oil companies in the state. That’s it? They did not attend a meeting so they should pack out? Yes now! The governor said the meeting was called to discuss ways of addressing mutual challenges with a view to ensuring that oil coys produce at full capacity.
Many things come to mind when one reads this
1. Can anybody ask a Nigerian Citizen to leave a state in Nigeria? Can YarAdua ask a Nigerian citizen to leave Nigeria?
2. Can a state ask a company registered in the Corporate Affairs Commission (Federal) to leave its state i.e. not to operate there? If the state did not register them can they ask them to leave?
3. Conoil operates a franchise business also hence Conoil only supplies the PMS and AGO to the marketers who are Bayelsa indigenes, so are the indigenes to leave the state cause they work for Conoil?
4. Is failure to attend a meeting a ground for the expulsion of a company paying taxes and employing citizens of a state?
The truth is this action exposes the lack of appreciation of the role business play in the development of a state.
I checked my facts Bayelsa receives N9 billion monthly from Abuja, out of this figure only N274m is VAT, Bayelsa is the state with the lowest VAT receipts in Nigeria , they get lower than the poorest state in Nigeria (Jigawa) but that a topic for another day. Bayelsa generates just N1 billion monthly from internally generated Revenue as at January 2008, as at Oct 2007 the state was generating a paltry N250 million a month!. Hence internally generated revenue in Bayelsa is just 11% of total revenues i.e. they only generate N11 of every N100 they spend.
Bearing in mind that Abuja money is dependant on the price of Oil, One would presume that the governor would seek to diversify his resource base. Keep in mind that tax Conoil pays tax which goes to Abuja and come back as 13% Derivation to the state, and also pay Corporate and Local tax and VAT. Corporate tax and VAT go to the Abuja and return, but local taxes especially Pay As You Earn and other levies and dues will stay in the state 100%.
Internationally we see how the Governors and Mayor in the US are lobbying GM to keep their plants open in states they have interest in, why? Cause Jobs are king. we see Lagos developing Badagry, Lekki and even the slums to attract investors, why? Jobs are king, we see the VP in far away as Finland seeking for foreign investors to come to Nigeria why? Jobs are King.
It is a serious breach of protocol and ungentlemanly too not to attend a meeting with your chief executive, in some private companies you can be sacked, but we cannot cut of our nose to spite our face, this action is rash and not well thought out, can’t Conoil be finned, can’t they be made to do more CSR? Ok cant the MD alone be banned? Must the whole company and staff leave also? can Sylvia ask Shell to leave the state cause they did not attend a meeting? Can he?
I am beginning to suspect this Sylvia; he was the same governor that was involved in the abduction of a Lagos based journalist that wrote critical stories about his interests. Gov you are first class, prove it, don’t just say it.
Conoil please apologize to the Governor and the state, Our Gov please take it easy ooh, Na devil cause am.
It’s our problem, we can solve it
Sunday, May 17, 2009
of endorsements and branding
There is this theory of endorsement, simply put if someone we admire, love or like says something or advocates something, we tend to also like or advocate the same view. Ie Dbanj likes coke, maybe we will like coke if Obama likes Coke, and definitely we would love coke. .
They also say a picture speaks a thousand words, true, that’s why we love pictures at wedding, and graduations. That’s why every major event has a Photo Op, e.g. the moon landing, the Olympic games the Arab Israeli peace signing ceremony on the white house lawn. How much would a picture of you and Dbanj cost? What of you and Obama? Priceless abi?
A state visit, specifically a state visit by the US president is the grand slam of endorsements. You get the US president, the most powerful man in the world to say, “this is my friend in whom I am well pleased”, it’s just the sort of thing Nigeria needs now as we are rebranding.
So why is Obama going to Ghana, yes Accra and not Abuja for his first state visit to Black Africa? Simple, Nigeria as a county is now an embarrassment to the black race. Kalu that is harsh, an embarrassment? The giant of Africa an embarrassment? The largest democracy in black Africa? The nation that brought down Apartheid in South Africa? The Nation that resorted peace to Liberia and Sierra Leone? the largest oil producer in Africa? Kalu how are we an embarrassment? Well just look at the headlines recently allow me;
1. INEC fumbles an election in a tiny state in a tiny ward; this is with the Inspector General of Police in attendance. Police then arrest INEC official over N250 million bribe scandal, (alleged) the REC resigns and retakes her appointment, a political party accused of “donating” money to NYSC corpers who conducted the election (alleged).
2. The Senate committee of power is arrested for fraud in rural electrification programme; this is the committee investigating the $16 (or$6b) NIPP scandal. 158 contracts awarded in one day and N5.2billion paid in one day! (alleged)
3. The NDIC MD is accused of defrauding a failed bank, yes the NDIC entrusted with protecting banks is caught in a failed bank scandal involving Fortune Bank (alleged).
4. Fuel lines
5. Halliburton Scandal
6. Niger Delta Militancy
If you were Obama would you come to Nigeria Now?
Make no mistake America is sending us a message. At the same time Ribadu has been invited to speak to the US congressional committee on financial services on the devastating effects of corruption. The man the administration has declared wanted is invited to speak to the US congress; go figure. I read that the Minister of Foreign Affairs and the Senate Chairman on Foreign affairs went to the US to book an appointment to see Yaradua; they did not even get to see Mrs. Clinton.
Nigeria has certainly slid down in influence n Africa. Once Nigeria supported the MPLA in Angola against the UNITA of the US, and MPLA won! Now we can’t even release our hostages held by Somalia prates for almost two years now. We were snubbed for the G20, can’t get a Nigerian elected as MD to the African Development Bank ADB. On the business side Nestle is moving their regional head office to Ghana, Michelin and Dunlop have pulled out, even the super eagles are no longer number 1 in Africa.
We need to do something; we have to regain our Mojo, our confidence, our oomph. It has to start with basic things on the ground, simple things like clearing garbage from the streets, enforcing traffic rules, can we be bold as to ask for power ie light? We have to stop looking for foreign investors in London, and Finland etc and come home and fix PHCN. There is a lot of work to do, and you can only rebrand, when there is actually is a brand. If I said NIGERIA, what single word would come to our mind?
In the end it’s our problem and we can fix it
They also say a picture speaks a thousand words, true, that’s why we love pictures at wedding, and graduations. That’s why every major event has a Photo Op, e.g. the moon landing, the Olympic games the Arab Israeli peace signing ceremony on the white house lawn. How much would a picture of you and Dbanj cost? What of you and Obama? Priceless abi?
A state visit, specifically a state visit by the US president is the grand slam of endorsements. You get the US president, the most powerful man in the world to say, “this is my friend in whom I am well pleased”, it’s just the sort of thing Nigeria needs now as we are rebranding.
So why is Obama going to Ghana, yes Accra and not Abuja for his first state visit to Black Africa? Simple, Nigeria as a county is now an embarrassment to the black race. Kalu that is harsh, an embarrassment? The giant of Africa an embarrassment? The largest democracy in black Africa? The nation that brought down Apartheid in South Africa? The Nation that resorted peace to Liberia and Sierra Leone? the largest oil producer in Africa? Kalu how are we an embarrassment? Well just look at the headlines recently allow me;
1. INEC fumbles an election in a tiny state in a tiny ward; this is with the Inspector General of Police in attendance. Police then arrest INEC official over N250 million bribe scandal, (alleged) the REC resigns and retakes her appointment, a political party accused of “donating” money to NYSC corpers who conducted the election (alleged).
