National Issues
What happened to transparency?
AT the annual Nigerian jamboree to the Offshore Technology Conference (OTC) in Houston, Texas, Dr. IbeKachikwu, the minister of state for petroleum resources, told a “world press conference” on May 5, 2017 that Nigeria’s refineries would soon have new investors. He said 26 investors had indicated interest in the epileptic refineries. “By September, we will unveil the investors for the refineries,” the minister said smoothly, typically. “When we came onboard, the refineries were not working but as we speak, we have sizeable investment portfolio for them to an extent that we don’t know who to partner with for the investment.”
Let’s say I didn’t go to school at all. Or let’s say it was evening school that I attended. These would still be my takeaways from the minister’s proclamations: one, our refineries are now in a position to attract investment; two, 26 investors have indicated interest in taking over the refineries (on a repair, operate and maintain, ROM, agreement); three, we have not taken a decision yet because there are so many suitors to choose from; and four, we will announce the favoured investors by September. Without attending Harvard Business School, I would still conclude that it appeared the process was going to be competitive and transparent.
On May 11, 2017 (six days later, right?) Mr. Wale Tinubu, the CEO of Oando Plc, told the Nigerian Stock Exchange (NSE) that the group had received approval of the government to “repair, operate and maintain” the Port Harcourt Refinery together with “our partner” Agip, a subsidiary of ENI, the Italian company indicted in the Malabu/OPL 245 affair. Tinubu said: “We plan to increase the refinery capacity from 30 per cent to 100 per cent.” Great news, as far I am concerned. We need the refineries back as soon as possible; we have had enough of the endless TAMs gulping billions of naira and spewing out virtually no products for decades.
Now this is where I need your help. The last time I checked, with the help of Google, May and September are different months. There are June, July and August in-between. With the help of Google, I also discovered that the gap between when Kachikwu spoke in Houston and when Tinubu spoke in Lagos was a whopping six days — or, to make it simpler, less than one week. There are usually four weeks in a month, and from May 5, when Kachikwu spoke, to September, there are 17 weeks, according to the all-knowing Google. With Tinubu’s disclosure, should we assume that May is the new September? Or that September came early for Oando, Agip and Kachikwu?
“We cannot be sealing deals under the table without revealing the details to Nigerians and then claim we are building an open society”
But I think Google is overrated. There were so many questions it could not answer. For instance, I asked: “Is Oando among the 26 investors Kachikwu boasted about in Houston?” I could not make head or tail of the results. Google came up with “FOX 26 Houston KRIV”. Nonsense. But I got more gibberish for other questions: did Oando and ENI send in a bid? Was it an unsolicited bid? Was it selective tendering? If it was competitive bidding, how many bids were received for Port Harcourt? How much did Oando/ENI bid? How much did others bid? How much did the bidders promise to invest? How many years will the ROM run? Are there concessions for the new operators?
I can understand why Google got stuck — that almighty search machine likes transparency. If you do not make your information public, it cannot make it public for you. The best, or should I say the worst, Google would do is to suggest answers that it thinks are related to your questions, even when there is no connection whatsoever. If you google most of the major concessions and major contracts awarded by this government, you will get irrelevant answers on the process. For the same reason: transparency is very scarce in these major deals. We just wake up one day and hear that one company has been awarded a job. Not a word on the process.
Don’t get me wrong: I’m not saying Oando should not take over the Port Harcourt Refinery. I have devoted a significant part of my column-writing career to promoting the cause of Nigerian companies. I believe that one day, made-in-Nigeria will be enjoyed all over the world. I want Nigerian companies to fly our flag honourably. Even though I have been called names and subjected to sickening innuendos for promoting Dangote, Globacom, Oando and Innosons, among others, I am not about to repent. Americans are proud of their Apple, Microsoft and Chevron, and my dream is that our people and our companies will become global brands too.
That said, though, I am very worried about an emerging pattern in this administration. President Muhammadu Buhari campaigned on the strength of correcting the mistakes and misdeeds of the previous government, but I am seeing too much repetition for it to be coincidental. There is too much secrecy in the way many important things are done, and corruption, need we say, thrives on secrecy. Take away competition, take away transparency, take away accountability, and you have a perfect recipe for corruption. We cannot be sealing deals under the table without revealing the details to Nigerians and then claim we are building an open society.
