restructuring

Blog, Essays

The Imperatives Of Restructuring by Bola Tinubu

The national leader of the ruling All Progressives Congress and former Lagos state governor, Asiwaju Bola Ahmed Tinubu, penned this incisive piece on “Restructuring”. Read on… In one way or another, we all have felt the sting of man’s capacity to wrong his fellow man. But we are also endowed with the God-given spirit to overcome adversity and to make of old enemies, new allies, and even brothers. We must clearly articulate our objectives. That which we cannot think clearly, will not be attained despite the magnitude of our exertions and expenditure to achieve it. One cannot be assured that an architect’s fine design will result in a fine building. Much can go awry during the process of transforming an idea into brick and mortar. However, we can be certain that a masterful building is never the result of flawed design. In this vein, I dabble not so much in the search for a new Nigeria. I am equally not enthused about the flaws of old Nigeria. What I seek is a better Nigeria. I care not whether something is old or new but whether it shall make us better. Not all change is good. Not every new thing shall be kind to us. Yes, Nigeria must change but some of the changes we need cannot be bought at the store of the new. Many things we need are shelved in the warehouse of the old. Just as we must learn new things, on one hand, we must remember vital old wisdom on the other. The trend today is to believe progress and improvement are basically functions of technology and science. That politics and governance matter little and change almost nothing. That talk of political reform spills out of the leaking chalice of dreamers.  Or is but an intoxicant used by cynical political operators to delude the public. Skepticism abounds. The only strong belief is to disbelieve. Not enough people seek to improve society. They are told that only the foolish look out for his neighbour and respects his adversary. They are taught the only thing to do is to look out for one’s self. If thy neighbour stumbles, reach down not to pick him up but to take those things he dropped while falling. Self-profit is the only commandment.  All else is make-believe, things heard in the church and mosque but to be left there and not pursued in the course of everyday life. The very dynamics of the current political economy is to separate people from one another. Such mean isolation was never part of us but it has crept into our culture. Of this brand of newness, I want no part. The world has entered a period where progressive, humane reform is not fashionable. We are told to be practical, to accept the way things are. There is no struggle over competing ideals; we are told the current political economy is immutable. The only thing that matters is whether you master its dynamics to succeed or you sink and fail. To attempt to change things is as futile as trying to change the sky and clouds themselves. This is a blatant lie. Change is possible and change, we must. There is no such thing as having no ideology. Every political and economic institution is founded on one thought system or another. To accept the false premise that there is no alternative to how things are is to acquiesce in the unfair ideology that has brought us to our current predicament. In the hard sciences such as physics, chemistry or mathematics, one can speak of immutable principles and objective formula. In the affairs of men, most things are subjective. Virtue and vice, good and bad, what is optimal and what is not have any fixed meaning. Definitions change with the ideological and moral perspective of each person. In the face of recession, one man fires most of his employees in order to maintain his own income level. Another man accepts to receive less income so that he may retain his workers. Two men faced with the same circumstance. Each made a decision of equal soundness with regard to the rational or intellectual quality of the thinking processes that led to the decisions. However, the decisions call forth two divergent value systems that suggest two vastly different visions of how the political economy should function whether in or out of a crisis. As in almost all social interactions, there are few acts devoid of subjective ideological coloration. The decisions we make are determined by how we would like the world to be – our very actions are determined by what we value so as to keep and what we are willing to discard when the ship of state is tossed either by storm or errant navigation. Since there is no one objective optimal standard by which to construct a political economy, it would seem prudent for a nation to dedicate a healthy amount of time discussing this fundamental matter. For such is the surest path to reaching consensus on what economic development and good governance mean in our particular context. Sadly, the obverse is true. We talk little about this core issue. Instead, we spend inordinate time bickering over the symptoms of our failure to discuss the core issue. We are like the bewildered couple who have gotten their marriage licence after a lavish wedding, yet neither of them really understands the meaning of marriage or their roles as husband and wife in it. Legally, they are married but functionally, their union is a crippled one. This couple will be at loggerheads until somehow, someway they forge an agreement on what type of home they want and what are their respective duties in making that home come into existence. It is a rather curious lapse that a nation with such diversity as ours has not taken the time to give our legal marriage it’s proper functional underpinning. In other words, we all lined up to call ourselves Nigerian

Blog, Essays, Monishots

Igbos should examine Atiku’s restructuring song.

