I supported Lamido Sanusi’s initial actions, though with some reservations. I shared his concern for better governance, transparency and risk management and believed regulators and economy managers needed action to prevent future systemic crisis. Against charges of “Northern agenda”, I wrote that “knowing Sanusi, I find it difficult to think that he would act essentially driven by parochial considerations” and cautioned commentators against the impression that “while we complain about public sector corruption, we are more tolerant or ambivalent about private sector corruption” concluding that “…there is no Southern agenda of fraud, ostentation, corporate abuses or financial misdemeanour”. I complained however about “…wholesale criminalisation of borrowing, entrepreneurship or venturing”-it was unnecessary to advertise the names of persons in newspapers simply because they borrowed money from a bank!
I identified the challenge of “what to do with the eight banks now under government control” and warned against “nationalisation” arguing that “Given our history with nationalised banks in the 1970s and 1980s, this would be a severe error”. I urged the CBN to “move towards recapitalisation of these banks by their owners, a quick off load to other acceptable international private core investors or a merger or acquisition of these institutions” and urged the CBN “to accept a negotiated solution with the bank owners that preserves the regulators original goals”. I also suggested that “CBN over-dramatised its actions in relation to the sector and could have minimised disruptive emotions” (erring bank CEOs have been removed without undue publicity on at least four earlier occasions) and argued that “the systemic implications could have been better anticipated and counter-cyclical measures adopted in advance rather than as a reaction?” I feared that the CBN overreached itself in taking over management of the banks rather than simply removing erring CEOs; exercising its power to accept or reject replacements; mandating required loan write-offs; and requiring re-capitalisation within a given period.
In assessing probable consequences of Sanusi’s intervention, I stressed that “whatever it takes, we must get the banking sector to resume lending…” or a credit crunch was imminent. Indeed Sanusi publicly dismissed that possibility, arguing that the bank owners looted their institutions’ funds anyway, so their lending would not be missed in the economy! Since then, all data from CBN itself has confirmed significant contraction in private sector credit in 2010 and two months of 2011!!! Sanusi has subsequently gone from one (unnecessary) controversy to another-dismissing the need for rating agencies!; accusing the National Assembly (wrongly) of spending 25% of Nigeria’s “overheads”, recurrent expenditure or total annual budget. I avoided that controversy because I shared public revulsion at the legislators’ unsavoury self-awarded income, but the facts were simply that in 2010, the National Assembly’s budgets were 1% of capital; 5% of recurrent and 3% of the nation’s budgets.
I however support Lamido’s cash policy which commences in June 2012 allowing for a period of planning and preparation; at inception, it covers selected locations-Lagos State; Aba; Port Harcourt; Abuja and Kano where infrastructure is better; after the policy becomes operational, it does not totally prohibit cash transactions above the specified thresholds of N150,000 and N1,000,000 but imposes a penalty, which by-and-large ensures the person who transact high volume cash bears the cost rather than pass it to the rest of us. Beyond these, I believe the policy could help in curbing corruption and money laundering, which are facilitated through cash transactions and reducing interest rates and other financial charges.
Sanusi’s biggest controversy is over Islamic banking! No one who read the guidelines on Non-Interest Financial Institutions (NIFI) issued by Sanusi in January 2011 would accept Sanusi’s subsequent posturing that this is about finance and economics! The framework defined a NIFI as one who conducts business “in accordance with Shariah principles and rules of Islamic commercial jurisprudence” and defined Shariah principles as “the divine guidance as given by the Holy Qu’ran and the Sunnah of the Holy Prophet and embodies all aspects of the Islamic faith, including beliefs and practices”. Those guidelines were irresponsible and insensitive apart from being blatantly unconstitutional! It also contained terms such as “Shariah-compliant products and services”, Arabic terms such as “Istitna”, “Ijarah”, Ijarah wa iqtina”, “Mudharabah”, “Salam”, “Sukuk” and many others; requires all licensed NIFIs to establish “an internal Shariah compliance review mechanism and a Shariah Advisory Committee” and shockingly required the CBN to establish a “CBN Shariah Council” to “advise the CBN on Shariah matters”!!!
