The All Progressives Congress (APC) has described 2face Idibia, who planned to stage a nation-wide protest against the government of President Muhammadu Buhari between tomorrow, Sunday and Monday, as a hypocritical character, with satanic agenda.
In a statement today, Saturday, the National Secretary of the APC Youths Renaissance, Mr. Collins Edwin said that the party had a better information that the so-called ‘Tuface-Protest’ is a self-serving protest with Satanic agenda other than national interest as he has made some gullible Nigerians to believe.
“We are therefore compelled to expose the hypocritical nature of 2face Idibia, a man who has never sacrificed anything for Nigeria and the nation’s entertainment industry which he has destroyed.
“Tuface Idibia has been in the entertainment industry since 1997 making all the money and fame without bothering to help the younger ones to rise to fortunes.
“Tuface Idibia was of the Plantation Boys, formed and financed by Black Face, but when luck smiled on him, 2face Idibia betrayed both Black Face and Faze, the two remaining groups that were members of the Plantation Boys.
“Even at the trying times of Black Face to the extent that he could not pay his rent in Lagos, 2face Idibia with all his wealth never cared and refused to help his first benefactor.
“Tuface has never raised his voice against unhealthy and immoral practices in the entertainment industry which is his immediate environment; instead, he kept quiet and benefited from it without minding its moral and economic burden.
“With many illegitimate children all over the country, Tuface as the image carrier of sexual immorality and greed has inflicted psychological and moral pains on many homes in Nigeria without anybody protesting against him.
“If the so-called protest against Buhari government is the idea of Tuface Idibia, we challenge him to a live debate on National TV to tell Nigerians the area of our party’s policy he is not comfortable with.
“We therefore call on all Nigerians, especially the youths, not to participate in the so-called National Protest.” [myad]
The United States of America Home Land Security has over-ruled President Donald Trump, by announcing the suspension of all travel ban announced the President in an Executive order. The suspension, according to the statement from the Home Land Security, is in compliance to a Federal judge order halting all travel bans. “We have suspended all actions to implement the immigration order and will resume standard inspections of travelers as it did prior to the signing of the travel ban.” The agency said that it has reversed the cancellation of visas that were provisionally revoked following the President’s executive order last week, so long as those visas were not stamped or marked as canceled. [myad]
I often say that we (Nigerians) are an unserious people. Though I blurt jokingly most times, the severity of this statement remains intact. Earlier this week, on Monday, I received a message on my WhatsApp from an unrelenting, serial pusher of broadcasts which I usually would not bother reading, but this one caught my attention, luckily. It reads:
“Despite all that has been happening in Nigeria, the fight between APC and PDP, Army and Boko Haram, Buhari and Jonathan, EFCC, Subsidy, Fuel scarcity, increase in dollar and decrease of naira, unemployment, inflation and hardship I have good news for you…. Mango is out!!”
It was a widely shared joke, as I happened to see this same post on Social Media with some of the most funny and imaginative comments — as usual.
It wasn’t funny to me, not anymore, as soon as the message sank. “Mango is out!”
My mind raced back to the roots of my upbringing that chastised the habit of waste and early social science definition of Economics in respect to scare resources.
Mango is almost free in Nigeria and a lot of it gets to waste as people who live or pass through Gboko or some other rural community in Benue can attest to. Mango eventually becomes scarce in Nigeria and Mango in packed juice form is expensive as a result of rising cost of imports amid the foreign exchange scarcity.
“Mangoes are out and what about that?”
‘No jokes’, Nigeria is the 9th largest Mango producer in the world followed by the Philippines.
Feeling proud, guess what? Nigeria has no place even in the top 30 in terms of exporting the same commodity, and not even top 10 in Africa.
Precisely, Africa exported mangoes valued at about $178.8 million with the following countries topping the trade 1. Côte d’Ivoire: $38.7 million; 2. Egypt: $32.7 million; 3. Ghana: $25.9 million; 4. South Africa: $21.3 million; 5. Senegal: $17.9 million; 6. Mali: $11.1 million; 7. Burkina Faso: $10.7 million; 8. Kenya: $10.4 million; 9. Gambia: $4 million; 10. Cameroon: $2.2 million. To make matters worse, no other country in Africa is on the Top 10 list or close to being at par with Nigeria.
Meanwhile, Philippines that is a rank beneath us in terms of production, exports about $91million worth of mangoes and Peru which is only about 1/5th of Nigeria’s population exports $194.2 million worth of Mangoes — more than Africa’s combined exports — and the country is not even a top 10 producer!
In Abuja, One (1) big fresh Mango is sold for about N100 (30¢) but a pack of imported Stute Mango Juice made from concentrates retails for about N1200 (almost $4). In other places, people only sell mangoes in baskets and beg customers to buy.
Mango to a Nigerian can be likened to the biblical Manna from Heaven, one does not even have to harvest it, it just falls and our part is to pick and eat, saving none for tomorrow. Beyond Mangoes, this is the tale for other fruits such as the Citrus family, which Nigeria is also among the top 10 producers of.
