National Issues
OPINION: LET’S THINK & TALK By Atiku Abubakar, GCON.
LET’S THINK MORE ABOUT PRODUCTION THAN SHARING .
“We have natural resources, but without human capital neither Nigeria nor the Niger Delta can be like Singapore, which did not have significant natural resources to start with. But a nation without natural resources can be like Singapore if it develops its human capital, as Japan did before Singapore.
.. We must, therefore, demand good governance at all levels of our government. The immense developmental strides achieved by our First Republic leaders were achieved without oil revenues, yet we have for over forty (40) years now been behaving as though nothing can be achieved without oil revenues. We should all be thinking more about production rather than distribution or sharing. I do not know of any Country in the World that has developed just by its leaders gathering in their capital city every month to share revenues from rent.
During the 1994-95 constitutional conference some of us argued that such organs as Federal Ministries of Education, Health, Agriculture and sports were unnecessary.
We reasoned that their responsibilities should be devolved to States and Local Governments. At best the Federal Government should establish standards and regulatory bodies give grants to states that conform to them. This proposal was not adopted by the constitutional conference, so the current structure was retained.
Why should we be talking of federal roads and federal secondary schools?
Decentralization is not an invitation to the breakup of the country and national unity should not continue to be confused with unitarism and concentration of power and resources at the federal level. Of course I am aware that some of the main beneficiaries of our erstwhile regional parliamentary democracy have been hiding behind a call for restructuring to push for the breakup of the country because of their proximity to a finite natural resource and transient political power.”
…. THE MOST POWERFUL PRESIDENT IN THE WORLD.
“One of the consequences of excessive centralization and the military rule that facilitated it, is that the Nigerian President is the most powerful President in the world. This is because he could quite literally unleash all security agencies on an individual or organization, undermine the National Assembly, and turn the judiciary into an almost pro-government and conformist organ. This is not in the realm of speculation; it has been happening in this country. Indeed I drew attention to it when I was in office as Vice President and was having a political face-off with my Boss. It is not healthy for democracy and must be changed”.
TOO MUCH POWER AT THE CENTRE…..WHAT’S WRONG WITH STATE POLICE?
“I also want to recall that during the said 1994-95 Constitutional Conference,
Dr. Alex Ekwueme, GCON, the Second Republic Vice President of this federation, introduced and canvassed for the concept of geo-political zones. I was among those who opposed it because I thought that Ekwueme, coming from the defunct Republic of Biafra, wanted to break up the country again. Now I realize that I should have supported him because our current federal structure is clearly not working. Dr Ekwueme obviously saw what some us, with our civil war mindset, could not see at the time. There is indeed too much concentration of power and resources at the centre. And it is stifling our march to true greatness as a nation and threatening our unity because of all the abuses, inefficiencies, corruption and reactive tensions that it has been generating.
There is need, therefore, to review the structure of the Nigerian federation, preferably along the basis of the current six geo-political zones as regions and the states as provinces. The existing states structure may not suffice, as the states are too weak materially and politically to provide what is needed for good governance.
In the same vein, I see nothing wrong with the establishment of State Police by the states that want it, as long as it can be insulated from and is independent of the State or Regional Government. The argument that Governors will abuse State Police is rather specious. Should we abolish the Nigerian Police because it is often abuse by those in power at the federal level? Should we abolish the State treasuries because Governors abuse them? And should we also abolish Local Governments for the same reason? No. We should, as a people, struggle for and put in place institutional safeguards against abuse of power by those in power at all levels. We have a chance now to put many of those safeguards in a new constitution.”
….AND STATE FLAGS….AND STATE WAGES .
“And, as is typical with working federations around the world, state flag or anthem should not get us overly excited. Local identities and symbols are not antithetical to and do not preclude national identities. I, for one, am a proud northerner and I am a proud citizen of Nigeria. American states all have flags and anthem; yet I do not know of many countries that are more stable and united than the United States of America.
It is also absurd to say that all parts of the country should have a uniform wage structure for workers. Our states and regions have different revenue endowments and varying costs of living. And it is misguided for labour leaders to think that uniform wage structure across the country is in the best interest of workers. Employers, including state governments and agencies, that have the capacity to pay more should be able to do so. That can spur competition for the best talent, which may indeed raise overall wage levels (and standard of living) in the country.