These guidelines were withdrawn in June in the face of imminent legal challenge, but it is impossible after reading them to regard Sanusi as merely a technical financial sector regulator interested only in economics and finance. The revised guidelines merely attempted to escape blatant illegality, re-naming the “CBN Shariah Council” as “CBN Advisory Council of Experts” and providing for two types of NIFIs-those “based on principles of Islamic commercial jurisprudence” and “any others”! The document then proceeded to discuss only the ones based on Islamic commercial jurisprudence!!! Section 61 of the Banking and Other Financial Institutions Act (BOFIA) defines NIFI as “a profit and loss sharing bank” which is “a bank which transacts investment or commercial banking business and maintains profit and loss sharing accounts”. Sanusi’s guidelines purport to re-define what the law has already defined.
Wednesday, July 27, 2011
Wednesday, July 20, 2011
Agenda for Jonathan's Ministers
I wrote “Agenda for Jonathan” four days before President Jonathan’s inauguration. With his cabinet in place (including Dr Akinwunmi Adesina whose selection appeared to have fallen through), I now adapt and drill it down to ministers who define policies and lead execution of the administration’s agenda. I retain the view that the President’s core objectives should centre on power and infrastructure; human capital and social sector investments; deepening economic reforms and improved fiscal and macroeconomic management; security and national reconciliation; legal and constitutional reforms; and corruption, ethics and national values. I also include land, housing and mortgage reforms.
The president’s power sector road map is a good plan and focus must be removal of obstacles to its swift execution, especially labour and geo-regional reservations, and ensuring that Nigeria has a private-sector controlled electricity industry. Unfortunately the Bureau of Public Enterprises (BPE) and government started by shifting the deadline for privatizing the power entities to February 2012!!! The minister must ensure no further missed targets and milestones! Beyond privatizing PHCN entities, a strategy for turning over the ongoing National Integrated Power Projects (NIPP) to the private sector must be designed. I advocate movement towards decentralizing transmission and distribution, and reducing reliance on the inefficient national grid. The Yar’adua/Jonathan era witnessed large budgetary allocations to road infrastructure, but execution (and value-for-money) has lagged. President Jonathan must now ensure we see tangible improvements in our national road network. Nigeria should aim to be the air, sea, road and rail transportation hub in West Africa and Africa.
Government must focus ALL attention on social sector reforms-education; health; poverty alleviation and tackling unemployment. In line with the 2011 appropriation, we must increase investments in education and science and technology to redress the education sector disaster the nation is marching inexorably towards. We need better educational infrastructure; more emphasis on quality; better trained and motivated teachers; leveraging science and technology; and improved ethics and standards in our educational sector. While government must seek consensus around reform of the Almajirai educational system in the North, the minister’s proposal to build 400 Almajirai primary schools is problematic! Will the expenditure come from the federal budget? Will these schools belong to the federal government? Who will manage and bear the future recurrent expenditure of those schools? Does building religious schools not conflict with the Nigerian Constitution?
The key health sector challenges are sector reform to ensure we have the right management structures and institutional mechanisms and sustainable financing. The president needs a strong team of financial, insurance and health sector experts to review the current sub-optimal health insurance scheme and devise comprehensive reforms to ensure universal health coverage in a sustainable framework. We have a national emergency regarding poverty and unemployment. The report of the Dangote Committee on Job Creation already provides a “roadmap” for dealing with the jobs issue, but we need a similar “Marshall Plan” for poverty alleviation, social welfare, rural development and successful attainment of the Millennium Development Goals. Land reforms are central to two national priorities-development of a viable and sustainable mortgage market and increasing investments in agriculture as an option for generating youth and graduate employment. I believe that reforms should include removal of the consent requirements in the Land Use Act.
