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.
Wednesday, June 22, 2011
Tayo Aderinokun 1955-2011
I met Tayo Aderinokun sometime around September 1990 as I sought a move from the old First Bank to a more nimble “new generation” bank. Two older family friends strongly recommended the upcoming Guaranty Trust Bank and I submitted my CV through them. I saw Tayo and Fola Adeola at the Victoria-Island offices of First Marina Trust Ltd, a finance company managed by Tayo. The meeting was short, and my first impressions might not have been excellent. Both were in their early and mid-thirties, their smart shirts gleaming and they were smoking! I collected my employment letter some days later and resumed on November 1, 1990 with 83 others, at a hired training school while construction of the bank premises continued for another few months.
It became immediately clear that “Fola and Tayo” knew where they were going! Fola was the visionary, grand strategist and motivator; “Uncle T” as we soon started calling him was less communicative; but more practical and grounded; and had a nose for money! While Fola pushed the dreams, Tayo set the boundaries, and often led implementation. It was a classic “CEO/COO” team and probably one of the most effective and complementary leadership teams one could ever experience. Tayo was a consummate professional and stickler for excellence. He was extremely focused, along with the inspirational Fola, on building a world-class, successful African bank and they succeeded probably beyond their expectations. Guaranty Trust was their life and they put their considerable wits, energies, resources, and maybe their blood into making it work. “The Plaza” at Adeyemo Alakija, Victoria-Island was an iconic representation of their vision. It resembled a London, New York or Paris bank, and the bank’s service delivery; people; professionalism; corporate governance; and branding aspired to global standards. Most importantly, they achieved exceptional financial results! Tayo was in his elements during the “Monthly Profitability Report” (MPR) review meetings and investors in the bank were the better for it.
When Tayo took over as CEO in 2002, some may have doubted he could sustain the phenomenal performance recorded under Fola’s leadership. Tayo lacked Fola’s charisma and people skills; was shy and quiet; and had an insular, less communicative approach. But as GTBank’s performance since then testifies, Tayo was a first class manager; very driven and with uncanny instincts about market direction. He was strategically disciplined, to the bank’s benefit, when trouble befell the industry! Uncle T had a good and generous spirit…and some eccentricities! He worked hard and played hard-privately off course. He loved the TGIFs, whisky, and his cigarettes. He enjoyed life’s pleasures and had impeccable taste! His table was always clean and sparkling, such that the uninitiated may have imagined he was idle. He kept a box on his table containing hundreds of sharpened pencils. He had his temper too, and God help you if you got on Tayo’s wrong side! He tended to have a narrow circle of friends and could be indifferent about those excluded from that inner circle. Yet, beyond the tough bank CEO, he was a gentle, kind and humble spirit who could have sang Tuface song-“If to say na just me!”
A few personal encounters shed some light on the real, inner Tayo-one day I walked into his office for some approval. He was happy with me-with Tayo it was easy to tell. I had just helped resolve a protracted Apapa property development to which the bank was exposed. He caught me glancing at a Citibank School of Banking brochure on his table and handed it over, asking if I was interested in any of the programmes. That was how I attended my first overseas course in New York in April 1995; we had one difficult female customer, who had stretched our patience to the limit but inexplicably always came out of Tayo’s office with some more forbearance. I later found out her strategy-she simply burst into tears and Tayo embarrassed and confused would grant her prayers and quickly usher her out of his office; on one occasion, we had just concluded a meeting where a “born again” customer had tried to evangelise him. Tayo told me he admired the humility of the Pastor behind the evangelical wave, but wasn’t convinced this was the “real thing”. He mentioned a friend who caught in spiritual fervour had donated a generator leased to him by the bank to his Church. We had the unpleasant task of retrieving the generator from the Church! It struck me that Tayo knew the “real thing”, and may have been fervently devout had he encountered it. Uncle T took a chieftaincy title in Owu, Abeokuta in 2009.