But it is not all doom and gloom, certain Nigerians in the private sector are not just aware of these opportunities but have gone further to harness them. The Agriculture subsidiary of Tony Elumelu’s Transcorp Plc invested about 1 billion Naira in the Ben Fruit plant in Benue state which can produce about 26,500 metric tonnes per annum of fruit concentrates (Mango, Orange and Pineapple).
Affiong Williiam’s Reel Fruits is another inspiring story, the small start-up ventured into the production of dried fruits with decent packaging, initially targeting the middle class, health conscious demographic in Lagos, Nigeria’s commercial nerve but is now available to every demography across the country.
Nothing more can drive my point home than the story of Seun and Seyi Abolaji who started the Wilson’s Juice company with just N2000 (about $5 at the time) and turned squeezing lemons into a million dollar business
The point is — Nigerians have shown that success is possible against all the odds and with little resources. It is up to government to remove the odds, among which include infrastructure, access to power, storage and credit facilities and policy push etc. Whenever the Mangoes come out again, we should get all we can out of them and must get them out! [myad]
A group of those who professed to be fighting corruption in the spirit of President Muhammadu Buhari’s Change mantra, posted the following material on the social medial. The group, which did not name its members, titled the material: “Why We Have Recession” and went on to give details as follows, claiming that: * Tompolo was paid 13 Billion. * Ex-Chief of Defence Staff, Alex Badeh dug a pit toilet to hide $32 million. * Patience Jonathan is claiming $31 million; she has sued the Nigerian state. * Femi Fani-Kayode took 740 million. * Dasuki used trucks to load over $35 billion from the CBN. * Olisa Metuh took N400 million. * Aziboala, Goodluck Jonathan’s cousin took N6 billion. * Nenadi Usman took N3.5 billion. * Ayo Fayose took N3 billion. * Obanikoro took N4 billion. * Olu Falae took N100 million. * Tony Anenih – N400 million. * Oritsejafor – $35 million * Former Air Chief Amosu – N2 billion. * Lucky Igbinedion-N16 billion. *Bode-George and Dabo -N100 billion * Jolly Nyame- N2.4 billion. * Joshua Dariye- N700 million. *Nyesom Wike stole N4 billion. * Diezzani with $20 billion missing oil money? 15 billon dollars missing from arms fund, N10 billion converted to dollars and given as gift to delegates of PDP Nation convention Bafarawa collected N3 billion for spiritual purposes N12. 7 billion for deceased NEPA staff grew wings and disappeared 20 billion dollars missing from NNPC accounts N23 billion as bribe to INEC staffers to rig the general election. The list is endless. They only left what they can’t carry or unable to lay their hands on. The list continues….. Recession didn’t just happen, people looted Nigeria into happening…. Now Hear The Thieves: 1. I acted based on Jonathan’s instruction – Dasuki 2. I didn’t give order – Jonathan 3. I collected N350 million from Dasuki for consultation – Iyorchia Ayu 4. I only collected $30,000 from Dasuki not N100 million – Bode George 5. I got N4.6 billion from Dasuki for spiritual purposes – Bafarawa 6. I got N650 million from Dasuki for my Abuja burnt office – Thisday Publisher, Obaigbena. 7. I got N2.1 billion from Dasuki for publicity – Dokpesi 8. I got another N100 million from Yuguda, he didn’t tell me from where – Bafarawa. 9. I gave N100 million each to Odili, Jim Nwobodo Bode George and others – Yuguda 10. The president asked me to change N10 billion to foreign currency for PDP delegates – Dasuki 11. My boss asked me to get $11 million from the CBN – Dasuki’s account officer. 12. I got order from above to pay Tompolo N13 billion for Maritime university land – Nimasa DG. 13. N950 million was shared in my house — Shekarau With all this looting and many more revealed, some people are still shouting no sign of change yet. They even say it’s political persecution. The group insisted that there must be consequence for crime otherwise Nigeria will not develop. [myad]
The budget is perhaps the most important instrument for the development of any modern state apart from the constitution. It can be argued that it is only through the instrumentality of the budget that government can allocate resources to deliver services to the people, especially the poor and excluded. But in Nigeria, there are a lot of blockages to effective budgeting. First and foremost, the budgetary process is not participatory. Citizens and communities do not participate in formulating policies and agreeing on projects that go into the budget. Meanwhile, it has been documented that wherever participatory budget is implemented, it has expanded citizenship, empowered excluded groups, redefined rights, deepened democracy and stimulated civil society. Secondly, the budgetary process is not open. Corruption in any country starts from the budgetary process. In very corrupt countries, the budget is done in secret. Releases are done without the knowledge of citizens. Procurement information is not made available to citizens and corruption is guarded and protected. This is why civil society organisations in Nigeria have been advocating for an open budget system. A budget is regarded as open if citizens have access to the key budget documents; have high level of involvement in the budgetary process and have access to procurement information. As a matter of fact, democracy will be meaningless if the citizens do not participate in how government raise and spend money. This is why the tool (Open Budget Survey Tracker) developed by the International Budget Partnership (IBP) is a very useful instrument. It surveys the availability of eight key budget documents to members of the public: pre-budget statement, executive budget proposal, enacted budget, citizens’ budget, in-year report, mid-year review, year-end report and audit report. The Pre-budget statement is meant to disclose the parameters of the budget proposal including macro-economic assumptions. The enacted budget is