2. The Senate committee of power is arrested for fraud in rural electrification programme; this is the committee investigating the $16 (or$6b) NIPP scandal. 158 contracts awarded in one day and N5.2billion paid in one day! (alleged)
3. The NDIC MD is accused of defrauding a failed bank, yes the NDIC entrusted with protecting banks is caught in a failed bank scandal involving Fortune Bank (alleged).
4. Fuel lines
5. Halliburton Scandal
6. Niger Delta Militancy
If you were Obama would you come to Nigeria Now?
Make no mistake America is sending us a message. At the same time Ribadu has been invited to speak to the US congressional committee on financial services on the devastating effects of corruption. The man the administration has declared wanted is invited to speak to the US congress; go figure. I read that the Minister of Foreign Affairs and the Senate Chairman on Foreign affairs went to the US to book an appointment to see Yaradua; they did not even get to see Mrs. Clinton.
Nigeria has certainly slid down in influence n Africa. Once Nigeria supported the MPLA in Angola against the UNITA of the US, and MPLA won! Now we can’t even release our hostages held by Somalia prates for almost two years now. We were snubbed for the G20, can’t get a Nigerian elected as MD to the African Development Bank ADB. On the business side Nestle is moving their regional head office to Ghana, Michelin and Dunlop have pulled out, even the super eagles are no longer number 1 in Africa.
We need to do something; we have to regain our Mojo, our confidence, our oomph. It has to start with basic things on the ground, simple things like clearing garbage from the streets, enforcing traffic rules, can we be bold as to ask for power ie light? We have to stop looking for foreign investors in London, and Finland etc and come home and fix PHCN. There is a lot of work to do, and you can only rebrand, when there is actually is a brand. If I said NIGERIA, what single word would come to our mind?
In the end it’s our problem and we can fix it
Wednesday, May 6, 2009
of ikoyi and
In the papers today “the lost tribe of Taraba” was the editorial. The story says that a Christian missionary group, the Mission Light House Wukari, “discovered” a community of mountain dwelling people of Jibu. It is said that their condition is worse than the Koma people, they were completely naked, and drank water from a well that their animal drank from. They were “primitive” no less. hmmmm
Last year I had this expat friend whose son, Tom decided to come to Nigeria for a week, he came to explore and had an open mind. So I was detailed, (since we were of the same age) to take him around town. I went to pick up Tom at the house in Lekki. Nice enough chap, he quickly asked me, “where is the local health centre”? I need to get anti malaria shot Tom, I replied “we have none in Lekki, there are private clinics though”, No local clinics? "Well how do the guys who can’t afford private health care survive"? Tom asked, Well I replied “they pray, visit their herbalist or drink Agbo. Wow no health care!
I took him to Silverbird,( I wanted to show off with our mall). On the road were lots of potholes so Tom asked “why so many potholes? “Don’t the guys in this borough pay their taxes”?, suppressing a snigger I replied “Tom, first of; Nigerians don’t pay taxes, second if they even paid the tax, why should the LGA chairman fix a road? He needs to buy his L3 Landover first, then accumulate his re-election war chest, then after that maybe fill a few potholes” wow potholes!
Just as we were about to turn into Silverbird, an Okada rider slammed into our car, the “passenger” was thrown up into the air, “quick” Tom cried, “call 911, tall them to send an ambulance”. Where do I start? “Tom, first there is no 911 call centre, even if there was, I have no credit” , “ok” tom said, “where are the phone booths, there is usually a free emergency number”, sorry no public phone booths. Wow, no phone booths, no 911 emergency!
In the mall Tom said, “Kalu I need to get some D Banji tunes, where is the Apple media store”? Tom, we have no ITunes for Nigeria? Wow no ITunes! So we left Silverbird and I took him to go bowling (yes we have one) suddenly the lights went off, Tom dove under the desk, “Kalu quick, it’s an earthquake, the powers gone”. Dear me, “Tom see in Nigeria, power does tend to go out from time to time”, wow no constant power! Leaving the bowling alley we saw some mai ruwa (Hausa water sales men) pushing 25 liter jerry cans on a cart in Ikoyi. What’s that? Tom asked “well Tom, that water”, “for what?” he asked, Well the resident in Ikoyi buy it, but hang on Kalu Ikoyi is a high brow area yeah, you mean they don’t have running water in their homes? Yep. Wow no running water!
Tom peeped out and saw a sign saying “don’t urinate or defecate here, by Order” “Kalu he asked, is this like candid camera? would people actually “go” on a bridge? Where are the public toilets? Cant they just pull up at a gas station and go?” Well tom, actually there are public toilets for now”, wow no public toilets!
We then got stuck in traffic jam; “Kalu” Tom asked why are those buses on our lane? Tom I sad they are doing “one way” “so where are the traffic cops”? He asked, well they are over there collecting N20 form the okada guys”, “collecting bribes!” tom exclaimed? “Aren’t they scared the CCTV will catch them doing that”? Well there is no CCTV. Wow no Traffic Cops, no CCTV! The traffic jam was too bad, so Tom has a brainwave, “Kalu, park the car, then let’s get on the subway”, emm, “Tom there is no subway”, wow no subway!
I took Tom home, it was pretty late, so the OPC boys (security men) stopped us, Tom nearly has a hearth attack,” kalu they have machetes, hide”, “Tom theses are our security men”, “your security men?” Tom screamed “where are the police”? Well half are in Abuja with the politicians the other half are in Ekiti, I replied. Wow no police men doing beats.
I left tom feeling good about myself, we are developing now, I mean Lagos was wearing a new look, roads have been fixed, street and traffic light working, even BRT, we try jare, Eko o ni baje.Tom left the next day, last month I got a letter from him, reads as below
Dear Kalu,
I cannot thank you enough for being a tour guide to a helpless foreigner like myself. You know I told you I was a student, well I was studying anthropology, and I could not get material to write my thesis till I got to Nigeria.
My classmates went to Egypt to see the pyramids, other went to Rome to see the Coliseum, other to China to see the Great Wall, but providence brought me to Lagos, you see I “discovered” something new and it’s all because of you.
I discover a new type of humans, they have quite a lot of resources, but they can survive without, health care in their local governments, bad roads, no power, and no public transportation, no running water in their homes, no public toilets, no 911 emergency responder, no traffic police, no CCTV, they “go” on the streets without a care, hire private armies for security, worse of all, they have no ITunes. When I told my professor such a people existed he doubted at first but I showed him pictures. He was floored he, said it is impossible for people to live so “primitive”. My school has given me a junior fellowship, next month I am back in Nigeria to further study these unique people, I even hear there are better cities to study than Lagos, like Ekiti, Aba and Jigawa. I am so excited.
If I do this right, I could be in for a job with the Discovery Channel, wish me luck. I remain in your debt.
