Osinbajo Confesses: Corruption Is Massively Fighting Back, But We’ll Not Relent

Acting President Yemi Osinbajo has confessed that corruption has been fighting back with tremendous resources, vowing that the federal government will not relent in its efforts to apprehend and bring corruption suspects to justice.
“We are also re-equipping our prosecution teams, and part of the expected judicial reforms is to dedicate some specific courts to the trial of corruption cases.”
The Acting President, in a nationwide Radio and Television broadcast today, May 29, to mark the second anniversary of Muhammadu Buhari administration, admitted that the Nigeria’s system of administration of justice has been quite slow.
“But the good news for justice is that our law does not recognize a time bar for the prosecution of corruption and other crimes.
“In the fight against corruption, we have focused on bringing persons accused of corruption to justice. We believe that the looting of public resources that took place in the past few years has to be accounted for. Funds appropriated to build roads, railway lines, and power plants, and to equip the military, that had been stolen or diverted into private pockets, must be retrieved and the culprits brought to justice.”
The full text of the Professor Osinbajo broadcast is reproduced here:
Dear Nigerians, I bring you good wishes from President Muhammadu Buhari, GCFR, who as we all know is away from the country on medical vacation.
- Today marks the second anniversary of our assumption of office. We must thank the Almighty God not only for preserving our lives to celebrate this second anniversary, but for giving us hope, strength and confidence as we faced the challenges of the past two years.
- Our administration outlined three specific areas for our immediate intervention on assumption of office: these were Security, Corruption and the Economy.
- In the Northeast of our country, the terrorist group Boko Haram openly challenged the sovereignty and continued existence of the state, killing, maiming,and abducting, causing the displacement of the largest number of our citizens in recent history. Beyond the North East they extended their mindless killings, as far away as Abuja, Kano And Kaduna.
- But with new leadership and renewed confidence our gallant military immediately began to put Boko Haram on the back foot. We have restored broken-down relations with our neighbours, Chad, Cameroon and Niger – allies without whom the war against terror would have been extremely difficult to win. We have re-organized and equipped our Armed Forces, and inspired them to heroic feats; we have also revitalized the regional Multinational Joint Task Force, by providing the required funding and leadership.
- The positive results are clear for all to see. In the last two years close to one million displaced persons have returned home. 106 of our daughters from Chibok have regained their freedom, after more than two years in captivity, in addition to the thousands of other captives who have since tasted freedom.
- Schools, hospitals and businesses are springing back to life across the Northeast, especially in Borno State, the epicentre of the crisis. Farmers are returning to the farms from which they fled in the wake of Boko Haram. Finally, our people are getting a chance to begin the urgent task of rebuilding their lives.
- Across the country, in the Niger Delta, and in parts of the North Central region, we are engaging with local communities, to understand their grievances, and to create solutions that respond to these grievances adequately and enduringly.
- President Buhari’s New Vision for the Niger Delta is a comprehensive peace, security and development plan that will ensure that the people benefit fully from the wealth of the region, and we have seen to it that it is the product of deep and extensive consultations, and that it has now moved from idea to execution. Included in that New Vision is the long-overdue environmental clean-up of the Niger Delta beginning with Ogoni-land, which we launched last year.
- More recent threats to security such as the herdsmen clashes with farmers in many parts of the country sometimes leading to fatalities and loss of livelihoods and property have also preoccupied our security structures. We are working with State governments, and tasking our security agencies with designing effective strategies and interventions that will bring this menace to an end. We are determined to ensure that anyone who uses violence, or carries arms without legal authority is apprehended and sanctioned.
- In the fight against corruption, we have focused on bringing persons accused of corruption to justice. We believe that the looting of public resources that took place in the past few years has to be accounted for. Funds appropriated to build roads, railway lines, and power plants, and to equip the military, that had been stolen or diverted into private pockets, must be retrieved and the culprits brought to justice. Many have said that the process is slow, and that is true, corruption has fought back with tremendous resources and our system of administration of justice has been quite slow. But the good news for justice is that our law does not recognize a time bar for the prosecution of corruption and other crimes, and we will not relent in our efforts to apprehend and bring corruption suspects to justice. We are also re-equipping our prosecution teams, and part of the expected judicial reforms is to dedicate some specific courts to the trial of corruption cases.