the budget that has been passed into law by the legislature. The Citizens’ budget is a simplified version of the budget proposal that the average citizen can understand and relate with. The in-year report is a monthly or quarterly report of budget implementation. The mid-year review is a comprehensive update of implementation in the first half of the year. The year-end report is the annual report of implementation. The audit report is the audited annual account of the government. Thirdly, the priorities of the budget are not in accord with the development challenges of the country and there is no synergy between plans, policy and budget. We have always argued that there is the need for better public finance management across the world because of increasing inequality and non-inclusive growth. The past five decades have witnessed monumental changes in the world. Global economic wealth has increased sevenfold and average incomes have tripled. Yet, poverty has increased to record high levels. The major problem is that wealth is concentrated in the hands of a few people while majority of the people live in abject poverty. The UNDP in its 1998 report documented that the three richest people in the world have assets that exceed the combined Gross Domestic Product of the 48 least developed countries. A report by Oxfam in 2014 indicated that the 85 richest people in the world have wealth more than half of the world’s population (3.5 billion people). In Nigeria, for over ten years (1999-2015), there was increasing economic growth before we slipped into economic recession in 2016. But at the same time, poverty was increasing. The budget must therefore prioritise pro-poor programmes and the challenges of poverty. Fourthly, there are several frivolous expenditures in the budget that will not stand any reasoning and logic. For instance, the Centre for Social Justice documented N668.8 billion frivolous expenditure in the 2016 budget. They include N3.91 billion allocated annual reporting maintenance of villa facilities; N322.4 million for linking of cable to drivers rest room at the villa ; N213.8 million for linking of cable from guest house to generator house etc. Finally, the institutions and mechanisms for oversight of the budgetary process are weak. In any modern democracy, the legislature, civil society and media are expected to play oversight functions in addition to the internal control system put in place by the executive. There is also the need for synergy and co-ordination between the Executive and NASS in budget preparations. The 2016 budget was the first budget prepared by the President Muhammadu Buhari administration who was sworn in as President on 29th May, 2015. The budget was approved by the National Assembly in May, 2016. The Centre for Social Justice (CSJ) has been analysing the Federal Budget for more than a decade. It has been documented that between 2013 and 2015, the FGN consistently ran budget deficits and most of the funds were used for recurrent consumption expenditure. The 2016 budget project to have crude oil production of 2.2 million barrels per day; deficit of N2.2 trillion, benchmark oil price of $38 per barrel and average exchange rate of N197 to US $. Some scholars have consistently argued that some of the assumptions of the budget especially the projected crude oil production and exchange rate are not in agreement with the economic realities of the country. Agriculture as a great contributor to GDP and employment creation was regarded as one of the key drivers of the Nigerian economy but only 1.25 percent of the budget was allocated to Agriculture in 2016. Similarly, the environment was recognised as one of the key drivers of the economy. But the environment is facing a lot of challenges including oil spillage, erosion, desertification and shrinking lake Chad. But the 2016 budget allocated only 0.32 percent to Agriculture. Over the years, Nigerians have complained about the falling standard of education. But the Federal government allocated 8.77 %; 10.55 %; 10.75 % and 7.92 % of its overall budget to the education sector in the years 2013; 2014; 2015 and 2016. It has been recognised that there is a huge infrastructure gap in the country. Nigeria is estimated to be in need of between 17million to 23 million new housing units to meet its housing deficit. But the FGN budgeted 0.65 %; 0.46 %; 0.16%; and 1.13 % of its overall budget for housing in the years 2013, 2014, 2015 and 2016 respectively. Nigeria has a total road network of 194, 200 kilometres, comprising 34, 123 km of federal roads (17 percent); 30,500 km of state roads (16 %) and 129, 577 km of local government roads (67 %). According to the National Integrated Infrastructure Master Plan (NIIMP), Nigeria needs an investment of $22 billion over the first five years and then an additional $4 billion in urban road which requires a provision of $5.2 billion per year. Meanwhile, only about 65,000 km have been paved throughout the country. But the FGN allocated 3.83 %, 2.85 %, 1.00% and 4.84 % of its overall budget to the works sector in the years 2013, 2014, 2015 and 2016 respectively. There are a lot of lessons learnt from the 2016 Budget implementation. First and foremost, the engagement by citizens and citizens’ groups produced some positive reports in terms of reduction of frivolous expenditure. For instance, CSJ documented a total saving of N71,954,532,546.00 from the 2016 budget. Secondly, the budget was passed very late and will definitely affect the performance of the budget. Thirdly, there was low capacity in understanding the new budgetary approach of zero base budgeting on the part of public servants and civil society. In addition, the level of citizens’ engagement especially at subnational levels was low and there was no structured process for citizens’ engagement. Moreover, Civil Society strategies of advocacy, partnership and networking, tracking and monitoring, participation in public hearing and social media can make some difference in the budgetary process. For instance, engagement by civil society has led to some improvement in the