THE RELEVANCE OF THE THOUGHTS OF GANI FAWEHINMI TO AN ECONOMY IN RECESSION AND FIGHTING CORRUPTION TO IMPROVE THE WELFARE OF ORDINARY PEOPLE
By
Femi Aborisade[1]
Labour
Consultant and Attorney-at-Law
09093536706 Or
08091371874
Introduction
The current economic crisis weighing down Nigeria is caused and fuelled
by two main factors:
1.
The greed of the
rulers, and
2.
The ruling class
surrender to IMF-World Bank dictates.
Looked at from the precincts of the perspectives and ideas of the ruling
class, the future is grim and society is doomed and hopeless. The facts
presented are aimed at justifying imposition of austerity measures and not to
explain the causes of the crisis.
For example, the emphasis today is to highlight the collapse in oil price
in the international market and alarming rising production costs. Nothing is
said about the composition of the cost components, the disproportional high
levels of income of the top management compared to the workers at the
lowest levels. Nothing is said about the exclusion of ordinary people
even in times of economic upswing when oil price rose to unprecedented levels.
See for example, the following:
OIL PRICE BREAK EVEN POINT
|
NO
|
COUNTRY
|
PRICE (US$)
|
|
1
|
LIBYA
|
208
|
|
2
|
VENEZUELA
|
120
|
|
3
|
ECUADOR
|
115
|
|
4
|
NIGERIA
|
100
|
|
5
|
SAUDI ARABIA
|
96
|
|
6
|
ALGERIA
|
93
|
|
7
|
ANGOLA
|
77
|
|
8
|
IRAQ
|
76
|
|
9
|
IRAN
|
70
|
|
10
|
UAE
|
68
|
|
11
|
QATAR
|
58
|
|
12
|
KUWAIT
|
52
|
SOURCE: https://www.theguardian.com/business/2015/dec/30/oil-iran-saudi-arabia-russia-venezuela-nigeria-libya ACCESSED 13/07/2016.
CRUDE OIL PRICES AND OPERATING CASHLOW SURPLUS/DEFICIT
Within the framework of the above data, looking at the crises engulfing
Nigeria and its subsystems (economic sub system, political subsystem, judicial
subsystem, etc), what confronts one is nothing but doom, wars, conflicts and
hopelessness, in various dimensions – economic, political and at the levels of
primordial religious and ethnic differences.
But when we look at the issues from the point of view of the working
class, the philosophical perspectives and socio-economic cum political systems
favourable to the working class and the poor strata in society, the current
socio-economic cum political crises are resolvable and we can only see a huge
hope and bright future of a life of prosperity for the working class and the
poor.
The main challenge therefore is for the working class to take a break for
a moment from looking at issues from the framework of the ruling class
conceptualization of problems and solution. The working class should dream and
work towards the attainment of such dreams. This requires formulating working
class alternative perspectives for understanding societal problems and
developing alternative working class solutions.
In short, the working class has a duty to develop its own philosophical
world outlook, work out its own blue prints on various issues and counter-pose
them against the ideas of the ruling class. This is the challenge that faces
the broad labour movement, including trade unions in Nigeria.
Unless the working class assumes the responsibility that flows from a
concrete analysis of the current Nigerian situation, canvass for the working
class solutions in the larger society, the disintegration and collapse of
Nigeria from the various conflict points, religious fears and agitations,
ethnic fears and wars of secession, workers’ strikes for payment of wages,
inter and intra party contestations for power, money and influence may throw
Nigeria into an irredeemable catastrophe.
What we must appreciate is that politics creates poverty and politics is
the means of transforming poverty to prosperity. Though participation in the
electoral process to wield political power is critical, politics is not limited
to the electoral process. Asking questions, posing alternative viewpoints and
challenging anti-poor people policies of existing parties in control of the
reigns of power are part and parcel of participation in the political space.
Above all, the working class and its allies among the fighting poor
strata should perceive themselves as capable of seizing political power to
reorganise society in their interest rather than limiting themselves to merely
demanding to be paid salaries.
Recent Background to the crisis
On 11th
May, 2016, the Federal Government officially and fully deregulated the pricing
of petroleum products, leading to the increase in the prices of petrol from the
official rate of N86.50 per litre to the official rates of between N135 and
N145 per litre. It was declared that anyone could now import PMS and determine
the price based on the black market exchange rate, but not exceeding the
maximum range of N135 and N145 per litre.
The impact
It is
officially estimated that more than half a million workers lost their jobs in
the first quarter of this year while the living standards of millions of people
in the informal sector have been badly hit by rising inflation.
However,
the poverty level in Nigeria today is beyond what may be described by sheer
abstract statistical figures. The deprivation, hardship, lack, hunger, pains,
pangs, wailings, tears, agony and frustration in the land today may be better
imagined by a few reported real life experiences in recent time. I rely on the
public statement by Professor Ishaq Akintola, Director, Muslim Rights Concern (MURIC) while marking the 2016 Eid El Fitri to capture the indices of
the degree of the extremely harsh economic times among poor people today:
“The
signposts are scary. Just a few days ago, a family man exchanged his 5 year old
son for a bag of rice for which he could not pay at Singer Market in Fagge
Local Government area of Kano State. Media reports say that theft of food being
cooked on fire is now rampant in Ilorin. A teacher stole gari in Oshogbo. Also
a few weeks ago, a soldier shot a policeman in the leg while both of them were
struggling for rice in Maiduguri. People are selling their properties to feed
their families. Most state governments can no longer pay salaries. Many civil
servants are taking to begging. Cooking smoke has not been seen from the
chimney of many houses for days. Most text messages nowadays solicit for ridiculously
little amounts of money for feeding. Most Muslims found it easy to fast this
year because they had been used to hunger for months. Nigeria is drying up.”
The fundamental solution to the crisis in
the Nigerian oil and gas industry
The
crises of petroleum products pricing merely shows the contradiction between
import-parity pricing policy and production cost pricing policy.
A
US-based Nigerian expert, Dr Izielen Agbon[2],
has explained that what Nigeria needs to do is to adopt the production cost pricing
mechanism as it happened in 1995. In 1995, the excess proceeds generated from
the sale of PMS based on production cost pricing strategy funded the Petroleum
Trust Fund (PTF). If this pricing strategy were adopted, there would be no need
to look for the US$ with which to import PMS. Rather, Nigeria could in fact
earn foreign exchange by exporting petroleum products.
In an
article, Dr Agbon vividly explained how the production cost pricing mechanism
worked in 1995 to generate surplus which funded the PTF as follows:
“In 1995, under the
Petroleum (Special) Trust Fund (Amendment) Decree No.1 1995, the cost PMS was
set at N11/litre. The real cost of PMS using a production cost-pricing model
was N5.68/litre. Crude oil cost/profit made up 43.37% (N2.35) of this
amount. The Marketers’ Allowance made up 22.88% (N1.30), Excise Duty & VAT
was 5.81% (N0.33) and NNPC Cost/Margin was 29.93% (N1.70). The excess
(N11-N5.68) or N5.32/litre was used to fund the PTF.”
Dr. Agbon has analytically taken into account what the cost of pipeline
protection could be and the effect of this on price of PMS, based on production
cost-pricing model, as follows:
“… Pipe protection is
a security issue. We can solve it with an added pipeline transportation cost of
$2.5/bbl. We get 2 men to protect 1 miles of pipeline for 8 hours. We will need
6 men/mile/day. There are 875 miles of petroleum product pipelines and about
1,325 miles of crude oil pipeline in Nigeria. So, we need about 13,200 men for
a 24 hr daily protection. We add 20% for support/auxiliary services, 10% for
management/supervision and the rest for backup. Thus, 20,000 men made up of
6,000 soldiers from the Armed Forces and 14,000 citizens from communities along
the pipeline routes can protect our pipelines.
At a monthly salary of
N100,000/month, we will spend N24 billion a year. An additional 50% will cover
equipment, offices, overhead etc. thereby raising annual cost to N36 billion.
An added pipeline transportation cost of $2.5/bbl yields $0.614 million/day or
N44.18 billion/year. Pipeline transportation cost will increase from $1.5/bbl
to $4/bbl. The cost of PMS in Nigeria will therefore be
($3.5+$4.0+$13.8+$4.0+$12.8) or $38.1 per barrel. This is N46.1/litre. There
will still be no subsidy.