- We are also institutionalizing safeguards and deterrents. We have expanded the coverage of the Treasury Single Account (TSA). We have introduced more efficient accounting and budgeting systems across the Federal Government. We have also launched an extremely successful Whistleblower Policy.
- The Efficiency Unit of the Federal Ministry of Finance has succeeded in plugging leakages amounting to billions of naira, over the last two years. We have ended expensive and much-abused fertilizer and petrol subsidy regimes.
- We have taken very seriously our promise to save and invest for the future, even against the backdrop of our revenue challenges, and we have in the last two years added US$500m to our Sovereign Wealth Fund and US$87m to the Excess Crude Account. This is the very opposite of the situation before now, when rising oil prices failed to translate to rising levels of savings and investment.
- Admittedly, the economy has proven to be the biggest challenge of all. Let me first express just how concerned we have been, since this administration took office, about the impact of the economic difficulties on our citizens.
- Through no fault of theirs, some companies shut down their operations, others downsized; people lost jobs, had to endure rising food prices. In some States civil servants worked months on end without the guarantee of a salary, even as rents and school fees and other expenses continued to show up like clockwork.
- We have been extremely mindful of the many sacrifices that you have had to make over the last few years. And for this reason this administration’s work on the economic front has been targeted at a combination of short-term interventions to cushion the pain, as well as medium to long term efforts aimed at rebuilding an economy that is no longer helplessly dependent on the price of crude oil.
- Those short-term interventions include putting together a series of bailout packages for our State Governments, to enable them bridge their salary shortfalls – an issue the President has consistently expressed his concerns about. We also began the hard work of laying out a framework for our Social Intervention Programme, the most ambitious in the history of the country.
- One of the first tasks of the Cabinet and the Economic Management Team was to put together a Strategic Implementation Plan for the 2016 budget, targeting initiatives that would create speedy yet lasting impact on the lives of Nigerians.
- Indeed, much of 2016 was spent clearing the mess we inherited and putting the building blocks together for the future of our dreams; laying a solid foundation for the kind of future that you deserve as citizens of Nigeria.
- In his Budget Presentation Speech to the National Assembly last December, President Buhari outlined our Economic Agenda in detail, and assured that 2017 -would be the year in which you would begin to see tangible benefits of all the planning and preparation work. It is my pleasure to note that in the five months since he delivered that speech, we have seen tremendous progress, as promised.
- Take the example of our Social Investment Programme, which kicked off at the end of 2016. Its Home Grown School Feeding component is now feeding more than 1 million primary school children across seven states and would be feeding three million by the end of the year. N-Power, another component has engaged 200,000 unemployed graduates – none of whom needed any ‘connections’ to be selected. Beneficiaries are already telling the stories of how these initiatives have given them a fresh start in their lives.
- Micro credit to a million artisans, traders and market men and women has begun. While conditional cash transfers to eventually reach a million of the poorest and most vulnerable households has also begun.
- Road and power projects are ongoing in every part of the country. In rail, we are making progress with our plans to attract hundreds of millions of dollars in investment to upgrade the existing 3,500km narrow-gauge network. We have also in 2017 flagged-off construction work on the Lagos-Ibadan leg of our standard-gauge network, and are close to completing the first phase of Abuja’s Mass Transit Rail System.
- In that Budget speech in December, the President announced the take-off of the Presidential Fertilizer Initiative. Today, five months on, that Initiative – the product of an unprecedented bilateral cooperation with the Government of Morocco – has resulted in the revitalisation of 11 blending plants across the country, the creation of 50,000 direct and indirect jobs so far, and in the production of 300,000 metric tonnes of NPK fertilizer, which is being sold to farmers at prices significantly lower than what they paid last year. By the end of 2017, that Fertilizer Initiative would have led to foreign exchange savings of US$200 million; and subsidy savings of 60 billion naira.