openness of National Assembly budget. It is now itemized instead of the block budget without breakdown and the National Assembly held a consultative meeting with civil society on the budget for the first time. Finally, some scholars have consistently pointed out that over the past few years, the budget size has not been realistic and the projected revenue inflows were over-optimistic (in the light of actual performances in recent times). The 2017 budget is the second budget to be presented by the President Muhammadu Buhari administration. The budget tagged budget of recovery and growth was based on an Oil benchmark crude oil price of US$42.5 per barrel; an oil production estimate of 2.2 million barrels per day; and an average exchange rate of N305 to the US dollar; target Gross Domestic Product (GDP) growth rate of over 2 per cent; and target inflation rate of single digit; as well as a deficit of N2.36 trillion (about 2.18 per cent of GDP). The 2017 budget is a continuation of the 2016 plans but adjusted to reflect new additions made in the Economic Recovery and Growth Plan. The proposed capital expenditure is 30.69 percent. The projected exchange rate of the naira against the dollar in the 2017 budget is N305 to the US dollar. In 2017, a total budget of N7,298,507,709,937 was proposed. The allocation to Agriculture was N123,440,807,622 representing 1.69 percent of the total budget and an increase of 37.8 percent from the 2016 budget. The total health sector allocation was N304,190, 961, 403 representing 4.17 percent. The allocation to education in the 2017 budget was N540 billion in 2017 up from N369 billion in 2016; N492 billion in 2015; N493 billion in 2014; N426.53 in 2013 and N400.1 billion in 2012. It is very clear that allocation to education is very low in Nigeria especially when compared to other African countries: Burundi -16.59 % in 2010; 14.98 % in 2011; 16.43 % in 2012 and 17.24 % in 2013; Benin-25.02 % in 2012; 22.34 % in 2013; and 22.23 in 2014; Ethiopia 26.30 % in 2010; 29.67 % in 2011; 30.54 % in 2012 and 27.02 in 2013; and Madagascar- 19.78 % in 2011; 20.33 % in 2012 and 13.99% in 2013. In the 2017 budget, there are special initiatives with social inclusion benefits including provision of N100 billion for a new social housing programme; N50 billion for each geopolitical zone to set up special economic zone; N20 billion to revive export-expansion grant; N15 billion to recapitalise Bank of Industry (BOI) and Bank of Agriculture (BoA) and N500 billion special intervention programme. The two ministries that received the highest recurrent expenditure are interior (N482.37 billion) and Defence (N465.87 billion). Compared to the past, there are some positive improvements in the 2017 budget. There is a slight improvement in capital budgetary allocation although the change is not big enough. There are some progressive initiatives in line with the ideological commitment to social democracy including social protection initiatives and social housing. There is marginal increase in budgetary allocation to agriculture, education and infrastructure but still insufficient to cause transformative changes. Therefore, the historical challenges with budget in Nigeria including concerns with the budget process, content of the budget as well as implementation challenges remain unresolved. The process issues include the fact that citizens and communities do not participate in the selection of projects that go into the budget; Legislators are not consulted on the selection of projects into the budget; and oversight of the budget process by the legislature, civil society and the media is weak. Furthermore, the Public Accounts Committee which was very popular in the second republic has become very ineffective and there is still confusion on the limits of legislative power in appropriation. The content issues include low budgetary allocation to sectors that will have impact on the lives of citizens such as Agriculture, health, education and agriculture. For instance, while the budgetary allocation by Republic of Benin and Ethiopia is more that 20 percent of the total budget since 2012, that of Nigeria is less than 10 percent. Similarly, frivolous expenditure has continued over the years. For instance. Foodstuff and caterial materials had a budget of N92.6 million in 2016 and N123.2 million in 2017; newspapers had a budget of N10.2 million in 2016 and N28.3 million in 2017 (This translates to 387 newspapers per day at N200 per newspaper for 365 days). Finally, the high level of recurrent expenditure that will constrain development. The implementation issues remain the challenges of implementation has been a recurrent decimal and the late passage of the budget and a laborious procurement procedure have not been addressed. The process, content and implementation issues constitute a blockade to the budget process making effective and efficient service delivery difficult. From the above, it is clear that the budgetary process can be improved by addressing the process, content and implementation issues. There is an emerging consensus among civil society that the following issues need to be addressed going forward: Promoting citizen engagement in the budgetary process from selection or projects through implementation to monitoring and evaluation. Civic education: social, economic and political resilience, budget literacy, comparative analysis of best practice in budgeting Partnership among those working on budget issues Engaging the government: on promises made during elections, development plans, interrogating budget assumptions and engaging legislators. Advocacy and Campaigns: creating Transparency and Advocacy Champions Budget monitoring: Tracking of budgets Capacity Building for legislators, CSOs and the media on the budgetary process
Otive Igbuzor is the Executive Director of the African Centre for Leadership, Strategy & Development. [myad]
I have been advised to use pseudo names in publishing this piece, but that’s not my nature. I am one who bolds up to situations and thus, I shall bear my name and consequences this report might stir.