Minimum wage standards should, therefore, be established by state/regional governments”.
THE LAST HOPE OF THE COMMON PERSON .
“Our judiciary is bloated, and increasingly conformist and pro-establishment. Yet justice is always delayed. In the US, which has a larger population and land mass, we find that the judiciary, while not bloated, delivers justice faster. I would like to see a more activist judiciary at all levels-local, regional and federal-one that actually does justice rather than hide behind technicalities to do injustice. I would like to see a judiciary that is able to live up to its billing as the last hope of the common person”
TWO POLITICAL PARTIES, PERIOD.
“I have long been an advocate of a two-party system because of our class, ethnic, religious and regional fault lines. My recommendation for legislative amendment in that regard is for the National Assembly to pass a law stating that there shall be two political parties in Nigeria, full stop. It does not have to decree their ideology their ideologies or platforms. This, in my view, will produce two political parties that will cut across our various divides, and be viable alternatives capable of forming government after elections.
Ruling parties all over the world never want strong opposition parties and in contexts such as ours are capable of undermining efforts by opposition parties to coalesce into a single formidable alternative party”.
The Nigerian government spent a staggering $3.58 billion on servicing foreign debt within the first nine months of 2024, marking a significant 39.77% increase compared to the $2.56 billion expended over the same period in 2023.
This data, drawn from a recent report on international payment statistics by the Central Bank of Nigeria (CBN), reflects a concerning rise in the country’s foreign debt obligations amid depreciating currency values.
According to the report, the most substantial monthly debt servicing payment occurred in May 2024, totaling $854.37 million. This is a substantial 286.52% increase from May 2023’s $221.05 million.
Meanwhile, the highest monthly payment for 2023 was $641.7 million in July, underscoring the trend of Nigeria’s escalating debt costs.
Detailed analysis of monthly payments further illuminates the trend.
In January 2024, debt servicing costs surged by 398.89%, reaching $560.52 million, a significant rise from $112.35 million in January 2023. However, February saw a modest reduction of 1.84%, with costs decreasing from $288.54 million in 2023 to $283.22 million in 2024. March also recorded a decline of 31.04%, down to $276.17 million from $400.47 million the previous year.
Additional fluctuations in debt payments continued throughout the year, with June witnessing a slight decrease of 6.51% to $50.82 million from $54.36 million in 2023. July 2024 payments dropped by 15.48%, while August showed a 9.69% decline compared to 2023. September, however, reversed the trend with a 17.49% increase, highlighting persistent pressure on foreign debt obligations.
With the rise in exchange rates exacerbating these financial strains, Nigeria’s foreign debt servicing costs are projected to remain elevated.
The central bank’s data highlights how these obligations are stretching national resources as the naira’s devaluation continues to impact debt repayment in dollar terms.
Rising State Debt Levels Add Pressure
The federal government’s debt challenges are mirrored by state governments, whose collective debt rose to N11.47 trillion by June 30, 2024.
Despite allocations from the Federal Accounts Allocation Committee (FAAC) and internally generated revenue (IGR), states remain heavily reliant on federal transfers to meet budgetary demands.
According to the Debt Management Office (DMO), the debt burden for Nigeria’s 36 states and the Federal Capital Territory (FCT) rose by 14.57% from N10.01 trillion in December 2023.
In naira terms, debt rose by 73.46%, from N4.15 trillion to N7.2 trillion, primarily due to the naira’s depreciation from N899.39 to N1,470.19 per dollar within six months. External debt for states and the FCT also increased from $4.61 billion to $4.89 billion during this period.
Further data from BudgIT’s 2024 State of States report illustrates how reliant states are on federal support. The report revealed that 32 states depended on FAAC allocations for at least 55% of their revenue in 2023.
In fact, 14 states relied on FAAC for 70% or more of their revenue. This heavy dependence on federal transfers underscores the vulnerability of states to fluctuations in federal revenue, particularly those tied to oil prices.
The economic challenges facing both the federal and state governments are stark. The combination of mounting foreign debt, fluctuating exchange rates, and high reliance on federally distributed revenue suggests a need for fiscal reforms to bolster revenue generation and reduce vulnerability to external shocks.
With foreign debt obligations continuing to grow, the report emphasizes the urgency for Nigeria to address its debt sustainability to foster long-term economic stability.