We need to stop the
corruption and looting of public funds in the downstream sector. In 2012,
N996.8 billion was paid as subsidy to NNPC and 49 marketers for importing
17,451.45 million litres or 47.68 million litres of PMS per day. But, daily
national PMS consumption was 38.4 million litres. The remaining 9.28
million/day litres of PMS was never delivered. We need better meter
measurement/monitoring.
More Coriolis meters
can be installed on the inlet/outlet of every nodal point (process control,
storage, truck loading, transfer to tanks, jetty, depots etc) in the downstream
system. These meters will provide direct accurate real time measurement of
petroleum products flows. They can detect pipe blockage and leaks as well as
send data wirelessly to a centralized control station using SCADA (supervisory
control and data acquisition system). We will then know how much petroleum
products we produce, import and consume per day in Nigeria.
In 2014, N1.69
trillion was spent as subsidy at 47.67 million litres/day. The FGN paid N500
billion as subsidy from January to May 2015. The marketers demanded N200
billion more and went on a PMS hoarding strike. In November 2015, the FGN
approved N413 billion as subsidy for June-September. The marketers went on a
PMS hoarding strike to support their demand for N470 billion.
The FGN is asking for
an additional N108 billion for the 4th quarter of 2015. Even with low
prices and a PPPRA N10/litre corruption subsidy, we will spend N1.021 trillion
on ‘fuel subsidy’ in 2015. The impact of this corruption subsidy is
destroying the Nigerian economy and imposing unbearable burdens on the Nigerian
masses. We can now answer President Buhari’s question. The FGN is subsidizing a
corrupt fuel cabal with public funds.
The proponent of fuel
price increase or ‘fuel subsidy’ removal want to transfer the cost of this
corruption subsidy from the FGN to the Nigerian masses. They have not published
the findings of any rigorous study of the impact of fuel price increase on the
Nigerian masses and the economy. ….”
Dr. Agbon’s solution above still remains the way out. It was on the basis
of that programme that PMB campaigned to win the 2015 election. Unfortunately,
he has not been able to take the fight against corruption to the oil and gas
industry. It appears that the politicians who are fuel importers as well as the
bureaucracy surrounding PMB have manacled him and ordering him to implement the
very policies he campaigned against.
ELEMENTS
OF CORRUPTION IN THE OIL INDUSTRY: LESSONS FROM A 2008 AUDIT REPORT COMMISSIONED
BY THE NNPC
Invoices
Presented Twice For Payment In Relation To Pms Importation 2008
|
Batch
No
|
Company
|
Vessel
Name
|
B/L
Date
|
NOR
Date
|
Amount
$
|
|
296
|
Sahara
|
St. George
|
19/6/08
|
19/6/08
|
40,273,735.60
|
|
297
|
Sahara
|
St. George
|
19/6/08
|
19/6/08
|
40,273,735.60
|
|
296
|
Addax
|
TW
CARIBE
|
26/7/08
|
30/7/08
|
9,374,721.20
|
|
297
|
Addax
|
TW
CARIBE
|
26/7/08
|
30/7/08
|
9,374,721.20
|
|
296
|
Arcadia
|
Ciele Di Milano
|
16/6/08
|
23/6/08
|
40,340,955.60
|
|
297
|
Arcadia
|
Ciele Di Milano
|
16/6/08
|
23/6/08
|
40,340,955.60
|
|
296
|
J
& S Services
|
Tristar
Dubai
|
8/6/08
|
9/6/08
|
45,347,629.26
|
|
297
|
J
& S Services
|
Tristar
Dubai
|
8/6/08
|
9/6/08
|
45,347,629.26
|
|
289
|
OVLAS
|
King Darius
|
15/3/08
|
28/3/08
|
31,103,650.24
|
|
290
|
OVLAS
|
King Darius
|
15/3/08
|
28/3/08
|
31,103,650.24
|
Source: Audit Report (2008)
In
2008, the following companies cornered importation of petroleum products. NCP
must ask: who are their owners? The cliques inflicting pains and pangs on
Nigerians as far as importation of petroleum products was concerned cannot be
far from the owners of many of the following companies, for the year 2008.
Other companies involved in the various other years should be established. All
the companies and their owners should be unveiled and brought to justice.
LIST OF MARKETERS APPROVED FOR THE
IMPORTATION OF PMS IN 2008
QUARTER 1:
1.
Addax Petroleum Limited
2.
Arcadia Petroleum Limited
3.
Avista Energy
4.
B.P. Nigeria Petroleum Company
Limited
5.
Base Trade
6.
Bronwen Nigeria Limited
7.
Calson
8.
Camac Nigeria Limited
9.
Chevron Nigeria Limited
10.
Elan Oil Limited
11.
Fineshade Energy Limited
12.
Gembrook Energy Limited
13.
Glencore Petroleum Company
Limited
14.
J & S
15.
Kingsbury Trading Limited
16.
Linetrale Oil Supply and Trading Co. Ltd
17.
M.R.S. Oil and Gas
18.
Napoil Limited
19.
North Pet
20.
OANDO Plc
21.
Optima Energy Group
22.
Ovlas Trading
23.
Petrodel Nigeria Limited
24.
Practoil Limited
25.
Sahara Energy Resources Limited
26.
Sanduff Oil & Gas Limited
27.
Shell Petroleum
28.
Tacorr
29.
Trafigura Petroleum Company
30.
Vitol
QUARTER 2:
1.
Addax Petroleum Limited
2.
Arcadia Petroleum Limited
3.
B.P. Nigeria Petroleum Company
Limited
4.
Base Trade
5.
Bronwen Nigeria Limited
6.
Business Ventures
7.
Calson
8.
Elan Oil Limited
9.
Fineshade Energy Limited
10.
Gembrook Energy Limited
11.
Glencore Petroleum Company
Limited
12.
Global Fleet Energy
13.
J & S
14.
Kingsbury Trading Limited
15.
Linetrale Oil Supply and Trading Co. Ltd
16.
M.R.S. Oil and Gas
17.
Napoil Limited
18.
Onmart
19.
Optima Energy Group
20.
Ovlas Trading
21.
Petrodel Nigeria Limited
22.
Practoil Limited
23.
Sahara Energy Resources Limited
24.
Sanduff Oil & Gas Limited
25.
Shell Petroleum
26.
Tacorr
27.
Trafigura Petroleum Company
28.
Vitol
QUARTER 3:
1.
Addax Petroleum Limited
2.
Arcadia Petroleum Limited
3.
B.P. Nigeria Petroleum Company
Limited
4.
Business Ventures
5.
Calson
6.
Elan Oil Limited
7.
Yinka Folawiyo Petroleum
Limited
8.
Glencore Petroleum Company
Limited
9.
Global Fleet Energy
10.
J & S
11.
Kingsbury Trading Limited
12.
Linetrale Oil Supply and Trading Co. Ltd
13.
Napoil Limited
14.
Nigermed Petroleum Limited
15.
Sahara Energy Resources Limited
16.
Sanduff Oil & Gas Limited
17.
Shell Petroleum
18.
Trafigura Petroleum Company
19.
Vitol
QUARTER 4:
1.
Addax Petroleum Limited
2.
Arcadia Petroleum Limited
3.
Astana
4.
B.P. Nigeria Petroleum Company
Limited
5.
Business Ventures
6.
Calson
7.
Elan Oil Limited
8.
Yinka Folawiyo Petroleum
Limited
9.
Glencore Petroleum Company
Limited
10.
Gunvor
11.
J & S
12.
Linetrale Oil Supply and Trading Co. Ltd
13.
Napoil Limited
14.
Natural
15.
Nigermed Petroleum Limited
16.
Sahara Energy Resources Limited
17.
OANDO Plc
18.
Sanduff Oil & Gas Limited
19.
Shell Petroleum
20.
Trafigura Petroleum Company
21.
Total Nigeria Plc
22.
Vitol
LIST OF MARKETERS APPROVED FOR THE IMPORTATION OF
DPK IN 2008
QUARTER 1
1. Trafigura Petroleum Company
2. Vitol
3. Basetrade
4. Tacorr
5. North Pet
6. Napoil Limited
7. Gembrook Energy Limited
8. Optima Energy Group
9. Calson
10. J&S
11. Arcadia Petroleum Limited
12. Sahara Energy Resources Limited
13. OANDO Plc.
QUARTER 2
1.
