Connect with us

Opinion

Makinde’s Concession of Agbowo Complex: Is 4.9Billion Naira Equal 50years? | By Moruf Smith

Published

on

Yesterday, Governor of Oyo State, Engineer Seyi Makinde flagged off the concession of the long moribund Agbowo Shopping Complex to Messrs Whitestone Global Limited at a cost of 4.9 Billion Naira on a long lease of 50years!

 

The company was given a mandate to renovate the complex to a commercial real estate and a 4-star hotel within 24 months. In his remarks at the flag off event, Governor Makinde took a swipe at the immediate past administration of late Senator Abiola Ajimobi which signed an MOU with Agbowo Mall Infrastructure Development Company Limited to remodel, redevelop and rehabilitate the expansive complex at a cost of 8 Billion naira. The said MOU was said not to have seen the light of the day until the tenure of the last administration wound up.

However, the concession of the complex by the current administration was not a smart move. It was not well thought out. Everything was wrong with the concessional arrangement; from the funding of the concession to the long lease of 50 years. It’s worthy of note to revisit the story behind Agbowo Shopping Complex.

The complex was constructed by the administration of late Chief Bola Ige in 1983 on 30 plots of land. The complex was being managed by Oyo State Housing Corporation and had been a source of employment and job opportunities for the teeming people of the state while it contributed to the economy of the state and a source of revenue to the government. But Agbowo Complex suffered neglect and mismanagement as successive governments in Oyo state made no effort to resuscitate the sprawling monument until the administration of late Senator Abiola Ajimobi decided to renovate it.

The immediate past administration signed an MOU as explained above but a protracted court case remained a clog in the wheel of progress on the renovation of the abandoned complex. It’s however not clear whether the present government has resolved the issue of the court case on the complex before the governor went ahead to initiate the concession.

It ought to be commendable that, at last, pragmatic efforts were being made to get Agbowo Shopping complex up and running. But what cast doubts on the sincerity behind the latest flag off of the concession arrangement are the manner of funding and the years of lease. It would be recalled that during the first tenure of Senator Abiola Ajimobi, Oodua Group under the chairmanship of Bar Sarafadeen Alli and Mr Adebayo Jimoh as the Group Managing Director, embarked on construction of Heritage Mall and redevelopment of Cocoa Mall in Dugbe Business District at the cost of 3 Billion Naira.

Construction of Heritage Mall was wholly financed by the Oodua Group, costing 2 Billion naira while Cocoa Mall redevelopment was carried out in partnership with Frontline Developer Services Limited, costing 1 Billion naira. Oodua Group is owned by governments of Oyo, Ondo, Ogun, Osun and Ekiti states. After the construction and redevelopment of the two malls, Oodua Group outsourced the facilities to a consortium of facility managers who see to the functionality and maintenance of the malls. Heritage Mall and Cocoal Mall, housing Shoprite, cinema house and other important stores are doing well as we speak.

 

If Oodua Group, jointly owned by states in the south west, including Oyo state, could finance construction of malls and other facilities without concession or long lease, what stops Oyo government to toe the same more viable path? 4.9 Billion naira is too paltry to seek concession and long lease for. If the present government is still creditworthy, it should be able to get a consortium of local banks to finance the project after which the government can also engage a consortium of real estate managers to manage the facilities.

It should not take more than ten years long to repay the local banks the loans and interests from the purse of the state while revenues from the management of the rejuvenated complex will have been accruing to Oyo state. This is unarguably a win-win situation for government in terms of increased revenue, for people in terms of employment and job opportunities and value chain, for investors in terms of return on investment and for facility managers in terms of professional engagements.

The present concessional arrangement of 4.9 Billion naira equals 50 years is a win to Messrs Whitestone Global Limited, a win to people in terms of job opportunities but a huge loss to Oyo state in terms of revenue as acute depreciation will have befallen Agbowo Shopping Complex after 50 years of its renovation when the state is expected to take it over. It may not be wrong to dwell on the allegation that the administration of Seyi Makinde may be preparing Agbowo Shopping Complex for personal gains of its principal.

Even if Governor Makinde was going to spend 8years in Agodi, it will take another long stretch of 44 years for the state to recover Agbowo Shopping Complex from Messrs Whitestone Global Limited, which must have fed fatter and become chubbier on Oyo state’s patrimony. If we spend three years to prepare a man for madness, when is he going to storm market?