The thrust of economic policy and management should focus on diversification from crude oil exports, focusing on refining, petrochemicals, aluminum and other downstream activities; agriculture (investments in new farms and fisheries, food storage, transportation and processing); solid minerals development; manufacturing, transportation and tourism. Critical in achieving economic diversification are power, security, and appropriate sectoral policy reforms. The problems of Niger-Delta militancy, Boko Haram insurrection and general state of crime and insecurity MUST be laid to rest leveraging better intelligence, strong enforcement and dealing with underlying social issues. We also need a competition and anti-trust law to ensure what we get is a free market, not a free jungle; and continued regulatory and investment climate reforms to improve foreign (and domestic) investment. On the fiscal side, passage of the Nigerian Sovereign Investment Authority Act is a big step towards institutionalizing better fiscal management. The establishment and management of NSIA must now be executed devoid of politics, cronyism and the “Nigerian factor”. I will also advocate an amendment to the Fiscal Responsibility Act to compel federal (and states/LGs) government to devote at least seventy percent of budget to capital expenditure by 2015, with the law mandating progression to that minimum on a year-to-year basis. Reform of the public services, compliance with procurement regulations; and a true anti-corruption war are also mandatory.
I also hope the administration will have time for legal and constitutional reforms to enthrone a true federal system, including devolution of powers to states and local governments; fiscal federalism; independent candidacy and Diaspora voting; a fair and accurate census and voters register; reform of the Land Use Act, and introduction of commercial courts. Finally I believe the president must focus on national values and ethical re-orientation. At the root of Nigeria’s development crisis and stunted growth is an underlying erosion of values and ethics; and unprincipled worship of money, position and power, irrespective of how they are attained.
The president’s power sector road map is a good plan and focus must be removal of obstacles to its swift execution, especially labour and geo-regional reservations, and ensuring that Nigeria has a private-sector controlled electricity industry. Unfortunately the Bureau of Public Enterprises (BPE) and government started by shifting the deadline for privatizing the power entities to February 2012!!! The minister must ensure no further missed targets and milestones! Beyond privatizing PHCN entities, a strategy for turning over the ongoing National Integrated Power Projects (NIPP) to the private sector must be designed. I advocate movement towards decentralizing transmission and distribution, and reducing reliance on the inefficient national grid. The Yar’adua/Jonathan era witnessed large budgetary allocations to road infrastructure, but execution (and value-for-money) has lagged. President Jonathan must now ensure we see tangible improvements in our national road network. Nigeria should aim to be the air, sea, road and rail transportation hub in West Africa and Africa.
Government must focus ALL attention on social sector reforms-education; health; poverty alleviation and tackling unemployment. In line with the 2011 appropriation, we must increase investments in education and science and technology to redress the education sector disaster the nation is marching inexorably towards. We need better educational infrastructure; more emphasis on quality; better trained and motivated teachers; leveraging science and technology; and improved ethics and standards in our educational sector. While government must seek consensus around reform of the Almajirai educational system in the North, the minister’s proposal to build 400 Almajirai primary schools is problematic! Will the expenditure come from the federal budget? Will these schools belong to the federal government? Who will manage and bear the future recurrent expenditure of those schools? Does building religious schools not conflict with the Nigerian Constitution?
The key health sector challenges are sector reform to ensure we have the right management structures and institutional mechanisms and sustainable financing. The president needs a strong team of financial, insurance and health sector experts to review the current sub-optimal health insurance scheme and devise comprehensive reforms to ensure universal health coverage in a sustainable framework. We have a national emergency regarding poverty and unemployment. The report of the Dangote Committee on Job Creation already provides a “roadmap” for dealing with the jobs issue, but we need a similar “Marshall Plan” for poverty alleviation, social welfare, rural development and successful attainment of the Millennium Development Goals. Land reforms are central to two national priorities-development of a viable and sustainable mortgage market and increasing investments in agriculture as an option for generating youth and graduate employment. I believe that reforms should include removal of the consent requirements in the Land Use Act.
