WE SHOULD ALL BE ACTIVISTS…PART 2

Hamzat Lawal March 1, 2017 4

I remember the first time i heard the word ACTIVISM- before i got admitted into the university and there was always some news on the television about one form of student activism or the other- either students protesting a lack of social amenities or hike in school fees. These protests were usually characterized by the carrying of placards, sticks, chanting student union songs and slogans etc.

Then came the era of labor unionism, which in another way defined activism for me and a lot of Nigerians as facing off with government and going on strikes.

The above mentioned examples and some others that easily come to mind give the impression that activism always has to be violent and angry. Indeed, there are times when one has to get angry enough about the situation to want to change things, to say enough is enough. Activism is however a lot more than that.

The term activism in itself is quite contentious and has been the source of many debates with different definitions from different points of view.

The Freedom of Association, in their book “Moments of Excess” give one of my best definitions of activism as “specializing in social change. Therefore, an activist is an expert of social change”

A popular definition of activism captures it as being “an engaged citizenry”. Meaning that activists are generally citizens who are concerned about and take steps to address issues of public concern. Any issue that affects public life should concern us all. Ergo, we should all be activists.

Here are a few important steps to becoming an active citizen:

  • Be knowledgeable about the issues – knowledge they say, is power and one can never underestimate the power that lies in being equipped with the right type and amount of information. The only way to engage effectively with the issues is by being properly informed. So, do your research, ask question and dig deep until you get all the answers!
  • Be ready to engage – it should not stop at being equipped with the right type and amount of knowledge alone. It is pointless if you have the information and you are not ready to put that knowledge to work; all that energy and effort put into acquiring it would have just been wasted if you do not enagage!
  • Find a space/niche – there may be that little voice in your head telling you that you are the only person alive on earth who is interested in bringing about social change. This is farthest from the truth. There are many others who are interested in the same issues as you and who are also equipped with the information you have. So, what gives you the extra edge? The answer is your niche (that space you have created for yourself, that people can identify you with). Don’t get me wrong – you do not have to start an organisation or movement or enterprise to create a niche for yourself – you can find an organisation or movement whose vision/mission/aspirations tie very closely to yours and join them or collaborate or even volunteer. Resist the temptation for quick glory. Rather, understand that you need time to learn and mature and a great way to do this is by learning from those who have been in the game longer than you and who have more experience.
  • Walk the talk and talk the walk – a lot of people will argue that we have too many talkers and very few doers. While i may have certain reservations about the generalization a lot of people accrue to this statement, it is not entirely false in itself. Oftentimes, we find out that we have so many people making so much noise about an issue, especially on social media but, when it gets down to the nitty gritty; to actually getting down to the real work of doing, only a few are left. True activists are known by their actions, not their words. It may be something as simple as stopping in front of a zebra crossing while others are driving past or stopping at a red light while other drivers zoom past or you may decide to be like Mahatma Gandhi and go on hunger strike as a way of disagreeing nonviolently with a popular opinion. Whatever way you choose, just make sure your actions speak for you and people can identify you as a real change maker.
  • Be authentic – a friend once told me that passion comes from authenticity and i find this to be very true. When your passion stems from a place that is very real, there is no limits to the impact and influence that you can have on people around you.

Tying all of this to the work we do at connected development, we may not take to the streets , carrying placards and chanting (we do not need to). But the sound of our activism echoes loud and clear. We are breeding a community of revolutionary individuals who see governance as a partnership between the governed and the governing; each playing his own part at ensuring a society where social justice and equity prevails. We are breeding a community of social change experts, a community of concerned citizens and this is essentially what activism is all about.
If you are ready to become an engaged citizen, you can join our platform on www.ifollowthemoney.org

Tax Treaty. Training by ActionAid. My Experience.

Hamzat Lawal February 26, 2017 0

All these and more have been encapsulated in the reason behind the Tax Treaty Training hosted by ActionAid to bring to the fore, concise details of the Nigeria taxing system and the processes of Tax Treaties between Countries, most especially, Nigeria.

Hosted at one of the Luxurious halls of Sandralia Hotel, Jabi, from 20th to 21st February. The First Day of the training was dedicated to elucidate and make more comprehensible – Tax and Tax Treaties.

Coming in at Lunch, I was greeted by Kolo Kenneth who immediately handed a mini postcard sized paper to me, voila – a meal ticket. Headed straight to the lunch room. The rest is history!

Funny, I was seated next to one of ActionAid’s speakers for the event – Lovisa Moller and we spoke for the entire period of the lunch.

Lovisa Moller gave her insightful piece “Tax Treaties – a critical perspective”. Sliding through, she left no stone unturned as she explained the core of Tax and Treaties.