If Messrs Whitestone Global Limited manages Agbowo Shopping Complex for 50years to recoup 4.9 Billion naira and interests accrued, when will Oyo state begin to reap her investment and profits on the complex?

 

Comments

Opinion

Almajiri: Why Northern Leaders Must Look Themselves in the Mirror

Published

on

Two incidents happened during the 1994/95 NYSC service year, which I was part of in Birnin-Kebbi, Kebbi State, and they gave me profound culture shocks that I still remember till today. I would equally say that those incidents probably justified the Federal Government’s decision to float the scheme.

 

We were told that part of the reasons General Yakubu Gowon floated the NYSC was to ensure national integration, cohesion and exposure of young Nigerians to cultures of other parts of the country other than where they were born.

First was the shock of seeing a director that I was attached to in the then Government House, who had just taken a new wife, and sat among drivers, gate men and other junior staff to dine. I saw them seated round a huge iron pot of Koko, a local delicacy, exchanging one big spoon made of calabash, as each took turns to use the spoon to eat the delicacy. It was as if I was witnessing a scene where children of a big family were struggling to catch a portion of food or where people were eating Saara, as they say it in Yorubaland.

As I walked past the noisy crowd, I was transfixed seeing the newly-wedded director among the lot. He saw me standing still, as I couldn’t comprehend what he was doing there, and he got the message. ‘Taiyo, (as he used to call me) you won’t understand,’ he said as he waved to me to keep going. When we later saw, he explained that what he just did was a way of assuring the commoners that ‘we are all one,’ as they felicitated him on the new bride. But I could not fathom how the occupant of a ‘huge office’ as that of a director in a Government House , would sit among “commoners” on a tattered mat to share a single spoon and eat in public.
The other incident was quite pathetic. My friend, Tunde Omobuwa, was posted to a school in Yauri, in the southern part of the state, for his primary assignment. But he found the place boring on weekends. So, he arranged to always be with me on weekends.

One such weekend, we decided to take a stroll round the streets near the Government House. We took off from the place of my primary assignment, the Federal Information Centre; bought corn beside the office, and started ‘blowing’ the ‘mouth organ’ as we strolled. We were too engrossed in our gist and the sweetness of the corn to note that some young boys were trailing us, praying that some leftovers of the corn would drop for them to scavenge. Somehow, the two of us dropped the corn cob almost simultaneously. We were more than taken aback by a commotion that erupted at our back. Four eight or nine year-olds had descended on the supposed leftovers and broken the corn cobs into pieces. I was again transfixed as if one was hit by an electric shock. Remember that feeling when you play with electric fish?

I was moved to tears as I had never ever seen a group of children scavenging on nothing as it were. I beckoned to the kids and offered them N20, which was the highest denomination at the time, and with some smattering Hausa words told them to go buy their own corn from the same place we got ours. As they left, heading to the corn seller, I couldn’t erase that ugly sight from my mind. Was it really possible that some people scavenge on nothing this way? I was later to see incidents of children swarming around restaurants and pouncing on near empty plates.

These incidents told me clearly that the North was a different place and that the life of the boy child is not only risky and endangered but sold to stagnation and deprivation, unless you are one of the lucky few.

Having benefited from the free education policy of the Unity Party of Nigeria (UPN) between 1979 and 1983, when the Second Republic was terminated, I knew that there is a lot the government can do in educating the children. In my secondary school days, I was the Library Prefect at one point, and so I saw an excess of books supplied by the government to our school. So, I was an example of the feasibility of free education. It was the same way the Action Group government had handled education in the years preceding Nigeria’s independence and the First Republic.

So why can’t the state governments in the North declare free and compulsory education for the young ones out there? Why should children be made to scavenge on empty corn cobs just to see if they can find pieces of seeds left over?

And why was my director giving drivers and gate men in the Government House false hope that they were all the same, instead of him to challenge them to seek to lift themselves up the social ladder?
I think there was no excuse for the North not to have adopted a free education policy, just as Chief Obafemi Awolowo did in the South-West. And if we say the North needs to look itself in the mirror, you again remember the efforts by President Goodluck Jonathan to educate the multitude of Northern children through the Almajiri Schools. That government built more than 400 of such schools, which were abandoned because it could upset the oligarchy. The oligarchs forgot the truism that the children of the poor they refuse to train today won’t let their children sleep peacefully.

But the governor of Borno State, Prof Babagana Zulum, appears to have got the message. Last week, I was thrilled to see him organise a summit to reform the Almajiri system.