Engr. Aderemi Oseni, representing Ibarapa East/Ido Federal Constituency of Oyo State in the House of Representatives, has called for a prompt investigation into the increasing occurrences of building collapses in major cities across Nigeria.
In a motion presented to the House on Wednesday, Oseni expressed deep concern over the alarming frequency of building collapses, emphasising the threat they pose to the lives and property of Nigerians.
The APC lawmaker, through a statement by his media aide, Idowu Ayodele, cited the recent collapse of a two-storey school building at Saint Academy in Busa Buji, Jos, Plateau State, on July 12, 2024. The tragic incident, which trapped 154 people and claimed 22 lives, is the latest in a series of similar disasters, raising serious concerns nationwide.
Oseni also referenced a report from The Punch newspaper, which revealed that Nigeria had recorded 135 building collapse incidents between 2022 and July 2024.
“This figure is alarming and unacceptable,” he stated, stressing the urgency of preventing further occurrences.
The Chairman of the House Committee on Federal Roads Maintenance Agency (FERMA), Oseni reminded the House that the Council for the Regulation of Engineering in Nigeria (COREN) and other relevant professional bodies are responsible for ensuring compliance with building standards and practices.
“Despite these regulatory frameworks, the recurring collapses suggest that enforcement is lacking. The loss of lives, properties, and resources is staggering, and this disturbing trend must be addressed immediately,” he remarked.
He proposed the formation of an Adhoc Committee to investigate the underlying causes of these collapses and recommend both immediate and long-term solutions.
Also, he urged the House Committee on Legislative Compliance to ensure swift implementation of any recommendations.
The House agreed to deliberate on the motion and is expected to present its findings and proposed actions within eight weeks.
The Vice-chairman of the Oyo Council of Obas and Chiefs, Oba Francis Olusola Alao, has expressed deep concern over the increasing involvement of religious leaders in material pursuits, accusing them of abandoning their spiritual duties in favour of wealth and influence.
Oba Alao, who is also the Olugbon of Orile Igbon, made this statement during a visit from the leadership of the Cherubim and Seraphim Church Movement “Ayo Ni O,” led by Baba Aladura Prophet Emmanuel Abiodun Alogbo, at his palace in Surulere Local Government on Thursday.
The monarch accused some religious leaders of sharing part of the blame for the moral and political crises that have engulfed the nation. According to him, spiritual leaders, once seen as the moral compass of society, have become compromised by corruption, aligning themselves with the very forces they should condemn.
Oba Alao was unapologetic in his criticism, stating, “Ninety-five percent of Nigerian leaders, both political and religious, are spiritually compromised.”
He argued that this moral decay among clerics has made it impossible for them to hold political leaders accountable or speak the truth to those in power, as their integrity has been eroded by their pursuit of material wealth.
“Carnality has taken over spirituality. Our religious leaders can no longer speak the truth to those in authority because their minds have been corrupted. Most of the so-called General Overseers (G.O.) are corrupt and perverted,” Oba Alao added.
He stressed that this shift towards wealth accumulation at the expense of spiritual values has greatly contributed to the country’s stagnation in development and social justice.
Olugbon urged both religious leaders and traditional rulers to reflect on their actions, reminding them that they would be held accountable for their stewardship, both in this world and the next.
“The prayers of sinners are an abomination before God, hence the need for our leaders to rethink,” he warned.
The monarch concluded by reiterating the transient nature of power and the importance of staying true to sacred duties, regardless of the temptation to indulge in worldly gains. “I am a traditional ruler. I don’t belong, and will never belong, to any occultic groups,” he emphasised, drawing a clear line between his position and the corrupt practices of some leaders.
In response to the Cherubim and Seraphim Church Movement’s request for collaboration on community development projects, Oba Alao assured them of his support.
“Your requests are aimed at the development of the Orile Igbon community. I am assuring you that necessary assistance will be provided in this regard.”
Earlier, Prophet Alogbo requested the monarch’s collaboration on a range of community development projects. These initiatives include the establishment of a women and youth empowerment center, clean drinking water initiatives, a bakery, animal production facilities, and farm produce processing.
Other proposals included a diagnostic and medical center, a full-size recreational sports facility, and a home care facility for the elderly.
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