Vitol
2.
Sahara Energy Resources Limited
3. Trafigura Petroleum Company
4. Addax Petroleum Limited
5. Optima Energy Group
6. Tacorr
7.
Napoil Limited
8.
Base Trade
QUARTER 3
1.
J & S
2.
Base Trade
3. Glencore Petroleum Company Limited
4. Trafigura Petroleum Company
5.
Vitol
6.
NAPOIL Limited
7. Addax Petroleum Limited
8. Arcadia Petroleum Limited
QUARTER 4
1.
J & S
2. Addax Petroleum Limited
3. Trafigura Petroleum Company
4.
NETURA ENERGY
5.
CALSON
6. Arcadia Petroleum Limited
7.
VITOL
8.
MRS
9. Elan Oil Limited
(Source: Audit Report (2008).
The
labour movement has a duty to challenge corruption in the petroleum industry
and to resist deregulation, which has the tendency to force up cost of both
domestic and industrial production with dire consequences for sales and jobs.
There is a philosophical foundation for policies supportive of either
regulation or deregulation.
Regulation:
The goal of a policy supportive of regulation is to organize society in order
to build a more egalitarian society and to reduce or minimize inequality.
Deregulation:
A policy supportive of deregulation amounts to survival of the fittest. If you
cannot compete and survive, you may die! If you have the means, survive; but if
you lack the means you may perish!
Nigerians
and the Nigerian government ought to embrace a humane philosophical outlook to
governance.
Dr. Mohammed Junaid, in an interview with an online newspaper, has helped
to provide an explanation as to why PMB has turned against the pre-election
promises, as follows:
“Only
four days ago (June 20), Sahara Reporters – and it has not been denied – said a
company called Sahara Energy is
lifting crude oil in the name of both Mamman Daura and Abba Kyari.
“What
is interesting about the company is that it used to be owned by …. [who are
close to Alison-Maduekwe, former petroleum minister] and she used to give them
very generous crude oil lifting contracts.
“Sadly,
in this government, which is supposed to be anti anything that Diezani stands
for, we have Mamman Daura and Abba Kyari being mentioned by an internet
newspaper as using the same company in lifting crude oil.
“Now
the question is who is fooling who? Are we being told that Diezani’s former …..,
Omokore and Aluko, have moved on, and in their place is Mamman Daura and Abba
Kyari? What is happening?”
Two
main institutions are critical in the fight against corruption, based on the
official storylines we are constantly told. They are the CBN and the NNPC. The
labour movement should challenge PMB/APC to take the fight against corruption
to these two agencies of government.
It is paradoxical that high prices of
petroleum products were justified when the price of oil was high in the
international market. Now, the price is higher in the domestic market when oil
price has collapsed in the international market. Therefore, in periods of boom;
the masses suffer; in periods of doom, they suffer even more. This is simply
unacceptable.
The situation can be turned around if
only the labour movement organises and fights. We need to develop our positions
on key issues, as follows:
WHAT SHOULD BE NCP/LABOUR’S ATTITUDE
TO PRIVATISATION, INCLUDING PRIVATISATION OF THE REFINERIES
Rather than allow privatization of the refineries, we should
demand that more be built to satisfy demand in the domestic market and if
possible, export.
COMPARATIVE ANALYSIS OF NUMBER OF
FUNCTIONING REFINERIES IN SELECTED COUNTRIES
|
No
|
Country
|
Number
of Refineries
|
Population
(in million)
|
|
1.
|
Algeria
|
5
|
39.2
|
|
2.
|
Angola
|
2
|
21.5
|
|
3.
|
Egypt
|
9
|
82.1
|
|
4.
|
Libya
|
5
|
6.2
|
|
5.
|
Nigeria[3]
|
3
|
173.6
|
|
6.
|
South
Africa
|
6
|
52.9
|
|
7.
|
Indonesia
|
9
|
249.9
|
|
8.
|
Iraq
|
11
|
33.4
|
|
9.
|
Malaysia
|
7
|
30.1
|
|
10.
|
Belgium
|
4
|
11.2
|
|
11.
|
France
|
12
|
66.0
|
|
12.
|
Germany
|
15
|
80.6
|
|
13.
|
Italy
|
16
|
59.8
|
|
14.
|
Canada
|
25
|
35.2
|
|
15.
|
Brazil
|
17
|
200.4
|
What should be noted in the tabulation above is that
countries with less population than Nigeria generally have more functioning
refineries than Nigeria while those with relatively similar large population as
Nigeria have far more functioning refineries than Nigeria.
The
full deregulation of the pricing of petroleum products which has led to the
increase in the prices of petrol from the official rate of N86.50 per litre to
between N135 and N145 per litre should be declared unacceptable. The Nigerian
labour movement should insist that Buhari and the APC have lost the legitimacy
to continue to rule. It is clear that the Buhari/APC administration has been
hijacked by the cabal in the oil sector. Contrary to Buhari’s declaration that “I belong to everybody. I belong to
nobody”, Buhari has shown that he actually belongs to the oil cabal, the
politicians who have investment in the oil sector and Western Imperialism who
have hijacked him. PMB/APC Administration is against the welfare interest of
ordinary Nigerians.
The
official policy of absolute reliance on importation of petroleum products
linked to the black market exchange rate over which government has no control
would plunge the masses into untold hardship.
Buhari
and the APC rode to power on the crest of the wave of popular opposition to
increases in the prices of petroleum products under the Jonathan
Administration. APC members and leaders joined and sponsored mass protests
against increases in the prices of petroleum products under the PDP
administration. In the early part of his administration, Buhari had declared:
"When people ask you to remove
subsidy ask them to define it. Who is subsidizing who? Let me make it clear.
These people are gleefully saying 'remove subsidy' ....They want petrol to cost
N500 per litre....If you are earning N20,000 per month and you are living in
Lagos or Ibadan, the cost of transport to work and back, the cost of food. You
cannot control the market women they have to pay what transporters charge them.
But I am thinking more than half the population of Nigeria virtually cannot
afford to live...Where will they get the money to go to work? How can they feed
their families? How can they pay rent."
President
Buhari had also once declared that:
“… Investigating
corruption is a bigger priority than scrapping price caps on domestic fuel”.
“I have received
…literature on the need to remove subsidies, but much of it has no depth. …
Poor security, sabotage, vandalism, corruption and mismanagement - not
necessarily subsidies – are the most serious problems of Nigeria’s oil sector.”[4]
We
should ask President Buhari, why the sudden change of attitude? In the midst of
the 2015 (1st July) 45% rise in electricity tariff to N24 per
kilowatt for residential consumers,[5]
under the threats by the DISCOs to further increase electricity tariff by 100%,
to N50 per kilowatt for residential consumers; in the context of perennial
increases in school fees in Federal Government owned institutions, in the
absence of any social security schemes for the masses, the Buhari/APC
administration policy (of linking the pricing of petroleum products to the
black market exchange rate is a life-annihilating pill. As President Buhari
once said, “If Nigerians don’t kill
corruption, corruption will kill Nigeria”. In the same token, if poor
people of Nigeria don’t send Buhari/APC out of power by open, peaceful mass
actions, which is guaranteed under section 40 of the Constitution, the
Buhari/APC government will kill ordinary Nigerians. Rather than kill ordinary
people, let government kill corruption in the oil industry, which has prevented
domestic processing of crude for domestic consumption of petroleum products.
WHAT SHOULD BE NCP/LABOUR’S ATTITUDE TO
THE FIGHT AGAINST CORRUPTION
Research
findings have shown that inequality and corruption are positively correlated.
Countries with high levels of corruption tend also to have high levels of inequality. Therefore, the labour movement should argue
that the fight against corruption must simultaneously be linked with measures
to reduce inequality.
The labour
movement should adopt a broad perception of corruption which suggests that
corruption is the abuse of public power for private benefit/profit. In this
regard, violation of the constitution, rules and regulation for private benefit
is a form of corruption, which should equally be punished. Unless corruption is
defined in this broad perspective, the fight against corruption may itself be
dubious and corrupt.