The Almajiri education system is a traditional Islamic method of learning widely obtained across states in northern Nigeria. Through that system, which is tied to Islamic teaching, youths, especially boys are kept out of the formal western education system. I don’t know why the teachings by Islamic scholars cannot go alongside that of Western education as it obtains in Saudi Arabia, Iran, Iraq and other Islamic countries that are doing well economically and in the world of science, technology.
While addressing the summit, Zulum had mentioned the need to address the root causes of insecurity through the provision of education for citizens of Borno, adding that improper teaching of Islamic studies has contributed to the emergence of Boko Haram insurgents in the state.

According to him, to curtail whatever is the adverse effect of Almajiri education; the Borno State Government has established the Arabic and Sangaya Education Board to introduce a unified curriculum for Sangaya and Islamic schools. He said that the reform would include establishing Higher Islamic Colleges to cater for Almajiri children and blending the religious teachings with the secular curricula as well as skills.
He said: “The Sangaya Reform is a great development. It will give Almajiri a better chance in life, particularly the introduction of integrating western education, vocational, numeracy, and literacy skills into the centres, which are also described as Almajiri and Islamic schools.

“Distinguished guests and esteemed educationists, government’s intention was to streamline the informal and formal education systems to quality integrated Sangaya School for admission into colleges and universities.”

One would have thought that governors with radical postures like Nasir el-Rufai and others before him would have proposed this type of reform, but it is better late than never. Zulum should be supported to get something out of this.

Continue Reading

Opinion

Nigeria: Dancing On The Edge Of Destiny

Published

on

Nigeria stands as a paradox, endowed with immense natural wealth yet grappling with staggering poverty levels among its populace. The country is blessed with an abundance of resources, including diverse agricultural products, vast oil reserves, and a burgeoning tourism and entertainment industry, all of which hold immense potential for national prosperity. Despite this richness, many Nigerians endure dire economic conditions, raising questions about the effective management and equitable distribution of wealth generated from these resources.

The agricultural sector in Nigeria is a significant contributor to both the economy and food security. With favourable climatic conditions and arable land, Nigeria has the potential to become an important player in global agriculture. However, inefficiencies in farming techniques, lack of access to modern equipment, inadequate infrastructure, and insecurity impede growth, leaving many farmers in subsistence conditions. By addressing these challenges, Nigeria could harness its agricultural wealth to reduce poverty and strengthen its economy.

Similarly, oil and gas remain at the forefront of Nigeria’s natural resources, providing a substantial share of government revenue. Unfortunately, the oil riches have also been a source of conflict and corruption, leading to environmental degradation and social unrest in oil-producing regions. Although the sector can foster economic growth, the mismanagement of resources has prevented the country from fully benefiting from its wealth. Furthermore, the fluctuating oil prices on the global market create vulnerability, emphasizing the need for economic diversification.

The entertainment industry, particularly Nollywood, represents another facet of Nigeria’s wealth. This sector showcases rich cultural heritage, offers employment opportunities, and generates income. Despite its success, it has not yet been leveraged to bring about far-reaching economic change across the country. Without addressing existing systemic challenges, Nigeria’s abundant resources might continue to dance precariously on the edge of opportunity, further complicating the narrative of its natural wealth.

Leadership Challenges and Political Corruption

Significant leadership issues and pervasive political corruption have plagued Nigeria’s history. Since gaining independence in 1960, the nation has witnessed a succession of leaders, many of whom have failed to prioritize the welfare of their citizens. Ineffective governance has not only hampered Nigeria’s growth but has also led to a persistent cycle of political instability. This crisis of leadership has contributed significantly to the erosion of public trust in governmental institutions, weakening the social fabric of the country.

The impact of political corruption is deeply entrenched in Nigeria’s socio-economic landscape. Corruption permeates various layers of governance, leading to the misallocation of resources intended for public welfare. Essential services such as healthcare, education, and infrastructure development suffer as funds are diverted for personal gain. The consequences of such malfeasance are evident in the rise of poverty rates, inadequate healthcare systems, and a significant lack of access to quality education. Consequently, these socio-economic challenges create a vicious cycle that further exacerbates the leadership crisis.

Historically, Nigeria has experienced a range of leadership styles, from military rule to civilian governments, yet the recurring theme remains the same: a failure to eradicate corrupt practices. Each new leadership regime often promises reform and better governance, but these assurances rarely translate into meaningful change. The lessons from past experiences underscore the importance of accountability and transparency in rebuilding trust between the government and the populace. As the nation grapples with its leadership crisis, the intersection of governance and corruption demands critical attention to chart a new course towards sustainable development and empowerment.

