Monday, October 24, 2011

The Second Comming of Ngozinomics: Balancing the Books on the Back of the Poor

“The definition of the alternatives is the supreme instrument of power”
- E.E. Schattschneider “The Semisovereign People” (1960)

Most economists agrees that many factors contribute to economic growth, ranging from the productivity of the work force, shares of private savings available for private investment, increased public expenditures that help spurs growth during recession, reduced tax burdens that will encouraged private investment and spending by the large swath of the population, to list just a few. Sadly none of these matters in Nigeria, since the current ruling class in Nigeria is fixated on one thing and one thing only: Petroleum subsidy. Every government in Nigeria including the most profligate and corrupt almost inevitably look at the supposed petroleum subsidy as the anti-dote to all Nigeria economic woes. It was never about the structure that makes the world fifth exporter of crude oil, one of the biggest importers of refined petroleum oil. Never about the poverty of ideas that have rendered the manufacturing sector of the economy comatose due to the high cost of nonexistent electricity.

And now we are back to the beats again, thanks largely to President Goodluck Ebele Jonathan’s “unconstitutional prime minister”: Ngozi Okonjo Iweala. The last time she was in the saddle as minister of finance she pushed for the removal of the same subsidy. At that time she promised that she is doing it for own good and it will be the last time. She promised it will fix our economy and spurred economic growth. Well, if anything was spurred it was the bank account of the politicians. She also successfully negotiated some of Nigeria debt and got kudos for her effort. All of these in turn spurred Ms. Iweala’s personal profile with World Bank and IMF, her erstwhile boss, who in turn promoted her as managing director.

Now, she is back with the same gambit, she believes she can fix Nigeria’s economic woes by removing all petroleum subsidy. Everyone in government believes this is the right thing to do. What do they care? They do not shop where ordinary Nigeria buys food. What is more, their kids do not attend the failing schools they promised to fund at the end of the last exercise; and when they or their progenitors fall sick they simply fly to the best hospitals in US, UK or South Africa; while the poor and the dispossessed get to deal with the attendant ripple effects of the removal of subsidy at home in Nigeria. To adopt a popular refrain from political science, one can conclude that the flaw in Nigeria’s ruling class petroleum subsidy mantra is that their heavenly chorus sings with a strong upper-class accent. Evidence shows that every time politicians ginned up this excuse, prices of foodstuffs and household goods rises steeply. The attendant inflation is a self fulfilling prophecy. The funny thing is that their excuses get irritating and embarrassing each time they bring it up. They claim the subsidy encourages illicit export of subsidized products: and my answer to that is whose job is it to guard the porous border? The poor farmer in Kafachan? They also claim that prices in some part of the country are different from others: again my answer is whatever happens to price control unit commission? And why are there no prosecutions of erring fuel stations owners? Are they too powerful?

There is no doubt, that the ruling class in Nigeria is populated with “fanatics” who have a fetish attachment to removal of subsidy. They dismiss logic, knowledge, morality and intellectual integrity in favor of this “sacred fixation” with removal of petroleum subsidy. To the ruling class in Nigeria, removal of petroleum subsidy is “sine qua non” for economic growth. It does not matter if it flies in the face of every logic. No effort to explore any other alternatives. As Upton Sinclair wrote in 1935, "It is difficult to get a man to understand something when his salary depends upon his not understanding it." “Ngozinomics” is back again, we are in trouble. Who will save us from our politicians masquerading as economist?

Monday, September 26, 2011

Of Auto Pilot, People Pilot, God Pilot and the Challenge of Visionary Leadership in Nigeria

“Someone had written in the papers: is Nigeria on auto pilot? I tell them
that Nigeria is not on auto pilot, God is in-charge and God will take us to the
destination he has destined for us” –President Goodluck Jonathan


According to one of Nigeria’s burgeoning online newspapers, President Goodluck Ebele Jonathan, recently waxed philosophical on who is in charge of our dear country. In an address at an interdenominational service ahead of Nigeria's 51st Independence Anniversary in Abuja, he absolved himself of any blame as God is in charge. Even though he initially cautioned himself before addressing such an important issue before a largely Christian gathering, he made some highly inflammatory statements that we need to dissect “seriatim”.