“Tax Treaty is an agreement between two countries to divide up and limit taxing rights. Tax Treaties decide how much, and even if, the Contracting States can tax multinational companies.Tax Treaties are also known as Double Tax Agreements (DTAs), Double Tax Treaties (DTTs) and Double Taxation Conventions (DTCs)”.

Still on Tax Treaties, she explained ‘How rights are divided up’. According to the slide report, it is:

  • Source vs Resident Taxation.
  • Rules are Neutral in theory, assymetrical in practice.
  • OECD and UK model Treaties propose different versions. Moreso, ActionAid analysis of 519 tax treaties concluded that: Tax Treaties impose an unfair burden on lower-income countries compared to wealthier countries.A question was raised by Lovisa as to ‘why countries sign treaties’, the floor was aroused to action and heads began to sway in contention for answers.

Here are some of the answers that were given:

  • New markers attracts Foreign Direct Investment (FDI).
  • Reduces taxes and ignites smoother investment .
  • It boots exports.

Moreover, in answering the question, she explained thus, “Tax Treaties attract more foreign investment – it can be assumed that Treaties will cause foreign investment to increase. The empirical evidence on the investment of Treaties is mixed. The potential revenue loss, especially to developing countries – including through ‘Treaty shopping’ – has caused increasing concern”.

ActionAid’s International Policy and Campaign Advisor; Lovisa Moller gave some brief lessons in the history of Tax Treaties before moving ahead.

ActionAid, through Lovisa Moller gave a strong reason why we should care about Nigeria Taxing rights. It was directly disclosed to participants of the training that:

15 out of every 100 children die at the age of 5. Meanwhile, Nigeria is reputed as Africa’s largest economy, the continent’s largest oil producer and largest owner of natural gas proven reserves. These sharp contrasts between socio-economic state and resource abundance makes for compelling need to evaluate reasons for insufficient flows of funds to the government by businesses who should contribute their fair share to the development of the country.

Noteworthy it is – Nigeria Treaty Ratification process, below is the process;

  • Initial Preparation
  • Negotiations
  • Approval (The Federal Executive Council approves the negotiated text)
  • Signature (The Minister of Finance or his/her representatives)
  • Ratification (The National Assembly must choose to enact into law)
  •  Entry into Force
  •  Renegotiation or termination

 

It was noted that there are impacts and implications in the processes that surrounds Tax Treaties, some of which the underlisted explains:

  1. It creates allowance for tax evasion and (or) treaty shopping.
  2.  Difficult to distinguish between genuine investors and “shell” companies.
  3. Nigeria being a net importer will remain so for the nearest future, the DTT by limiting the taxing right of Nigeria on dividend interest and royalty potentially reduces the tax base of the country which will.impact negatively on the revenue generation for the country. ActionAid however gave some promising recommendations on the above. It’s a praiseworthy effort from their part, of not only critically looking to the taxiing system but also giving lasting recommendations.

Read below, some of these recommendations…

1. Consider reviewing the current tax Treaty network to determine if the country actually is benefitting from its current and potential future tax treaties
2. Place a special review focus on the Treaties with Kuwait, Mauritius, Belgium, China, Spain, and the United Kingdom, as these have been found to restrict Nigeria’s rights more  than the norm.
3. Subject treaty negotiations, ratification, and impact assessment to far greater public scrutiny.I ended day one on a highly fulfilled note but understanding that Day two was pregnant with so much more, my impatience was steady.

Cluster Group of CSOs. talking Nigeria Tax Challenges

Day 2 started with a lot of innovative ideas around Tax, the moderator, Tunde Aremu was all around the hall fielding questions from participants and in return was checking on our level of memory retention – asking about lessons learnt on Day 1.

Tunde Aremu of ActionAID

He made startling, momentarily shocking revelations on how multinational companies have evaded taxes. Of all, he said “Firms like Deloitte have constantly aided and abetted countries on ways to avoid Tax payments”.

So much more was made known within the hours of the training. It was also explained – the various types of Tax rights; Profit tax, Withholding Tax, Capital gains tax.

We were asked to form clusters of CSOs, Journos to discuss challenges that beset Nigeria’s formulation of a concrete tax Treaty.

We were able to identify the listed as the challenges:

  • Secrecy in processes involved in drafting treaties
  • Low level of awareness on implementation of the Tax Treaties.
  • Perceived Capacity Gap 
  • Excessive Conception of Taxing rights.

We also discussed HOW TO TACKLE THESE CHALLENGES below are points from our discussion: That:-

  1.  There should be policy that is open and transparent and more private sector involvement / participation.
  2. Policies that allow participation of expertise around the specific Tax Treaty being negotiated.
  3.  Strict implementation of the Tax Policy rights
  4. The MDAs should be up to their responsibilities in making public – any Treaty entered into.

