Opinion
Turning COVID-19 tragedy into opportunity for new Nigeria | By Godwin Emefiele
As many people are now aware, the outbreak of the Novel Coronavirus Disease (COVID-19) in China has rapidly permeated and profoundly changed the world. While this crisis is first and foremost a public health issue, which has claimed the lives of over 123,600 people worldwide, and counting, the economic damages are unprecedented on several fronts: crude oil prices have declined dramatically to as low as US$17 per barrel by the end of March, even before applying the discounts many oil exporters are offering; stock valuations for the NSE-ASI, Nikkei, Dow Jones and FTSE-100 have declined by an average of 23.8 percent between January and March 2020; global airlines have lost about US$252 billion in revenues and across the broad range of industries from hospitality to services, the pain is growing.
These outcomes have expectedly thrown the global economy into a recession, the depth and duration of which is currently difficult to fathom. In fact, the International Monetary Fund (IMF) predicts that the global economy would decline by 3 percent this year.
Around the world, countries have moved away from multilateralism and responded by fighting for themselves with several measures to protect their own people and economies, regardless of the spillover effects on the rest of the world. According to the World Customs Organization, a total of 32 countries and territories, adopted stringent and immediate export restrictions on critical medical supplies and drugs that were specifically meant to respond to COVID-19. As of 10 April 2020, an updated count of total export restrictions by the Global Trade Alert Team at the University of St. Gallen, Switzerland suggest a total of 102 restrictions by 75 countries.
On 4 March 2020, Germany announced an export ban that applied to all sorts of medical protection gear including breathing masks, medical gloves and protective suits. Around the same time, President Macron announced that France will requisition all face masks produced in the country, a de facto export ban. Between 8 February 2020 and 6 April 2020, India released eight (8) different export notifications banning several drugs and medical supplies including hydroxychloroquine, ventilators, personal protections masks, oxygen therapy apparatus, and breathing devices. On 3 April 2020, the Trump Administration invoked the war-era US Defense Production Act to stop major US mask manufacturer, 3M, from export of respirator masks, N95, to Canada and Latin America.
Fears of a long global recession have also led to worries about unprecedented global food insecurity, with concerns that agricultural production may be dislocated by containment measures that constrain workers from planting, managing and harvesting critical crops. Rather than seek cooperative and global solutions, several countries have resorted to export restrictions of critical agricultural produce.
According to the International Food Policy Research Institute (IFPRI), about 37 countries have enacted various forms of food export restrictions in response to COVID-19, even in countries where average production exceeds domestic consumption.
For example, Viet Nam, the world’s third largest exporter of rice, suspended granting rice export certificates until the country “reviews domestic inventories”. Russia, the world’s largest wheat exporter, announced a ten-day ban on the export of buckwheat and rice due to concerns over panic buying in local supermarkets.
What if these restrictions become the new normal? What if the COVID-19 pandemic continues in a second wave or another pandemic occurs in which all borders are shut, and food imports are significantly restricted? What if we cannot seek medical care outside Nigeria and must rely on local hospitals and medical professionals? For how long shall we continue to rely on the world for anything and everything at every time?
Although these developments are troubling, they present a clear opportunity to re-echo a persistent message the CBN has been sending for a long time, and at this time even more urgently so: we must look inwards as a nation and guarantee food security, high quality and affordable healthcare, and cutting-edge education for our people.
For a country of over 200 million people, and projected to be about 450 million in a few decades, we can no longer ignore repeated warnings about the dangers that lie ahead if we do not begin to depend largely on what we produce locally, because the security and well-being of our nation is contingent on building a well-diversified and inclusive productive economy.
When I became Governor of the Central Bank in June 2014, imports of rice, fish, wheat and sugar alone consumed about N1.3 trillion worth of foreign exchange from the Bank. The immediate question that came to my mind was: can we not grow these ourselves? After all, only a few decades ago, Nigeria was one of the world’s largest producers and exporters of palm oil, cocoa and groundnuts.
Today, we import nearly 600,000 metric tonnes of palm oil, whilst Indonesia and Malaysia, two countries that were far behind us in this crop, now combine to export over 90 percent of global demand. In 2017, Indonesia earned US$12.6 billion from its oil and gas sector but US$18.4 billion in from palm oil. I believe that this pandemic and the immediate response of many of our trading partners suggest it is now more critical than ever that we take back control, not just control over our economy, but also of our destiny and our future.
In line with the vision of President Muhammadu Buhari, the CBN has indeed created several lending programmes and provided hundreds of billions to smallholder farmers and industrial processors in several key agricultural produce.
These policies are aimed at positioning Nigeria to become a self-sufficient food producer, creating millions of jobs, supplying key markets across the country and dampening the effects of exchange rate movements on local prices.
This philosophy has been a consistent theme of the CBN’s policies over the last couple of years. At the 2016 Annual Bankers’ Dinner, I challenged the bankers that we needed to take decisive actions to fundamentally transform the structure of our economy. Throughout that speech, I talked about the damaging effects of Nigeria’s unsustainable propensity to import, and opined that it was high time we looked inwards and stopped using hard-earned foreign exchange (FX) to import items that we could produce locally.