Our proposed
definition of corruption brings privatization policy within the framework of
corrupt acts. As we have shown above, the Constitution of the Federal Republic
of Nigeria, 1999, as amended, provides that the economic system shall not be operated in such a manner as to permit the concentration of wealth or
the means of production and exchange in the hands of few individuals or of a
group (CFRN, 1999, S. 16(2)(c).
Within the framework of the
Constitution, the labour movement should resist the planned privatization of
the refineries. Government should take the fight against corruption to the oil
and gas subsector. Those who have diverted the investments meant to carry out
Turn Around Maintenance (TAM) over the decades should be brought to justice.
Establish more refineries and carry out repairs of the existing ones. Ensure
the refineries acquire the capacity to refine the crude for both domestic
consumption and export
Indeed,
reversing the privatization of the 1,500
public enterprises already privatized at all levels of government is the
‘change’ the labour movement has a historic responsibility to fight for.
FIGHT CORRUPTION ON NON-DISCRIMINATORY
BASIS
1. Perceive
privatization as looting/corruption. Nigeria’s privatization is nothing but
looting. Reverse all privatizations, through which Nigerians were dispossessed
of common patrimony.
2.
Probe the past. Act on existing Probe
Panel Reports.
3. Under
Mallam Nuhu Ribadu, the EFCC announced that almost all state Governors had
looted the treasury of their individual states. Many of them are walking about
as free citizens, even after they no longer enjoy constitutional immunity.
4. Perceive
non-payment of wages as corruption: Probe former and incumbent Governors.
5. Name
and shame all looters
6. Anti-graft
agencies should act on all petitions against public officers, including serving
Ministers under the PMB/APC government.
7. Name
and shame looters to provide against a phenomenon of recovery for relooting.
8.
Let recovered loot reflect on the
welfare of the people: enact a legislation providing for establishment of a
Trust Fund into which recovered loot would be paid and the purposes to which it
would be committed.
PROBE THE PAST
Probing
the past, without discrimination was the attitude of Chief Gani Fawehinmi. He
researched and listed[6]
the following in advocating the policy of probing the past:
“There are many probe
reports that have gathered so much dusts and so many cobwebs that they cannot
easily be discerned from afar in the shelves of Government. They include the
following:
a.
Probe Panel on the activities of the Nigerian National Petroleum
Corporation (NNPC) set up on December 12, 1993 under the Chairmanship of
Major-General Emmanuel Abisoye (Rtd.) which submitted its report on July 19,
1994. (not published)
b.
Probe Panel on the Nigeria Airways Ltd. Set up on February 2, 1994
under the Chairmanship of Air-Vice Marshall Yisa Diko (Rtd.) which submitted
its report on June 17, 1994. (not published)
c.
Panel of Inquiry to scrutinize the activities of the National
Electric Power Authority (NEPA) set up on January 5, 1994 under the headship of
Mr. Stephen Shekari which submitted its report on June 28, 1994; (not
published)
d.Probe Panel into the
activities of the Nigerian Customs Service set up on February 17, 1994 under
the headship of Major-General Paul Tarfa (Rtd.) which submitted its report on
September 22, 1994; (not published)
e.
Probe Panel into the activities of the Nigerian Telecommunications
Plc. (NITEL) set up on February 17, 1994 under the headship of Air-Vice
Marshall S. A. Naiti (Rtd.) which submitted its report on August 26, 1994; (not
published)
f.
Probe Panel into the activities of the Nigerian Ports Authority
Plc inaugurated on April 25, 1994 under the headship of Alhaji Mahmud Waziri
which submitted its report on August 25, 1994; (not published)
g.
Probe Panel into the activities of the Central Bank of Nigeria
(CBN) set up on January 15, 1994 under the Chairmanship of Dr. Pius Okigbo
which submitted its report on September 27, 1994; (not published)
h.
Probe Panel into the activities of the Nigerian Airports Authority
(NAA) set up on February 23, 1994 under the headship of Major-General David
Jemibewon (Rtd.) which submitted its report on July 25, 1994; (not published)
i.
Probe Panel into the activities of the Nigeria Police Force set up
on March 3, 1994 under the Chairmanship of Alhaji M.D. Yusuf which has since
submitted its report. (not published)
j.
Probe Panel into the activities of the Warri Refinery and
Petro-Chemical company set up on December 12, 1994 under the headship of Late
Mr. Aret Adams which submitted its report on February 1, 1995; (not published)
k.
Probe Panel into the activities of the Judiciary inaugurated on
October 29, 1993 under the leadership of Hon. Justice Kayode Eso (Rtd.) which
submitted its report on May 5, 1994. (delayed for 8 years before snippets of
the report got to the press and staccato implementation of some of its findings
by the Government was observed).
l.
Human Rights Violations Investigations Commission, headed by
Honourable Justice Chukwudifu Akunne Oputa (Rtd). (not published)
There are three other
panels set up by President Obasanjo in the first 30 days of civil rule in
Nigeria post May 29, 1999. We hear about them, but there have been no formal
publications of their reports. They are:
1.
Panel on contracts, licences and appointments headed by Dr.
Christopher Kolade.
2.
Panel on failed contracts (uncompleted projects, supplies and
services) headed by Alhaji Iguda Inua.
3.
Panel on landed properties headed by Brigadier General Oluwole
Rotimi (Rtd).
Missing Reports
Some probe panel reports
could be said to be missing where the government is not too comfortable with
the outcome of the probe panel. For example, the Dr. Pius Okigbo led probe panel
on the Central Bank of Nigeria (CBN).
Okigbo was not an
ordinary man, he was one of the best Nigerian Economists, a financial wizard, a
world renowned intellectual, a brilliant mind and an honest family man.
In 1994, he was asked to
head a probe on the activities of the Central Bank of Nigeria (CBN) with the
following terms of reference:
1.
To examine the legal framework guiding the operations of Central
Bank with particular reference to the relationship of the bank with the Federal
Government.
2.
Re-appraise the structures for the co-ordination and harmonisation
of fiscal and monetary policies for the purpose of achieving the objective of
macro-economic policy;
3.
Review the process of formulation and implementation of monetary
policy with specific reference to the control of money supply, interest rates
management and attainment of price stability.
4.
Re-examine the design and implementation of external sector
policies with particular regard to the operations of the foreign exchange
market, exchange rate management, external reserve management, external debt
management and the dedication account operated by the Central Bank.
5.
Review the growth and management of domestic debt, especially the
granting of ways and means of advances of the Federal Government and Central
Bank credit to the government generally.
6.
Access the adequacy or otherwise of the regulatory framework for
the financial system, with specific reference to the establishment of financial
institutions, prudential requirements and the bank's ability to deal with
financial insolvency.
7.
Identify the various factors, which constrain the effective
conduct of monetary and banking policies and propose appropriate remedies.
8.
Undertake a comprehensive review of the administrative, managerial
and structural requirements for the improved performance and autonomy of the
Central Bank.
The members of Okigbo
Panel were:
1.
Dr. Pius Okigbo
2.
Mr Pascal Dozie
3.
Dr. Yakubu Sankey
4.
Mrs. Bola Latinwo
5.
Dr. Obong Ufot Ekaette
6.
Chief Dotun Oyefodunrin
7.
Dr. Umar Muttalab
Nine years ago,
precisely on the 27th of September 1994, he submitted his report. I understand
it was a very scathing report indicting some prominent citizens of this country
of corruption. The report has not been published. Worst still, the newspapers
have published statements by some public officials that the report is missing.
Happily, one of the members of that panel was Ufot Ekaette, Secretary to the
Federal Government of Nigeria, the custodian of the Federal Government
documents. Let us ask him, where is the report of Okigbo Panel in which he
served?
What about Okigbo's
wife? I understand she is still alive and according to The Punch newspaper
report of Tuesday December 2, 2003, President Olusegun Obasanjo claimed that he
has written to her requesting for a copy of her husband's probe panel report.
But surprisingly, in another Punch newspaper report of Tuesday, December 16,
2003, Okigbo's wife denied being contacted by the President or the Federal
Government.”
FIGHT CORRUPTION WITHIN THE AMBIT OF THE
RULE OF LAW AND/OR CHANGE THE LEGAL FRAMEWORK ALONG THE PRINCIPLE THAT SERVING
AND/OR PUBLIC OFFICER WHO APPEARS TO LIVE ABOVE HIS/HER LEGITIMATE EARNINGS IS
PRESUMED TO BE GUILTY UNTIL HE/SHE PROVES OTHERWISE.