One would have wished that the president had heeded his own words and just attend the service without making any remarks. Sadly, his voice of reason was crowded out by the tug of faith and now he might have created more problems for the country through his ill-advised philosophical rant. First of all, he stated: “You have been praying for us but others are praying that we shouldn’t move an inch, especially those of us who are politicians.” So who are those praying against his government: Moslems? Atheist? Bloggers? Critics? Journalist? Make your pick. When viewed in context, “others” here could only mean those who are non-Christians i.e adherents of other faiths. But is this what the president of Nigeria really has in mind? I seriously doubt that. After all one of the oaths he sworn to uphold is to an unalloyed fidelity to the Constitution of Nigeria which places strong emphasis on the secularity of all its institutions including the presidency.

The second thing that jumps at me from reading the text of the president address is this amorphous claim that it was not the vote of Nigerians that got him to Aso rock. Here I quote him again: “But God knows why I am here as the President even though I don’t have any of these attributes or characters. But through your prayers, God placed me here.” In other words, those Nigerians who went to great length to vote for him and many who stayed back in the rain and sunshine to protect their vote did all that for nothing, as he only got to Aso rock thanks to the prayers of Christians which in turn moved God to placed him in Aso rock.

Again I asked if this is what the president really meant and I doubt that. Let me say I am no theologian, but I seriously doubt God has a hand in Yar’adua’s death. Even if the good Lord did, I doubt he likes Goodluck better than Pastor Tunde Bakare! I seriously doubt God will want to have “neither part nor lot” in a political party such as People’s Democratic Party. In short, if Christians truly desires to see change in Nigeria, they are better of heeding the admonishing of Christ to “watch and pray”. Any politicians telling them to close their eyes and pray will soon take off with their loot while they and their children’s children pay the debts.

As Fredrick Douglas once remarked, “I have found that to make a contented slave, it is necessary to make a thoughtless one. It is necessary to darken his moral and mental vision, and, as far as possible, to annihilate the power of reason.” Herein lays the tricks of modern day religious purveyors. Again as Douglas reiterated in his clarion call to reason against blind faith, “I look upon it as the climax of all misnomers, the boldest of all frauds, and the grossest of all libels. Never was there a clear case of stealing the livery of the court of heaven to serve the devil in”. Those who profit from the perfidious religious tote bags of Nigeria will want Nigerians of all hue to focus on the religious and ethnic differences between them even while they loot the country. They anoint themselves as bearers of religious symbols and standards even while they commit the most heinous crimes against the people of God. Douglas hatred and contempt for similar ilk in his days is worth repeating: “I am filled with unutterable loathing when I contemplate the religious pomp and show, which every where surround me. We have men-stealers for ministers, women whippers for missionaries, and cradle-plunderers for church members. The man who robs me of my earnings at the end of each week meets me as a class-leader on Sunday morning, to show me the way of life, and the path of salvation. He, who sells my sister for purposes of prostitution, stands forth as the pious advocate of purity…We see the thief preaching against the theft, and the adulterer against adultery. We have men sold to build churches, women sold to support the gospel, and babes sold to purchase Bibles for the poor heathen! All for the glory of God and the good of souls! The slave auctioneer’s bell and the church-going bell chime in with each other, and the bitter cries of the heart-broken slave are drowned in the religious shouts of his pious master. The dealer gives his blood stained gold to support the pulpit, and the pulpit in return, covers his infernal business with the garb of Christianity. Here we have religion and robbery the allies of each other-devils dressed in angels’ robes and hell presenting the semblance of paradise.”

Next, the president threw a red herring: “don’t need to be a lion. I don’t need to be Nebuchadnezzar. I don’t need to operate like the pharaohs of Egypt. I don’t need to be a military general. But I can change this country without those traits.” I don’t know where the president got this “delusion” from, but I have never read any newspaper in and outside Nigeria where anyone enjoys him to be a pharaoh, a military general or a Nebuchadnezzar. All we asked is for him to uphold the oath he took to enforce the laws of Nigeria, no matter whose ox is gored. All we asked is to bring culprits of religious riots to book be they Christians or Moslem. All we asked is for the president to act as commander in chief of Nigeria! If he likes he can use servant leadership or commander leadership, all we asked Mr. President is for you to lead! Enough of sending your godfather to placate law breakers even as dissidents shoots and kill innocent bystanders. All we asked is that Nigerian government under your leadership moved quickly to rescue Nigerian traders of “Igbo extraction” from Libya before you kow towed to Western demand to recognize Benghazi’s rebels murdering every black person in the street of Tripoli. Mr. President, we do not care if President Obama offered you praise or Ban Ki Moon gives you an award, your loyalty is not to these masters but to the Nigerian people and the earlier you realized that the better for your regime!