From the 14th of August 2015, the day I had an interactive and empowerment session with the black smiths of #Ebiraland; the pains in their voices daunted me. A people, whose ancestors carved a niche in ironworks way back as the 7th century suffered for want of materials to support their trade while a steel giant lay raped in their backyard by a series of unfortunate events and conspiracies.
In October, I took online to issue a petition pleading with #President #Buhari to revive ASCL; and with your support we were able to get hundreds of signatures. Since that day, I left no stone unturned to discover the happenings so as to better understand the best path forward. I have taken time to make this report as brief and as simple as possible and urge you all to take time and read.
1958 to 1979
1958 – the colonial administration conducted a feasibility study on iron ore deposits in Nigeria.
1967 – the #United #Nations #Industrial #Development #Organisation survey identified Nigeria as a potential steel market which led to the signing of a bilateral agreement between Soviet Union and Nigeria.
1971 – the Nigerian Steel Development Authority was established by Decree No.9 to bring to reality a steel plant.
1979 – during the administration of Alhaji Shehu Shagari, TyazhPromExport (TPE) a #Russian leading engineering company commenced construction works on #Ajaokuta #Steel Company Limited.
1979 to 1994
In less than 12 years, TPE transformed a wide expanse of land to contain some giant size network of machinery meant to process the exploration of steel for #Nigeria. Indeed, billions were spent and its evident in the state of the art townships , roads, bridges, power plants, air strip, port, rail that were put up in Itakpe and Ajaokuta in #Kogi state.
In 1990, as the project approached completion, TPE on monthly bases for 4 years wrote to the #Federal #Government reminders on the need to commence works on the necessary infrastructure needed to successfully operate ASCL and Nigerian Iron Ore Mining Company (NIOMCO). They are access roads to the mines and rail system from ASCL to Onne sea port in Port Harcourt. TPE also suggested the possibility of dredging river Niger which could offer a better and more convenient route of importing raw materials. This infrastructure TPE argued would benefit the public especially Northern part of Nigeria where finished steel manufactured products such as cars, parts, construction materials etc could be shipped to other states and nations once the state is fully functional as an industrial hub. The government never responded.
THE INTERNATIONAL CONSPIRACIES
A lot of people talk about the international conspiracies surrounding ASCL but very few know what actually they were or are. Here;
In 1992, when the project was near completion and while the Russians (TPE) called on the government to work on needed infrastructure; powerful countries namely #France, #America, #Germany, Britain etc including the organizations like the World Bank and International Monetary Fund (IMF) started reaching out to Nigerian government to terminate the project with the Russians. The Ohinoyi of Ebira land HRM Ado Ibrahim witnessed firsthand a plot by the IMF during a conference in NewYork where a team of Nigerian officials and foreign agents connived that ASCL should be completely dismantled and forgotten. To them, Nigeria did not need to have a steel plant. Nigeria could as well buy steel from them if needed for its development.
Nigerian government listened to the negative solutions without ever considering the true intentions of the so called experts from these powerful foreign countries. Russia all through stood its ground alone against France, America and co and kept on reminding Nigeria of the need to ignore the adverse opinions. Russia told Nigeria that this conspiracy was cooked by the West to stop Nigeria from achieving the economic strength strong enough to uplift not only itself but the whole of Africa. To them, Nigeria and Africa needed to be kept as a market for all junk goods from the West. This is in line with the colonial economic model brought in by the British and so, to have Nigeria turn around its economy and that of weaker nations hitherto being exploited by the super powers, and by implication, impact negatively on the extent of influence of the richer countries sent shivers at the smart future awaiting Nigeria.
Nigeria’s government was too busy focusing on ushering the 3rd Republic, June 12 saga and all. No attention was given to the Russians. TPE was no longer being paid. In 1994 TPE left Nigeria.
SERIES OF UNFORTUNATE EVENTS
The Dept Buy Back
Nigeria’s contract with TPE was to construct ASCL for five billion German Deutschmarks (DM) and such that the Nigerian steel authority gave TPE promissory notes guaranteeing payment to the company. When Nigerian government suspended payment and TPE left, TPE sold off these instruments to recover some of the debt owed to the company.
In October 1995, a series of secret debt buy-back transactions took place whereby the debt instruments were sold at inflated prices to Liberian companies purportedly owned by the Abachas – Parnar Shipping Corporation and Mecosta Securities .This involved the withdrawal in 1996 of $2.5 bn of public funds to settle debts owed to Russia for the construction of the Ajaokuta steel plant, but which in reality had been discounted to only $500m. Obasanjo in 1999 settled debt through OMPADEC .
SOLGAS – the first Concessionaire
In 2003, Nigeria under president Obasanjo realized the need to complete Ajaokuta and so, SolGas, an American company which specialized in petroleum was given concession. For a year and a half, Solgas zero progress raised questions as to their technical capacity to operate ASCL. Even though they claimed Senator Liyel Imoke and Gbenga Obasanjo brought in Global Steel Holdings Limited/ ISPAT to short- change it from performing. To this end, Nigeria terminated contracts with Solgas. There were no minutes recorded to document deliberations engaging or terminating with Solgas.