- The Initiative is building on the solid gains of the Anchor Borrowers Programme, launched in 2015 to support our rice and wheat farmers, as part of our move towards guaranteeing food security for Nigeria.
- All of this is evidence that we are taking very seriously our ambition of agricultural self-sufficiency. I am delighted to note that since 2015 our imports of rice have dropped by 90 percent, while domestic production has almost tripled. Our goal is to produce enough rice to meet local demand by 2019. In April, the President launched our Economic Recovery and Growth Plan which built on the foundations laid by the Strategic implementation Plan of 2016. The plan has set forth a clear vision for the economic development of Nigeria. I will come back to this point presently.
- Another highlight of the President’s Budget Speech was our work around the Ease of Doing Business reforms. As promised we have since followed up with implementation and execution. I am pleased to note that we are now seeing verifiable progress across several areas, ranging from new Visa on Arrival scheme, to reforms at our ports and regulatory agencies.
- The President also promised that 2017 would see the rollout of Executive Orders to facilitate government approvals, support procurement of locally made goods, and improve fiscal responsibility. We have kept that promise. This month we issued three Executive Orders to make it easier for citizens to get the permits and licenses they require for their businesses, to mandate Government agencies to spend more of their budgets on locally produced goods, and to promote budget transparency and efficiency. The overarching idea is to make Government Agencies and Government budgets work more efficiently for the people.
- The impact of our Ease of Doing Business work is gradually being felt by businesses small and large; its successful take-off has allowed us to follow up with the MSME Clinics -our Small Business support programme, which has taken us so far to Aba, Sokoto, Jos, Katsina, and we expect to be in all other states in due course.
- Let me note, at this point, that several of our Initiatives are targeted at our young people, who make up most of our population. From N-Power, to the Technology Hubs being developed nationwide, to innovation competitions such as the Aso Villa Demo Day, and our various MSME support schemes, we will do everything to nurture the immense innovative and entrepreneurial potential of our young people. We are a nation of young people, and we will ensure that our policies and programmes reflect this.
- One of the highlights of our Power Sector Recovery Programme, which we launched in March, is a N701 billion Naira Payment Assurance Scheme that will resolve the financing bottlenecks that have until now constrained the operations of our gas suppliers and generation companies. Let me assure that you will soon begin to see the positive impact of these steps.
- Our Solid Minerals Development Fund has also now taken off, in line with our commitment to developing the sector. Because of our unerring focus on Solid Minerals development over the last two years, the sector has, alongside Agriculture, seen impressive levels of growth – in spite of the recession.
- On the whole, just as the President promised in the Budget Speech, these early months of 2017 have seen the flowering of the early fruit of all the hard work of our first eighteen months.
- We opened the year with an overwhelmingly successful Eurobond Offer – evidence of continuing investor interest in Nigeria. We have also launched the Economic Recovery and Growth Plan (ERGP) 2017-2020, to build on the gains of last year’s Strategic Implementation Plan. And the implementation of our 2017 Budget, which will soon be signed into law, will bring added impetus to our ongoing economic recovery. In the 2016 Budget we spent 1.2 Trillion Naira on infrastructure projects, another milestone in the history of this country. Our 2017 Budget will double that investment.
- That budget also provides for substantial investment to implement the rollout of Industrial Parks and Special Economic Zones (SEZs), as well as our Social Housing Programme. The Industrial Parks and Economic Zones will fulfill our ambition of making Nigeria a manufacturing hub, while the Family Home Fund of our Social Housing Programme will provide inexpensive mortgages for low-income individuals and families across the country.
- These plans offer yet more evidence that we are ramping up the pace of work; the work of fulfilling all that we promised. In the next two years we will build on the successes of the last two. We have demonstrated a willingness to learn from our mistakes and to improve on our successes. The critical points that we must address fully in the next two years are : Agriculture and food security, Energy, (power and Petroleum,) Industrialization and Transport infrastructure. Every step of the way we will be working with the private sector, giving them the necessary incentives and creating an environment to invest and do business.