By far the most revolting of all the statements made by the president is this: “Some people were saying; is Nigeria on auto-pilot? And I say yes. Nigeria is being piloted by God himself. There is no pilot, no matter the number of hours he has to his credit flying an aircraft that can take an airline to a destination if God wants to stop it half way. God is in charge and God will take us to the destination he has for us. It is not going to be easy but God using you and us; we will go to where we want to go.” We all know the folks who flew jets to the Twins Towers on 9/11 believed they were been used of God! You can be sincere in your religious belief and still be sincerely wrong! Many have proffered that God was using them in the name of religion even while they make their adherents to drink poison. Even the good book says “Where [there is] no vision the people perish: but he that keepeth the law, happy [is] he” Mr. President, stop hiding behind God cloak and start keeping the law so and you and all of us can be happy! It is almost six months into your term, and yet there are no clear directions or vision on how we are going to generate more electricity, repair our epileptic power supply, rebuild our dilapidated infrastructure, assure security for every Nigerian in every part of the country, restore the faith of all Nigerian citizens in the Nigeria experiment, educate our citizens for the challenges of the twenty first century, and provide in a succinct form a foreign policy direction for the whole country.

Mr. President, our greatest concern should not be, as Abraham Lincoln rightly once said, whether God is on our side, it should be that we are on God’s side, for God is always right. It is not right for a country that is the fifth largest producer of oil to lagged last in income generation and poverty. It is not right that a Nigerian citizen with southern progenitor, born in Zungeru cannot claim to be a citizen of Niger state. It is not right that corrupt politician who supports your election can walk freely and flaunts their ill gotten wealth while the common thief that stole his neighbor’s goat for hunger linger in jail without trial because of a corrupt judiciary. More than anything else, God may be counting on you to steer the ship you thought was on auto pilot, but was actually heading to disaster. This is because all we currently see in the driver’s seat are rogues on steering wheels, save for a few smart technocrats who have no say in the party that controls the pilot’s license, more appropriately described as people’s destroyer party! Mr. President, God is counting on you to steer this ship to safety.

Friday, August 26, 2011

Katsina Alu’s Escalation of Nigeria’s Judicial Rot as Banal Descent into a Dark Abyss

“Nigeria is chaos. But the chaos is created, organized by the government.
Chaos allows it to stay in power.” –Richard Dowden “Africa: Altered States,
Ordinary Miracles” p.6 (2008).

Nigeria defies logic. As one writer rightly pointed out, by any law of political or social science it should have collapsed or disintegrated years ago. It remains a mystery while Nigeria, which is clearly a failed state, still works. We know for a fact however that it partly works thanks to the resilience of its people. The leadership of Nigeria, political, social, religious and economic, have all being doing their level best to tip the nation over time and time again; but despite their best efforts, the country still remain standing albeit to the utter chagrin of its destructive greedy leaders.

One of such exercise in leadership betrayal of the people of Nigeria is the attempt by the outgoing Chief Justice of Nigeria to destroy Nigerian judiciary by every means possible even as he takes his exit from the judiciary. The genesis of his latest antics lies in the personal battle he is waging against his nemesis, the equally outgoing president of the Nigerian Court of Appeal, Justice Isa Ayo Salami. Chief Justice Katsina Alu readily receives an assist from President Goodluck Ebele Jonathan, whose electoral victory is being challenged in a court presided by Justice Salami.

Nigerians are used to “kangaroo” tribunal set up by ousted military junta who used to deploy them to settle scores during their days. One of the then military tribunals convicted the late Fela Anikulapo Kuti of having foreign currency in his possession after coming back from a foreign trip. Such tribunals are usually set up hurriedly with appointees selected by military fiat from those who will readily carry out the dictates of the junta. They are usually asked to preside over incidents that were legal at the time of its occurrence but were now retroactively legalized and made punishable by term of imprisonment and even death. What Nigerians never imagined is that even though military rule is a thing of the past, their legacy lives on.