When I informed Tayo I was going into consultancy and teaching at Lagos Business School, he went surprisingly passionate, affirming his intent to retire into education-managing a secondary school and later built Day Waterman College in Abeokuta in fulfilment of that vision. Unfortunately he retired to the heavens! I saw Uncle T for the last time on January 4, 2011 with his wife at an ex-colleague’s 50th birthday party, his usual reserved and quiet presence. My condolences to Fola; his wife Funlola and children; his friends particularly my “egbons”-Jimi Agbaje, Akin Akintoye, Bode Agusto, Sola Adeeyo, Akin Kekere-Ekun; his brother Kayode and family; his colleagues at GTBank and First Marina; and my friend, Salamatu. May his soul rest in peace.
It became immediately clear that “Fola and Tayo” knew where they were going! Fola was the visionary, grand strategist and motivator; “Uncle T” as we soon started calling him was less communicative; but more practical and grounded; and had a nose for money! While Fola pushed the dreams, Tayo set the boundaries, and often led implementation. It was a classic “CEO/COO” team and probably one of the most effective and complementary leadership teams one could ever experience. Tayo was a consummate professional and stickler for excellence. He was extremely focused, along with the inspirational Fola, on building a world-class, successful African bank and they succeeded probably beyond their expectations. Guaranty Trust was their life and they put their considerable wits, energies, resources, and maybe their blood into making it work. “The Plaza” at Adeyemo Alakija, Victoria-Island was an iconic representation of their vision. It resembled a London, New York or Paris bank, and the bank’s service delivery; people; professionalism; corporate governance; and branding aspired to global standards. Most importantly, they achieved exceptional financial results! Tayo was in his elements during the “Monthly Profitability Report” (MPR) review meetings and investors in the bank were the better for it.
When Tayo took over as CEO in 2002, some may have doubted he could sustain the phenomenal performance recorded under Fola’s leadership. Tayo lacked Fola’s charisma and people skills; was shy and quiet; and had an insular, less communicative approach. But as GTBank’s performance since then testifies, Tayo was a first class manager; very driven and with uncanny instincts about market direction. He was strategically disciplined, to the bank’s benefit, when trouble befell the industry! Uncle T had a good and generous spirit…and some eccentricities! He worked hard and played hard-privately off course. He loved the TGIFs, whisky, and his cigarettes. He enjoyed life’s pleasures and had impeccable taste! His table was always clean and sparkling, such that the uninitiated may have imagined he was idle. He kept a box on his table containing hundreds of sharpened pencils. He had his temper too, and God help you if you got on Tayo’s wrong side! He tended to have a narrow circle of friends and could be indifferent about those excluded from that inner circle. Yet, beyond the tough bank CEO, he was a gentle, kind and humble spirit who could have sang Tuface song-“If to say na just me!”
A few personal encounters shed some light on the real, inner Tayo-one day I walked into his office for some approval. He was happy with me-with Tayo it was easy to tell. I had just helped resolve a protracted Apapa property development to which the bank was exposed. He caught me glancing at a Citibank School of Banking brochure on his table and handed it over, asking if I was interested in any of the programmes. That was how I attended my first overseas course in New York in April 1995; we had one difficult female customer, who had stretched our patience to the limit but inexplicably always came out of Tayo’s office with some more forbearance. I later found out her strategy-she simply burst into tears and Tayo embarrassed and confused would grant her prayers and quickly usher her out of his office; on one occasion, we had just concluded a meeting where a “born again” customer had tried to evangelise him. Tayo told me he admired the humility of the Pastor behind the evangelical wave, but wasn’t convinced this was the “real thing”. He mentioned a friend who caught in spiritual fervour had donated a generator leased to him by the bank to his Church. We had the unpleasant task of retrieving the generator from the Church! It struck me that Tayo knew the “real thing”, and may have been fervently devout had he encountered it. Uncle T took a chieftaincy title in Owu, Abeokuta in 2009.
When I informed Tayo I was going into consultancy and teaching at Lagos Business School, he went surprisingly passionate, affirming his intent to retire into education-managing a secondary school and later built Day Waterman College in Abeokuta in fulfilment of that vision. Unfortunately he retired to the heavens! I saw Uncle T for the last time on January 4, 2011 with his wife at an ex-colleague’s 50th birthday party, his usual reserved and quiet presence. My condolences to Fola; his wife Funlola and children; his friends particularly my “egbons”-Jimi Agbaje, Akin Akintoye, Bode Agusto, Sola Adeeyo, Akin Kekere-Ekun; his brother Kayode and family; his colleagues at GTBank and First Marina; and my friend, Salamatu. May his soul rest in peace.