GLOBAL STEEL HOLDINGS LIMITED (INDIAN) – the second Concessionaire
An Indian company first operating under the name ISPAT then changed its name to Global Infrastructure Holding Limited and now #Global Steel Holdings (GSH) were helped into Nigeria by Sen. Liyle Imoke and Gbenga #Obasanjo under President Obasanjo’s tenure in August 2004. The agreement was such that company would own 60 percent of the shares of the steel mill. The Federal Government would keep 30 percent while 10 percent shares would be sold to the public. This company GSHL owned by Mr. Primod Mittal is not affiliated with ArcelorMittal, which the world’s renowned steel giant. #ArcelorMittal is owned by #Lakshmi #Mittal and a cousin to Mr. Primod Mittal.
This concession which saw the taking over of ASCL and Itakpe is termed one of the biggest scams. The plant was hugely undervalued for $300m and GSH was to pay nothing to the government but inject its funds to revive the plant with a number of conditions some of which were:
– 1. That the Federal Government should give GSHL two oil blocks.
– 2. That GSHL be allowed to be lifting crude oil from Nigeria.
– 3. That the Sapele Power Plant be given to GSHL to operate.
– 4. Concession of Delta and Warri Ports to GSHL to operate.
– 10. The supply of Natural Gas to GSHL at “competitive and reasonable tariff”.(GSHL came up with this condition after it failed to sign a Gas Supply Agreement with the Nigeria Liquefied Natural Gas Company. GSHL offered to pay N5.00 per cubic meter of Gas as against the market price of N30.00). It also inserted in its conditions that “Gas price should be kept reasonable and consistent.
After all these conditions, ASCL still deteriorated as equipments of ASCL were moved to Delta steel (which GSHL took over in 2005) while some to other private owned Indian owned steel factories in Nigeria in the name of “borrowing”.
The federal government under President Yaradua realized the huge mistake Nigeria once again made and sought to terminate the contract with GSHL. The then Director General of the BPE, Ms Bolanle Onagoruwa stressed that the approval of the concession of Ajaokuta by president Obasanjo was in violation of the BPE Act.
At Senator Ahmed Lawan led Adhoc Committee, Minister of Mines and Steel Development, Architect Mohammed Musa Sada also revealed that the federal government under Obasanjo single handedly sold ASCL to GSHL and that GSHL ruined the Ajaokuta complex by stripping it of all valuable equipment and machineries. It led to the cancellation of the entire process by the federal government.
This act didn’t go too well with GSHL and they dragged Nigeria to the International Chamber of Commerce (ICC) in London, UK and demanded Nigeria pays them $1B for termination.
In 2013, after 6 years of heated negotiations at the ICC, the Jonathan’s administration successfully took back ASCL. GSHL also lost their $1B demand.
2013 TILL DATE – INDIANS HOLD AJAOKUTA TO RANSOM
One would have assumed the drama over in 2013 but alas, the Federal Governments hands are tied on progressing with ASCL. GSHL shrewdly crafted an arbitration clause in the contract between the government and GSHL which prohibits Nigeria from dealing with anybody until all matters with GSHL are resolved. In other words, the Indians do not want Nigeerian government to proceed on completing Ajaokuta until an unreasonably selfish condition is met – they want the Nigerian government to give Itakpe Iron Ore company to them free for 25 years.
At the moment of this report, there is a modified contract containing such ridiculous terms before the minister of solid minerals in favour of the Indians. GSHL wants to tap Iron Ore from Itakpe and move to Delta Steel which was in June 2015 taken over by Premium Steel, a company set up just months before the purchase of Delta Steel . Premium Steel is owned by another powerful Indian conglomerate headed by the #Vasuwani brothers (owners of the controversial Stallion group).
Truth is that Itakpe was set up as a captive mine to ASCL. The original plan holds that iron Ore would be moved from #Itakpe to ASCL which will in turn distribute to other smaller rolling mills, Delta Steel inclusive.
If GSHL succeeds in its bid to take charge of Itakpe, ASCL will become a sad history as there will be no Ore to feed from. That means Kogi state will have no steel plant of its own ever again. So no matter that amount of pacifying information the government publishes for the public on the urgency and good intention they have towards ASCL, nothing shall be done until the arbitration is terminated.
Patriotic Nigerians must call on the Nigerian Government to immediately terminate every agreement in whatever form with GSHL. Nigeria is too big a nation to be held captive by an Indian company. TPE, a whole Russian government owned company who built the complex did not cause this much pain to Nigeria… why would a private Indian Company who has never operated any steel plant in its own country India do such a thing to us? A more worrisome question to answer is – Who’re the heavyweight Nigerians behind GSHL selling us this cheap? I don’t believe Mr. Primod Mittal would have the courage to stand alone and dare this much pandemonium; so who are the greedy Nigerians toiling with the present and future of Kogi state and Nigerians? No matter what, Nigerians must remember that the masses are always majority and the power to determine our future truly lies in our hands. Our silence and ignorance has only cost us this much.