The Hardships Under the Current Administration

The current administration of Nigeria, under President Bola Tinubu, has ushered in an array of policies that have sparked significant public discourse due to their profound impact on the lives of ordinary Nigerians. Notably, the removal of fuel subsidies has been a pivotal move that has reverberated through the economy, leading to steep increases in fuel prices. This sudden change has not only made transportation costs soar but has also led to a ripple effect, dramatically affecting the prices of basic goods and services. Citizens are now grappling with the daily realities of inflated living costs, often on already strained budgets.

Furthermore, the naira floating, aimed at addressing exchange rate discrepancies, has instead resulted in further devaluation. The naira’s instability has posed challenges for local businesses and individual consumers, making it increasingly difficult to afford essential products. This monetary policy highlights the delicate balancing act required in governance, reflecting the complexity of addressing economic issues while ensuring the welfare of the populace. Many Nigerians report feelings of uncertainty and anxiety regarding their financial futures, emphasizing a general sentiment of disillusionment with the direction of government policy under the Tinubu administration.

A Path Forward: Hope or Despair?

Nigeria’s current circumstances present a dichotomy of hope and despair. Despite the numerous challenges confronting the country, including political instability, economic hardships, and social unrest, there is a glimmer of hope that reform is possible through concerted efforts by the populace and leadership. As the country reaches a crossroads, systemic reforms have the potential to catalyze change. These reforms must prioritize institutional strengthening, increase transparency, and promote inclusive and sustainable economic growth.

Public participation is critical in this endeavour. Citizens must reclaim their agency by actively participating in democratic processes, advocating for accountability from their leaders, and demanding that their voices be heard. Civic education should be promoted to ensure that the electorate is informed and empowered to make decisions that affect their future. Furthermore, civil society organizations can play a pivotal role in mobilizing resources and providing platforms for dialogue, where citizens can articulate their needs and aspirations.

Accountability from leadership is another cornerstone for progress in Nigeria. As the people seek a path forward, leaders must prioritize the needs of their constituents over personal interests. Regular assessments of governmental performance, transparency in budgeting and spending, and anti-corruption measures can help to restore public trust. Leaders who demonstrate commitment to these principles may inspire hope and foster collective action aimed at the common good.

Ultimately, the question remains: Who holds the key to Nigeria’s promised future? The answer lies within the collaboration between the government and its citizens, whereby both parties work towards common objectives. The road to prosperity for Nigeria is not easy, but through systemic reforms, public engagement, and accountability, there exists an opportunity to transform hope into reality, steering the nation towards a brighter tomorrow.

 

 

Mimiola, an Award-Winning journalist, sent in this piece.

Continue Reading

Opinion

NNPCL vs. Dangote: Why Tinubu Can’t Play Pontius Pilate

Published

on

The Presidency addressed several issues last Wednesday as the Special Adviser to President Bola Ahmed Tinubu on Information and Strategy, Mr. Bayo Onanuga picked the microphone to give perspectives to certain developments. One of the issues he addressed was the lingering feud between the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refineries Limited.

Onanuga said that President Tinubu would not intervene in the feud because the two entities “operate independently in a deregulated market.”

According to Onanuga, the Premium Motor Spirit (PMS) field has been deregulated, just as Dangote is a private company. The NNPCL is a limited liability company, he said. In the loaded statement, the presidential adviser was hinting Nigerians why the President cannot dabble into the huge but confusing feud between Dangote Refineries and NNPCL, over the pricing of petroleum products in the country.

The presidential adviser and Nigerians are not oblivious to the implications of his statement. First, a lot of hope had been invested in the Dangote Refineries by Nigerians, who had concluded that its coming on stream would yield them cheaper fuel and help end the perennial fuel scarcity that kept the pumps at the filling stations dry for most of the months. But as the refinery was about to fag off its full operations, officials of the refinery, the NNPC and its subsidiaries started singing some music with disparaging tunes. Accusations upon accusations were rampaging in the air, while some name calling and tagging were being spread openly and under the table. It became obvious that elements in the administration of President Tinubu were opposed to the operation of the local refinery. Such insinuations must have prompted the President of Dangote Group, Alhaji Aliko Dangote to speak out in some tones not easily attributable to him hitherto. He alleged that officials of the NNPC were running a blending plant in Malta, where fuel is imported into Nigeria. He equally offered to hand off the Lagos-based refinery if the government would buy him out.