Women, Sex and Power
There is an epidemic of sex scandals consuming men of power around the world. The roll call appears to be a “who is who” in global politics, sports and finance! Tiger Woods kicked off the parade; Since then a variety of names have followed-Chelsea and England football captain, John Terry; former California Governor, Arnold Schwarzenegger; respected Manchester and Welsh footballer, Ryan Giggs; The most recent “victims” are the biggest-International Monetary Fund Managing Director, Dominique Straus-Khan (DSK) and US Congressman, Anthony Weiner. DSK, who a few months ago was one of the most powerful men in the world, seemingly destined to be the next President of France, was in the twinkle of a lustful hotel-room eye transformed into a common New York criminal, in handcuffs and detained in a notorious prison. Today he stays in more luxurious surroundings in a Manhattan apartment paid for by his loyal wife, but it’s a prison all the same!
What is it that makes men (whoever is without sin, should cast the first stone!!!) endanger everything-reputation, family, wealth and career etc. when faced with a beautiful (or sometimes not-so-beautiful) woman and the prospect of illicit sex? Why would recently-married Congressman Weiner, a popular New York Congressman whose pregnant spouse is aide to US Secretary of State, Hillary Clinton, and widely considered a future Mayor of New York, send compromising pictures on Twitter to women he had never met? Why was he willing to take that risk? Why would former New York Governor, Elliot Spitzer, knowing he had made powerful enemies fighting organised crime, securities fraudsters, big multinationals who abused the environment, mortgage lenders etc endanger his political career by dealing with a prostitution service? What was he thinking? Was he thinking? Do men lose capacity for thinking when such actions are taken? Is this a case of temporary insanity?
Arnold Schwarzenegger, the Austrian-American former body-builder, model, actor, celebrity, businessman and politician who was Mr Universe at 20 in 1967 and Mr Olympia seven times; a Hollywood icon; Republican Governor of California married for over twenty-five years to Maria Shriver, niece of ex-President John. F Kennedy has just being discovered to have fathered a child fourteen years ago with the family’s Guatemalan housekeeper, and kept this from his wife until very recently. Is it just our nature as men? John Terry caused uproar in Chelsea and England when it emerged that he had dated the girlfriend of his teammate in both club and country, Wayne Bridge causing England manager, Frank Capello to strip him of the England captaincy for a while. Ryan Giggs case(s) are more scandalous, apparently! The fellow had apparently maintained an eight-year affair with his brother’s girlfriend and later wife!!! Giggs has also made an inadvertent contribution to British law with his now subverted “super-injunction” preventing revelation of another affair with Imogen Thomas.
David Blunkett lost his place as Home Secretary under Tony Blair because of an affair with Kimberly Fortier, an American Publisher who later decided to return to her husband; Tiger Woods lost his reputation and marriage (and a lot of money!) because of revelations about his sex life; President Bill Clinton was almost impeached because of his affair with Monica Lewinsky; David Beckham had his turn in the scandal tabloids; and even the dreaded General Abacha’s death is rumoured to have a connection with Indian “apples”!!! Who will save the male race from this affliction of testosterone??? The problem seems to go back to the end (actually beginning) of time as anyone familiar with the Bible can attest. Maybe Adam would not have eaten the “forbidden fruit” but for Eve’s prodding; King David paid a high price for the attractions of Uriah’s wife, Bathsheba; Samson met his waterloo in Delilah; Abraham had his time with the maidservant with serious, generational and historical consequences; and Jacob had to work for fourteen years just to get married to Rachael!!! Perhaps the matter is spiritual? Certainly it seems to be the surest route (as all the Biblical and current examples suggest) through which destinies are altered or destroyed! Ask Dominique Strauss-Khan whose hopes of becoming French President can only be resurrected by God Almighty himself!!!