Your friend Tom
It’s our problem, we can fix it
Kalu
Last year I had this expat friend whose son, Tom decided to come to Nigeria for a week, he came to explore and had an open mind. So I was detailed, (since we were of the same age) to take him around town. I went to pick up Tom at the house in Lekki. Nice enough chap, he quickly asked me, “where is the local health centre”? I need to get anti malaria shot Tom, I replied “we have none in Lekki, there are private clinics though”, No local clinics? "Well how do the guys who can’t afford private health care survive"? Tom asked, Well I replied “they pray, visit their herbalist or drink Agbo. Wow no health care!
I took him to Silverbird,( I wanted to show off with our mall). On the road were lots of potholes so Tom asked “why so many potholes? “Don’t the guys in this borough pay their taxes”?, suppressing a snigger I replied “Tom, first of; Nigerians don’t pay taxes, second if they even paid the tax, why should the LGA chairman fix a road? He needs to buy his L3 Landover first, then accumulate his re-election war chest, then after that maybe fill a few potholes” wow potholes!
Just as we were about to turn into Silverbird, an Okada rider slammed into our car, the “passenger” was thrown up into the air, “quick” Tom cried, “call 911, tall them to send an ambulance”. Where do I start? “Tom, first there is no 911 call centre, even if there was, I have no credit” , “ok” tom said, “where are the phone booths, there is usually a free emergency number”, sorry no public phone booths. Wow, no phone booths, no 911 emergency!
In the mall Tom said, “Kalu I need to get some D Banji tunes, where is the Apple media store”? Tom, we have no ITunes for Nigeria? Wow no ITunes! So we left Silverbird and I took him to go bowling (yes we have one) suddenly the lights went off, Tom dove under the desk, “Kalu quick, it’s an earthquake, the powers gone”. Dear me, “Tom see in Nigeria, power does tend to go out from time to time”, wow no constant power! Leaving the bowling alley we saw some mai ruwa (Hausa water sales men) pushing 25 liter jerry cans on a cart in Ikoyi. What’s that? Tom asked “well Tom, that water”, “for what?” he asked, Well the resident in Ikoyi buy it, but hang on Kalu Ikoyi is a high brow area yeah, you mean they don’t have running water in their homes? Yep. Wow no running water!
Tom peeped out and saw a sign saying “don’t urinate or defecate here, by Order” “Kalu he asked, is this like candid camera? would people actually “go” on a bridge? Where are the public toilets? Cant they just pull up at a gas station and go?” Well tom, actually there are public toilets for now”, wow no public toilets!
We then got stuck in traffic jam; “Kalu” Tom asked why are those buses on our lane? Tom I sad they are doing “one way” “so where are the traffic cops”? He asked, well they are over there collecting N20 form the okada guys”, “collecting bribes!” tom exclaimed? “Aren’t they scared the CCTV will catch them doing that”? Well there is no CCTV. Wow no Traffic Cops, no CCTV! The traffic jam was too bad, so Tom has a brainwave, “Kalu, park the car, then let’s get on the subway”, emm, “Tom there is no subway”, wow no subway!
I took Tom home, it was pretty late, so the OPC boys (security men) stopped us, Tom nearly has a hearth attack,” kalu they have machetes, hide”, “Tom theses are our security men”, “your security men?” Tom screamed “where are the police”? Well half are in Abuja with the politicians the other half are in Ekiti, I replied. Wow no police men doing beats.
I left tom feeling good about myself, we are developing now, I mean Lagos was wearing a new look, roads have been fixed, street and traffic light working, even BRT, we try jare, Eko o ni baje.Tom left the next day, last month I got a letter from him, reads as below
Dear Kalu,
I cannot thank you enough for being a tour guide to a helpless foreigner like myself. You know I told you I was a student, well I was studying anthropology, and I could not get material to write my thesis till I got to Nigeria.
My classmates went to Egypt to see the pyramids, other went to Rome to see the Coliseum, other to China to see the Great Wall, but providence brought me to Lagos, you see I “discovered” something new and it’s all because of you.
I discover a new type of humans, they have quite a lot of resources, but they can survive without, health care in their local governments, bad roads, no power, and no public transportation, no running water in their homes, no public toilets, no 911 emergency responder, no traffic police, no CCTV, they “go” on the streets without a care, hire private armies for security, worse of all, they have no ITunes. When I told my professor such a people existed he doubted at first but I showed him pictures. He was floored he, said it is impossible for people to live so “primitive”. My school has given me a junior fellowship, next month I am back in Nigeria to further study these unique people, I even hear there are better cities to study than Lagos, like Ekiti, Aba and Jigawa. I am so excited.
If I do this right, I could be in for a job with the Discovery Channel, wish me luck. I remain in your debt.
Your friend Tom
It’s our problem, we can fix it
Kalu
of dreams and visions
“Your old men shall dream dreams; your young men shall see visions”
There is this great story I read, a boy was sold in his youth into slavery, he became a “house boy” to a General, was accused wrongly of rape, sent to Kirikiri, and there he was wasting away till one day, he was summoned by the SSS to see the President and Commander in Chief of the Armed Forces.
The C in C told him, “young Man, I had a dream yesterday, all my Babalawo’s and advisers cannot interpret it, they say you have a gift of dream interpretation” so the King told the young man his dream, and the young man interpreted “Oga, you will have 7 years of Oil boom, and then 7 year of global recession” wow! The King said, “What do we do?” “Well the young man replied “appoint a Minster who will save just a fifth of all the earnings during the boom years, so that when the recession comes, we will not have a depression”. The C-in-C was so impressed he gave the young man the job of the minister, “go and perform” he told the young man. The young man went created an excess crude account and saved, and soon the nation had $65 billion in foreign reserves.
After the end of the seven years the world faced a recession, everyone was broke, only the nation had cash, so they were invited to G8, g20 even G2 so that they could be cajoled to invest, the Nation became top dog, the nation invested and bought up quality assets all over the world, became a force to be reckoned with, and her people prospered. This is a true story.
Let me ask a question what was harder to do? Interpret the dream or implement it?
What is a dream? What is a vision? Forget the consultant definition, a dream is a failed vision, a vision is a dream that came to pass. Walt Disney had a dream to “make people happy”; today we say he had a great vision. The British Empire had a vision that “the sun would never set on their empire”, today, we call it a dream. Google had a dream, “to be the perfect search company”, today we say they had great vision, Enron had a vision to “be the world leading company” (really) today we say it was a dream.
In Nigeria’s short history we have had visions and dreams, “food and Housing for all by the year 2000” was a pipe dream, and Abuja FCT was a good vision.
Ok vision 20-20. . Was it harder to get this dream or implement It.?
Lets understand the 20-20 dream, it is to be among the 20 biggest economies by 2020. To measure how big an economy is, you measure the GDP. GDP means the output of the country ie the amount of crops, cars, pure water, generators, hotels, and beer, maize, bread produced in the country, a larger GDP means a larger economy. Vision 20-20 is brilliant; it’s simple, sexy, and easy to understand and also aspirational. But Nigeria is excellent at getting dreams, we dreamt DFRII, MAMSER, WAI, Food for all by year 2000, NEEDS, SAP, SMEIS, OFN, NAPEP, Good People, Good Nation etc so getting a dream in Nigeria is easy. What about implementation?