More importantly, it seems the Nigerian Judicial Council (NJC), albeit, the one presided over by Chief Justice Katsina Alu, learnt a thing or two from military rule. The NJC hurriedly meets without quorum and without giving opportunity to the accused-Justice Salami, and proceeded to sack the president of the Court of Appeal on the ground that he did not apologize to the Chief Justice over an ethical issue that was not a ground of dismissal as stipulated under the constitution of Nigeria, even whilst a case challenging the jurisdiction of NJC is pending in court. President Goodluck Jonathan gave its imprimatur to this illegality by approving the sack of Justice Salami and appointing a replacement which he believed will do its bidding at the electoral tribunal. That conjecture is rightly justified since there is no rhyme or reason to the presidency stand giving the fact that it had earlier enjoined the parties to maintain the “status quo ante”

Nigerian leaders and politicians often try to pretend that its bad image is some Western media conspiracy against Nigerian and Africa. The truth is that Nigeria’s popular image falls short of the reality. Our problems are mostly self inflicted. No thanks to the mindless and mendacious leadership abundant in the top echelons of our country. I have no doubt that Justice Salami’s problem lies solely in the current regime self interest. Nigerians home and abroad need to stand up for the integrity and independence of the judiciary by appealing to President Jonathan to reinstate Justice Salami immediately, allowing him to serve out his term as president of the court of appeal; even as we institute an enquiry into the cause of the rot in our judicial system.

Thursday, July 28, 2011

Jonathan’s Six Year Tenure Constitutional Amendment Bid: Bad Time, Wrong Priority

President Goodluck Ebele Jonathan received a lot of goodwill from many people home and abroad for his humility and the way and manner he assumed the leadership of Nigeria without any “grandstanding,” massive rigging and “vote buying” common with many of his predecessors. My fears today is that much of that goodwill will be fritter away on the altar of self perpetuation in office. Yes, I know his press minders like the newly minted, former gadfly; Reuben Abati, denied that his boss is planning to elongate his tenure through an amendment to the constitution. This is definitely beside the point, Nigerians no thanks to former president Olusegun Obasanjo, has heard this tale before and clearly knows where this is heading.
Former President Obama’s commerce secretary and the new US ambassador to China once defined priority of government as follows: “focusing on results that people want and need, prioritizing those results, and funding those results with the money we have.” When one measures President Jonathan’s new policy roll out on constitutional amendment vis a vis the turmoil and economic precipice Nigeria currently finds itself, one would find that no matter how laudable the idea of constitutional amendment to provide six year tenure may be, it is a wrong priority for this government at this time in the history of our nation.

As many have argued, there are many problems facing our body polity greater than politician six year term tenure issues. We have civil wars going on in the northern part of the country, no thanks to Islamic militants under the guise of Boko Haram. The Niger Delta militancy problem with its attendant frequent kidnapping and bombing yet unresolved. The Nigeria market sector is at its all time low. The prices of goods and services defied inflationary or any economic metrics or trends in its downward spiral. Our manufacturing sector that used to be the leader in Africa has all but succumbed to death in the hands of our comatose power sector. And now coming out of its inaugural cabinet meeting, the issue of six year term for political office holder is all that the federal government could think about? What is wrong with the leadership of our country? Don’t they get it? Nigerians want functional government and not political jobbers!

Every commentator on constitutional amendment readily agrees that we do need to constantly examines and reexamines our constitution with a view to make it better, but not at the expense of addressing bigger and more pressing issues affecting the generality of Nigerian masses. What should be the priority of our government in Nigeria? Our federal legislature spent the last four years giving billions of Naira to corporations and governmental agencies saddled with power generation without any oversight whatsoever. The refrain we often get from them is that they are busy amending the constitutions to enable federal legislators have more control over political party executive committees. And now we are going to embark on the same fruitless exercise. Are these folks tone deaf? Maybe what we need is a constitutional amendment asking our elected leaders to simply do their job!

The ludicrous argument advanced by the presidency in support of this mindless exercise is that elected officials are often consumed by electioneering and campaign during the four years that the time between elections is barely enough to get things done. The logic is that if we gave them six years they will be able to use four years for electoral campaigns and two years for governance. Do these people even listen to the logic of their argument? In other words they seem to be arguing that they need more time because the time they have now is barely enough to carry out any of the public task as they are consumed by their own ambitions during the four years. Here in the United States, members of the House of Representatives are elected every two years, and you hardly find them pleading for more time. Most congressmen travel back to their district sometimes every weekend or during the holiday to feel the pulse of the people and find out what is going on in their district. Nigeria federal legislatures received funding for constituency offices but rarely open any in their district. Some who for the fear of EFCC have offices, barely staff such offices, as a result their contact with their constituencies are nonexistent.