Why do these issues seem positively correlated with men of exceptional strength (sportsmen), power (politicians and Kings) and riches? On the other hand, accounts of divorce proceedings in our customary courts suggest that similar scandals reach into the lower classes of society, except that you are not likely to sell many newspapers reporting the affair between an unknown bricklayer and his colleague’s street hawker wife!!! Cases like that of DSK illustrate the complexity of sexual relationships. Was there consent? What is consent? How is consent communicated-explicitly, implicitly or a blend of both? Does consent have social or cultural contexts or is it an objective verifiable transaction? Can consent first given (or assumed to be given) be withdrawn (or claimed to be withdrawn)? Would DSK have been arrested for his “crime” in France, Italy or Nigeria? Is there a political dimension to these things? Is sex emerging as the ultimate weapon of political competition? Can you discount targeting by political opponents from the cases of DSK, Weiner, Clinton and Abacha?
And then the role of technology-with Face book, Twitter, YouTube, Camera Phones and DNA, the scope and consequences of “temporary insanity” appears gravely elevated. Hmmm.
What is it that makes men (whoever is without sin, should cast the first stone!!!) endanger everything-reputation, family, wealth and career etc. when faced with a beautiful (or sometimes not-so-beautiful) woman and the prospect of illicit sex? Why would recently-married Congressman Weiner, a popular New York Congressman whose pregnant spouse is aide to US Secretary of State, Hillary Clinton, and widely considered a future Mayor of New York, send compromising pictures on Twitter to women he had never met? Why was he willing to take that risk? Why would former New York Governor, Elliot Spitzer, knowing he had made powerful enemies fighting organised crime, securities fraudsters, big multinationals who abused the environment, mortgage lenders etc endanger his political career by dealing with a prostitution service? What was he thinking? Was he thinking? Do men lose capacity for thinking when such actions are taken? Is this a case of temporary insanity?
Arnold Schwarzenegger, the Austrian-American former body-builder, model, actor, celebrity, businessman and politician who was Mr Universe at 20 in 1967 and Mr Olympia seven times; a Hollywood icon; Republican Governor of California married for over twenty-five years to Maria Shriver, niece of ex-President John. F Kennedy has just being discovered to have fathered a child fourteen years ago with the family’s Guatemalan housekeeper, and kept this from his wife until very recently. Is it just our nature as men? John Terry caused uproar in Chelsea and England when it emerged that he had dated the girlfriend of his teammate in both club and country, Wayne Bridge causing England manager, Frank Capello to strip him of the England captaincy for a while. Ryan Giggs case(s) are more scandalous, apparently! The fellow had apparently maintained an eight-year affair with his brother’s girlfriend and later wife!!! Giggs has also made an inadvertent contribution to British law with his now subverted “super-injunction” preventing revelation of another affair with Imogen Thomas.
David Blunkett lost his place as Home Secretary under Tony Blair because of an affair with Kimberly Fortier, an American Publisher who later decided to return to her husband; Tiger Woods lost his reputation and marriage (and a lot of money!) because of revelations about his sex life; President Bill Clinton was almost impeached because of his affair with Monica Lewinsky; David Beckham had his turn in the scandal tabloids; and even the dreaded General Abacha’s death is rumoured to have a connection with Indian “apples”!!! Who will save the male race from this affliction of testosterone??? The problem seems to go back to the end (actually beginning) of time as anyone familiar with the Bible can attest. Maybe Adam would not have eaten the “forbidden fruit” but for Eve’s prodding; King David paid a high price for the attractions of Uriah’s wife, Bathsheba; Samson met his waterloo in Delilah; Abraham had his time with the maidservant with serious, generational and historical consequences; and Jacob had to work for fourteen years just to get married to Rachael!!! Perhaps the matter is spiritual? Certainly it seems to be the surest route (as all the Biblical and current examples suggest) through which destinies are altered or destroyed! Ask Dominique Strauss-Khan whose hopes of becoming French President can only be resurrected by God Almighty himself!!!
Why do these issues seem positively correlated with men of exceptional strength (sportsmen), power (politicians and Kings) and riches? On the other hand, accounts of divorce proceedings in our customary courts suggest that similar scandals reach into the lower classes of society, except that you are not likely to sell many newspapers reporting the affair between an unknown bricklayer and his colleague’s street hawker wife!!! Cases like that of DSK illustrate the complexity of sexual relationships. Was there consent? What is consent? How is consent communicated-explicitly, implicitly or a blend of both? Does consent have social or cultural contexts or is it an objective verifiable transaction? Can consent first given (or assumed to be given) be withdrawn (or claimed to be withdrawn)? Would DSK have been arrested for his “crime” in France, Italy or Nigeria? Is there a political dimension to these things? Is sex emerging as the ultimate weapon of political competition? Can you discount targeting by political opponents from the cases of DSK, Weiner, Clinton and Abacha?