This determination, therefore, formed the bedrock of the Bank’s policy, which restricts access to FX for importers of many items. These sentiments were re-echoed at the 2017 edition of the same Bankers’ Dinner, with specific examples of several companies that have benefited significantly from this policy of self-sufficiency. With President Buhari’s full support, we have continued to refine this policy to ensure that the best interest of Nigeria is served.
Many times, the Bank has been accused of promoting protectionist policies. My answer has always been that leaders are first and foremost accountable to their own citizens. And if the vagaries of international trade threaten their wellbeing, leaders have to react by compelling some change in patterns of trade to the greater good of their citizens.
That is why in response to COVID-19, we are strengthening the Nigerian economy by providing a combined stimulus package of about N3.5 trillion in targeted measures to households, businesses, manufacturers and healthcare providers. These measures are deliberately designed to both support the Federal Government’s immediate fight against COVID-19, but also to build a more resilient, more self-reliant Nigerian economy.
We do not know what the world will look like after this pandemic. Countries may continue to look inwards and globalization as we know it today may be dead for a generation.
Therefore, as a nation, we cannot afford to continue relying on the world for our food, education and healthcare. The time has come to fully transform Nigeria into a modern, sophisticated and inclusive economy that is self-sufficient, rewards the hardworking, but protects the poor and vulnerable, and can compete internationally across a range of strategic sectors.
In order to achieve this goal, we must begin immediately to support the Federal Government to:
1) Build a base of high quality infrastructure, including reliable power, that can engender industrial activity;
2) Support both smallholder and large scale agriculture production in select staple and cash crops;
3) Create an ecosystem of factories, storages, and logistics companies that move raw materials to factories and finished goods to markets;
4) Use our fiscal priorities to create a robust educational system that enables critical thinking and creativity, which would better prepare our children for the world of tomorrow;
5) Develop a healthcare system that is trusted to keep all Nigerians healthy, irrespective of social class;
6) Facilitate access to cheap and long-term credit for SMEs and large corporates;
7) Develop and strengthen pro-poor policies that bring financial services and security to the poor and the vulnerable; and
8) Expedite the development of venture capitalists for nurturing new ideas and engendering Nigerian businesses to compete globally.
India is in a position to ban exports because it is producing critical drugs and medical supplies that the rest of the world needs. It also has companies that are global champions, and even making mergers and acquisitions in advanced nations. Why should this be out of our reach? We have the companies too; we have the manpower and some of the best brains in the world from the Americas to Europe and from Asia to Africa are Nigerians; driving global innovations in all fields. Nigerians are successful everywhere, and are already one of the most sought after immigrant groups in the United States.
But now is the time to seize this opportunity and create an environment that empowers our people to thrive within our own shores.
To this end, the Central Bank has developed a Policy Response Timeline to guide our crises management and the orderly reboot of the Nigerian economy.
Immediate-Term Policies (0-3 Months):
In light of the fact that this crisis is an exogenous one thrust upon us without much warning, this phase reflects the government’s efforts at containment and mitigation. Although global cases are heading towards two million with over 123, 600 deaths as of 14 April 2020, we now have 343 cases, of which 10 deaths and 91 recoveries have been recorded. With President Buhari’s continuing strong leadership, Nigeria can now test 1500 persons per day in twelve (12) Molecular Test Laboratories. We believe that this strong leadership in travel restrictions, lockdown, social distancing, and other measures have been greatly effective to curbing the spread of the disease. More so, the Presidential Task Force and Nigeria Centre for Disease Control (NCDC) have helped the country stay ahead of the curve with increased testing capacity, provision of better-equipped isolation centres, and effective contact tracing. Within this milieu, the CBN has responded in several ways, first by supporting hospitals and pharmaceutical industry with low interest loans to immediately deal with the public health crises; then by working with the private sector Coalition Against COVID (CACOVID) to support the Presidential Task Force across its response, while mobilizing palliatives for the poor and vulnerable. Under this Immediate-Term Response, we have activated the following: 1) Ensuring financial system stability by granting regulatory forbearance to banks to restructure terms of facilities in affected sectors; 2) Triggering banks and other financial institutions to roll-out business continuity processes to ensure that banking services are delivered in a safe social-distance regime for all customers and bankers; 3) Granting additional moratorium of 1 year on CBN intervention facilities; 4) Reducing interest rates on intervention facilities from 9 percent to 5 percent; 5) Creation of N50 billion targeted credit facility for affected households & SMEs; 6) Strengthening the Loan-Deposit Ratio (LDR) policy, which is encouraging significant extra lending from banks; 7) Improving FX supply to the CBN by directing all oil companies (international and domestic) and all related companies (oil service) to sell FX to CBN and no longer to the NNPC; 8) Providing additional N100b intervention in healthcare loans to pharmaceutical companies, healthcare practitioners intending to expand/build capacity; 9) providing N1 trillion in loans to boost local manufacturing and production across critical sectors; and 10) Engendering financial inclusion by ensuring the poor and vulnerable are able, by all means necessary, through banks, microfinance, community and non-bank financial institutions, to access financial services to meet their basic needs.