RUSSIAN TyazhPromExport (TPE) IS BACK WITH HOPE FOR NIGERIA
The Sole Administrator of ASCL Egnr. Onobere has repeatedly said that since the Russians left in 1994, no progress has been realized on the project. The following questions kept hovering my mind :
– the moment Nigeria realized their mistake in not completing ASCL and were ready to commence completion, why were the Russians not called back to resume works? Why did we settle for SolGas and GSHL in the first and second instances?
– From the quality of work evident in Ajaokuta, is there any doubt on the expertise of TPE that questioned their invitation?
– Could it be that TPE wasn’t invited because the Russians are too straight forward and don’t engage in “smart business”?
My research led me to uncover a lot of conspiracies on how TPE is no longer interested in doing business with Nigeria and some even said TPE no longer exists. My curiosity took the better part of me and I decided to look them up the internet and initiate contacts.
I sent an e-mail to TPE in mid November and another early December 2015, none were replied.
It is said that desperate times require desperate measures and that when you truly want to do something, you shall find a way; so I contacted a dear friend of mine who lives in Russia and who happens to be the acting Chairman of Russia’s Arbitration Court on International Economic Matters – Mr. Tunde Adewon. As God would have it he is also a Nigerian; born to a father from Ondo State and a Russian mother. His father late Engr. Moses Adewon was one of the senior engineers who worked to build the Itakpe Iron Ore complex.
Mr. Adewon on behalf of Builders Hub visited TPE in Moscow, Russia in the 2nd week in December 2015. After the first brief meeting, TPE, as precautionary measures ran a security check on me. Then Mr. Adewon was called for a detailed meeting and this was noted;
– TPE expressed deep sadness at the manner in which ASCL was handled.
– TPE said their heart was poured into the project in other to give Nigeria, the greatest country in Africa, the biggest steel Complex in Africa.
– That never, in all of their works across the world, not even in India, did they build a steel city as big as Ajaokuta complex.
– That it was sad Nigeria did not heed to their warnings about the international conspiracies and Nigeria turned their back to them instead of seeing the bright future they dreamt for us. That we, by our own hands allowed our economy to be trampled amidst negative interests by other powerful countries.
– That over the past years, they had tried reaching out to the Nigerian government to allow them come back and complete the project. Nigeria did not respond positively.
– That they would want nothing more than to work to revive Ajaokuta and help Nigeria create jobs for its people and take itself out of poverty. Nigeria, they said must wake up from its slumber and be greater than ever before for itself and for Africa.
During a skype meeting, TPE was advised to write a letter of intent to the Minister of Solid Minerals. I also made it clear that neither I nor Mr. Adewon were interested in any monetary reward. We were only good citizens of Nigeria trying to use our best arsenals to contribute our quota in helping our country. They appreciated our honesty.
On the 25th of December 2015 (Christmas day), TPE wrote and sent the letter (which I have attached to this post) to the Minister of Solid Minerals Dr. Kayode Fayemi. TPE is expecting to be invited over to discuss a path forward which would first entail technical evaluation of ASCL to ascertain damage and recommend modernization and upgrade plans for completion. TPE said they are very ready to come to Nigeria even at a week’s notice.
On Monday the 18th January, I paid a courtesy visit to the Minister himself; Dr. #Fayemi acknowledged reading the letter from TPE and mentioned the Ministry would look into it. I pleaded with him on the need to expedite actions regarding ASCL and reminded him of the TPE’s intentions should be considered a priority.
4 weeks after the letter was sent to the Ministry and no response from the Minister’s office, I visited the Department of Steel within the Ministry. To my shock, no one had seen or heard of the letter of intent. Question – what happened to the TPE’s letter after the Minister read it. Is it not supposed to be sent to the Steel and Legal departments for action?
Do you also know that till today, no committee has been set up to investigate into ASCL?
KIND WORDS FOR HON. MINISTER DR. KAYODE FAYEMI
My dear Minister, sorry if I sound a bit hard. I don’t like it myself but like I told you in your office, I tour rural communities and interact everyday with the unemployed; the pains in their eyes are unbearable and that’s what I pour out right here… the pains of Nigerians and the huge expectations from your kind self and Mr. President. You visited Ajaokuta on the 14th of December 2015 and promised an urgent action first by composing a think tank whose report would be submitted to the President; that’s 40 days ago!!!
The Russians worked even on Christmas day to get the letter to you. When are you going to respond and extend an invitation to at least hear out their plans for ASCL and Nigeria? When would you constitute the fact finding committee? How long a time would the committee have to prepare its report? When would the President digest the report? When would decisions be made? Please note that Nigerians expect your efficient office to act quickly as we are fast drowning.
Mr. Minister, I am aware you were misinformed that the Russians are not interested in the constructions works in ASCL, that’s not true sir. Please do not be trapped by misinterpretations. For that sake, I have decided to post TPE’s letter out to Nigerians to read. Also, my team met with the senior management of TPE in Russia today the 26th of January and they once again expressed their readiness to work with Nigeria on Ajaokuta and other projects if need be.