How can CSOs, POLITICIANS, GOVERNMENT OFFICIALS, MEDIA, LABOUR contribute to making these responses happen?

  1. They need to crucially understand the existing Treaties
  2. They should create awareness through the Media
  3. Mapping our relevant stakeholders for Advocacy and Engagement processes.

 

Enjoy your week.

I leave you to ponder on these revelations, I was wowed upon seeing these, I hope you will, too.

Social Cost of Revenue Lost to Tax Loopholes

– As much as tax is every citizen’s responsibility and  as well as companies doing business in the country, only few Citizens pay tax. The poorest who live in the rural areas are known to suffer this burden more, through multiple taxation. (HOW OFTEN DO YOU GET TAXED/ PAY YOUR TAX?)

– Corporations use their connection with political elites and Loopholes in Nigeria’s tax system to access tax holidays for their greedy benefits. (ARE YOU ONE OF THEM?)

– Due to tax loopholes, corporations and political elites engage in illicit financial flows to tax havens where financial secrecy is in place or low tax levies enable them profit from the act.

PAY YOUR TAX!

 

Olusegun Olagunju is the Media Strategist at Connected Development, He’s a Sociologist. He hopes to see a world where equal rights of all genders will be respected and a safe environment will be achieved. He tweets via @mobolsgun

Addressing Citizenry Extensive Concerns on the 2017 Budget Proposal

Chambers Umezulike February 24, 2017 2

On 23 February 2017, the Director-General (DG) of the Budget Office of the Federation choreographed a media briefing on several issues surrounding the 2017 Budget Proposal. The DG also used the briefing to make certain clarifications on public outcries over several budget items on the proposal. Most of these outcries were on many frivolous items (especially on electricity and utility bills of MDAs; several humongous expenses on the state house budget on utensils and feeding, electricity bills, travel expenses etc.); repetitions of budget items; budget cycle crisis; the budget preparation expenses; lack of details on some of the items; budget padding etc.

In attendance at the briefing were the media and Civil Society Organizations (CSO). In responding to some of these concerns, the DG took his time to counter some of the claims:

1). He stated that there was no sort of budget padding on the 2017 budget proposal.

2). That there were no frivolous items. That most of the extensive increments such as state house proposed expenditure on utensils and utility bills; electricity bills, security and cleaning services payments in MDAs etc. were either as a result of arrears of such bills/expenses or because funds were not later provided for them on the 2016 budget (meaning they were not implemented.)

3). He stated that there were no repetitions on the proposal, unless the repetitions being referred to were budget items on the 2016 one that re-reflected on the 2017 proposal, which was as a result of the fact that funds were not provided for such items on the former.

4). He reassured the audience of his liaison with the National Assembly to ensure that budget cycle would be from January – December of every year, which was clearly stated on the constitution, as against the culture of having a previous budget being implemented in another fiscal year.

5). He also explained that the details-deficit on some of the budget items were as a result of the perspective to keep the budget simple, for public consumption. That however that his agency would ensure further details on budget items when preparing subsequent budgets.

Representing Connected Development (CODE) at the event, I further engaged the DG and raised concerns over the NGN305/$ calculation on the budget proposal (while $1 is valued at NGN 520 at the contemporaneous market); if there are extensive plans for enhanced transparency and accountability in the 2017 budget implementation; our expectancy to lay hands on the 3rd and 4th quarters’ reports of 2016 budget implementation; his plans to ensure that revenue realization deficit would not frustrate the 2017 budget implementation drawing on the country’s experience with the 2016 one; and getting access to an extensive version of the budget that had further details on some of the line items. For the latter, I mentioned the ‘Talking Sanitation’, as well as ‘Afforestation’ and ‘Tree Planting’ budget items on the proposal, under the Ministry of Environment, which all lacked details such as where and how. Lack of such specific details has frustrated the works of CSOs that are into governmental capital expenditure tracking.

In addressing my concerns, the DG made commitments that were all in line with Nigeria’s commitments on the Open Government Partnership. He stated that the 3rd quarter 2016 budget implementation report would soon be in public domain while the 4th quarter’s would soon be out too. He further stated that there would be increased transparency, accountability and citizen engagement in the 2017 budget implementation. On this, he cited plans to have a digital platform for 24/7 citizen engagement on the budget. He also mentioned that there would be a breakdown on project basis subsequently when funds are released to MDAs. In addition, he promised a quarterly media briefing on the 2017 budget implementation. These were all good news and great outcomes for nonprofits that are into Open Governance advocacy. He mentioned categorically that the revenue realization plan on the proposal is quite realizable and that the FOREX regime crisis would not affect the budget implementation.