The thrust of economic policy and management should focus on diversification from crude oil exports, focusing on refining, petrochemicals, aluminum and other downstream activities; agriculture (investments in new farms and fisheries, food storage, transportation and processing); solid minerals development; manufacturing, transportation and tourism. Critical in achieving economic diversification are power, security, and appropriate sectoral policy reforms. The problems of Niger-Delta militancy, Boko Haram insurrection and general state of crime and insecurity MUST be laid to rest leveraging better intelligence, strong enforcement and dealing with underlying social issues. We also need a competition and anti-trust law to ensure what we get is a free market, not a free jungle; and continued regulatory and investment climate reforms to improve foreign (and domestic) investment. On the fiscal side, passage of the Nigerian Sovereign Investment Authority Act is a big step towards institutionalizing better fiscal management. The establishment and management of NSIA must now be executed devoid of politics, cronyism and the “Nigerian factor”. I will also advocate an amendment to the Fiscal Responsibility Act to compel federal (and states/LGs) government to devote at least seventy percent of budget to capital expenditure by 2015, with the law mandating progression to that minimum on a year-to-year basis. Reform of the public services, compliance with procurement regulations; and a true anti-corruption war are also mandatory.
I also hope the administration will have time for legal and constitutional reforms to enthrone a true federal system, including devolution of powers to states and local governments; fiscal federalism; independent candidacy and Diaspora voting; a fair and accurate census and voters register; reform of the Land Use Act, and introduction of commercial courts. Finally I believe the president must focus on national values and ethical re-orientation. At the root of Nigeria’s development crisis and stunted growth is an underlying erosion of values and ethics; and unprincipled worship of money, position and power, irrespective of how they are attained.
Wednesday, July 13, 2011
The Jonathan Cabinet
The outline of the Jonathan Cabinet is almost complete and we can now take a comprehensive look at the implications of President Jonathan’s selections. The cabinet has a small, but strong policy core in Dr Ngozi Okonjo-Iweala, Mr Olusegun Agangan, Professor Barth Nnaji and Dr Shamsudeen Usman. It seems clear that Okonjo-Iweala, World Bank managing director, and Harvard/MIT graduate, will take the finance ministry and head the government’s economic management team, a role which she is excellently prepared for and which she carried out most successfully under ex-President Obasanjo between 2003 and 2006. Her qualifications and commitment are impeccable and she brings a much-needed extra in terms of values. It is an appointment I support without reservation.
I had wondered about the allocation of responsibilities between Okonjo-Iweala and Aganga were both to be in the cabinet. It now seems clear that Aganga has in effect accepted a “demotion” from finance to a so-called “Commerce and Investment” ministry. Contrary to some opinions, I think Aganga did well in the last one year and the delivery of the Nigerian Sovereign Investment Authority Act would be his defining contribution to Nigerian fiscal and macroeconomic management, a development of major policy and historical significance. His undoing has been inability to sell his policies and actions to the Nigerian people and perhaps an insular communication approach. Professor Barth Nnaji is the third element of the policy tripod, and his appointment is also an excellent one. I believe the power road map, if faithfully executed will create a private sector controlled electricity sector, and generate the industry structure and investments required to bridge our massive electricity deficit.
Dr Shamsudeen Usman will provide some continuity having occupied both the finance and national planning portfolios in the last four years. It is unfortunate that a gentleman that could have provided new thinking in the agriculture sector, one Dr Akinwumni Ayo Adesina, a globally-reputed agriculture expert currently at the Rockefeller Foundation may have been frustrated away as the position appeared to have been “zoned” somewhere else! There are a few interesting profiles coming into the team-Ambassador Gbenga Ashiru who should take the external affairs ministry; Ms Jumoke Akinjide who has decent qualifications and experience; Bolaji Abdullahi who reportedly excelled as Kwara State Education Commissioner; ex-Accenture Country Manager Mrs Omobola Johnson; and Dr Muhammed Pate. We wait to see what ministries they will occupy and what tangible achievements they will record in government.