First a digression, Why 2020? Why 20? Why target GDP growth? Why not to have the 20 best universities by 2020? Why not to produce the best 20 cash crops by 2020 (everything can grow in Nigeria, we have Deserts, Savannah, Lush forests and swamp that’s why IITA is in Nigeria) why not have to biggest 20 manufactures by 2030? why not the best primary health care by 2020?
Ok visions are built on the strengths, resources and even geography of the people. You cannot be in Saudi Arabia and dream to build the world largest alcoholic brewery, the innate condition of your nations people skill, culture, geography and resources will not allow that. Hence we have the theory of comparative advantage by David Ricardo. In simple term David postulated that you discover what you have ie your strengths and build on that to beat the world,
Ok Kalu what does Nigeria have? What is our competitive advantage? Well population. You see when people say Nigeria is the “Giant of Africa”, they don’t mean we have the largest land mass, nor the richest resources, nor the best roads, nor the best power generation station nor the best Army nor the best Hotels nor the best football team, they mean literally we are plenty, 150 million English speakers, (ok broken English speakers).
But the govt has not invested massively in the very thing that will take us to 20-20 which is the people, our strength. We are investing in persons (Senators and Governors) but not people. Kalu how do you invest in People? Well by educating them, by giving them “light” so their kids sleep and not kill mosquitoes all night, so the man can earn a living and send the kids to school, you give them health so they live above 42 years (WHO figures) you give them housing so they can raise a family, you make the judiciary functional so that 90% of the population is jail are not awaiting trial (yes that a fact) then most importantly you give them the power to elect their leaders then stand back and see what happens.
Lets me put it this way, if you were in Kindergarten and you were told by your parents that you have to graduate in 11 years with a PHD in Particle Physics impossible? Here’s the catch, you will have no new books, you will have the same teachers, and you will stay in the same classroom, impossible?
Well to get your doctorate you need new teachers, new books, new classrooms new everything. That means we need new roads, new power stations, new courts of laws, new laws on labour and intellectual property rights, new laws on land use Act, Social security etc So Vision 2020, requires not just massive investment, but investment to empower people who will work in the factories, build the roads, treat the populace, police the populace, educate the populace, maintain the power plants etc
Let me list below the top 20 GDP, I want some one to tell me which country we will replace in 11 years
1. USA
2. JAPAN
3. CHINA
4. GERMANY
5. FRANCE
6. SPAIN
7. UK
8. ITALY
9. CANADA
10. BRAZIL
11. RUSSIA
12. INDIA
13. SOUTHKOREA
14. MEXICO
15. SWEDEN
16. AUSTRALIA
17. NETHERLANDS
18. TURKEY
19. BELGIUM
20. INDONESIA
Saudi Arabia is 23 (with all their oil ooh), Nigeria is 40
Now Indonesia is the nearest target (assuming they stand still).Our GDP is $338 billion Indonesia is $915 billion, so we have to grow the entire economy by 171 times (e.g. 171 new stock exchanges with the same listings as the present one in Lagos), also consider Indonesia produces 142 billion Kwh of electricity, Nigeria produces 22 billion kwh, so we have to build 545 new PHCN’s! the bulk of Indonesia workers are in Services and Manufacturing the bulk of Nigeria people are in Agriculture ie substience farming, Indonesia has over 600 airporte, we have just over 60. , Indnesia has 6,458 km of rail track, we have 3, 505 (we have no rail link from east to west) Indonesia has 391,000 km of roads we have 193,000 pls stop kalu.
So what the government is saying is that we will jump 20 places by growing our entire economy 171 times and knock off one of the countries on this list abi? Can it be done? the real question is who will do it or implement it? Who will focus on Education, Health, Security, Power Generation, Rule of Law, infrastructure development, Intellectual Property protection etc?
In 11 years we will know if 2020 was a dream or a vision.
It’s our problem we can fix it.
Kalu
There is this great story I read, a boy was sold in his youth into slavery, he became a “house boy” to a General, was accused wrongly of rape, sent to Kirikiri, and there he was wasting away till one day, he was summoned by the SSS to see the President and Commander in Chief of the Armed Forces.
The C in C told him, “young Man, I had a dream yesterday, all my Babalawo’s and advisers cannot interpret it, they say you have a gift of dream interpretation” so the King told the young man his dream, and the young man interpreted “Oga, you will have 7 years of Oil boom, and then 7 year of global recession” wow! The King said, “What do we do?” “Well the young man replied “appoint a Minster who will save just a fifth of all the earnings during the boom years, so that when the recession comes, we will not have a depression”. The C-in-C was so impressed he gave the young man the job of the minister, “go and perform” he told the young man. The young man went created an excess crude account and saved, and soon the nation had $65 billion in foreign reserves.
After the end of the seven years the world faced a recession, everyone was broke, only the nation had cash, so they were invited to G8, g20 even G2 so that they could be cajoled to invest, the Nation became top dog, the nation invested and bought up quality assets all over the world, became a force to be reckoned with, and her people prospered. This is a true story.
Let me ask a question what was harder to do? Interpret the dream or implement it?
What is a dream? What is a vision? Forget the consultant definition, a dream is a failed vision, a vision is a dream that came to pass. Walt Disney had a dream to “make people happy”; today we say he had a great vision. The British Empire had a vision that “the sun would never set on their empire”, today, we call it a dream. Google had a dream, “to be the perfect search company”, today we say they had great vision, Enron had a vision to “be the world leading company” (really) today we say it was a dream.
In Nigeria’s short history we have had visions and dreams, “food and Housing for all by the year 2000” was a pipe dream, and Abuja FCT was a good vision.
Ok vision 20-20. . Was it harder to get this dream or implement It.?
Lets understand the 20-20 dream, it is to be among the 20 biggest economies by 2020. To measure how big an economy is, you measure the GDP. GDP means the output of the country ie the amount of crops, cars, pure water, generators, hotels, and beer, maize, bread produced in the country, a larger GDP means a larger economy. Vision 20-20 is brilliant; it’s simple, sexy, and easy to understand and also aspirational. But Nigeria is excellent at getting dreams, we dreamt DFRII, MAMSER, WAI, Food for all by year 2000, NEEDS, SAP, SMEIS, OFN, NAPEP, Good People, Good Nation etc so getting a dream in Nigeria is easy. What about implementation?
First a digression, Why 2020? Why 20? Why target GDP growth? Why not to have the 20 best universities by 2020? Why not to produce the best 20 cash crops by 2020 (everything can grow in Nigeria, we have Deserts, Savannah, Lush forests and swamp that’s why IITA is in Nigeria) why not have to biggest 20 manufactures by 2030? why not the best primary health care by 2020?
Ok visions are built on the strengths, resources and even geography of the people. You cannot be in Saudi Arabia and dream to build the world largest alcoholic brewery, the innate condition of your nations people skill, culture, geography and resources will not allow that. Hence we have the theory of comparative advantage by David Ricardo. In simple term David postulated that you discover what you have ie your strengths and build on that to beat the world,
Ok Kalu what does Nigeria have? What is our competitive advantage? Well population. You see when people say Nigeria is the “Giant of Africa”, they don’t mean we have the largest land mass, nor the richest resources, nor the best roads, nor the best power generation station nor the best Army nor the best Hotels nor the best football team, they mean literally we are plenty, 150 million English speakers, (ok broken English speakers).