And then the role of technology-with Face book, Twitter, YouTube, Camera Phones and DNA, the scope and consequences of “temporary insanity” appears gravely elevated. Hmmm.
Wednesday, June 8, 2011
The South West Agenda
The most significant consequence of the 2011 elections was the national power shift in favour of President Jonathan’s new coalition with its centre of gravity in the South-South, South-East and North-Central, “strong” support in the South-West and “sufficient” support in the North-West and North-East. The other critical outcome is the return of the South-West to opposition, “progressive” politics in the tradition of the Action Group (AG), Unity Party of Nigeria (UPN), Social Democratic Party (SDP) and Alliance for Democracy (AD), this time under the Action Congress of Nigeria (ACN). The South-West electorate decisively rejected “mainstream” politics as advocated by ex-President Olusegun Obasanjo and the Peoples Democratic Party (PDP) South-West faction as their forbears had rejected “Demo” politics in the first republic and National Party of Nigeria (NPN), National Republican Convention (NRC) and PDP until the 2003 hijacking of the West by Obasanjo and Bode George.
Apart from disillusionment with the PDP and Obasanjo, South-West voters were voting, in my view, for a federal framework that allows the region develop at its own (implicitly faster) pace and the type of social democratic policies and social investment that represents the political and governance heritage in the region. It will be misleading however to assume that the 2011 elections represents a permanent and irreversible rejection of PDP and other political alternatives. Having recovered their sovereignty, our people will in future exercise it against any incumbents that fail to meet the (high) expectations of voters. Given the fact that all the states in the South-West are under the ACN, with the exception of Ondo State which is under a Labour Party government that may also be considered “progressive” (and which actually took power from the PDP with some support from the ACN leadership), there is also a widespread expectation within the region that the party and its governors will cooperate to spread the type of development witnessed in Lagos State across the entire South-West.
How can the high expectations of South-West voters be met? What policies should be implemented across the region? What should be the South-West agenda? The philosophical and constitutional anchor will obviously have to be true federalism! South-West citizens and voters will expect their leaders, governors and legislators to lead the campaign for a return to real federalism in Nigeria. This includes fiscal federalism that will encompass a review of the revenue allocation system in favour of states and local governments; and retention of value-added and other tax revenues in states of collection. It should also include substantial devolution of powers to subsidiary levels of government. We also need to carefully re-consider the matter of state police. As this will require constitutional amendment, an interim measure stipulating re-deployment of all police men and officers below the level of Commissioner of Police to their states of origin should be advocated. State governors should also request full operational control of state police commands except in electoral, constitutional and political matters and matters involving threats to the territorial integrity of the federation.
Beyond federalism, I would advocate a developmental strategy for the South-West based on five pillars-power and infrastructure; education, science and technology; agriculture and industrialisation; services; and security and law and order. Regarding power and infrastructure, the governors should seek self-sufficiency in power generation through private power providers and a role in power distribution, as well as dedicated Independent Power Plants (IPPs) in all industrial clusters and tertiary educational institutions. The most important infrastructural requirement is for a modern, integrated, multi-modal transport network throughout the region, including development of rural roads; leveraging water and rail transport opportunities; modernising the regional road network; and collaborating with the private sector and the federal government in pursuance of these objectives.
For fifty years, the focus of South-West educational philosophy has been access, through the mantra of free education. While this should be retained, increased emphasis must be placed on quality considering the state of our educational system. I suggest focus on upgrading infrastructure; science and technical education; economics, management and entrepreneurship; ethics and standards; and teacher re-training and welfare. The states may also consider jointly establishing a world-class multi-campus university as recently suggested by one of the governors; and ensuring broadband coverage of all universities and schools. A policy framework that links agriculture to manufacturing through extending the agriculture value chain to storage, processing and manufacturing; providing farming and industrial estates; power and infrastructure support; and loan and incentives schemes may also be worthwhile. Land reforms to deal with the consent requirements of the Land Use Act may help both agricultural and commercial development, as well as development of a mortgage sub-sector.