This media engagement is a step in the right direction as bringing all stakeholders involved and addressing public concerns on the budget proposal have boosted citizen participation in governance and also provided a platform for clarifications on several portions of the budget, as well as for stakeholders to make suggestions. It is hoped that the Director keeps to all the new commitments he made at the briefing and ensuring extensive open financial governance in the budget implementation. From our part, we are sending an FOI request for an extensive version of the budget, which he promised CODE would be provided with. And before I forget, he commented that he likes our name, ‘Follow The Money.’

 

Chambers Umezulike is a Program Officer at Connected Development and a Development Expert. He spends most of his time writing and choreographing researches on good and economic governance. He tweets via @Prof_Umezulike.

CSOs Engagement with the Minister of Mines and Steel, our take home.

Hamzat Lawal February 19, 2017 0

Participants at the CSOs engagement with the Minster of Mines and Steel Development

Concerned bodies that seek to bring a total change to the face of the Mining Industry and Civil Society Organisations brought the Ministries of Mines and Steel Development and Environment together on the 13th day of February, 2017 at Rockview Hotel, Wuse I I, Abuja to factor out ways to efficaciously partner and bring about the desired sectoral reform that has hitherto rented the economic fabric that the Nation is adorned with – from the Mining sector.
The Honourable Minister of Mines and Steel Development was ably represented by his Chief of Staff – Mr Egghead Odewale. The Minister, in his usual liveliness and strong enthusiasm welcomed all Heads of CSOs present to the event, in the same vein he said “It is always a delight for me to interface with a constituency which I hold dearly haven been a member for a considerable part of my life. There is always a nostalgic feeling associated with these intermittent interactions with most diverse people-oriented sector within the nation state…”

He started his speech with a brief overview of the Ministry’s efforts in boosting the sector towards the agenda of diversifying revenue accruals to the Federal Government.

Dr. Fayemi highlighted some few challenges barricading the growth of the sector among which Insufficient Funding, Lack of Geological Data, Weak Institutional Capacity, Limited Supporting Infrastructure, Limited Cooperative Federalism, Low Productivity, Illegal Mining and Community Challenges, Weak Ease of doing business and Perception issues, Protracted Litigations on Legacy Assets were mentioned.
In furtherance, he gave a review of the past year – 2016 and was quick to point out that the past year 2016 was one of the toughest since the world emerged from the great recession about 7 years ago. He praised all stakeholders because “Much of what has been achieved has been a result of the collective efforts of all stakeholders, based on shared vision of the sector, which we have articulated in a roadmap, Our Ministry considers all stakeholders as partners with a common goal, which is why we spend time engaging with various publics, providing feedback, sharing our vision, and eliciting more concerted participation”

On funds not being sufficient for the sector to thrive, the former Ekiti State Governors had this to say;

“We sought for N30bn intervention fund from the Federal Government, partly to help provide cheap loans and grants to industry participants as well as for directly investing in foundation infrastructure… we got approval got activation and securing access to the revolving Mining Sector component of the Natural Resources Development Fund”.

He made it known at the event that the Ministry is working with Nigerian Sovereign Investment Authority, The Nigerian Stock Exchange and others to assemble a $600m investment fund for the sector.

A large dose of relief as the Minister revealed that the Ministry has secured support from the World Bank for the funding of the Mineral Sector Support Fund for Economic Diversification (MSSED or MinDiver) program which is to provide technical assistance for the restructuring and operationalisation of Solid Minerals Development fund.

Dr. Fayemi said the Ministry is working out modalities to engage world-class exploration companies to collaborate with her data generating agencies towards providing bankable data to attract big players in the Mining sector. This is in a bid to bridge the gap of unavailability of Geological Data.

The Sector has been assailed with gross illegal mining and also plagued by conspicuous and outrageous community challenges but the Minister informed us that “We are working with the state governments and relevant Ministries to formalise and manage our artisanal miners, while also working with defense and security agencies to cure the actions of illegal mining in the country”

In the light of all these, there is an outlook for the year 2017 and years ahead as expectations and projections were highlighted. The Ministry is to focus on priority areas of competitive advantage to drive growth, some of which are:

  • Priority Minerals as iron ore, coal, bitumen, limestone, lead/zinc, gold and barite have been identified as key for Nigeria’s domestic industrialization and infrastructural requirements.
  • Served Market – Nigeria will initially focus on the domestic market, trading ore and processed materials to domestic buyers at a quality level comparable to imported materials to win market share from imports. As global commodity market recover, Nigeria will then seek to serve both domestic and export market. Nigeria will also seek to exploit its mineral assets in such a way as to preserve and extend the life of its holdings for future generations and manage earnings carefully.