But the govt has not invested massively in the very thing that will take us to 20-20 which is the people, our strength. We are investing in persons (Senators and Governors) but not people. Kalu how do you invest in People? Well by educating them, by giving them “light” so their kids sleep and not kill mosquitoes all night, so the man can earn a living and send the kids to school, you give them health so they live above 42 years (WHO figures) you give them housing so they can raise a family, you make the judiciary functional so that 90% of the population is jail are not awaiting trial (yes that a fact) then most importantly you give them the power to elect their leaders then stand back and see what happens.
Lets me put it this way, if you were in Kindergarten and you were told by your parents that you have to graduate in 11 years with a PHD in Particle Physics impossible? Here’s the catch, you will have no new books, you will have the same teachers, and you will stay in the same classroom, impossible?
Well to get your doctorate you need new teachers, new books, new classrooms new everything. That means we need new roads, new power stations, new courts of laws, new laws on labour and intellectual property rights, new laws on land use Act, Social security etc So Vision 2020, requires not just massive investment, but investment to empower people who will work in the factories, build the roads, treat the populace, police the populace, educate the populace, maintain the power plants etc
Let me list below the top 20 GDP, I want some one to tell me which country we will replace in 11 years
1. USA
2. JAPAN
3. CHINA
4. GERMANY
5. FRANCE
6. SPAIN
7. UK
8. ITALY
9. CANADA
10. BRAZIL
11. RUSSIA
12. INDIA
13. SOUTHKOREA
14. MEXICO
15. SWEDEN
16. AUSTRALIA
17. NETHERLANDS
18. TURKEY
19. BELGIUM
20. INDONESIA
Saudi Arabia is 23 (with all their oil ooh), Nigeria is 40
Now Indonesia is the nearest target (assuming they stand still).Our GDP is $338 billion Indonesia is $915 billion, so we have to grow the entire economy by 171 times (e.g. 171 new stock exchanges with the same listings as the present one in Lagos), also consider Indonesia produces 142 billion Kwh of electricity, Nigeria produces 22 billion kwh, so we have to build 545 new PHCN’s! the bulk of Indonesia workers are in Services and Manufacturing the bulk of Nigeria people are in Agriculture ie substience farming, Indonesia has over 600 airporte, we have just over 60. , Indnesia has 6,458 km of rail track, we have 3, 505 (we have no rail link from east to west) Indonesia has 391,000 km of roads we have 193,000 pls stop kalu.
So what the government is saying is that we will jump 20 places by growing our entire economy 171 times and knock off one of the countries on this list abi? Can it be done? the real question is who will do it or implement it? Who will focus on Education, Health, Security, Power Generation, Rule of Law, infrastructure development, Intellectual Property protection etc?
In 11 years we will know if 2020 was a dream or a vision.
It’s our problem we can fix it.
Kalu
Friday, April 24, 2009
of VAT and Socialism
I took a look at the just released Nigerian Revenue allocation to all theirs of Govt for the Month of February 2009 and shared in March 2009.
Let’s pick two states Delta and Jigawa, Delta is one Nigeria richest states (Lagos is the richest), Jigawa is Nigeria poorest state[i]. Now what is being shared is statutory allocation (oil money) plus VAT, if we agree that oil money is for the whole of Nigeria, (which it is) then lets look at VAT. Delta got N366 as VAT which is internally generated income, while Jigawa which generates nothing got N374m in VAT. (Lagos got N2.6billion, but they generate 65% of VAT Collection and got 13% of allocation).
Now my concern is this, how do we justify that Jigawa gets more VAT than Delta? or are the CBN figures wrong? This is not about resource control ooh, VAT is revenue collected by states on value added by the merchants in that state on transactions. Hence if Delta puts street lights (which it did), a shop owner can work at night, charge more VAT which he remits to the VAT federal office, who is then supposed to give it back to Delta state, as reward for adding value to that transaction. If Lagos also build roads it attracts business men who stay in hotels, eat food and buy groceries in Lagos, thus Lagos generates VAT as reward for building roads.
Now this is not to accuse Jigawa of not building roads, nor of being lazy, Jigawa state did not write the VAT bill. But if we keep on rewarding states for doing nothing, then they will continue to do nothing.
Already if you create a state today, you are simply taking money away from viable states. Same as VAT. If you look at the papers you see all sort of pressure groups calling for state creation be it Apa, Ijebu, Anioma, Okija states etc. All this request will do is simply drain money away from Lagos, Delta, Kano and Rivers and send to the other 32 who cannot pay salaries to teachers. We have to reward good managers and at least discourage wastage.
We can have a formula which ties your VAT receipts as a function of your own Internally generated Revenue, Hence Jigawa will have a provisional allocation of N374 m, but can only get 100% of that amount if the state internally generates 25% of their expenditure budget. That way the governor cannot just get VAT and spend, but he has to make the state viable enough to generate revenue to qualify to receive a VAT grant from the centre.
Quite frankly if all a governor has to do is to spend then any idiot can do that, the governors are called Chief Executive of their states because they are supposed to manage the resources and people of their states in a manner reflective of the trust placed on them. If we go on like this then we will not only have a balkanization of the states, but a balkanization of the resources of the federation
There are some other data there that is quite interesting,
1. all state have foreign borrowing; Oyo in particular has a total foreign debt deduction of N142m ( wetin dem buy), Yobe has N4m
2. Rivers gets N12 billion a month extra as excess crude! N12billion! Why does PH look like Kabul?
3. Kano has 44 LGA, Lagos has 20 hmmmm
4. Imo state is paying N358m every month as interest to banks for loans collected! That’s more than they get from VAT (negative VAT)
5. Ekiti has the lowest Gross Statutory allocation in Nigeria; Education does not pay.
6. Richest Local government in Nigeria is Alimosho in Lagos state, they get N258m a month. Outside Lagos (and Abuja) the richest LGA is Bauchi LGA which gets 117m a month, more than PH LGA which gets 106m.
7. Poorest LGA is in Osun, called EGBEDORE just a paltry N46M a month! Sack your senator guys.
It’s our problem, we can fix it
Kalu
Let’s pick two states Delta and Jigawa, Delta is one Nigeria richest states (Lagos is the richest), Jigawa is Nigeria poorest state[i]. Now what is being shared is statutory allocation (oil money) plus VAT, if we agree that oil money is for the whole of Nigeria, (which it is) then lets look at VAT. Delta got N366 as VAT which is internally generated income, while Jigawa which generates nothing got N374m in VAT. (Lagos got N2.6billion, but they generate 65% of VAT Collection and got 13% of allocation).
Now my concern is this, how do we justify that Jigawa gets more VAT than Delta? or are the CBN figures wrong? This is not about resource control ooh, VAT is revenue collected by states on value added by the merchants in that state on transactions. Hence if Delta puts street lights (which it did), a shop owner can work at night, charge more VAT which he remits to the VAT federal office, who is then supposed to give it back to Delta state, as reward for adding value to that transaction. If Lagos also build roads it attracts business men who stay in hotels, eat food and buy groceries in Lagos, thus Lagos generates VAT as reward for building roads.