We just woke up one day to learn that GE had secured the concession to take over the railways. How did it happen? What are the details of the deal? Is this the best possible deal Nigeria can get? We were just watching TV one evening and learnt that the federal government had finally signed a renegotiated concession agreement with the Global Steel Holding Limited (GSHL) for Ajaokuta Steel. Up till today, we don’t know the details. Ask questions and what you get as answer is: who paid you to ask? As a journalist, I’m used to the blackmail. I would have quit this job the day I joined if I had to pay attention to personal attacks.
By the way, I know a bit about the procurement options. I know of “sole sourcing”, where you go to one provider only because no other provider does it — like buying a Rolls Royce from the maker. “Selective tendering” allows you to approach a few providers who meet certain criteria. There is “repeat procurement”, where you return to earlier provider because of time constraints and because they did a previous job well. All these need strong justifications because you are restricting competition, which is a major element of procurement. And then there is “competitive bidding”, where you throw it open to all. In all, Nigerians deserve to know the process adopted.
Get me right. I am not saying anything illegal is being done in the case of the Port Harcourt Refinery. It just lacks transparency. That’s my point. And what about other moral issues? ENI again? As I write this, many Nigerians are being prosecuted or wanted by the EFCC for their involvement in the OPL 245 deal. They are being accused of taking part in an elaborate bribery scheme. But ENI, which is at the centre of it all and is being prosecuted by an Italian prosecutor for its role in the $1.3 billion affair, is cornering more deals in Nigeria without getting as much as a slap on the wrist. The impression being created is that our anti-graft war is very narrow.
I sympathise with the government over the limitations imposed by procurement rules, particularly the constraint of speed, but the process was designed for a purpose. More so, this government has been in power for nearly two years, which means a lot could still have been accomplished over the years in spite of the constraints. And, remember, there are many options that can shorten the process which the government has been using for a while now. The biggest headache, though, is that there is too much opaqueness for us to conclude that transparency is a guiding principle. The chaos over the concessioning of Port Harcourt Refinery is a very good example. Dissonance.
By Simon Kolawolelive.
In response to the escalating security challenges plaguing Nigeria, no fewer than 16 state governors have thrown their weight behind the establishment of state police forces.
This development was disclosed by the National Economic Council (NEC) during its 140th meeting, chaired by Vice President Kashim Shettima, which took place virtually on Thursday.
Minister of Budget and Economic Planning, Atiku Bagudu, who briefed State House Correspondents after the meeting, revealed that out of the 36 states, 20 governors and the Federal Capital Territory (FCT) were yet to submit their positions on the matter, though he did not specify which states were among them.
The governors advocating for state police also pushed for a comprehensive review of the Nigerian Constitution to accommodate this crucial reform. Their move underscores the urgency and gravity of the security situation across the nation.
Similarly, the NEC received an abridged report from the ad-hoc committee on Crude Oil Theft Prevention and Control. This committee, headed by Governor Hope Uzodinma of Imo State, highlighted the areas of oil leakages within the industry and identified instances of infractions.
Governor Uzodinma’s committee stressed the imperative of political will to drive the necessary changes and reforms needed to combat crude oil theft effectively.
Renowned academician, Professor Augustine Okereke, from the Medgar Evers College/City University of New York, has emphasised the detrimental impact of a lack of strong social institutions on Nigeria’s sustainable development.
Presenting a lead paper at the First Annual Ibadan Social Science Conference hosted by the University of Ibadan, Professor Okereke urged President Bola Tinubu to foster robust institutions capable of combatting corruption and addressing social ills.
“All our institutions are on the decline,” warned Professor Okereke, underscoring the urgent need for effective structures to facilitate sustainable development. He highlighted the challenges faced by African countries, emphasising the risk of continued poverty, underemployment, and injustice without these foundational structures.
The Dean of the Faculty of Social Sciences at the University of Ibadan, Professor Ezebunwa Nwokocha, asserted the university’s commitment to providing intellectual, context-specific solutions to Nigeria’s challenges.
He called on state and federal governments to patronise researchers in the country, emphasising the faculty’s reputation for producing intellectual leaders.
Professor Nwokocha stated, “Our faculty is reputed for offering deeply intellectual, workable, and context-specific solutions to the challenges faced by Nigeria over the ages.” He emphasised the significance of the conference’s theme in aiding Nigeria’s navigation through its complex existential reality marked by despair, rising inflation, insecurity, corruption, and unemployment.
During the conference’s opening, Vice Chancellor Professor Kayode Adebowale noted the relevance of the theme, “Social Science, Contemporary Social Issues, and the Actualization of Sustainable Development,” urging participants to generate transformative ideas for Nigeria.
Acknowledging the nation’s progress over 63 years, he expressed concern over setbacks in the economy and social indices, hoping the conference would proffer solutions.