Minister of Mines and Steel Development was represented by his Chief of Staff – Oluseun “Egghead” Odewale

According to the Minister of Mines and Steel Development, to achieve these set goals, Specific Objectives were outlined which include the under-listed:

  • The set-up of the Mining Implementation and Strategy Team (MIST) to drive the execution of the roadmap
  •  Restructuring and reorganization of the MSMD for more efficient operations, and enforcement of established laws and regulations governing the mining sector.
  •  Commencement of process of working with National and State legislatures and governments to address gaps, and resolve conflicts in mineral resource legislation.
  • Development of a strategy to use priority minerals domestically and substitute exports.

The Heads of CSOs present were more than ready to give their all towards achieving a meaningful success in the Sector.

The Minister, however, gave a list of suggestions required of the CSOs in bringing growth and development into the industry. He suggests that;

  • CSOs could help improve the knowledge assets and awareness of stakeholders including the Civic public about the Mining sector.
  •  CSOs should help Monitor the decisions, promises, programmes and plans of the Ministry against available resources to ascertain value of resource application
  • CSOs should critique the plans and programmes of government to ensure best value for Nigeria and Nigerians in the short to long run.
  • CSOs should help Monitor Mining operations to ensure that investors or operators maintain Fidelity to their community development agreement. Especially, monitor corporate social responsibility impacts of mining operators.
  •  CSOs should help support the promotion and realisation of the NEITI principles and programmesAmong others.
  •  CSOs should help should assist in the coordination, organisation and management of ASM cooperatives.
  • CSOs can also help to empower community representatives to assess and flag mining operations, which may undermine the health and safety of their communities.

The Honourable Minister fielded questions from participants of this Engagement and gave insightful responses where required, some of the few questions raised was from the CEO of Connected Development, Mr Hamzat Lawal, he asked the Honourable Minister if it was possible to get the names of the companies that have been licensed to Mine.

He asked further that Datas of ecological funds that have been given to states should be made public so information would be available to work with.

The Co-Founder of Follow The Money rounded off by asking the Honorable Minster his Ministry’s plan for Safer Mining Process putting into consideration what happened in Shikira.


The Minister also responded to a question raised by a participant asking what the Ministry is doing in terms of technological monitoring of extraction sites. He said provisions are underway for that as proper investigation will be done in that regard.

In conclusion, he appealed for perseverance as right measures are taken and implementation of the sustainable reforms that would outlive his tenure are entrenched.
He said “I invite you to join us as we continue on this road to rebuilding this sector, unlocking it’s full potential, and making it one of the key sources of our future prosperity”.

Olusegun Olagunju is the Media Strategist at Connected Development, He’s a Sociologist. He hopes to see a world where equal rights of all genders will be respected and a safe environment will be achieved. He tweets via @mobolsgun

Calls to CSOs Coalition to Achieving Open Government Partnership in Nigeria

Hamzat Lawal February 16, 2017 2

Connected Development [CODE] was invited to an Open Government Partnership (OGP) event organized by Budgit. The event brought together Civil Society Organizations (CSO) such as Public and Private Development Centre,  Institute of War and Peace Reporting, Network of Police Reforms in Nigeria, Dean Initiatives, Center for Democracy and Development amongst others to discuss the tools used by Budgit in 2016 towards advocating for OGP in Nigeria.

Stanley Achonu and Abayomi Akinbo of Budgit led the event, discussing the tools from FOIVault, PICC and Find a cop. FOI Vault is a repository of requested FOIs by credible and verifiable organizations to the Ministries, Agencies and Departments of the Nigerian Government.

Bearing in mind that a lot of my organizational work involves requesting for more information from the government through the use of Freedom of Information (FOI) requests, I was able to see the potential of the tool as it allows for documentation of FOI requests and response from the government.

As such, I can visit the vault first before sending my next FOI to a ministry or other governmental institutions so as to be sure that someone else from another organization has not sent the same request and likely gotten an answer which may aid my work.  Also, it saves the concerned governmental agency from having to spend valuable time in dealing with a request to which it has devoted time to in the past, albeit to another organization and at the end, we can all synergise and work much more effectively.

picc.com.ng was also one of the presented tools which were used to document verified corruption cases against any Nigerian that has a case with the court of law in the country. As the Ministry of Justice does not have such electronic record, I think this could be a good repository for a background check on anyone intending to run for public office in Nigeria.

Furthermore, the last tool that was showcased is findacop.ng which is a simple web application that can be used to locate the nearest Police station in Nigeria. “We are not able to get enough data around this as the Nigeria Police Force is not ready to make things easier for us,” says Abayomi. As such,  at the moment, there is not much data on the platform.

The presentation was concise, interactive and engaging as it opened me up to new and innovative ways data can be made open and accessible to everyday users. The event eventually ended with a brainstorming session involving all the participants on how to improve the tools as well as how to make CSOs see value in these interventions towards achieving Open Governance Partnership in Nigeria.