Chief Gani Fawehinmi[7]
advocated constitutional measures that would discourage corruption. He
advocated that te folowin sections be retained in the constitution:
“The following sections
of the Constitution are relevant in this respect:
For President- Section
137 (1)(i)
For Governor - Section 182(1)(i)
For National Assembly (Senate and House of Reps)- Section 66(1)(h)
For House of Assembly - Section 107(1)(h)
For Local Government Chairman and Councilors - Section 7(4)
For Governor - Section 182(1)(i)
For National Assembly (Senate and House of Reps)- Section 66(1)(h)
For House of Assembly - Section 107(1)(h)
For Local Government Chairman and Councilors - Section 7(4)
Section 137(1)(i)
provides as follows:
"A person shall not
be qualified for election to the office of President if -
'(i) he has been indicted
for embezzlement or fraud by a Judicial Commission of Inquiry or an
Administrative Panel of Inquiry or a Tribunal set up under the Tribunals of
Inquiry Act, a Tribunals of Inquiry law or any other law by the Federal or
State Government which indictment has been accepted by the Federal or State
Government respectively:'
Similar provisions are
contained in the other sections quoted above.
That is the importance
the Constitution attaches to probes.
Furthermore, statute of
limitation does not prevent the operation of the Constitutional provisions
listed above.”
But unfortunately, all
of those sections have been deleted from the Constitution by the 2010
amendments.
NO DISCRIMINATION: THE HALLIBURTON SCANDAL
In
the Halliburton scandal, a US oil service company pleaded guilty to paying over
US$180million in bribes to many top Nigerian public officers to secure four
contracts, worth over US$6billion. The labour movement should demand that all
of them be brought to justice. The beneficiaries and the amount involved are as
stated below:
THE
HALLIBURTON SCANDAL[8]
|
S/N
|
Periods
|
Beneficiaries ( company / Individual)
|
Amount involved
|
|
1.
|
1994 – 1995
|
General Sanni Abacha (former Nigeria Military Dictator)
|
$40 Million
|
|
2.
|
1996 – 1998
|
Dan Etete (former Minister of Petroleum under Abacha)
|
$2.5 Million
|
|
3.
|
1996 – 1998
|
M. D. Yusuf (Former Inspector General of Police and Chairman of
LNG)
|
$75,000
|
|
4.
|
1998
|
General Sanni Abacha’s brother, Abdulkadir Abacha
|
$1.887milion
|
|
5.
|
1999 – 2000
|
Atiku Abubakar (former Vice President, 1999 – 2007) and Don
Etiebet, ex Petroleum Minister)
|
$37.5 Million
|
|
6.
|
2001 – 2002
|
Olusegun Obasanjo and Atiku Abubakar, and Funsho
Kupolokun (Former President, Vice President and GMD, NNPC
respectively)
|
$74 Million
|
|
7.
|
2001 – 2002
|
Bodunde Adeyanju, ex personal assistant to Obasanjo.
|
$5 Million
|
|
8.
|
2001 – 2002
|
Ibrahim Aliyu, a retired federal permanent secretary (Urban Shelter
and Intercellular)
|
$11.7 Million
|
|
9.
|
2001 – 2002
|
Mohammed Gidado Bakare, a retired Chief Planning Officer
|
$3, 108, 675
|
|
10.
|
March, 1999
|
Nasir Ado Bayero, Son of the Emir of Kano (Gosmer International,
Risers Brothers)
|
$600,000
|
|
11.
|
1999 - 2000
|
Shinkafi and Glosmer International
|
$195,000
|
|
12.
|
March, 1999
|
Edith Edeghoughou
|
$290,000
|
|
13.
|
March, 1999
|
Zertasha Malik and Grety overseas
|
$600,000
|
|
14.
|
March/June,1998
|
Grety Overseas and Riser Brothers
|
$1.12Million
|
|
15.
|
2001 and 2002
|
Principal officials of the Nigerian Federal Inland Revenue Service
|
$2.4 million
|
|
|
|
TOTAL AMOUNT INVOLVE IN THE BRIBERY SCANDAL.
|
$181,650,675
|
Source: Usman, S. O. (2011). The opacity and conduit of corruption in the
Nigeria oil sector: Beyond the rhetoric of the anti-corruption crusade. Journal
of Sustainable Development in Africa. 13(2), 294-308.
Between 2004 and 2013, it is estimated that not less than US$178bn
was frittered away in terms of illicit financial outflows. This excludes other
forms of looting such as oil theft, bunkering, etc, as the tabulation below
shows.
|
YEAR
|
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
Cumulative
|
Average
|
|
Amount
|
1.680
|
17.867
|
19.160
|
19.335
|
24.192
|
26.377
|
19.376
|
18.321
|
4.998
|
26.735
|
178.040
|
17.804
|
COMPARING
THE ILLICIT OUTFLOW WITH REVENUES MADE FROM OIL
|
YEAR
|
OIL
REVENUE (in $ bn )
|
ILLICIT
OUTFLOW (in $bn)
|
|
2005
|
62
|
17.867
|
|
2006
|
66
|
19.160
|
|
2007
|
77
|
19.335
|
|
2008
|
50
|
24.192
|
|
2009
|
70
|
26.377
|
|
2010
|
99
|
19.376
|
|
2011
|
94
|
18.321
|
|
2012
|
84
|
4.998
|
|
2013
|
77
|
26.735
|
|
|
|
|
ATTITUDE TO REMUNERATION OF POLITICAL
OFFICE HOLDERS, INCLUDING LEGISLATORS
The
labour movement should demand that political office holders pay should reflect
the average living standards of a typical Nigerian as opposed to what currently
obtains.
ANNUAL PAY OF SENIOR BRANCH OF THE
LEGISLATIVE BRANCH (EQUIVALENT TO THE NIGERIAN SENATORS) WORLDWIDE AS AT 2013[10]
Another
form of looting is the un-proportionate income level of members of the ruling
class, typified by the earnings of the national legislators, compared to the
average living standard in the country. The tabulation below compares the
earnings of Nigerian Senator to equivalents in other parts of the world.
|
COUNTRY
|
ANNUAL
PAY (IN $)
|
|
Sri Lanka
|
5,100
|
|
India
|
11,200
|
|
Malaysia
|
25,300
|
|
Thailand
|
43,800
|
|
Spain
|
43,900
|
|
Ghana
|
46,500
|
|
Saudi Arabia
|
64,000
|
|
Indonesia
|
65,800
|
|
Kenya
|
74,500
|
|
France
|
85,900
|
|
Sweden
|
99,300
|
|
South Africa
|
104,000
|
|
Britain
|
105,400
|
|
New Zealand
|
112,500
|
|
Israel
|
114,800
|
|
Germany
|
119,500
|
|
Ireland
|
120,400
|
|
Hong kong
|
130,700
|
|
Japan
|
149,700
|
|
Canada
|
154,000
|
|
Singapore
|
154,000
|
|
Brazil
|
157,600
|
|
United
states
|
174,000
|
|
Italy
|
182,000
|
|
NIGERIA
|
2,183,685
|
The
key lesson we should draw from the tabulation and graph above is that of all
the 25 selected countries, legislators in Nigeria earn the highest in dollar
terms. They earn much more than their counterparts even in industrially
developed countries. However, we should not limit our attention to the
legislature. The same trend applies to the executive arm of government where
the Ministries, Departments and Agencies (MDAs) control budgets apart from
their earnings.
OPPOSE SECURITY VOTES OF GOVERNORS: IT
IS LOOTING
The
NCP should lead the campaign for the cancellation of security votes for the
Presidency and Governors. It is looting.
$200 billion US dollars in UAE
According
to Senator Sheu Sani, speaking in his capacity as the Chairman, Senate
Committee on Foreign and Domestic Debts, “Over $200 billion Dollars are stashed
away from Nigeria to Dubai alone. I am
not talking about estates and bonds and other securities bought with Nigeria
stolen money.”
RECOVERY OF LOOTED FUNDS
FROM 18 SOURCES, INCLUDING THE NNPC
Femi Falana, SAN, in a letter dated 8/4/16, addressed to the
Minister of Finance, has listed about 18 sources of looted funds, urging the Federal Government to
muster the political will and courage to recover the withheld or stolen wealth
of not less than $200 billion belonging to the Nigerian people.