  “I won’t get my panties in a wedge because of what I am hearing from the political candidates, What they say in the campaign and what they do once they are in the White House are not the same thing. I don’t care who wins, whoever gets to the White House. Presidents can do a lot but they can only do so much through the system of checks and balances.” ~ James Baker  With the above words, the former US secretary of state reiterated the point that Presidents are not unilateral rulers and that campaign rhetoric is often overwhelmed by the reality once they are elected into office. The issue of restructuring Nigeria which has been an intermittent fixture in the news agenda is once again being championed by former Vice President Atiku Abubakar who made it the focal point of his renewed quest for the top job even before he emerged as the PDP flag bearer. He posited that Nigeria’s underperformance is closely related to its defective structure and promised to restructure the country in 6 months if elected. Expectedly, this position received knocks from the Buhari administration which dismissed it as mere political rhetoric meant to cajole the unsuspecting. Vice President Osinbajo in a letter published by many media houses described Atiku’s proposal as vague while insisting that fiscal federalism, stronger State Governments, and good governance which he claims the government is propagating are policies that will move the country forward. Federalism comes in varying forms, that much I am sure most of us will agree with. The common denominator, however, is that all forms have a relationship of shared authority between the component levels of government as agreed by the federating units. No system of government is perfect, therefore nation-states keep evolving to adjust whatever system is practised to present day realities. But we are in that season when politicians talk from both sides of the mouth promising to deliver El Dorado if elected, so both men are living up to expectation and that is why it is proper to gauge their antecedents and assess each statement based on its merits. But before we do that let us take a long stroll down history lane to examine the pattern of the calls for restructuring. After Aguiyi Ironsi’s declaration of a unitary system via decree 34 on the 24th of May 1966, it is on record that the old Northern and Western regions were critical of the decree while the Eastern region remained silent. The North particularly was outspoken in their attacks and accused Ironsi of planning to foist Igbo domination on the entire nation. While Aguiyi dithered the North took their umbrage to the peak and assassinated him in Ibadan on the 29th of July 1966. It is important to note that Ironsi’s decree 34 which was subsequently repealed by Gowon did not strip the regions of resource control, yet the North kicked perceivably because he was not ‘their own’ and most were still livid that the perpetrators of what they believed was an ‘Igbo coup’ were yet to be executed. What followed was an extensive era of successive military governments mostly headed by northerners that established revenue review committees. These committees more or less acted as morticians for the final cremation of regionalism and the derivation principle of revenue sharing that formed the nucleus of our federal system of government. Indeed the lopsided centralisation of resources actually started when Awolowo, acting as Gowon’s Federal Commissioner of Finance reduced derivation on the recommendation of the 1968 Dina Commission. Despite the blanket rejection of this by the Council of Commissioners of Finance from all the regions, the Gowon administration enacted decrees 13, 9 of 1970 and 1971 respectively which appropriated a large portion of exploration and consolidated revenue to the centre. The old Eastern region was disgruntled but coming from the defeat of a protracted civil war the region was too ravaged to utter a whimper. The Murtala and Obasanjo regimes even went further to allocate more to the centre. Murtala’s decree 6 allotted only 20% of oil royalties to the producing states the Federal Government got 80%. Obasanjo’s Aboyade Technical Commission vanquished the allocation to the Niger Delta as the centre retained 100% of mining rents and royalties. This was the end of the road for derivation and what many perceive as the end of our fiscal federalism. Crude oil which then contributed over 70% to the national purse was taken from the states and federalized to be shared according to the whims of the man in Abuja. Through all these years there were repeated muted disapprovals from especially the South East and South South but the notorious high-handedness of military rulers was enough deterrence to make potential agitators have a rethink. Our second stint at democracy did not solve the problem as Shagari retained the 100% derivation at the centre bequeathed by Obasanjo. It wasn’t until the 1995 Constitutional Conference during the Abacha regime approved a 13% derivation for littoral states that we began to see some semblance of a return to fiscal federalism. However, it is also noteworthy that cries of marginalisation by MOSOP rented the air from 1992 till the state execution of Ken Saro Wiwa in late 1995. Obasanjo’s second coming as a civilian president saw him abolishing the offshore/onshore dichotomy ruling of the Supreme Court in 2004 via an act of parliament. This ‘magnanimity’ elicited applause from the political elite of the Niger Delta and Akwa Ibom whose oil resources are virtually 100% offshore found itself in stupendous wealth. Once again the South relaxed on calls for restructuring. The Yar’adua era saw the South screaming again for federalism and when Jonathan took over the shouts automatically stopped in the South-South and South East. The South West then took the baton and continued screaming as the region was excluded from the top 6 elected positions after Jonatha was re-elected in 2011. With Buhari’s victory coming from the alliance of the South

Blog, Essays, Monishots

Give Me Good Governance Over Restructuring.