Now this is not to accuse Jigawa of not building roads, nor of being lazy, Jigawa state did not write the VAT bill. But if we keep on rewarding states for doing nothing, then they will continue to do nothing.
Already if you create a state today, you are simply taking money away from viable states. Same as VAT. If you look at the papers you see all sort of pressure groups calling for state creation be it Apa, Ijebu, Anioma, Okija states etc. All this request will do is simply drain money away from Lagos, Delta, Kano and Rivers and send to the other 32 who cannot pay salaries to teachers. We have to reward good managers and at least discourage wastage.
We can have a formula which ties your VAT receipts as a function of your own Internally generated Revenue, Hence Jigawa will have a provisional allocation of N374 m, but can only get 100% of that amount if the state internally generates 25% of their expenditure budget. That way the governor cannot just get VAT and spend, but he has to make the state viable enough to generate revenue to qualify to receive a VAT grant from the centre.
Quite frankly if all a governor has to do is to spend then any idiot can do that, the governors are called Chief Executive of their states because they are supposed to manage the resources and people of their states in a manner reflective of the trust placed on them. If we go on like this then we will not only have a balkanization of the states, but a balkanization of the resources of the federation
There are some other data there that is quite interesting,
1. all state have foreign borrowing; Oyo in particular has a total foreign debt deduction of N142m ( wetin dem buy), Yobe has N4m
2. Rivers gets N12 billion a month extra as excess crude! N12billion! Why does PH look like Kabul?
3. Kano has 44 LGA, Lagos has 20 hmmmm
4. Imo state is paying N358m every month as interest to banks for loans collected! That’s more than they get from VAT (negative VAT)
5. Ekiti has the lowest Gross Statutory allocation in Nigeria; Education does not pay.
6. Richest Local government in Nigeria is Alimosho in Lagos state, they get N258m a month. Outside Lagos (and Abuja) the richest LGA is Bauchi LGA which gets 117m a month, more than PH LGA which gets 106m.
7. Poorest LGA is in Osun, called EGBEDORE just a paltry N46M a month! Sack your senator guys.
It’s our problem, we can fix it
Kalu
Friday, August 15, 2008
private public partnership on power
An event and a comment in Germany by our President led me to write this piece in light of the recent discussions we have been having on role of Government in business, Public Private Partnership and the long tem bond market.
The comment was by our President, he said Nigeria cannot fund the Independent Power Projects any longer from the excess crude account. In English he was saying any money to build power plans must be put on a budget passed to the parliament, approved and then money appropriated and spent. The previous regime of Obansanjo had spent about $8 billion on 11 power plant, the money was sourced directly from the excess crude funds and approvals was not gotten from the Parliament. Yar-Adua is right, the process of funding these power plants in the past was wrong, but considers this; a deputy Director of the CBN said that Nigeria needs no less than $50 billion as investment to generate up to 50,000 megawatts ( Nigerias projected energy need) in the next 5-10 years. So in effect the government cannot from her revenues fund these power plants, even if the parliament fast tracked these proposals from the President we don’t have $50 billion to spend on power. So our much vaulted “declaration of emergency on power” has come to a sharp halt, the magical 10,000 mw is a mirage, if Mikano Generators were a stock, I would go buy them. Just yesterday the Austrian builders of the power plants have taken the FGN to court regarding breach of contract in respect to financing.
The event was in Osisioma, God own state Abia, Geometric power company a private independent power company was just establishing the first private sector owned IPP in Nigeria. The $250 million plant will generate about 140 mw of electricity well above the requirement of Aba put at 110mw. It is expected this will boost industrialization in Aba, attract industries, provide 5,000 in jobs and make the state richer. This power project is financed exclusively by the private sector through a consortium of banks led by Diamond Bank. It is owned by a Nigerian.
The above point to the future direction of development in Nigeria, the state coffers cannot finance big projects through annual budgets. In principle, Nigeria, We are simply spending what we make from Oil which as any accountant will tell you is a poor use of wealth. By leveraging on your cash flow a country is able to invest in long tem projects. Remember that fela song in “overtake don overtake overtake”? Fela said there was a man, one man who wan buy fan, in summary the man saved to buy a fan at the end of the month, but the price kept on rising, in the end he could not buy the fan, why because he wanted to do it from his own savings or wealth. Had he been properly advised he might have taken the fan on asset finance, and then paid down the cost of the fan monthly.
Imagine if all the states in Nigeria had their own small IPP financed by the private sector and repayments guaranteed by the FGN, we would have solved our power needs. Instead we pursued a top down federal govt led initiate to build huge gas fired plants all over Nigeria with no thought to how to actually pay the contractors. It is commendable the efforts of the Lagos state governor to assemble such a rich team of experts to talk on how to finance a “new Lagos” through private sector led financing.
We must learn from other resource rich nations like Qatar which is financing projects by leveraging on their huge cash reserves (borrowing), this increase the rate of return of their funds. Or Dubai which creates reserve funds for investment in their country. The point here is not to encourage borrowing but that we should create a financial model where we can leverage on our huge foreign reserves to finance projects that will raise the profile of the ordinary man. The FGN also need to go back to the bond market to fund things like the power project and the housing needs of Nigerian with long term financing
Most importantly our laws and policies must make it easier for our financial institutions like Diamond to continue to fund such projects.
The President has spoken of reintroducing National Development plans back to Nigeria, this should be coordinated with the private sector, the government must plan together with the organized private sector, ask their views and opinions and ensure they limit themselves to policy and regulation, let the private sector continue to do what the do best which is meet demand with great service
The comment was by our President, he said Nigeria cannot fund the Independent Power Projects any longer from the excess crude account. In English he was saying any money to build power plans must be put on a budget passed to the parliament, approved and then money appropriated and spent. The previous regime of Obansanjo had spent about $8 billion on 11 power plant, the money was sourced directly from the excess crude funds and approvals was not gotten from the Parliament. Yar-Adua is right, the process of funding these power plants in the past was wrong, but considers this; a deputy Director of the CBN said that Nigeria needs no less than $50 billion as investment to generate up to 50,000 megawatts ( Nigerias projected energy need) in the next 5-10 years. So in effect the government cannot from her revenues fund these power plants, even if the parliament fast tracked these proposals from the President we don’t have $50 billion to spend on power. So our much vaulted “declaration of emergency on power” has come to a sharp halt, the magical 10,000 mw is a mirage, if Mikano Generators were a stock, I would go buy them. Just yesterday the Austrian builders of the power plants have taken the FGN to court regarding breach of contract in respect to financing.
The event was in Osisioma, God own state Abia, Geometric power company a private independent power company was just establishing the first private sector owned IPP in Nigeria. The $250 million plant will generate about 140 mw of electricity well above the requirement of Aba put at 110mw. It is expected this will boost industrialization in Aba, attract industries, provide 5,000 in jobs and make the state richer. This power project is financed exclusively by the private sector through a consortium of banks led by Diamond Bank. It is owned by a Nigerian.