I believe it is high time for all Nigerians to demand from our president and his party what are the priorities of his government. You can do that today by sending an email to him or posting a message on his Facebook page. Is he the president Nigerians toil and struggle to elect or is he another Olusegun Obasanjo? He needs to come out and tell us as we are sick of Peoples Democratic Party shenanigans!

Monday, June 27, 2011

“Productivity is a measure of output from a production process, per unit of
input” –OECD Compendium on Productivity

The next war in Nigeria may have nothing to do with Boko Haram or Niger Delta, but all to do with labor and productivity. Currently the federal government of Nigeria and the states are in a logjam on who is responsible for the non implementation of the new minimum wage for public sector employees. The federal government and labor organizations claimed that they reached an agreement in principle that binds all state government to pay the agreed wage increase which seems substantial when you consider the paltry allocation each state gets from the federal purse. The various state governments claims they are not party to that an agreement even though they were invited to the negotiations. I believe at the heart of this grotesque imbroglio is the antiquated idea that workers earning should be fixed monthly irrespective of output.

I think the parties are putting the cart before the horse, any attempt to determine an arbitrary wage increase without an appreciation of productivity is bound to fail. What is more, it actually breeds corruption. Even though the supposed increased wage may look and sound substantial one needs to look at it against the backdrop of the huge inflationary trends in Nigeria. Every benefits of publicized wage increase to workers in Nigeria often invariably leads to arbitrary increase in cost of living and expense.

An arbitrary fixing of wage may also be the main reason why civil servants rarely stays at their job post as they are busy looking for other means to support their family. Anyone who thinks earning the newly set minimum wage will help increase productivity is dreaming. The new wage cannot feed a family of two for a week. So workers earning such pay will basically sign in and then run around looking for contracts or have a shop somewhere where they could make ends meet.A serious reform will overhaul the entire civil service, stream line jobs, state by state based on the needs of each community. The federal government for instance is top heavy without any commensurate performance and impact on local community. Some of the state government are so bloated and irrelevant to the community they are meant to serve. For instance, there is no reason why the Federal government should be involved in building houses, at best it should encourage states to pull resources together such as would encourage interlocal cooperation that would ensure prices of building materials such as cement et al would not be too exorbitant. The FGN should of course help such states access funds by providing guarantees for such interlocal agreement. Nigeria is perhaps the only "federal" government where the central government directly repairs and build road networks including putting up sign post on the so called federal highways, which in itself is an aberration.

A true federal government ensures regional government carried out its will through smart deployment of resources through federal legislation that tied funds to interlocal cooperation among local government and state governments. Duplication of services between federal, states and local government will be reduced and accountability will be better ensured. The current scenario makes for a bloated federal government.Who in their right mind, would for one second think if the Lagos-Ibadan expressway or Lagos-Benin expressway had been a primary project of regional governors with the same access to funds that FGN had invested on these roads for the past 12 years will still remain comatose and eyesore as it is?Heck the Lekki road that was concession-ed after the former is going at a faster pace than Lagos-Ibadan road where nothing but the signboard announcing the award of the contract had been in place for more than 2 years!

It is always difficult to make federal government accountable in the current scenario; a smaller federal government will put focus on “lazy” state and local governments. All the popular changes we have witnessed so far in the fourth republic have all come from visionary state government, be it Donald Duke’s Cross Rivers state or Governor Fashola’s Lagos. Democratic efforts for change in government in places like Ogun State, Imo State and Nassarawa state also come from state citizens tired of inept state government who are not doing anything for them. Whereas it is easy for politicians at the federal level to blame Federal Government ineptness on sharia, militants, Boko Haram, or any ethnic palaver, it is much more difficult for governors like Gbenga Daniel to blame lack of portable water in Ijebu Ode on sharia!

We need increased productivity but it can only come after a smart reform that will ensure that we do things differently and that will ensure we get maximum productivity from our civil service even while we paid them well for their services. It is suggested that such reforms must neither be political, nor political party driven! We are currently running a civil service with colonial mindset in the 21st century!