As tension rose, between Dangote and NNPCL, the corporation was having the last laugh, as it chose the same time to unleash some violent strokes of koboko whips on the back of the Nigerian citizen. It galloped fuel prices at will and at the same time locked the products away from their reach. Queues got unwinding at filling stations and the agony was unending. The hunger and thirst for Dangote fuel grew, but the NNPC chose to remain the stumbling block. I guess that the cries of Nigerian citizens at one point got across the Aso Rock Villa, in Abuja and the presidency had to order a temporary ceasefire. NNPCL was directed to create avenues for the supply of crude oil to Dangote in Naira while the refinery too was to agree to a pricing model to be fashioned by the Federal Executive Council. Even at that, the two combatants have continued to throw jabs at each other, especially over what should constitute the exact price of Dangote petrol. While Dangote had claimed that fuel from its refineries would be far cheaper than imported ones, the NNPC had given a conflicting indication. The NNPC/Dangote tango has been a ding-dong and a topsy-turvy affair.

That was the situation as the October 1 date fixed for the start of crude supply to Dangote draws close. And Mr. Onanuga was speaking against that backdrop. If that stands, it would amount to classifying Tinubu in the mould of the biblical Pontius Pilate, as seen in the book of John 18:37-49 and 19:1-19. In that biblical encounter, leading to the final crucifixion of Jesus Christ, the Jews had brought Jesus to Pilate’s court for an indictment that would enable them to crucify him. Pilate asked questions of Jesus and even though Jesus answered in the spirit, the judge was still able to conclude that he found no fault in Jesus. And that was despite the mounting pressure from the multitude of Jews, seeking to crucify Jesus.

As we read in John 19:6; “When the chief priests therefore and officers saw him, they cried out, saying, Crucify him, Crucify him. Pilate saith unto them, Take ye him, and crucify him: for I find no fault in him.”

I believe that President Tinubu should not throw Nigerians at the NNPC, like sheep to wolves. If the declaration of his office is allowed to stand, he would be doing otherwise. To play the Pilate in this needless NNPCL and Dangote feud, he would have endorsed all the punishment his compatriots are suffering at the hands of the NNPCL. He would have said, even though I found no merit in the push to whip the population, I leave you to crucify them’ That would tell us that the President is not only shirking his responsibility as the Minister of Petroleum but also his overriding power as the President and Commander-in-chief.

Much as the officials of the NNPCL and other subsidiaries owned by the Nigerian people want to play the master by believing that they are independent limited liability companies, we will be hiding behind one finger if we believe any inch of that claim. And besides, which limited liability company would not be accountable to its shareholders or the chairman of its board?

If we don’t want to use agidi to light a gas cylinder, we have to agree that the matter of fuel supply in Nigeria is a basic unmistakable assignment President Tinubu must handle for his employers-the Nigerian people. He must be in a position to find answers to the puzzles. Why is fuel supply such a pain in the neck under his administration so far? Why is the locally imported fuel threatening to get more expensive under the watch of the NNPC he supervises? And why is the same NNPC seeking to suffer headaches for another person? When will NNPC’s refineries come alive after the several deadlines?

President Tinubu needs to intervene decisively too, by helping his employers find solutions to the endless hike in fuel prices, and why citizens of other oil-producing countries derive benefits from oil while the Nigerian situation is perpetually in the negative. The Daily Trust on September 23, published a report by Global Petrol Prices, a platform that tracks petrol prices across various countries, which claimed that four countries in Africa sell fuel cheaper than Nigeria. They include Libya which sells at $0.032 (approximately N52/litre), Egypt ($0.279), Algeria($0.342) and Angola, another oil-producing country, at $0.351 per litre.

 

Besides the above, Tribune columnist and renowned writer, Professor Farook Kperogi quoted data by some oil industry experts who claimed that the landing cost of imported petrol in Nigeria should stand at N1,107 per litre and that several cost components are not inclusive of locally imported fuel.

According to him, when such cost components are removed, Dangote’s fuel should not sell higher than N518.35 per litre. Indeed, investigations have revealed that Dangote fuel costs far cheaper than the amount quoted by him and the NNPC. You could see the fire in the eyes of the spokesperson of Dangote when he refuted the claim that NNPC got fuel at N890 per litre from the refinery.

President Tinubu should not play the ostrich, he cannot afford to play the Pontius Pilate in this case, if he wants a reversal of the oil curse in his tenure.

Continue Reading

Trending