Short-Term Policy Priorities (0 – 12 months):
As soon as President Muhammadu Buhari and the Health authorities determine our Coronavirus Transmission Curve is flattening and many of the ongoing restrictions are eased, this will be the phase for repositioning the Nigerian economic space. As part of the lessons from the current pandemic, we must ensure that that our value-added sector, the manufacturing industry is strengthened. Accordingly, the CBN will pursue the following policies in this phase: 1) Reinvigorate our financial support for the manufacturing sector by expanding the intervention all through its value-chain. In most cases, we will ensure that primary products sourced locally provide essential raw material for the manufacturing sector except where they are only available overseas; 2) With the support of the Federal Government, the CBN will embark on a project to get banks and private equity firms to finance homegrown and sustainable healthcare services that will help to reverse medical tourism out of Nigeria. By offering long-term financing for the entire healthcare value-chain (including medicine, pharmaceuticals, and critical care), banks will work with healthcare providers to consolidate on the current efforts to rebuild our medical facilities in order to ensure Nigeria has world class affordable hospitals for the people of Nigeria and those wishing to visit Nigeria for treatment; 3) The CBN will promote the establishment of InfraCo PLC, a world class infrastructure development vehicle, wholly focused on Nigeria, with combined debt and equity take-off capital of N15 trillion, and managed by an independent infrastructure fund manager. This fund will be utilized to support the Federal Government in building the transport infrastructure required to move agriculture products to processors, raw materials to factories, and finished goods to markets, as envisaged at the CBN Going for Growth Roundtable in March 2020; and 4) Continue to prioritize the provision of FX for the importation of machinery and critical raw materials needed to drive a self-sufficient Nigerian economy.
Medium-Term Policy Priorities (0 -3 Years):
Once the world returns to some new normal having tamed COVID-19 by a combination of vaccines and social distancing, and the Nigerian economy reopens fully for business, we will act quickly to enable faster recovery of the economy by targeted measures towards particular sectors that are able to support mass employment and wealth creation in the country. We will do so by focusing on four main areas, namely, light manufacturing, affordable housing, renewable energy, and cutting-edge research.
In manufacturing, for example, it is pertinent to note that Nigeria’s gross fixed capital formation is currently estimated at N24.55 trillion made up residential and non-residential properties, machinery and equipment, transport equipment, land improvement, research and development, and breeding stocks. Of this estimated value, machinery and equipment, which are the main inputs into economic production, are currently valued at only N2.61 trillion. In order to pursue a substantial economic renewal, including replacement of at least 25 percent of the existing machinery and equipment for enhanced local production, we estimate at least N662 billion worth of investments to acquire hi-tech machinery and equipment. Therefore, the CBN will consider an initial intervention of N500 billion over the medium term, specifically targeted at manufacturing firms to procure state-of-the-art machinery and equipment and automated manufacturing models that would fast-track local production and economic rejuvenation, as well as support increased patronage of locally processed products such as cement, steel, iron rods, and doors, amongst several other products. The recent private sector investments in cement production using enhanced technology and automated manufacturing models is a good example of the kind of economic renewal we will be pursuing in this phase. We will develop a thorough screening process and stringent criteria for equipment types that would qualify for funding under this phase.
In order to boost job creation, household incomes and economic growth, we will be focusing our attention to bridging the housing deficit in the country, by facilitating government intervention in three critical areas: housing development, mortgage finance, and institutional capacity.
We will pursue the creation of a fund that will target housing construction for developers that provide evidence of profiled off-takers with financial capacity to repay. The current identification framework in the banking sector using the bank verification number (BVN) will be used to verify the information provided by the off-takers before the developer can access the funds. We will also be considering ways to assist the Mortgage Finance Sub-sector as well as build capacity at the State levels for their land administration agencies to process and issue land titles promptly, implement investment friendly foreclosure laws and reduce the cost of land documentation, as this has remained a major inhibiting factor in the provision of affordable housing in the country.
Over the next 3 years, we will also support the financing of environmentally friendly energy production, as this has a tangential long-term health benefits. We will look at efforts to drive innovation and research in every sector, through our universities, research institutions, creative industry initiatives, and all other media of novelty and inventions.
In conclusion, I believe we must now envision and work toward a Nigeria with the cutting edge medical facilities to provide world class care to the sick and vulnerable; enable our universities and research institutions to provide the requisite education and training that is required to keep these ecosystems functioning sustainably and efficiently; and millions of Nigerians employed in meaningful and well-paying jobs. This is the Nigeria that we must aspire to build.
COVID-19 may have plunged us into a crisis of unprecedented proportions. But, as Winston Churchill once admonished, we must never let a crisis go to waste.
Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN)
Opinion
Almajiri: Why Northern Leaders Must Look Themselves in the Mirror
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.
Opinion
Nigeria: Dancing On The Edge Of Destiny
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.
Opinion
NNPCL vs. Dangote: Why Tinubu Can’t Play Pontius Pilate
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.
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