Personally, I think collaboration and data sharing between civic organizations is key as this will enable us to build a formidable network of citizens who will have the much-needed information at their fingertips, making them well informed and able to engage the government at any level. This will, in turn, have a lasting impact on achieving good governance in Nigeria.

IMAGE CREDIT: CCHUB

 

REFLECTIONS ON THE PUBLIC HEARING OF THE 2017 BUDGET: ON THE ISSUE OF TAXATION

Hamzat Lawal February 16, 2017 2

 

Every year, the federal budget is expected to pass through certain stages before it becomes an act (essentially a law for implementation).

         stages in the budgetary cycle

One of the very important stages is a joint house public hearing (which forms part of the processes in the budget approval and accent stage) where members of the public can make submissions and inputs on the budget. The public hearing for the 2017 budget took place between the 13th and 15th of February 2017. During this time, a lot of comment was generated on the need for Nigeria to break away from the over dependence on crude oil as  the major source of revenue. In proposing alternatives to a diversified income revenue generation, the ministry of budget and planning highlighted taxation as a major alternative. In the minister’s presentation, there was much talk about broadening the tax base and I dare ask “HOW?”

Does the Federal Government’s idea of broadening the tax base involve ensuring that more individuals and companies who have not been paying taxes in the past begin to do so or does it intend to increase the tax rate from what it is currently? If the former is the case, then we may be heading in the right direction but a question that readily comes to mind is “how do we ensure accountability in the tax system?”. Becoming  a tax payer ultimately imposes a duty on the payee to ensure that his/her taxes are judiciously used because nobody would not want to see their hard earned money end up in personal pockets, bank accounts, safes or even wells dug out solely for the purpose of hiding embezzled funds. Becoming a tax payer means that they will ask questions about the roads their money is supposed to build, the electricity it is supposed to provide, the hospitals it is supposed to erect, the schools it is supposed to erect and make functional and so on…

Is there any provision presently in place to ensure that citizens’ questions are answered if and when they make them? I know a lot of people will be quick to mention the Freedom of Information Act signed into law in 2011 but permit me to ask how many Nigerians know about this Act and the liberty it provides for every citizen. And even for those that know about the Act and do use it, how many times have they gotten responses from these public institutions and what structures do we currently have in place to ensure compliance and accountability (I will share some of my personal experiences in a later post)?

If however, the latter is the case, then it only becomes reasonable to conclude that this government will not be acting in the interest of the already poor masses and its claims at being a pro-poor government becomes questionable.

 

Celestina is a Project officer at Connected Development. She spends her time writing and volunteering in organisations that work in development and health. She tweets via @Celna4all 

A Reflection on the Legacies of Murtala Muhammed

Chambers Umezulike February 16, 2017 0

General Murtala Muhammed ruled Nigeria from 1975 until his assassination in 1976. In a short time, his policies, pro-activeness and decisiveness won him broad popular support. He swiftly initiated a comprehensive review of the 3rd National Development Plan and created economic strategies to address rising inflation rate. He also immediately announced that his government would encourage the privatisation of government corporations. To fight corruption and over-bloating of the civil service that was legitimised by the Gowon government, he also dismissed more than 10,000 public officials and employees without benefits, on account of age, health, incompetence, or malpractice.

To some, this later became the single biggest policy error in the development of Nigeria by damaging the public service both in capacity and through encouraging corruption. This was because, the dismissals brought public servants to the reality that security of tenure was something that could be swept away with a stroke of the pen. Consequently, since one does not know how long a public service might last, it was considered better to feather the nest while one had the opportunity. In addition, the mass sack had an adverse effect on socio-economic development because Nigeria lost skilled and trained manpower that would have strengthened its institutions.

While his critics leverage on this and his role in the civil war in criticizing him; his admirers focus on his personality, decisiveness and the sort of populist actions in took while in few months in office, as part of his legacies. In the midst of such mixed reactions over his legacies, the Murtala Muhammed Foundation (MMF), on 13 February 2017, organized the 2017 Murtala Muhammed Memorial Lecture, with the theme, ‘Humanitarian Crisis and Response in a Plural Society: What Role for Leadership,’ at Shehu Yarádua Centre, Abuja.

In attendance were the acting president, Prof Yemi Osinbajo; former president, Chief Olusegun Obasanjo; Cardinal John Onaiyekan; Board Members of MMF; Mrs Ajoke Muhammed, widow of Murtala; and HE Kashim Shettima, governor of Borno State; as well as other dignitaries and participants. The acting and former presidents all gave their remarks, highlighting the ideals of Murtala Muhammed. The governor was the keynote speaker, in a lecture titled, ‘Managing the Boko Haram Crisis in Borno State; Experiences and Lessons for a multi-party, multi-ethnic and multi-religious Nigeria.” In the lecture, Mr Shettima took his time to narrate the emergence of Boko Haram which he married with the incompetence of his predecessor, Ali Modu Sheriff, to settle some disagreements that arose between the police and members of the then budding sect in 2009.