In his keynote address, Professor Lai Erinosho stressed the rapid worldwide social change in the digital age, citing both benefits and unanticipated consequences for human survival. He cautioned against embracing same-sex relationships, citing dangerous implications for humanity.
The First Annual Ibadan Social Science Conference convened a diverse array of participants to explore solutions and intellectual leadership in addressing Nigeria’s pressing challenges.
As the country grapples with economic challenges, the latest figures from the National Bureau of Statistics (NBS) revealed a surge in the inflation rate to 28.92%, according to the December 2023 Consumer Price Index (CPI) released on a Monday afternoon.
The CPI, tracking the fluctuation in prices of goods and services, illustrates a notable increase from the previous month’s 28.20%, underscoring the pressing concerns surrounding the nation’s economic stability.
In a recent report, the Statistics Office revealed a notable uptick in the headline inflation rate for December 2023, marking a 0.72 percentage point increase from the previous month’s figure in November 2023.
On a year-on-year basis, the National Bureau of Statistics (NBS) highlighted a significant surge, with the December 2023 rate standing at 7.58 percentage points higher compared to the corresponding period in 2022.
December 2022 witnessed an inflation rate of 21.34 percent, underscoring the economic dynamics at play.
“This shows that the headline inflation rate (year-on-year basis) increased in December 2023 when compared to the same month in the preceding year (i.e., December 2022),” NBS said.
In a further revelation, the bureau disclosed that the month-on-month headline inflation rate for December 2023 experienced a 2.29 percent surge, surpassing November 2023 by 0.20 percent. This indicates a swifter rise in the average price level compared to the preceding month.
The report highlighted a concerning acceleration in food inflation, reaching 33.93 percent on a year-on-year basis for December 2023. This marked a substantial 10.18 percent points increase from December 2022’s rate of 23.75 percent. The data underscores the persistent upward trend in food prices, a trend exacerbated by various government policies, including the removal of subsidies on petrol.
Notably, in July 2023, President Tinubu declared a State of Emergency on food insecurity to address the escalating food prices. Taking decisive action, the President mandated that issues related to food and water availability and affordability fall under the jurisdiction of the National Security Council, recognising these as essential livelihood items in need of urgent attention.
In Monday’s inflation report, the National Bureau of Statistics (NBS) detailed the key contributors to the year-on-year increase in the headline index. The leading factors include food & non-alcoholic beverages at 14.98 percent, housing water, electricity, gas & other fuel at 4.84 percent, clothing & footwear at 2.21 percent, and transport at 1.88 percent.
Additional contributors encompass furnishings & household equipment & maintenance (1.45 percent), education (1.14 percent), health (0.87 percent), miscellaneous goods & services (0.48 percent), restaurant & hotels (0.35 percent), alcoholic beverages, tobacco & kola (0.31 percent), recreation & culture (0.20 percent), and communication (0.20 percent).
The report highlighted a substantial 24.66 percent change in the average Consumer Price Index (CPI) for the twelve months ending December 2023 over the previous twelve-month period. This represents a significant 5.81 percent increase compared to the 18.85 percent recorded in December 2022, indicating ongoing inflationary pressures in the economy.
Food Inflation
In a concerning trend, the food inflation rate for December 2023 surged to 33.93 percent on a year-on-year basis, marking a substantial 10.18 percent points increase from the same period in 2022, when the rate stood at 23.75 percent.
The National Bureau of Statistics (NBS) attributed this rise in food inflation to notable increases in the prices of various essential items. Key contributors include bread and cereals, oil and fat, potatoes, yam, and other tubers, fish, meat, fruit, milk, cheese, and eggs.
These price hikes collectively contributed to the intensified strain on consumers, highlighting the complex dynamics driving the upward trajectory of food prices.
“On a month-on-month basis, the Food inflation rate in December 2023 was 2.72 percent, this was 0.30 percent higher compared to the rate recorded in November 2023 (2.42 percent),” it said.
Clarifying the dynamics behind the recent uptick, the National Bureau of Statistics (NBS) explained that the month-on-month increase in food inflation for December 2023 was spurred by a heightened rate of escalation in the average prices of oil and fat, meat, bread, and cereals, potatoes, yam, and other tubers, as well as fish and dairy products like milk, cheese, and eggs.
“The average annual rate of food inflation for the twelve months ending December 2023 over the previous twelve-month average was 27.96 percent, which was a 7.02 percent points increase from the average annual rate of change recorded in December 2022 (20.94 percent),” the report added.
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