  They don’t know what they are talking about, I don’t believe in true federalism. What is true federalism? Why are they (the states) not accountable? What powers do they not have? They have power. In fact, state governors are more powerful than the president. That’s the truth. So if anybody tells you they want devolution or true federalism, he doesn’t know what he is talking.~ Olusegun Obasanjo With the above words, the Ebora Owu dismissed the calls for restructuring and true federalism in a chat with African Arguments published on 28th September 2017. The issue which has dominated the news agenda in the past few months is also being championed by none other than his arch-rival and former Vice President Atiku Abubakar who has made it the focal point of his renewed quest for the top job. In fairness to him, Obasanjo has never been a proponent of devolution. Understandably, this can be attributed to his background as a soldier. His time in Aso Rock was dotted by the tendency to centralise rather than decentralise power. He rode roughshod over perceived obstacles, deposing governors, senate presidents and a police chief as he strode boisterously around the country like a colossus. As usual many including yours truly will be quick to dismiss whatever is attributed to Obasanjo, but let us put the old soldier aside and critically interrogate his missive. Federalism comes in varying forms, that much I am sure most of us will agree with. The common denominator, however, is that all forms have a relationship of shared authority between the component levels of government as agreed by the federating units. No system of government is perfect, therefore nation-states keep evolving to adjust whatever system is practised to present day realities. Our federalism has been plagued by inter-ethnic rivalry, power-sharing and revenue allocation to mention just a few. The calls for restructuring are therefore not entirely misplaced, but some like Balarabe Musa has said that many chanting the song are doing so for selfish reasons. And truth be told, we have been restructuring since Independence, perhaps not in the manner many of the recent disciples envisage. But then again different regions have different interpretations and reasons for restructuring. Let us take a stroll down history lane to examine the pattern of the calls for restructuring. After Aguiyi Ironsi’s declaration of a unitary system on the 24th of May 1966, it is on record that the old Northern and Western regions were critical of the decree while the Eastern region remained silent. The North particularly was vociferous in their attacks and accused Ironsi of planning to foist Igbo domination on the entire nation. While Aguiyi dithered the North took their umbrage to the peak and assassinated him in Ibadan on the 29th of July 1966. It is pertinent to note that Aguiyi’s decree 34 did not strip the regions of resource control yet the North kicked because he was not their own. What followed was an extensive era of successive Military governments mostly headed by northerners that established revenue review committees. These committees more or less acted as morticians for the final cremation of the derivation principle of revenue sharing that formed the nucleus of our federal system of government. Indeed the lopsided centralisation of resources actually started when Awolowo, acting as Gowon’s Federal Commissioner of Finance reduced derivation on the recommendation of the 1968 Dina Commission. Despite the rejection of this by the Council of Commissioners of Finance from all the regions, the Gowon administration enacted decrees 13, 9 of 1970 and 1971 respectively which appropriated a large portion of exploration and consolidated revenue to the centre. The old Eastern region was disgruntled but coming from the defeat of a protracted civil war the region was too ravaged to utter a whimper. The Murtala and Obasanjo regimes even went further to allocate more to the centre. Murtala’s decree 6 allotted only 20% of oil royalties to the producing states the Federal Government got 80%. Obasanjo’s Aboyade Technical Commission vanquished the allocation to the Niger Delta as the centre retained 100% of mining rents and royalties This was the end of the road for derivation and what many perceive as the end of our fiscal federalism. Crude oil which then contributed over 70% to the national purse was taken from the states and federalized to be shared according to the whims of the man in Abuja. In all these years there was muted disapproval from especially the South East and South South but the notorious high-handedness of military rulers was enough deterrence to make potential agitators have a rethink. Our second stint at democracy did not solve the problem as Shagari retained the 100% derivation at the centre bequeathed by Obasanjo. It wasn’t until the 1995 Constitutional Conference during the Abacha regime approved a 13% derivation for littoral states that we began to see some semblance of a return to fiscal federalism. However, it is also noteworthy that cries of marginalisation by MOSOP rented the air from 1992 till the state execution of Ken Saro Wiwa in late 1995. Obasanjo’s second coming as a civilian president saw him abolishing the offshore/onshore dichotomy ruling of the Supreme Court in 2004 via an act of parliament. This ‘magnanimity’ elicited applause from the political elite of the Niger Delta and Akwa Ibom whose oil resources are virtually 100% offshore found itself in stupendous wealth. Once again the South relaxed on calls for restructuring. The Yar’adua era saw the South screaming again for federalism and when Jonathan took over the shouts automatically stopped in the South-South and South East. The South West continued screaming as the region was excluded from the top 6 elected positions in Jonathan’s administration. With Buhari’s victory coming from the alliance of the South West and the North, the pendulum has swung to the South East and South South to lead the screams for restructuring and even secession. I have taken time to elucidate this timeline so that it shouldn’t require sorcery to decipher that the volume of

Blog, Essays

Transcript of Nwodo’s speech at Chatham House London.