The above point to the future direction of development in Nigeria, the state coffers cannot finance big projects through annual budgets. In principle, Nigeria, We are simply spending what we make from Oil which as any accountant will tell you is a poor use of wealth. By leveraging on your cash flow a country is able to invest in long tem projects. Remember that fela song in “overtake don overtake overtake”? Fela said there was a man, one man who wan buy fan, in summary the man saved to buy a fan at the end of the month, but the price kept on rising, in the end he could not buy the fan, why because he wanted to do it from his own savings or wealth. Had he been properly advised he might have taken the fan on asset finance, and then paid down the cost of the fan monthly.
Imagine if all the states in Nigeria had their own small IPP financed by the private sector and repayments guaranteed by the FGN, we would have solved our power needs. Instead we pursued a top down federal govt led initiate to build huge gas fired plants all over Nigeria with no thought to how to actually pay the contractors. It is commendable the efforts of the Lagos state governor to assemble such a rich team of experts to talk on how to finance a “new Lagos” through private sector led financing.
We must learn from other resource rich nations like Qatar which is financing projects by leveraging on their huge cash reserves (borrowing), this increase the rate of return of their funds. Or Dubai which creates reserve funds for investment in their country. The point here is not to encourage borrowing but that we should create a financial model where we can leverage on our huge foreign reserves to finance projects that will raise the profile of the ordinary man. The FGN also need to go back to the bond market to fund things like the power project and the housing needs of Nigerian with long term financing
Most importantly our laws and policies must make it easier for our financial institutions like Diamond to continue to fund such projects.
The President has spoken of reintroducing National Development plans back to Nigeria, this should be coordinated with the private sector, the government must plan together with the organized private sector, ask their views and opinions and ensure they limit themselves to policy and regulation, let the private sector continue to do what the do best which is meet demand with great service
of Imo and Ogun States
The Imo State Governor Ikedi Ohakim recently confirmed that Imo state had lost the $500million Guangdong industrial park project to Ogun state. The Chinese complained that in Imo State they were dealing with different agencies all extorting money from them, whilst treats to their lives was commonplace. Just yesterday Imo lawmaker complained to the private airlines of abandoning the Imo state airport once the Port Harcout airport was reopened.
Ogun state is near to Lagos, blessed with natural resources (Bitumen) it has an educated middle class., their governor belongs to PDP. The state wants to build an airport; their indigene has a bank (FCMB). They have two state universities.
Imo State is also near Rivers State, blessed with natural resources (Oil) an educated middle class. Their governor belongs to PDP. The state has an airport. Their indigene has a bank; (Diamond). They also have two state universities.
So how come investors prefer Ogun to Owerri? Simple quality of leadership to develop a plan to leverage on their respective greatest asset which is a nearness to a major economic centre. Without a plan the people perish. Ogun has a five year plan that encapsulated the MDG goals and SEEDS into a developmental budget that is primarily targeted at “living off” Lagos, but empowering their citizens.
I travelled to Abeokuta and I saw why the Chinese moved there, excellent roads, security, a governor with a plan to sell his state as an alternative to Lagos, -invest in Ogun without the madness of Lagos- is the slogan. Ogun is building the new multi billion dollar OK LNG project, they own a part of the new Mega city and are attracting industries by the second.
They have state owned petroleum training institute and 5 ICT centers where their indigenes earn international certification and are trained to work in the industries coming to the state. As the Governor OGB put it “we want to avoid the mistake of the South South who only pushed security guards for employment to the companies that came there”
Imo borders PH and she could have sold herself as the alternative to PH, -invest in Imo without being kidnapped- but alas she blew it. There is no deliberate plan by the government of Imo state to sell its nearness to PH. I happened to be in PH when the airport there was closed, all the passengers in PH had to transit by road to Owerri to catch a flight. Now the Imo airport was moribund, but the indigene taxi drivers got together that afternoon and formed a taxi association and introduced a tariff N6,000 to town, N12,000 to PH (daylight robbery). All the way the slogan was “milk these travelers dry”. This was a unique opportunity to perhaps fix the very bad PH to Owerri road, offer cheap hotel rates for traveler to rest in Owerri, visit the town in guided tours, or even propose the Concord hotel as the alternative hang out spot for the expatriate fleeing PH, but no, no one cared. The state government could not even build a conveyor belt at the airport for the time the PH airport was closed. What a lost opportunity.
Summary
All is not lost, but I pray for good, educated leaders in the mold of Bola Tinubu, Donald Duke and El Rufai “chop, but at least build a road or two”
Ogun state is near to Lagos, blessed with natural resources (Bitumen) it has an educated middle class., their governor belongs to PDP. The state wants to build an airport; their indigene has a bank (FCMB). They have two state universities.
Imo State is also near Rivers State, blessed with natural resources (Oil) an educated middle class. Their governor belongs to PDP. The state has an airport. Their indigene has a bank; (Diamond). They also have two state universities.
So how come investors prefer Ogun to Owerri? Simple quality of leadership to develop a plan to leverage on their respective greatest asset which is a nearness to a major economic centre. Without a plan the people perish. Ogun has a five year plan that encapsulated the MDG goals and SEEDS into a developmental budget that is primarily targeted at “living off” Lagos, but empowering their citizens.
I travelled to Abeokuta and I saw why the Chinese moved there, excellent roads, security, a governor with a plan to sell his state as an alternative to Lagos, -invest in Ogun without the madness of Lagos- is the slogan. Ogun is building the new multi billion dollar OK LNG project, they own a part of the new Mega city and are attracting industries by the second.
They have state owned petroleum training institute and 5 ICT centers where their indigenes earn international certification and are trained to work in the industries coming to the state. As the Governor OGB put it “we want to avoid the mistake of the South South who only pushed security guards for employment to the companies that came there”
Imo borders PH and she could have sold herself as the alternative to PH, -invest in Imo without being kidnapped- but alas she blew it. There is no deliberate plan by the government of Imo state to sell its nearness to PH. I happened to be in PH when the airport there was closed, all the passengers in PH had to transit by road to Owerri to catch a flight. Now the Imo airport was moribund, but the indigene taxi drivers got together that afternoon and formed a taxi association and introduced a tariff N6,000 to town, N12,000 to PH (daylight robbery). All the way the slogan was “milk these travelers dry”. This was a unique opportunity to perhaps fix the very bad PH to Owerri road, offer cheap hotel rates for traveler to rest in Owerri, visit the town in guided tours, or even propose the Concord hotel as the alternative hang out spot for the expatriate fleeing PH, but no, no one cared. The state government could not even build a conveyor belt at the airport for the time the PH airport was closed. What a lost opportunity.
Summary
All is not lost, but I pray for good, educated leaders in the mold of Bola Tinubu, Donald Duke and El Rufai “chop, but at least build a road or two”
nigeria is a democracy
Nigeria is a democracy, practicing a federal, form of government.
Now being a federal govt the duties resources and responsibilities of the state are shared amongst different levels of government federal State and Local. Executive management of the countries resources is devolved to the president he appoints secretaries (not ministers as erroneously referred to in Nigeria) who rightly serve at his pleasure.
The Military corrupted the federal system and changed it into a de facto monarchy, where the president rules, how? Well the military brought in a unified command structure to the federation, all decisions were taken at the top; hence all resources had to be moved to the top and shared back down. So the King, sorry President controls the treasury, he get 100% of the taxes and then shares it as he proposes.