Beyond these, there is little that is exciting about the emerging Cabinet!!! Some of Jonathan’s choices are controversial-Dieziani Allison-Maduekwe due to the barrage of allegations against her and reservations of industry incumbents-as I wrote last week however, it remains to be seen whether the allegations are truth or blackmail; PDP Acting National Chairman, Dr Bello Haliru Muhammed, who was named in the Siemens bribery scandal; and transport minister, Mallam Yusuf Suleiman who faced a corruption prosecution during his earlier tenure. Some of the returnees are acceptable and will now have to prove over a longer period their relevance as members of a cabinet purporting to achieve “transformation”-Professor Onyebuchi Chukwu in health; Professor Ruquayattu Rufai in education; Labaran Maku in information and communication; Emeka Wogu in Labour; and Mohammed Bello Adoke who returned as Attorney-General and Justice Minister. Many of the new appointees will also be expected to justify their inclusion in Jonathan’s team-Mr Edem Duke; Professor Ita Okon Bassey Ewa; Alhaji Bukar Tijani (who is expected to get the agriculture portfolio); Professor Viola Onwuliri; Erelu Olusola Obada; Ms Ama Pepple; Dr Yerima Ngama; and Ambassador Bashir Yuguda.
The rest of the nominees fall into two categories-those who appointments represent political (or friendly) pay-offs or those who are yet unknown quantities and difficult to characterize. In the political category, you can list Senator Bala Mohammed (FCT); Navy Captain Caleb Olubolade (FCT, State); Architect Mike Onelemen; Mr Nyeson Wike; Comrade Abba Moro; Alhaji Musa Sada (mines and steel); Dr Samuel Ortom; Senator Idris Umar; Princess Stella Oduah (aviation); Elder Godsday Orubebe (Niger-Delta); and Hajia Zainab Maina (women affairs). There are four nominees whose names do not ring any bells-Sarah Reng Ochekpe; Hadiza Ibrahim Mai-lafiya; Nurudeen Muhammed and Hajia Zainab Ibrahim Kuchi!!! The president also named several special advisers and personal aides, of whom Dr Reuben Abati (media and publicity); Dr Tunji Olagunju (NEPAD); Senator Joy Emordi (National Assembly); Professor Dan Adebiyi (Special Duties?) and Dr Pius Osanyikanmi (foreign affairs) may be expected to make some difference.
Overall the cabinet composition is underwhelming and is a mixed bag of average performers; political chieftains and/or their nominees; gender balancing; and a few strong people chosen on the basis of their performance and pedigree. Beyond the policy core, there is very little to be excited about, and one can only hope that policy team would be backed with the necessary political will to thrive in what is likely to be hostile territory!!! Well let’s hope the government can now settle down to “transformation”!!! Nigerians are waiting.
I had wondered about the allocation of responsibilities between Okonjo-Iweala and Aganga were both to be in the cabinet. It now seems clear that Aganga has in effect accepted a “demotion” from finance to a so-called “Commerce and Investment” ministry. Contrary to some opinions, I think Aganga did well in the last one year and the delivery of the Nigerian Sovereign Investment Authority Act would be his defining contribution to Nigerian fiscal and macroeconomic management, a development of major policy and historical significance. His undoing has been inability to sell his policies and actions to the Nigerian people and perhaps an insular communication approach. Professor Barth Nnaji is the third element of the policy tripod, and his appointment is also an excellent one. I believe the power road map, if faithfully executed will create a private sector controlled electricity sector, and generate the industry structure and investments required to bridge our massive electricity deficit.
Dr Shamsudeen Usman will provide some continuity having occupied both the finance and national planning portfolios in the last four years. It is unfortunate that a gentleman that could have provided new thinking in the agriculture sector, one Dr Akinwumni Ayo Adesina, a globally-reputed agriculture expert currently at the Rockefeller Foundation may have been frustrated away as the position appeared to have been “zoned” somewhere else! There are a few interesting profiles coming into the team-Ambassador Gbenga Ashiru who should take the external affairs ministry; Ms Jumoke Akinjide who has decent qualifications and experience; Bolaji Abdullahi who reportedly excelled as Kwara State Education Commissioner; ex-Accenture Country Manager Mrs Omobola Johnson; and Dr Muhammed Pate. We wait to see what ministries they will occupy and what tangible achievements they will record in government.