Friday, May 27, 2011

When Will Nigerians Enjoy Stable Electricity?

I just got back from Nigeria and the highlight of my visit is the pervasive darkness when night falls. Thanks to Fashola, things are not as bad in Lagos, but the problem have left night life and the attendant economic activities after 7:00pm comatose in every other states.

I am no friend of Obaigbena's Thisday, but his rag sheet did a thorough job a little while ago on this issue. I archived it then and I will reproduce it for those of you interested in the history of power generation in the last twenty years. Btw, as I reiterated earlier, I just came back from gidi, and I will in a short while write up my impression on what I found. For now, we should commend efforts by the likes of Fashola on this issue.
Here you go:

From ThisdayWhen Will Nigerians Enjoy Stable Electricity?
THISDAY’s Investigative Team: Kunle Akogun, Abdulrazaque Bello-Barkindo, Stanley Nkwazema, Chika Amanze-Nwachuku, Ike Abonyi, Ali M. Ali, Patrick Ugeh and Julius Atoi, 04.07.2008

Ever since President Yar’Adua complained that $10 billion had been spent on the power sector between 2000 and 2007 without commensurate result, the nation has been awash with stories of scams and shocking revelations. What is the state of the power projects today? What went wrong along the line? Who is lying and who is telling the truth on the amount of money that was spent? Why is Nigeria still in darkness despite all measures applied since 1999? What is the way out? THISDAY investigates and reports Power to the People? What Obasanjo Met… When Chief Olusegun Obasanjo assumed office as President on May 29, 1999, the power sector – represented by generation, transmission and distribution – was on the verge of collapse. The nation was constantly in darkness. The National Electric Power Authority (NEPA) had its acronym reinterpreted: Never Expect Power Always.

Even the feeble attempt to make it look like a publicly owned company, with the change of name to National Electric Power Plc (NEP Plc) only gave more mischievous ammunition to the public who defined the new acronym as “Never Expect Power, Please Light Candle”. The entire economy ran on generating sets as NEPA could only muster 1,500MW, out of a projected need of 4,000MW, for transmission and distribution across the country.

The diagnosis was that epileptic supply was a product of the dilapidation of the power infrastructure in the country. The generating stations were not being serviced; transmission lines were routinely vandalised; and the distribution transformers were worn out without replacement of parts or service. NEPA itself was in a sorry state as corruption was the order of the day. The accumulation of these inefficiencies brought a height to the decay and periodic system failures that had variously thrown the entire country in darkness. Obasanjo inherited four thermal stations: Egbin, Ughelli, Sapele and Afam.
There were also three hydro electric stations at Kainji, Jebba and Shiroro. Whereas the installed capacity was 3,500MW, production had shrunk to as low as 1,500MW. Out of the 78 generating units in the country then, only 28 were generating electricity and feeding a paltry 1500MW into the nation’s economy. Hope raised and dashed… Obasanjo, having lamented the rot, set out to address the problems. He started on a wrong footing, many would say, by appointing a seasoned lawyer and politician, Chief Bola Ige, as Minister of Power and Steel, rather than a technocrat who would have understood the terrain better because of the technical nature of the sector.

Ige promptly promised that by the end of 2002, Nigerians would experience uninterrupted power supply, a promise he was forced to retract when he was confronted with the enormity of the problem later on. Obasanjo would later say in 2007, more than six years after the assassination of Ige, that the former minister “did not know his left from his right”. But when Obasanjo set out to address the problem in 1999, he had the objective of turning NEPA around within the first six months. Generation increased same year, obviously not as a result of his ingenuity but because of the rainy season which had improved power generation at the hydro stations.
In March 2000, he set up a Technical Board for NEPA with Senator Liyel Imoke as chairman. Obasanjo released funds for the importation of spare parts and new transformers for the reactivation and rehabilitation of generating, transmitting and distribution infrastructure. The Federal Government was said to have spent $1.3 billion (N1.319 billion) for the supply, installation and commissioning of additional materials and spare parts for the completion of major rehabilitation work for NEPA’s 330Kv and 132Kv circuit breaker at major power stations located at Afam, Sapele, Kainji, Egbin, Ikorodu, Akangba and Jebba. Total generation rose to 3000MW by December 2000 and 4000Mw by the end of December 2001. In generation, the reactivated Afam, Delta 11 and the injection of the AES-Enron Independent Power Project into the Egbin unit had brought 276MW, 150MW and 270MW respectively into the national grid. The Abuja Emergency Power Project and the Agip IPP at Kwale (Delta State) also imputed 150MW and 450MW respectively to the power pool.