They include the
following:
|
S/N
|
Source
|
Amount
|
|
1.
|
Relying on the
National Extractive Industries Transparency Initiative (NEITI) that
established, from five cycles of independent audit reports covering 1999-2012, the Nigerian National Petroleum Corporation (NNPC),
some oil companies and certain agencies of the federal government had
withheld $20.2 billion for the
Federation Account.
|
$20.2bn
|
|
|
|
|
|
2.
|
Bail outs to banks by the CBN (2006, $7 billion); (2008,
N600 billion or $4 billion).
|
$11bn
|
|
|
|
|
|
3.
|
On September 6, 2016
the Nigerian National Petroleum Corporation (NNPC) announced that
arrangements had been concluded to recover
the sum of $9.6 billion in over-deducted tax benefits from joint venture
partners on major capital projects and oil swap contracts.
|
$9.6bn
|
|
4.
|
Outstanding sum due
from Mobil Producing Nig.
Unlimited. Sometime in 2009, Mobil Producing Nigeria Unlimited applied to the
federal government for the renewal of three oil blocks. The NNPC asked Mobil
to pay the sum of $2.5 billion for the renewal of the licences. But without
any reason, Mobil paid only $600 million .
|
$1.9bn
|
|
5.
|
$4bn unlawfully collected from CBN between 1998-2014 by the
Federal Government out of over $5 billion stolen from the vaults of the CBN
by the late General Sani Abacha.
|
$4bn
|
|
6.
|
Unpaid royalty running into hundreds of millions of dollars owed by the oil and
gas companies operating in the in the Deep Offshore and Inland Basin since
the 15 year break (from 1999) allowed for non-payment of royalties ended
in 2014, by virtue of the Deep Offshore Inland Sharing Contract Decree
enacted in 1999 by the Abdulsalami Abubakar military junta for the benefit of
oil and gas companies operating in the Deep Offshore and Inland Basin.
|
Hundreds
of millions of dollars
|
|
7.
|
The contract awarded
to ZTE, (a Chinese company) in 2009 by the federal government for the
construction of CCTV cameras in
Abuja and Lagos, which was not performed. Recover thy of the contract sum of
$470 million is logical and equitable.
|
$470 million
|
|
8.
|
In the Appropriation
Act, 2011 the sum of N245 billion was
earmarked for fuel subsidy. In violation of the budget law the federal
government fraudulently paid out N2.5
trillion ($16 billion) to a cabal of fuel importers.
|
$16bn
|
|
9.
|
On July 6, 2012 the Supreme Court of Nigeria set aside
the fraudulent sale of the federal government owned Aluminium Smelting
Company of Nigeria (ASCON) located in Akwa Ibom state to RUSAL for $250
million and directed the company be sold to BFIG, the winner of the bid for
$410 million. The federal government should direct the National Council of
Privatisation to comply with the judgment. The federal government stands to
realise an additional sum of $160 million from the sale
|
$160m
|
|
10.
|
For contravention of
the law on compulsory registration of all SIM cards the NCC imposed a fine of
$5.2 billion on MTN last year. Based on plea by the MTN management and the
intervention of the Government of South Africa the fine was reduced to $3.9 billion out of which MTN has paid
the paltry sum of $250 million. Since MTN has withdrawn the suit challenging the
payment of the fine the federal government should take steps to ensure the
prompt payment of the outstanding balance of $3.65 billion
|
$3.65 billion
|
|
11.
|
Estimated
recoverable amount from oil theft over a 10-year period based
on current findings by a team of lawyers commissioned by thee Federal
Government under the Jonathan Administration
|
$100bn
|
|
12.
|
Amount that the NNPC agreed was not
remitted to the Federation account (between January 2012 and July 2013) after
reconciliation by the Federal Government instead of $20bn alleged by the
former CBN Governor, then Mallam Sanusi Lamido
|
$10.8bn
|
|
13.
|
Rising from its
monthly meeting at Abuja on September 17, 2015 the National Economic Council
accused the Nigerian National Petroleum Corporation (NNPC) of failing to
remit N3.8 trillion to the Federation Account under the Jonathan
administration. The Council set up a committee of 3 state governors to trace
the missing fund. Last month, the Auditor-General
of the Federation indicted the NNPC for withholding N3.2 trillion from the
Federation Account in 2014. The Revenue Mobilisation Allocation and
Fiscal Commission has said that “ the total indebtedness of the NNPC to the
Federation Account is N4.9 trillion (or ($32.6bn).
|
$32.6bn
|
|
14.
|
A
week before the 8/4/16 date on Mr Falana’s letter, a firm of auditors revealed that out of the
sum of $6.4 billion realised from the sale of crude oil and gas by the
Federal Government in the first
quarter of 2016 the NNPC remitted
only $2 billion to the Federation Account and withheld the sum of $4.2
billion. Up till now the NNPC has not explained how much of the sum of
$4.2 billion was spent on its operations in 3 months.
|
$4.2bn
|
|
15.
|
The arms fund diverted
to personal accounts from the office of the National Security Adviser under
President Jonathan
|
$8bn
|
|
16.
|
Halliburton
scandal
|
About
$200m
|
|
17.
|
sale of the OPM 245
for $1.3 billion otherwise known as malabu
oil deal.
|
$1.3bn
|
CRITICAL SUPPORT FOR PMB/APC ‘FIGHT
AGAINST CORRUPTION’: NO SACRED COWS
The
labour movement should give critical support to the PMB/APC government’s fight
against corruption by insisting that the fight against corruption should have
no sacred cows. For example, Sahara
Reporters (an online newspaper) has drawn attention to the allegation that
the Chief of Army Staff (COAS), General Buratai unlawfully bought a property
(Project TFG Marina Hotel, Unit 2711) in Dubai, from SIGMA 111 Limited, which
the General is not likely to afford from his legitimate earnings as a public
officer. The online newspaper, relying on the contents of a petition by some
aggrieved soldiers, suggests that the funding of the purchase was sourced from
vehicle contracts scam for the supply of vehicles and motorcycles for the use
of troops involved in anti-Boko Haram operations in the North East.
It is
alleged that some angry soldiers under the umbrella of Concerned Soldiers and Officers from the North East, have written a
petition, stating concrete details of how General Buratai allegedly uses an
agent, one Usman Gamawa, founder of Baggash Investment Limited for
the vehicle contract scam. Rather than supply new vehicles, Baggash Investment Limited allegedly
supplied second-hand vehicles and motorcycles from Niger Republic, all of which
have broken down.
In
spite of petitions by aggrieved soldiers, outcries by notable Nigerians,
including Femi Falana, SAN, the Civil Society Network Against Corruption
(CSNAC) led by Olanrewaju Suraju, whose petition to the Economic and Financial
Crimes Commission (EFCC) refers to the contract papers covering the property
purchase and reflecting the International passport numbers belonging to General
Buratai and his two wives who allegedly entered into the property purchase, the
Federal Government and its anti-graft agencies have not deemed it necessary to
investigate the allegations. The authorities have suddenly gone deaf and blind.
They hear and see nothing!
Rather,
the Army, as an institution, has come out in defence of General Buratai. In a
statement by Colonel Sani Kukasheka Usman, Acting Director of Army Public
Relations, the Army affirmed that General Buratai and his family own two
properties in Dubai, which were funded through personal savings.
Also,
the Code of Conduct Bureau (CCB)[11]
has come out in defence of General Buratai. In a letter in response to an inquiry
on whether or not Buratai declared the assets he holds in Buratai, worth
$1.5million, the CCB said Buratai’s property in Dubai, were declared in the
name of one of the wives.
The
response by the CCB shows the direction along which the CCB should conduct its
work. The labour movement should insist that it is not enough for a public
officer to declare his or her assets, the public officer should also justify
whether his/her legitimate earnings can afford the value of the declared
assets. Where the value of the assets exceeds what the public officer has
declared, the rational conclusion should be that the officer has abused his/her
office and should be made to face justice.