Beyond these, there is little that is exciting about the emerging Cabinet!!! Some of Jonathan’s choices are controversial-Dieziani Allison-Maduekwe due to the barrage of allegations against her and reservations of industry incumbents-as I wrote last week however, it remains to be seen whether the allegations are truth or blackmail; PDP Acting National Chairman, Dr Bello Haliru Muhammed, who was named in the Siemens bribery scandal; and transport minister, Mallam Yusuf Suleiman who faced a corruption prosecution during his earlier tenure. Some of the returnees are acceptable and will now have to prove over a longer period their relevance as members of a cabinet purporting to achieve “transformation”-Professor Onyebuchi Chukwu in health; Professor Ruquayattu Rufai in education; Labaran Maku in information and communication; Emeka Wogu in Labour; and Mohammed Bello Adoke who returned as Attorney-General and Justice Minister. Many of the new appointees will also be expected to justify their inclusion in Jonathan’s team-Mr Edem Duke; Professor Ita Okon Bassey Ewa; Alhaji Bukar Tijani (who is expected to get the agriculture portfolio); Professor Viola Onwuliri; Erelu Olusola Obada; Ms Ama Pepple; Dr Yerima Ngama; and Ambassador Bashir Yuguda.
The rest of the nominees fall into two categories-those who appointments represent political (or friendly) pay-offs or those who are yet unknown quantities and difficult to characterize. In the political category, you can list Senator Bala Mohammed (FCT); Navy Captain Caleb Olubolade (FCT, State); Architect Mike Onelemen; Mr Nyeson Wike; Comrade Abba Moro; Alhaji Musa Sada (mines and steel); Dr Samuel Ortom; Senator Idris Umar; Princess Stella Oduah (aviation); Elder Godsday Orubebe (Niger-Delta); and Hajia Zainab Maina (women affairs). There are four nominees whose names do not ring any bells-Sarah Reng Ochekpe; Hadiza Ibrahim Mai-lafiya; Nurudeen Muhammed and Hajia Zainab Ibrahim Kuchi!!! The president also named several special advisers and personal aides, of whom Dr Reuben Abati (media and publicity); Dr Tunji Olagunju (NEPAD); Senator Joy Emordi (National Assembly); Professor Dan Adebiyi (Special Duties?) and Dr Pius Osanyikanmi (foreign affairs) may be expected to make some difference.
Overall the cabinet composition is underwhelming and is a mixed bag of average performers; political chieftains and/or their nominees; gender balancing; and a few strong people chosen on the basis of their performance and pedigree. Beyond the policy core, there is very little to be excited about, and one can only hope that policy team would be backed with the necessary political will to thrive in what is likely to be hostile territory!!! Well let’s hope the government can now settle down to “transformation”!!! Nigerians are waiting.
Thursday, July 7, 2011
Jonathan's First Month
President Jonathan went into May 29 on a mixed note-positively he signed the Freedom of Information, Nigerian Sovereign Investment Authority, Anti-Terrorism, Anti-Money Laundering and 2011 Appropriation Acts. Unfortunately he couldn’t persuade the National Assembly to pass the Petroleum Industry Bill (PIB). He made only two appointments on his first day in office-the Secretary to the Government of the Federation (SGF), Anyim Pius Anyim and National Security Adviser (NSA), Lt. Gen Andrew Owoye Azazi. While Anyim’s appointment resonated politically (especially with Ohaneze Ndigbo), it was less optimal for policy and governance. I consider Azazi’s re-appointment an excellent decision. It was perplexing that Jonathan made only those two appointments for one whole month!
At the very least, an executive presidency in a complex country like Nigeria should have named at least an inner core-Chief of Staff (which doesn’t require Senate confirmation); Spokesman; National Assembly Liaison; Political Adviser; and Senior Policy Adviser. The president could have named them as personal aides until the National Assembly resolution authorising the number of Special Advisers. This vacuum in the presidency was at least partly responsible for the debacle of government’s embarrassing defeat in the race for House of Representative Speaker, which reflected the absence of a political/policy/strategy team. A proactive strategy team would have zoned SGF position to South-West and Speaker to South-East rather than the unsustainable policy adopted and even then a strong governance core could still have persuaded the representatives to be on the same page with Aso Rock.