To achieve the set target, the government embarked on rehabilitation of another set of 20 generating units at the various power stations to bring additional 1,500MW of electricity into the system. In the area of transmission, government awarded 26 contracts for the re-enforcement of existing lines and substations and another 30 contracts for the construction of new lines, which increased the transmission capacity by 2000MVA, while in distribution, the Federal Government installed 1000 power and distribution transformers, which brought another 420MVA of electricity at 33Kv. Additional 4000 distribution transformers were also delivered. This was expected to increase distribution capacity by another 1600MVA. The Imoke-led Technical Board focused mainly on generation through rehabilitation of old units and by the time its assignment was over in December 2001, Obasanjo was setting new targets for the power sector: 10,000MW by the year 2005. There was considerable debate then on what the government should do: privatise NEPA or keep funding it?

This was a major decision to be taken on the future of the utility. If the decision was for privatisation, it meant government had to stop pumping funds into NEPA; if the decision was to continue funding, there was the perennial issue of government inefficient management of utilities in Nigeria. While the debate was on, and a decision was finally taken to privatise, there began a phased withdrawal of government funding. NEPA began to run its activities with an increased drive for commercially generated revenue. The marketing staff were given targets to meet – a situation that developed into complaints about “crazy bills” from consumers nationwide. In the meantime, works had virtually stopped on the rehabilitation of older units at the power stations as the power sector reform bill – designed to liberalise the sector – lay untouched at the National Assembly. Gradually, with reduced funding and a reliance of the old turbines, the power situation continued to decline and the nation was thrown into darkness again.
To be cont'd

Tuesday, April 26, 2011

Post Election Blues: Is it time for Real Democratic Governance in Nigeria?

“We have come to a clear realization of the fact that true individual freedom
cannot exist without economic security and independence. “Necessitous men are
not free men.” People who are hungry and out of a job are the stuff of which
dictatorships are made"– President Frederick Delano Roosevelt, USA.


The much awaited election to state and federal offices is over in Nigeria and one can only pray that discussion will shift to real governance in Nigeria. However, if history is any guide one should not expect much in terms of governance, policies and programs. If anything at all, the victors usually take all, no thoughts are given to forming a government of national unity. And of course, the vanquished heads to court, disputing every vote obtained by the opponents. As things goes, nothing gets done, the citizenry went back to their penury until the next election circle when politicians dole out gobs of stolen funds as campaign “settlement”.

As FDR rightly argues in the quote above, true individual freedom cannot exist without economic security and independence, as necessitous men are bound to remain in bondage. For there to be true democracy in Nigeria we first have to fight to create structure that will breed free and fair election. As long as the economic situation remains anemic politicians and political jobbers will always found a way to take advantage of the rot in the system.

This is why efforts by Lagos and Osun states government to create jobs through programs which encouraged private and public employment opportunities should be commended. A viable Nigerian state will remain a mirage until we restructure our country to reflect true federalism espoused in our constitution. No true federalism governs from the center with the hope of a trickle down democratic dividends. The government closest to the people of Nigeria remains the least funded in our polity. Strengthening Nigeria’s local government through adequate funding and oversight ensure accountability.

Recent bloodshed and violence following the presidential elections could be directly traceable to the Nigerian mindset that often wrongly believes that whichever region has his/her son or daughter at the center stands at a better advantage than others. As we found in the southwest, and as I am sure the people of south/south and southeast will soon found out, things are not often as they seem. If the protesters in the north had stop to ask themselves what economic benefits had accrued to them when Northern Nigerian sons had ruled at the center they would have been better served to focus their energy on voting out political jobbers at their respective state houses instead of unleashing their anger on defenseless National Youth Service Corps members.

We are a nation of deep passion and allegiance, which unfortunately often get deployed in the wrong direction. It is high time we start directing that energy and passion in restructuring our country so it could be better serve its citizens. Nigeria needs true federalism before it could deliver the true dividends of democracy to its citizens. There is a promise that with a sizable opposition in the federal parliament, we may begin to explore this direction but as V. O Key states: “There are two radically different kinds of politics: the politics of getting into office and the politics of governing”