So the issues are not even the revenue sharing formula, nor the federation but the tax and spend powers that the federal level has usurped through the military. The federal controls Defense, currency, external affairs ok, but Health, Education? Come on! Corruption exists in part because allocations are seen as federal (hence nobody’s) money. If we paid taxes to out local councils and states, there is no way we will see the same councilor riding a jeep and not ask him questions.
What will solve the problem? 3 steps
1. Let the present allocation formula for excise duties, mining rights and royalties (all minerals, including Gold, Ore, Timber, Coal) go to the federation account and be shared out to Federal State and Local levels, but increase the derivation amount to 30%. Let me ask a question should Cocoa, Palm Oil and Cotton also fall in here?
2. Then let the consumption tax ie VAT be retained 100% by the states producing them. This is fair and equitable. So Lagos gets 100% of the VAT consumed in Lagos. What happens in Nigeria is that Lagos generates VAT; it is taken to the federation account. Then the FGN allocates a reduced portion of the VAT Lagos collected back to Lagos, who then uses it to build roads or fund hospitals. So let’s just cut out the federal middleman. It is unfair that states that have invested millions to repair roads like Lagos and have attracted investors should be shortchanged and lazy states are rewarded. Remember we cannot make the weak strong by making the strong weak. Only about 2 or 3 states out of 36 generate enough revenue to even pay salaries, let alone build roads. Almost 33 states are lazy, ie cannot survive without “Abuja” money.
3. Practice real fiscal federalism; give the states and local governments real powers for especially Education and Health. In the USA (where we copy our federal system from) the states and local govt fund 90% of the education cost through collection of sales and property taxes respectively. The federal govt can give grants, matching special funds and emergency spends, the federal govt can also set broad policy, invest in health prevention programs but cannot, cannot control education and health in states and local govts.
I want to throw the example of Lagos state to the forum, Lagos as a state enjoyed federal presence, the federal govt built roads, estates, hospital, airports. When the federal left, Lagos was left to care for all those assets, and was generating only N600m monthly in 1999. When Tinubu left he was generating N6 billion, I am not too sure but I think Fashola has generated N60 billion in 6 months. Lagos was sited by the World Bank as the state with only functioning public hospital scheme in Nigeria. Quality roads are being built, Bar Beach was reclaimed; remember all this was done when OBJ withheld the federal allocation to Lagos, necessity is indeed he mother of invention. Today Lagos survives without Abuja money even, though on all criteria they deserve most of the Abuja money (Population, Assets, etc). someone will say “Lagos was already developed” I say the leaders in Lagos have done a good job, do you know you can sit in your office, log unto a website and pay your PAYE taxes in Lagos, and a tax card will be brought to you, federal didn’t do that, Lagos did, they are fixing their problem. Some state can’t even pack rubbish, common rubbish from the streets.
If other states can look inwards, then maybe we can even just save all the oil money for our coming generation’s rater than blow it all in “Dubai”.
Our federation is here to stay; if we consider a confederacy (which means the different constituents will be sovereign or self governing) will the Lagos state go with Oduduwa State? Will Oil producing Abia and Imo states join Biafra? Will Ijaw and Urubro stay in one state? Will Tiv stay with Igala? Will Hausa stay with Fulani? A confederacy will certainly lead to the Balkanization of Nigeria. The federation is a good model, Na us spoil am,
It’s our problem, let’s fix it.
Now being a federal govt the duties resources and responsibilities of the state are shared amongst different levels of government federal State and Local. Executive management of the countries resources is devolved to the president he appoints secretaries (not ministers as erroneously referred to in Nigeria) who rightly serve at his pleasure.
The Military corrupted the federal system and changed it into a de facto monarchy, where the president rules, how? Well the military brought in a unified command structure to the federation, all decisions were taken at the top; hence all resources had to be moved to the top and shared back down. So the King, sorry President controls the treasury, he get 100% of the taxes and then shares it as he proposes.
So the issues are not even the revenue sharing formula, nor the federation but the tax and spend powers that the federal level has usurped through the military. The federal controls Defense, currency, external affairs ok, but Health, Education? Come on! Corruption exists in part because allocations are seen as federal (hence nobody’s) money. If we paid taxes to out local councils and states, there is no way we will see the same councilor riding a jeep and not ask him questions.
What will solve the problem? 3 steps
1. Let the present allocation formula for excise duties, mining rights and royalties (all minerals, including Gold, Ore, Timber, Coal) go to the federation account and be shared out to Federal State and Local levels, but increase the derivation amount to 30%. Let me ask a question should Cocoa, Palm Oil and Cotton also fall in here?
2. Then let the consumption tax ie VAT be retained 100% by the states producing them. This is fair and equitable. So Lagos gets 100% of the VAT consumed in Lagos. What happens in Nigeria is that Lagos generates VAT; it is taken to the federation account. Then the FGN allocates a reduced portion of the VAT Lagos collected back to Lagos, who then uses it to build roads or fund hospitals. So let’s just cut out the federal middleman. It is unfair that states that have invested millions to repair roads like Lagos and have attracted investors should be shortchanged and lazy states are rewarded. Remember we cannot make the weak strong by making the strong weak. Only about 2 or 3 states out of 36 generate enough revenue to even pay salaries, let alone build roads. Almost 33 states are lazy, ie cannot survive without “Abuja” money.
3. Practice real fiscal federalism; give the states and local governments real powers for especially Education and Health. In the USA (where we copy our federal system from) the states and local govt fund 90% of the education cost through collection of sales and property taxes respectively. The federal govt can give grants, matching special funds and emergency spends, the federal govt can also set broad policy, invest in health prevention programs but cannot, cannot control education and health in states and local govts.
I want to throw the example of Lagos state to the forum, Lagos as a state enjoyed federal presence, the federal govt built roads, estates, hospital, airports. When the federal left, Lagos was left to care for all those assets, and was generating only N600m monthly in 1999. When Tinubu left he was generating N6 billion, I am not too sure but I think Fashola has generated N60 billion in 6 months. Lagos was sited by the World Bank as the state with only functioning public hospital scheme in Nigeria. Quality roads are being built, Bar Beach was reclaimed; remember all this was done when OBJ withheld the federal allocation to Lagos, necessity is indeed he mother of invention. Today Lagos survives without Abuja money even, though on all criteria they deserve most of the Abuja money (Population, Assets, etc). someone will say “Lagos was already developed” I say the leaders in Lagos have done a good job, do you know you can sit in your office, log unto a website and pay your PAYE taxes in Lagos, and a tax card will be brought to you, federal didn’t do that, Lagos did, they are fixing their problem. Some state can’t even pack rubbish, common rubbish from the streets.
If other states can look inwards, then maybe we can even just save all the oil money for our coming generation’s rater than blow it all in “Dubai”.
Our federation is here to stay; if we consider a confederacy (which means the different constituents will be sovereign or self governing) will the Lagos state go with Oduduwa State? Will Oil producing Abia and Imo states join Biafra? Will Ijaw and Urubro stay in one state? Will Tiv stay with Igala? Will Hausa stay with Fulani? A confederacy will certainly lead to the Balkanization of Nigeria. The federation is a good model, Na us spoil am,
It’s our problem, let’s fix it.
Subscribe to:
Posts (Atom)