The president’s reaction to “Boko Haram” (BH) bombings on inauguration day and
afterwards culminating in the audacious attack on the Abuja police headquarters has been hardly re-assuring! I wonder the point intended with the statement about terrorism being a global phenomenon that could happen to anyone!!! Government’s job is to confront and defeat it, not to suggest its inevitability!!! Eventually when some days ago the president got around to saying “enough is enough”, I doubt the pronouncement had much credibility with most Nigerians. I suspect there has been some transition within BH that has resulted in better logistics capabilities, deeper intelligence, higher funding and increased sophistication. The “new” bold BH is certainly operationally different from the one that fired from “okadas” in Maiduguri! Government must investigate what factors (and people) supervised and financed this transformation!!!
The president’s cabinet choices have also been mixed. Markets, reformers and international partners would have been excited by reports of Ngozi Okonjo-Iweala’s inclusion. Is Omobola Johnson in or out? If Okonjo-Iweala, Aganga and Dr Shamsudeen Usman are in the team, what will be the allocation of roles amongst them? I am pleased with Professor Barth Nnaji’s nomination and I urge Nigerians to tell the electricity workers opposed to his nomination to shut up! The continuity in National Planning is probably optimal given Usman’s supervision of the Vision 2020 process. I however intend to scrutinize his proposed law on Vision 2020 implementation VERY CAREFULLY as it seems to contain elements seeking to constrain economic policy and development in states and local governments based on federal government dictation.
I believe the president made some good reappointments-Professor Ruquayatu Rufai in education; Muhammed Bello Adoke; as Attorney General and Justice Minister; and Emeka Wogu at Labour. Professor Onyebuchi Chukwu may have also tried, but going-forward he should be even handed between doctors and other health sector professionals, and I believe the National Health Bill should be amended in this regard. The re-appointment of Mrs Dieziani Allison-Maduekwe as petroleum minister was bound to be controversial given the allegations peddled relentlessly in the media against her. Thus far quite frankly, it has been impossible to tell whether the stories reflect truth or blackmail. It is good to observe the nomination of Jumoke Akinjide-a first class lawyer whose education and experience includes Kings College London, a Harvard LLM, excellent legal practice especially as an expert energy lawyer and solicitor and a stint as ex-President Obasanjo’s special assistant on FCT. I think the president made two other excellent selections-Ambassador Gbenga Ashiru, a splendid fit for foreign affairs and Dr Akinwunmi Ayo Adesina, an agricultural expert of global repute.
The other cabinet choices appear mostly like political pay-offs-PDP Acting Chairman Dr Bello Haliru Mohammed; Princess Stella Oduah-Ogiemwonyi; Elder Godsday Orubebe; PDP Auditor Samuel Ortom; Hajiya Zainab Maina etc. The nominations of Bolaji Abdullahi and Tonye Cole reflect the growing influence of governors in Nigeria’s politics. I expect the touted appointment of Dr Reuben Abati in place of Ima Niboro as presidential spokesman to put some coherence and strategy into the government’s communication approach! The process of cabinet appointments has drawn attention to the emerging absurd demarcation between “technocrats” and politicians seeking government appointment. I suggest we focus on competence, commitment and integrity instead!!! The process has also entrenched a peculiarly Nigerian route to federal offices-state (in effect governors’) nominations; SSS clearance; and the loss of presidential discretion. The process may also reinforce the emerging marginalisation and abandonment of the South-West (some of it self-inflicted!) at the federal level.
Overall this regime’s character remains unclear and President Jonathan is yet to stamp his authority on the emerging cabinet and government.