However, what was paradoxical was that Mr Shettima was also in the government of his predecessor as a commissioner in 5 different Ministries, and has a great share in any blame with that government, over the latter’s inability to crack this sect while it was budding or harmonise the political instability the disagreements led to. In the lecture, he also went ahead to narrate of how several unnecessary conspiracy theories have been created out of the Boko Haram crisis especially during the immediate past regime, which were not necessary for the unity and development of the country. He commented that such theories prevented the past government from finding immediate measures in rescuing the missing Chibok girls. The lecture also highlighted his disagreements with several NGOs and INGOs involved in managing the humanitarian crisis in the north-eastern part of the country, and a briefing on his efforts on education and agriculture in Borno State. He ended by saying that his government is liaising with other stakeholders to make sure that the IDP camps in the north-east would be closed in May this year.

This was another shocking paradox considering that hundreds of thousands of IDPs are all over the sub-region. As at now, the war on Boko Haram just went into a transition of what could be near permanent crackdown on the sect. There is no sort of reconstruction efforts in these communities and the governor wants the IDPs to return to Borno. There are no hospitals, schools; farmlands are devastated; no alternative sources of livelihood. There are no sorts of reconstruction, reintegration and rehabilitation plans on-going. Such mass return by such a deadline that ain’t feasible is not realistic. There should be efforts to make sure IDPs are living fairly well in their camps while the government concentrates on re-building their communities and creating a conducive environment for them, before they return home.

 

Chambers Umezulike is a Program Officer at Connected Development and a Development Expert. He spends most of his time writing and choreographing researches on good and economic governance. He tweets via @Prof_Umezulike.

Raising The Bar High for SDG4 in Nigeria

Hamzat Lawal February 10, 2017 2

It was a long week as we received an invitation from the Sustainable Development Goal Department of the Federal Ministry of Education (FME – SDGs Office) to witness the reviewing of the instrument for the monitoring of 2016 SDGs Projects in Nigeria.

We were invited to be an independent participator in the event, representing Civil Society Organization in the event owing to the fact that Education is one of our thematic areas.

As the lead investigator on Education for our Follow The Money project, it is a part of my responsibilities to be part of the event. On getting to the event centre, they just created a registration sheet to represent NGOs in which my name was the first on the list as they are not expecting more of Civic organisations.

In her introduction, Mrs AAA Liman stated that the essence of the event is to bring agencies and departments together to review the monitoring and evaluation instrument that has been in use by the SDGs in order to upgrade it to international standards after which she passed the baton to the Director of the Unit.

In her own words, the Director said that she has to be in the event since monitoring has been a thing of her heart as the motto of the Department is “Raising the Bar”. She gave a background to the present monitoring framework of the department and said it has been in existence since 2009 when it was first developed for monitoring of SDGs projects in Nigeria and further explained that they would love to review it so as to make it a tool that will be in tune with present happenings in the world.

On her endnote, she concluded by saying “our goal is to come out with an instrument that will meet international standards and can be used by all agencies and departments”.

In his word, Hamzat Lawal said this event will shape Education in Nigeria as the instruments will provide a framework for monitoring of the implementation of the Education funds meant for the schools in the grassroots and also, this will be a guide for other MDAs and also, it will be good for transparency and accountability in government projects in Nigeria.

The event lasted almost the whole day as each item and options were reviewed by all the agencies working on education SDGs in Nigeria. Some items stayed the same while significant others were reviewed thoroughly. After which the event finally came to an end.

I was awed by the action taken by the FME-SDGs as it shows how passionate some civil servants are with their job and the well being of the people they are working for given that the civil service space is filled with many misappropriations and negligence of work. Only if we can have more agencies like this in Nigeria, the government would function better and maybe corruption would be drastically reduced. These are my thoughts and I hope to see more of such happening in Nigeria.

 

The Denouement of Primary Export Dependence – Nigeria’s Economic Recession

Chambers Umezulike February 10, 2017 13

Photo Credit: post-nigeria.com

According to Nigeria National Bureau of Statistics, the country’s Gross Domestic Product contracted by 0.36% in the Quarter(Q) 1 of 2016, the first negative growth in many years. Successive contractions in Q2 and Q3 of the same year by 2.1% and 2.24%, respectively, officially chaperoned Nigeria into an economic recession. Even before the country’s general elections in March 2015, the country had already started encountering a considerable number of pre-recession prodromes such as wages crisis, Foreign Exchange (FOREX) scarcity, compressing governmental revenues and domestic savings, rising inflation, job losses, a depreciating national currency, depleting foreign reserves, escalating poverty, while the country’s capital market started losing billions of Naira.