Let me begin by extending my deep sense of gratitude to the Royal Institute of International Affairs, for inviting me to participate in this current series of discussions on, Next Generation Nigeria: Accountability and National Cohesion. The involvement of this reputable British Institute in discussing and proffering suggestions for extant Nigeria’s problems is not only commendable, but I believe most relieving for the British establishment, who must understandably feel a deep sense of vicarious responsibility for putting together a country confronted with such grim future. Nigeria became a united British colony by the amalgamation of its Northern and Southern Protectorates in 1914. In 1960 it attained independence, fashioned a federal Constitution which had three and subsequently four regions as its federating units. The pre-1960 and the 1963 constitutions of Nigeria were fashioned by the people of Nigeria as represented by the leaders of their ethnic nationalities. The coup of January 1966 and the counter-coup of the same year occasioned by ethnic tensions and disagreements within the military-led our country to disastrous consequences. Our first Prime Minister, Rt. Hon Tafawa Balewa and the then premier of Northern Nigeria, Sir Ahmadu Bello, as well as the then Minister for Finance Festus Okotie-Eboh,  were murdered. A massive pogrom was unleashed on South Eastern Nigerians living in the Northern Nigeria. A sitting Head of State from the South East, Major General Aguiyi Ironsi and a governor from the South West Col. Adekunle Fajuyi were murdered. The military suspended our 1963 constitution and adopted a unitary system of government to fit their command and control structures. Opposition to this move by Southern Nigeria led to constitutional talks in Aburi, Ghana. The agreements reached Aburi were jettisoned. War broke out and claimed more than three and a half million lives mostly from the South East. After the war, the military-authored two more constitutions, one in 1979 and another in 1998/99. The two military constitutions were finally approved by the Supreme Military Council. Under military rule, this organ was the highest legislative organ for the country. It was made up of senior military officers, a majority of whom were from Northern Nigeria. The last constitution of 1998/99 which the military approved was the legal instrument that governed Nigeria’s transition to democracy. It is still in use in Nigeria today. It was not subjected to a national referendum. It created 19 states out of the old Northern Region, 6 states out of the Western Region, 2 states out of the old Midwestern Region and 9 states out of the old Eastern Region. An agreement by a constitutional conference convened by General Abacha divided the country into six geopolitical zones. This agreement was never incorporated into a legislation even though it continues to be adopted for administrative purposes by Government and the political parties. The creation of states and local governments in these six geographical areas did not respect any equitable parameter. Our present constitution is not autochthonous. It was not written by the people of Nigeria. It was not approved in a National referendum. In jurisprudence, its effectiveness will score a very low grade on account of its unacceptability. Regrettably, it continues to hold sway and begins with a false proclamation, “We the People of Nigeria….” Our present constitution was written at a time of unprecedented increase in National revenue following the massive discovery of oil in Nigeria and its global reliance as a source of fuel for mechanical machines. It had as its centrepiece, the distribution of national revenue and national offices using states and local governments as units for division. It constructed a federation in name but a unitary government in practice following the pattern enunciated in 1966 from the inception of military administration in Nigeria. Competition and drive for production by the federating units was destroyed. Each state and local government waited every month for proceeds from oil generated revenue to be divided out to them. The Federal Government became enormously powerful taking over mining rights, construction of interstate highways, major educational establishments, rail and water transportation, power and several infrastructural responsibilities previously undertaken by the regions.  Competition for control of the Federal Government became intense and corrupted our electoral system. Corruption became perverse as the Federal Government became too big to be effectively policed by auditing and administrative regulations. As I speak to you today, Nigeria has a grim economic outlook. Nigeria’s external debt has grown from $10.3 billion in 2015 to $15 billion in 2017. Her domestic debt has also grown from 8.8 trillion Naira in 2015, to 14 trillion Naira in 2017. Domestic debt component for the 36 states rose from 1.69 trillion Naira in 2015 to 2.9 trillion Naira in June 2017. The Federal government has on two occasions released bailout funds to enable states to meet their recurrent expenditure requirements. Only about eight states in Nigeria namely Lagos, Kano, Enugu, Edo, Delta, Abia, Rivers, and Kwara have their internally generated revenue sufficient enough to cover their interest repayments on their debts without depending on allocations from Federally collected revenue. For the Federal Government close to 40% of its annual revenue was spent on servicing of interest repayments on debts and according to International Monetary Fund (IMF), this percentage is expected to increase further. According to Fitch ratings, Nigeria’s Government gross debts is 320% of its annual revenue!! – one of the highest in the world. In the face of this economic reality, the Population Reference Bureau predicts that Nigeria will in 2050 become the world’s fourth-largest population with a population of 397 million coming after China, India and the United States of America. This is only 33 years away. In 2011, five Colonels in the United States Centre for Strategy and Technology, Air War College did a case study on Nigeria and the global consequences of its implosion and came out with a conclusion that, “despite its best efforts, Nigeria has a long-term struggle ahead to remain a viable state, much less a top-20 economy”. Faced with this grim

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