The
alleged contract scam is a violation of section 15 sub (5) of the Constitution,
which frowns against corrupt practices and abuse of office. The alleged
property purchase through some surrogate companies by General Buratai also
constitutes a violation of Paragraph 2(b) of the Code of Conduct for Public
Officers, which provides that all public officers who are engaged on full time
basis “shall not engage or participate
in the management or running of any private business, profession or trade but
nothing in this sub-paragraph shall prevent a public officer from engaging in
farming.” Therefore, from the above constitutional provision, public
officers can only engage in farming in addition to their work as public
officers. Any other form of private business or trade is unconstitutional.
NEPOTISM AS CORRUPTION
According
to Dr. Junaid Mohammed, Second Republic lawmaker, in a telephone interview with
TheNiche[12]
the following persons are relatives of Mr. President:
1. Alhaji Mamman Daura – The President’s
Adviser-in Chief. Mamman Daura’s father was Buhari’s elder brother. He is a
nephew to Buhari. His father is the elder brother of Buhari.
2. Abba Kyari – Chief of Staff to Buhari –
“Abba Kyari was brought up by Mamman Daura. His father left him with Mamman
Daura to go to Borno, his original state where he was a village head. And for
all intents and purposes, he is a son of Mamman Daura” – Dr. Junaid Mohammed.
3. Hadi SIRIKA – Minister of State for
Aviation – President Buhari’s elder sister’s son; a nephew of his, is the
Minister of Water Resources.
4. Amina Zakari – INEC Commissioner – Hadi
Sirika’s elder’s sister, another of President Buhari’s niece; was initially
named as Acting Chair of INEC after Attahiru Jega’s tenure expired. It is
alleged that she was GMB’s nominee for appointment under former President
Jonathan. INEC (Independent National Electoral Commission), Amina Zakari.
5. Kabir Daura – President Buhari’s Personal
Assistant – Mamman Daura’s son.
6. Aisha Abubakar – Minister of State for
Industry – Aisha Abubakar’s mother is the younger sister of Mamman Daura’s
wife.
7. Adamu Adamu, Nigeria’s Education Minister,
was allegedly groomed by Mamman Daura at the Petroleum Trust Fund (PTF).
8.
Colonel Lawan Abubakar - ADC (Aide de Camp) to President Buhari (“is married to
the granddaughter of Buhari’s elder sister” – Dr. Junaid Mohammed.
Also,
humn rights lawyer, Ebun Adegboruwa[13],
has also stated that the current INEC Chairman, Prof. Mahmud Yakubu, is related
to the President.
The
question is: can the labour movement be silent in the face of these realities?
I think not. While the President is entitled to have people he trusts to work
with, having Aso Rock dominated by relatives of Mr. President can hardly be
justified under a Constitution that has express provisions in support of
federal character in the composition of arms of government and public agencies[14].
The point being made here is that the labour movement should insist on the
minimum demand that government business is conducted in accordance with the
rule of law and not whimsically and capriciously. Objectivity in governance
cannot be maintained while relations dominate public institutions.
KLEPTOCRATIC
GOVERNORS AND DEPUTY GOVERNORS PENSION LAWS IN LAGOS, OYO AND KWARA STATES[15]
Former Governors earn
kleptocratic governors’ pensions and allowances at the rate of incumbent
Governors. Many of them still earn fat salaries and allowances either as
Ministers or legislators. We should campaign against the kleptocratic
Governors’ Pension laws.
Going by the Lagos State
Governor’s and Deputy Governor’s Pension law, they are entitled to pension for
life at the rate equivalent to the annual basic salary of the incumbent
governor or deputy governor, as the case may be. The law is to be To be
reviewed every 5 years or when there is
salary review of the political office holders by the Revenue Mobilisation
Allocation and Fiscal Commission in line with section 210 (3) of the CFRN, 1999.
They are entitled to (i) One residential house each for the Governor and Deputy
Governor at any location of their choice in Lagos State, and (ii) one
residential house in the Federal Capital
Territory for the Governor on 2 consecutive terms. House maintenance is 10%
of Annual basic salary. Transport entitlement consists of (a) three cars for
the Governor and in addition 1 Pilot and 2 backup cars to be replaced every 3
years (i.e. 6 cars every 3 years). (b). Two cars for the Deputy Governor and in
addition 1 Pilot and 1 backup car to be replaced every 3 years (i.e. 4 cars
every 3 years). Car is 30% of annual basic salary. Furniture allowance is 300%
of annual basic salary., etc.
LABOUR
MOVEMENT’S ATTITUDE TO RESPECT FOR FUNDAMENTAL RIGHTS, RULE OF LAW AND
OBEDIENCE OF COURT ORDERS
The
repression of the universally recognized rights of the Shiites and pro-Biafra
protesters ought to be condemned unconditionally by the labour movement. The
Kaduna State Government has publicly stated that 347 shiites who were shot dead
by the Military were given mass burial. Their leader, El-ZakZakky, the leader of the
Shiites has been in incarceration since December 2015 without trial for any
specific offence and without anybody, including his lawyers, being allowed to
have access to him.
ON NIGER DELTA AVENGERS
It
would be wasteful, unproductive and futile for the Federal Government to resort
to force to control, contain and dominate the Niger Delta Avengers. It is a
government that lacks solution to genuine demands of a segment of the society
that adopts the option of force and domination to silence opposition groups.
Even if the Federal Government succeeds in silencing the Niger Delta Avengers,
other similar and more ferocious groups may spring up tomorrow. What the
government ought to do is to examine if there is any truth in the concerns and
demands of the Niger Delta Avengers. In other words, Government should be concerned
more with the message, concerns and demands of the group, rather than its
methods. The messenger of a message may be killed, but if the message resonates
with the ordinary people of Niger Delta region, the truth in that message would
rise again and again. Truth crushed to earth will always rise again. That is
the lesson of history. Therefore, the viable option open to the Federal
Government as far the Niger Delta Avengers are concerned is to find solution to
their demands.
THE KEY DEMANDS OF THE NIGER DELTA AVENGERS
Though
the Niger Delta may be adopting undemocratic methodologies, the group may have
resorted to such methodologies out of despair and loss of confidence in the
Nigerian political system giving them justice. However, government should be more
concerned with addressing the group’s demands than showing that it can display
greater force.
The
key demands of the group are basically
economic and environmental, within a short term, medium and long term
timelines. The Niger Delta Avengers
(NDV) demands may be summed up with the acronym “ErODA” – “Er” for
Environmental repair, “O” for greater “Ownership” of the oil resource for the
welfare of the people in that region, “D” for payment of “Damages” for oil-induced
environmental pollution and “A” for “Amnesty”, that is continuation of amnesty
programme.
The
demands of the Niger Delta Avengers cannot be faulted; they are basically
genuine and just. The Nigerian State (i.e. government establishment as a whole)
may know no peace until those demands are comprehensively addressed on a fair
and just basis. The Niger Delta region produces the bulk of the wealth of
Nigeria. Yet, poverty in that region is more pronounced than anywhere else in
Nigeria. The members of the ruling class in the Niger Delta and other parts of
Nigeria have conspired and colluded to monopolise and enjoy the wealth of the
Niger Delta while giving ordinary people in the Niger Delta (as well as other
regions of Nigeria) squalor, excruciating poverty and hopelessness. Now the chips
are down: demand for oil has collapsed in the international market. Between the
rapacious greed of the ruling class and the basic welfare needs of ordinary
people, finding the resources to clean up the environment, pay damages and
continue the amnesty programme by which militants are paid a stipend so as not
to be driven to the precipice of despair may be hard to come by. At the same
time, in spite of the weakness of the economy, a genuine demonstration of
commitment by Government to address the grievances of the NDA would achieve
more than what the army of the world assembled against the Niger Delta
militants can achieve.
My firm conviction is that none of
Nigeria’s ruling bourgeois political parties has the capacity, the willingness
and commitment to find genuine solution to the varied multifaceted
contradictions facing Nigeria at the present time.
ON
REPRESSION OF PRO-BIAFRA MOVEMENT
The
pro-Biafra Movement has alleged that several of its supporters were shot dead,
burnt alive while others were injured, arrested and detained.