- Our vision is for a country that grows what it eats and produces what it consumes. It is for a country that no longer has to import petroleum products, and develops a lucrative petrochemical industry. Very importantly it is for a country whose fortunes are no longer tied to the price of a barrel of crude, but instead to the boundless talent and energy of its people, young and old, male and female as they invest in diverse areas of the economy.
- And that vision is also for a country where the wealth of the many will no longer be stolen by or reserved for a few; and where the impunity of corruption – whether in the public or private sectors – will no longer be standard operating practice; a land rid of bandits and terrorists.
- As citizens you all deserve a country that works, not merely for the rich or connected, but for everyone. And our promise to you is that we will, with your support and cooperation, take every step needed to create that country of our dreams.
- We also know that this journey will of necessity take time. But we will not succumb to the temptation to take short-cuts that ultimately complicate the journey. We did not find ourselves in crises overnight, and we simply do not expect overnight solutions to our challenges.
- The most important thing is that we are on the right path, and we will not deviate from it, even in the face of strong temptation to choose temporary gain over long-term benefit. As the President has summed it up: “The old Nigeria is slowly but surely disappearing, and a new era is rising.”
- And so we commemorate this second anniversary of our administration with confidence and optimism. I firmly believe that we have put the most difficult phase behind us; and we are witnesses to the ever-increasing intensity of the light at the end of the tunnel. We ask for your continued cooperation and support, to enable us realise all our best intentions and ambitions for Nigeria. On our part We will continue to carry you along on this journey, speak to you, explain the challenges, and share our Vision.
- And while we all daily pre-occupy ourselves with pursuing the Nigerian Dream – which is the desire to better our lives and circumstances vigorously and honestly – it is inevitable that grievances and frustrations will arise from time to time.
- This is normal. What is not normal, or acceptable, is employing these frustrations as justification for indulging in discrimination or hate speech or hateful conduct of any kind, or for seeking to undermine by violent or other illegal means the very existence of the sovereign entity that has brought us all together as brothers and sisters and citizens.
- Nigeria belongs to all of us. No one person or group of persons is more important or more entitled than the other in this space that we all call home. And we have a responsibility to live in peace and harmony with one another, to seek peaceful and constitutional means of expressing our wishes and desires, and to resist all who might seek to sow confusion and hatred for their own selfish interests.
- Before I end this speech, let me ask for your continued prayers for the restoration to full health and strength and the safe return of our President.
- I congratulate all of you on today’s commemoration of this important day in the democratic calendar our country. Nigeria is on a journey of greatness, and together we shall arrive at the destination of our dreams.
- May God bless you all, and bless the Federal Republic of Nigeria. [myad]








Nigeria: Bad Start, Slow Recovery, Rays of Hope, By Muda Yusuf
The regime came on board with an exceptionally high goodwill and with very high expectations from the citizens. But the regime was up to a slow start, from the perspective of the economy. The key reforms, especially in respect of the petroleum industry and the infrastructure sectors were also slow in coming. The collapse of oil price and activities of the militants in the Niger Delta regrettably compounded the economic challenges of the country, culminating in a recession. The good news is that the outlook for the short to medium term looks better now than a year ago.
Policy Direction: Absence of an economic blueprint was one of the concerns of the private sector in the early days of the administration. However, the Economic Recovery and Growth Plan, ERGP, launched recently by the President has provided clearer economic policy direction of the administration. This enhanced the level of investors’ confidence and lessened uncertainties. The indications are that the government is committed to the implementation of plan. The establishment of the Presidential Enabling Business Environment Council, PEBEC, is also a boost to investors’ confidence.
Investors’ confidence
This is a body chaired by the Vice President which underscores the political will of the government to drive its activities. The Executive Orders released recently provide further proof of government commitment to fostering an enabling environment for investors.