The regional strategy for services should be focused on areas of clear comparative advantage-financial services (ensuring Lagos becomes an international financial centre in line with FSS 2020); tourism (establishing an integrated regional tourism strategy and calendar) leveraging the many festivals and ceremonies; mountains and hills; rivers and waterways; cultural endowments; palaces and historical landmarks in the region; global outsourcing (focused on professional services and call centres); music and film; as well as sports development and export. Success in all the identified priority areas rests on one final pillar-security and law and order. As Lagos State has done in the last few years, all the states in the South-West must endeavour to make the region a (relatively) crime-free zone so that economic and social activities may thrive and in order that the region can fulfil its potential as the fastest developing economic region in Africa!
Apart from disillusionment with the PDP and Obasanjo, South-West voters were voting, in my view, for a federal framework that allows the region develop at its own (implicitly faster) pace and the type of social democratic policies and social investment that represents the political and governance heritage in the region. It will be misleading however to assume that the 2011 elections represents a permanent and irreversible rejection of PDP and other political alternatives. Having recovered their sovereignty, our people will in future exercise it against any incumbents that fail to meet the (high) expectations of voters. Given the fact that all the states in the South-West are under the ACN, with the exception of Ondo State which is under a Labour Party government that may also be considered “progressive” (and which actually took power from the PDP with some support from the ACN leadership), there is also a widespread expectation within the region that the party and its governors will cooperate to spread the type of development witnessed in Lagos State across the entire South-West.
How can the high expectations of South-West voters be met? What policies should be implemented across the region? What should be the South-West agenda? The philosophical and constitutional anchor will obviously have to be true federalism! South-West citizens and voters will expect their leaders, governors and legislators to lead the campaign for a return to real federalism in Nigeria. This includes fiscal federalism that will encompass a review of the revenue allocation system in favour of states and local governments; and retention of value-added and other tax revenues in states of collection. It should also include substantial devolution of powers to subsidiary levels of government. We also need to carefully re-consider the matter of state police. As this will require constitutional amendment, an interim measure stipulating re-deployment of all police men and officers below the level of Commissioner of Police to their states of origin should be advocated. State governors should also request full operational control of state police commands except in electoral, constitutional and political matters and matters involving threats to the territorial integrity of the federation.
Beyond federalism, I would advocate a developmental strategy for the South-West based on five pillars-power and infrastructure; education, science and technology; agriculture and industrialisation; services; and security and law and order. Regarding power and infrastructure, the governors should seek self-sufficiency in power generation through private power providers and a role in power distribution, as well as dedicated Independent Power Plants (IPPs) in all industrial clusters and tertiary educational institutions. The most important infrastructural requirement is for a modern, integrated, multi-modal transport network throughout the region, including development of rural roads; leveraging water and rail transport opportunities; modernising the regional road network; and collaborating with the private sector and the federal government in pursuance of these objectives.
For fifty years, the focus of South-West educational philosophy has been access, through the mantra of free education. While this should be retained, increased emphasis must be placed on quality considering the state of our educational system. I suggest focus on upgrading infrastructure; science and technical education; economics, management and entrepreneurship; ethics and standards; and teacher re-training and welfare. The states may also consider jointly establishing a world-class multi-campus university as recently suggested by one of the governors; and ensuring broadband coverage of all universities and schools. A policy framework that links agriculture to manufacturing through extending the agriculture value chain to storage, processing and manufacturing; providing farming and industrial estates; power and infrastructure support; and loan and incentives schemes may also be worthwhile. Land reforms to deal with the consent requirements of the Land Use Act may help both agricultural and commercial development, as well as development of a mortgage sub-sector.
The regional strategy for services should be focused on areas of clear comparative advantage-financial services (ensuring Lagos becomes an international financial centre in line with FSS 2020); tourism (establishing an integrated regional tourism strategy and calendar) leveraging the many festivals and ceremonies; mountains and hills; rivers and waterways; cultural endowments; palaces and historical landmarks in the region; global outsourcing (focused on professional services and call centres); music and film; as well as sports development and export. Success in all the identified priority areas rests on one final pillar-security and law and order. As Lagos State has done in the last few years, all the states in the South-West must endeavour to make the region a (relatively) crime-free zone so that economic and social activities may thrive and in order that the region can fulfil its potential as the fastest developing economic region in Africa!
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