At the very least, an executive presidency in a complex country like Nigeria should have named at least an inner core-Chief of Staff (which doesn’t require Senate confirmation); Spokesman; National Assembly Liaison; Political Adviser; and Senior Policy Adviser. The president could have named them as personal aides until the National Assembly resolution authorising the number of Special Advisers. This vacuum in the presidency was at least partly responsible for the debacle of government’s embarrassing defeat in the race for House of Representative Speaker, which reflected the absence of a political/policy/strategy team. A proactive strategy team would have zoned SGF position to South-West and Speaker to South-East rather than the unsustainable policy adopted and even then a strong governance core could still have persuaded the representatives to be on the same page with Aso Rock.
The president’s reaction to “Boko Haram” (BH) bombings on inauguration day and
afterwards culminating in the audacious attack on the Abuja police headquarters has been hardly re-assuring! I wonder the point intended with the statement about terrorism being a global phenomenon that could happen to anyone!!! Government’s job is to confront and defeat it, not to suggest its inevitability!!! Eventually when some days ago the president got around to saying “enough is enough”, I doubt the pronouncement had much credibility with most Nigerians. I suspect there has been some transition within BH that has resulted in better logistics capabilities, deeper intelligence, higher funding and increased sophistication. The “new” bold BH is certainly operationally different from the one that fired from “okadas” in Maiduguri! Government must investigate what factors (and people) supervised and financed this transformation!!!
The president’s cabinet choices have also been mixed. Markets, reformers and international partners would have been excited by reports of Ngozi Okonjo-Iweala’s inclusion. Is Omobola Johnson in or out? If Okonjo-Iweala, Aganga and Dr Shamsudeen Usman are in the team, what will be the allocation of roles amongst them? I am pleased with Professor Barth Nnaji’s nomination and I urge Nigerians to tell the electricity workers opposed to his nomination to shut up! The continuity in National Planning is probably optimal given Usman’s supervision of the Vision 2020 process. I however intend to scrutinize his proposed law on Vision 2020 implementation VERY CAREFULLY as it seems to contain elements seeking to constrain economic policy and development in states and local governments based on federal government dictation.
I believe the president made some good reappointments-Professor Ruquayatu Rufai in education; Muhammed Bello Adoke; as Attorney General and Justice Minister; and Emeka Wogu at Labour. Professor Onyebuchi Chukwu may have also tried, but going-forward he should be even handed between doctors and other health sector professionals, and I believe the National Health Bill should be amended in this regard. The re-appointment of Mrs Dieziani Allison-Maduekwe as petroleum minister was bound to be controversial given the allegations peddled relentlessly in the media against her. Thus far quite frankly, it has been impossible to tell whether the stories reflect truth or blackmail. It is good to observe the nomination of Jumoke Akinjide-a first class lawyer whose education and experience includes Kings College London, a Harvard LLM, excellent legal practice especially as an expert energy lawyer and solicitor and a stint as ex-President Obasanjo’s special assistant on FCT. I think the president made two other excellent selections-Ambassador Gbenga Ashiru, a splendid fit for foreign affairs and Dr Akinwunmi Ayo Adesina, an agricultural expert of global repute.
The other cabinet choices appear mostly like political pay-offs-PDP Acting Chairman Dr Bello Haliru Mohammed; Princess Stella Oduah-Ogiemwonyi; Elder Godsday Orubebe; PDP Auditor Samuel Ortom; Hajiya Zainab Maina etc. The nominations of Bolaji Abdullahi and Tonye Cole reflect the growing influence of governors in Nigeria’s politics. I expect the touted appointment of Dr Reuben Abati in place of Ima Niboro as presidential spokesman to put some coherence and strategy into the government’s communication approach! The process of cabinet appointments has drawn attention to the emerging absurd demarcation between “technocrats” and politicians seeking government appointment. I suggest we focus on competence, commitment and integrity instead!!! The process has also entrenched a peculiarly Nigerian route to federal offices-state (in effect governors’) nominations; SSS clearance; and the loss of presidential discretion. The process may also reinforce the emerging marginalisation and abandonment of the South-West (some of it self-inflicted!) at the federal level.
Overall this regime’s character remains unclear and President Jonathan is yet to stamp his authority on the emerging cabinet and government.
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