Nigeria
should learn from the recent referendum in the UK under Brexit, which has seen
majority support for Britain to exit the EU. While I maintained that
restructuring is not the fundamental or primary issue responsible for the
socio-economic cum political crises in Nigeria, government should not be
allowed to commit genocide under the guise of “Nigeria’s unity is not
negotiable”. What the government should do, pursuant to section 1 sub (2) is to
conduct referendum to test the popularity of the pro-Biafra Movement. If
majority of the people in the area are not persuaded by the argument of the
Nigerian Federal Government and other pro-pan Nigeria’s unity ideas and they
choose to exercise any form of self-determination, internal or external, so be
it. While the NCP should argue for maintaining the unity of Nigeria and the
unity of poor people regradles of geographic, ethnic and/or religious
differences, the NCP should neither support the call for a break up of Nigeria
nor the unconditional position of PMB that “Nigeria’s unity is not negotiable”.
It
should be made clear that the fundamental cause of poverty and the emerging
socio-economic cum political anomie is not the structure of Nigeria, as it is,
but the use of the common societal resources to satisfy the greed of the few
rather than being used to satisfy the basic needs of the downtrodden and the
marginalized.
It
should also be borne in mind that International Law recognizes the right to
internal form of self determination of peoples. Articles 1 and 55 of the UN Charter (that is UN Constitution)
expressly recognize the rights of peoples to self-determination. For the
avoidance of any doubt, the UN Charter defines 'peoples' as a group of human
beings, who may or may not comprise States or nations.
The
relevant provisions of the UN Charter and the African Union are reproduced
below.
Article 1 sub (2) of the UN Charter provides:
The purposes of the
United Nations are:
(2). To develop
friendly relations among nations based on respect for the principle of equal
rights and SELF-DETERMINATION of peoples, and to take other appropriate
measures to strengthen universal peace.
Also
Article 20(1) of the African Charter,
which has been domesticated,
provides:
All peoples shall have
the right to existence. They shall have the unquestionable and inalienable
right to self-determination. They shall freely determine their political status
and shall pursue their economic and social development according to the policy
they have freely chosen.
Radical political parties, such as the
NCP and PRP, including the broad social movements that are often compelled to
employ the protest culture, have a duty to resist violent repression of
democratic rights, regardless of who may be the victim. No government should be
allowed to get away with denial of democratic rights. The repression of the
pro-Biafra Movement deserves condemnation.
The labour movment, which is often compelled to
employ the protest culture, has a duty to resist violent repression of
democratic rights, regardless of who may be the victim. No government should be
allowed to get away with denial of democratic rights.
ATTITUDE TO ANTI-LABOUR LAWS
This
is definitely not a paper that addresses anti-labour laws in Nigeria. But I
imagine that workers and their trade unions, including parties like the NCP and
PRP, would be compelled to fight to live in the coming period. It is therefore
imperative to draw attention to one of the laws that the labour movement must
demand its urgent deletion from our statute books. This law is the Petroleum Production and Distribution
(Anti-Sabotage) Act, CAP P.12, Laws of the Federation of Nigeria, 2004 (updated
till 2012).
This
law criminalizes what it terms ‘sabotage’. Any form of strike action by workers
can easily pass for ‘sabotage’ considering the definition of the scope of the
meanings of ‘sabotage’ under the Act. This is because, under the Act, any form
of interruption in the process of production or distribution of petroleum
products qualifies for ‘sabotage’, which is punishable, on conviction, by death
sentence or imprisonment for a term not exceeding 21 years.
Under section 1
sub (1) of the Act, any person who willfully does any of the following things
or any person who aids, incites, counsels or procures any other person, to do
any of the following things, whether or not that other person does any of the
things, shall be guilty of the offence of ‘sabotage”. The ‘things’ or acts
spelt out are:
(a)
doing anything with intent to obstruct
or prevent the production or distribution of petroleum products in any part of
Nigeria; or
(b)
doing anything with intent to obstruct
or prevent the procurement of petroleum products for distribution in any part
of Nigeria; or
(c)
doing anything in respect of any vehicle
or any public highway with intent to obstruct or prevent the use of that
vehicle or that public highway for the distribution of petroleum products,
Though
this legislation has not been fully applied, nothing stops the State from fully
applying it against striking workers, if and when the State feels strong enough
to do so, for as long it remains in the statute books. But the mere existence
of the Act has the capacity to condition the behaviour of certain segments of
the working class to levels tolerable by the state and capital.
The
existence of the Petroleum Production and
Distribution (Anti-Sabotage) Act is an indication that there are several
other obnoxious laws that need to be overhauled. The trade union movement
should painstakingly collate them and build campaigns for their outright
abrogation.
THE FUNDAMENTAL BASIS OF THE NCP 10-CARE PROGRAMME:
WHY WE ARE DIFFERENT FROM THE RULING PARTIES
The fundamental
reasoning that informs the NCP 10-care programme is that the philosophy of government
should be based on satisfying the wellbeing and security of ordinary people. In
other words, the primary function and essence of government is to assume the
primary respeonsibility to “care”
for the downtrodden. Simply put, we argue that access of ordinary people to
social socio-economic rights is a right, not a privilege.
Therefore,
to the NCP and NCPers, our fundamental position is that:
1. Education
- a right!
2.
Housing - a right!
3.
Food - a right!
4.
Health care - a right!
5.
Water
- a right!
6.
Employment - a right!
7.
Electricity - a right!
8.
Transportation - a right!
9.
Telecommunication - a right!
10. Security - a right!
From
this standpoint, the NCP and NCPers are fundamentally different from all the
ruling political parties because when and if we aspire to public office, we do
so, not to advance individual selfish interests but to advance public interest.
Not to enrich individuals and friends at the expense of the public, but to
facilitate socio-economic development of society, with a view to benefitting
all.
To
facilitate attainment of this objective, we argue that the right to social
welfare should be constitutionally guaranteed and made justiciable on a
universal basis. That is why we advocate that all constitutional impediments to
making socio-economic rights justiciable, such as s. 6 (6) (c) should be
deleted from the Constitution of the Feedral Republic of Nigeria, 1999, as
amended.
The
current issues affecting Nigeria would therefore be looked at from the
viewpoint of the 10-care programme of the NCP formulated under the leadership
of the Late Chief Gani Fawehinmi.
I thank you for your attention.
Femi Aborisade, Esq.
21th July 2016.
[1]
Being Paper delivered as a discussant at the 2016 NCP
Congress held at Akure, Ondo State on 21/7/16.
[3] The number of
refineries refers to those functioning as at the time the data was compiled. In
reality, Nigeria has four refineries.
[4] Reported by Reuters at http://uk.mobile.reuters.com/articleidUKL5N0ZV3FO20150715?irpc=932
on 15/7/15 and accessed through Uhuru
Times personal emails to me.
[5] which
the Federal High Court, Lagos Judicial Division, presided over by Hon. Justice
Mohammed Idris declared has set aside on the ground of being procedurally ultra vires, irrational,
irregular and illegal (Judgment delivered on 13 July 2016.
[8] See Usman, S. O. (2011). The opacity and conduit of corruption in the
Nigeria oil sector: Beyond the rhetoric of the anti-corruption crusade. Journal of Sustainable Development in
Africa. 13(2), 294-308.
[9] Sourced from email
from Dr Baba Adam, a Nigerian expert based in the US
[10] Sourced from email
from Dr Baba Adam, a Nigerian expert based in the US.
[11] http://abusidiqu.com/code-conduct-bureau-opens-buratais-1-5m-mansions-dubai/
(accessed on 15/7/16).
[12] TheNiche (an online newspaper), June 26, 2016. See also http://pointblanknews.com/pbn/exclusive/buharis-relatives-taken-aso-rock-govt-says-dr-junaid-mohammed/
(accessed on 14/7/16).
[14] See for example section 14(3) of the Constitution of the Federal
Republic of Nigeria, 1999, as amended, in respect of composition of government
at the national level.
[15] This analysis was incorporated into a paper (“The
Imperatives of June 12 and Its Implication on Yoruba Politics”) I had
delivered at “June 12 Colloquium” organized by Yoruba Academy in partnership
with Afenifere Renewal Group (ARG) on 12 June 2014 at Drapers’ Hall, Institute
of African Studies, University of Ibadan.
weblinks
http://ondostate.gov.ng/new/newsPage.php?cat=2&&id=358
http://guardian.ng/news/balarabe-mimiko-aborisade-celebrate-gani-fawehinmi-task-govenment-on-economy/
http://ondotv.com.ng/2016/07/21/we-support-the-fight-against-corruption-but-it-must-not-be-discriminatory-aborisade/
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