Forex policy: The forex policy was one of the major challenges faced by investors in the past two years. There were issues of uncertainty, volatility of exchange rate, round-tripping which resulted from the huge differentials in the rates, multiplicity of rates, acute liquidity crises which adversely affected investors’ confidence. However, the recent reforms in the forex market has mitigated these problems. The upswing in oil price and increase in oil output had brought a great relief to investors this year.
The forex regime is moving close to a market driven framework in line with the pointers in the ERGP. The frequent injection of liquidity by the CBN has moderated the rates and improved forex liquidity. The forex policy reviews, especially the creation of the investors and exporters windows, are impacting positively on forex inflows and boosting the fortunes of the stock market. Although there are still some fine-tuning to be done, the forex regime is heading in the right direction.
Debt management: There are concerns about the rapid growth in public debt stock. Evidently, the debt profile of the government is not sustainable. The IMF in its Article 4 Consultation Report indicated that 66 per cent of the government revenue was used in interest payment in 2016. This is disproportionate and poses a risk to the macro-economy. In the 2016 budget, the sum of N1.36 trillion was earmarked for debt service. This was 35 per cent of revenue and 76 per cent of capital budget. Similarly in 2017 budget, the sum of N1.66 trillion was proposed for debt service. This was 34 per cent of revenue and 74 per cent of capital budget. The public debt stock grew from N9.5 trillion in 2014 to N17.3 trillion in December 2016. Although the exchange rate effect contributed to the sharp increase in the numbers. But this not detract from the reality of rapid increase in debt accumulation. This is something to worry about.
Besides, the debt structure is impacting negatively on the private sector because of the crowding out effect in the financial market. The bulk of the resources in the economy is now being channeled to purchase of government debt instruments at attractive rates of between 18 and 22 per cent rather than lend to investors in the economy. This has also pushed up interest rates to the 30 per cent threshold for private sector investors. This will surely no help the drive to stimulate domestic investment which is most critical to job creation. Recent data indicate that in Nigeria, financial system credit to the private sector as percentage of GDP, is one of the lowest in the world. It is 14.2 per cent when the sub Saharan average is 45 per cent. The figures for the middle income is 96.5 per cent, while and high income countries are well over 146.6 per cent.
Manufacturing sector: The manufacturing sector experienced some major challenges during the past two years. The factors were both external and domestic. The main external factor was the collapse of oil price which affected forex availability and triggered sharp exchange rate depreciation. There was very little the government could do to stem that. However, the policy component of the problem resulted largely from foreign exchange policy choices which aggravated the problem of forex liquidity. The restriction of 41 items from access to interbank forex market added to the plight of some manufacturing firms. The high interest rate and unfair competition from imported products were also factors that constrained the growth of the industrial sector. High energy cost continued to impede the competitiveness of the sector. Capacity utilization was between 40 – 45 per cent over these period.
The import dependent nature of the Nigerian manufacturing sector also posed considerable adjustment challenges for the sector over the past two years. The good news is that segments of the manufacturing sector that had substantial backward integration capabilities had a very good leverage during the review period. Such firms became more competitive and more sustainable and profitable. They are largely in the food and beverage categories.
Agricultural sector
The sector gained government support especially in funding, especially rice farming and processing. However, the pace of mechanization is still low which is why food prices remain an issue in the country. It is only mechanized agriculture that can guarantee food security in a country with a population of 180 million.
Oil and gas: Pace of reforms in the oil and gas sector has remained painfully slow. PIB has still not been passed and this has been stalling the progress of the sector.
In the upstream segment, contracting processes under the joint venture partnership takes between 24 – 36 months. This is a major problem for investors in the sector. This is one reason that no new investors are coming into the sector.
The downstream is equally plagued by the excessive regulation which has made it difficult to unlock the huge potentials of the oil and gas sector. It desirable to fully liberalize the sector so that investors can go into the sector and inject the desired investment. The price cap on the petroleum products is hurting the sector and impeding progress. There is a huge potential to be unlocked in the sector through appropriate policies and legislations. [myad]