These prodromes gradually worsened in succeeding months after the Muhammadu Buhari led administration came into office in May 2015. Between Q4 of 2015 and Q3 of last year, inflation rose from 9.5 to 18.3%. Similarly, unemployment grew from 10.4 to 13.9%; Naira depreciated at the contemporaneous market by around 100%, from around 225 to 450 while it remained officially pegged at 305 per US$1. For the latter, last year, the country’s Central Bank adopted a partial flexible exchange rate regime and consequently, the feeble national currency has been valued at the aforementioned rate upward. Through this, South Africa overtook and undertook Nigeria as Africa’s biggest economy in dollar terms. In addition, foreign reserves depleted from US$29 billion to 25 billion.

As a primary export dependent country, Nigeria has been an unblushing subject of international oil prices’ oscillations. Its current economic crisis is an echolalia of the early 1980s scenario which subsequently led to the country’s adoption of the Structural Adjustment Program to circumvent the economic crisis. The 1980s economic crisis frustrated economic growth in the country even till the 1990s. Between 1981 and 1985 in the country’s 2nd Republic, crude oil prices fell by 25% to US$30 per barrel from US$40. As a result, the economy went into a recession as FOREX earnings remained at US$52.78 million, away from the estimated $79.449. External debt rose to Naira 17.3 billion from an estimate of 3.7 billion. By 1985, Nigeria’s external reserves had run close to a level that could hardly finance more than one and half month import bills.

Similarly, after the sudden crash in global oil prices from $112 per barrel in the Q4 of 2014 to $43 per barrel in the Q2 quarter of 2016, the country experienced reduced FOREX earnings and governmental revenues. This then affected most sectors of the economy. Oil revenues constitute 90% of the country’s FOREX earnings (2013 estimate) and around 80% of sources of government’s revenues. Previous efforts to diversify sources of these earnings such as the 2nd, 3rd, and 4th National Development Plans and other economic regimes of successive leadership since the country’s 4th Republic have achieved contracted results.

In addition, through several apocalyptic economic tactics, the country’s topical administration also contributed to the recession, albeit they are in the process of commissioning an economic blueprint to contain it. First, from Q3 of 2015, its indecisiveness on devaluing the Naira to reduce the pressure on it skyrocketed the black market premium and incentivised arbitrage. Secondly, over the inability of the administration to keep paying oil marketers in foreign currencies so as to import refined crude into the country because of FOREX scarcity, the administration was forced to remove petroleum subsidy in early last year. This had an immediate and terrible impact on inflation. Thirdly, over previous efforts to protect the Naira, the Central Bank placed a ban on the importation of 41 items. This alone worsened the situation by creating scarcity of the products, precipitating job losses and closure of businesses.

However, a good attempt by the administration to implement an expansionary budget in the 2016 fiscal year and increase its capital expenditure component by 30% was partly hampered by ceaseless oil pipeline vandalisation by the Niger Delta militants. This deeply affected the administration’s ability to fully implement the budget as a result of drop in oil output from 1818 barrels per day in the Q4 of 2015 to 1270 in the Q2 of 2016. Also, President Buhari’s delay in appointing ministers and the resultant padding of the budget saga affected a timely implementation of the budget.

Till today, while the government has promised to release a report of the 2016 budget performance analysis by the end of January 2017, they have not. Furthermore, efforts by the administration to diversify the economy by expanding agriculture and amplifying solid minerals exploration have recorded nanoscopic results over the lack of coherent strategies to achieve such. Finally, limited results from the administration’s efforts to improve the ease of doing business and boost investors’ confidence have further imperiled the attraction of foreign capital into the country.

The economic recession is largely Nigeria’s choice and not just oil price shock because it was predictable and largely avoidable. It remains imperative that Abuja make sure that it’s Economic Recovery and Growth Plan is a comprehensible economic blueprint that could address the recession with strategies, projections, targets, programs to cushion its effects etc. They should swiftly devise ways to keep pumping money into the economy, without the commensurate inflationary tendencies it can bring. Following this, the series of jocose frivolous items on the 2017 budget have to be clinically jettisoned while the fund rather goes into capital expenditure. They should also lift the ban on the importation of the aforementioned items. Import led industrialisation strategy has always failed outstandingly when it’s not backed up with coherent or backed up with anomalous tactics. Ultimately, there should be further sound strategies to aggressively attract foreign capital, position the country for industrialisation, diversify exports; and reduce poverty and unemployment.

 

Chambers Umezulike is a Program Officer at Connected Development and a Development Expert. He spends most of his time writing and choreographing researches on good and economic governance. He tweets via @Prof_Umezulike.