Sir, do you know that TPE Russia constructed 3 of India’s largest steel plants namely – Bhilai, Bakaro and Visakhapatnam? Do you know that Bhilai is an eleven-time winner of the best integrated steel plant in India? They say the blast furnace technology in Ajaokuta is old, no sir. Do you know that India recently contracted TPE Russia to reconstruct and modernize Rourkela (originally built by Germans) and Durgapur steel plants? It shall interest you to know that TPE is installing the largest blast furnace in India as part of Rourkela upgrade.
Sir, please join as we ask ourselves why India, with all its steel expertise keeps calling on TPE Russia? It’s because they are good and honest and that is what Nigeria needs now. GSHL was not invited by their government to work on their plants? Better still – has GSHL ever done any steel works in India? Was Nigeria supposed to be a guinea pig? Little wonder they can’t let go of Nigeria and are holding Ajaokuta hostage. Sir, please see that the arbitration with GSHL is terminated as soon as possible. In the meantime, TPE is at this moment writing a comprehensive letter of intent to the president, your office shall be promptly copied sir. Thank you .
Today the 26th of January, I printed copies of the letter and again took a set to the Minister’s office and a set to the Director of Steel Engr. Also Abdullahi promised to follow up with the Minister.
Dearest Nigerians and Kogites, it is said that you can’t make the same mistake twice, the second time you make it; it’s no longer a mistake but a choice I don’t know what a third mistake is called. We have watched our God given economic destiny being tossed twice by a few; we cannot sit back and watch it happen the third time around. It will be a big shame unto us.
Anger will do no good. We shall forgive everyone for every negligent decision made in the past. Sadly we have found ourselves in the most despicable of times; we should be courageous enough to seek to take the best path forward. Let us think deep quickly and ask ourselves – what do we have to lose or gain if the Russians come back to rescue Ajaokuta?
Now that God has ushered us a new government in Kogi state, let us demand of our Governor and National Assembly members to make ASCL their watchword. Let our dear royal fathers HRM the Attah of Igala, the Ohinoyi Ebira land, the Obaro of Kabba and others keep interceding on behalf of ASCL. Let every Kogite realise that there is no better time than now to unite and seek that justice is done to ASCL. Let every state in Nigeria join forces to call on the federal Government to revive Ajaokuta because that single project coupled with Nigeria’s intellectualism can usher us into unprecedented greatness. We are too poor, our youths are jobless, our future is bleak, we cannot continue to suffer this much. The time to speak up and act is now!!!
Truly yours,
Natasha Hadiza Akpoti.
Note: This report took weeks of constant research with me meeting with the Minister of Solid Minerals Dr. Fayemi, Director of Steel. Also Abdullahi, Sole Administrator, Engr Onobere, TPE Russia and so many others. No part of this excerpt expressly stated, though all true, was made by any of the above mentioned. [myad]
As a journalist, politicians have, over the years, regaled me with narratives of superlative ideas about governance. They always paint beautiful pictures of what they want to transform the society into if they are voted into power. Unfortunately, none of my interview subjects, who ended up in public office, was or has been able to walk his or her talk.
The narratives constantly change from things they would do to those things that made it impossible for them to do the things they promised to do. They are wont to rationalise failure to live up to the governance ideas they so much espoused before stepping in the saddle of leadership.
To be sure, nothing is new in the different ideas that are canvassed and romanticised in or outside government. Most times, the ideas are essentially the same; whereas, lack of integrity is the problem that bedevils governance in our nation. Integrity has the capacity to redefine officialdom’s work ethos and guarantee transparency and accountability in the management of public finance.
But, sadly, the contrary has been our lot. A vast majority of our public office holders have failed the critical integrity test. They mindlessly plunder the public treasury; and, this has made our nation and people the butt of international denigration. Consequently, Nigeria has continued to feature in the Transparency International Corruption Perceptions Index as one of the most corrupt countries in the world.
This, indeed, explicates the urgent need for a new change since the All Progressives Congress (APC) that capitalised on this national sense of urgency to dance its way into power has lost control. It has failed to appropriate and approximate the strength of President Muhammadu Buhari’s anti-corruption persona around which the APC change mantra was constructed and construed during the 2015 electioneering.
One had expected that Buhari’s followers would build on the new paradigmatic effects that his body language had created against corruption at the outset of his presidency. Unfortunately, the APC apparatchik and the government that the party controls have lost the willpower to do that. The president himself only needed to have reined in his appointees who are corrupt to prove that the fight against corruption is sincere. He is yet to do so.
The government’s critical anti-corruption stand has become questionable on the grounds of selectivity and alleged witch-hunt of members of the main opposition party. This misstep is not too late to correct. It must be done if government is sincere about cleansing the Augean stables, without minding whose ox is gored. Buhari can do it.
This will inspire people’s confidence in the ability of its government to spearhead genuine, responsive, responsible and meaningful governance in our nation. It is not much about the preponderance of ideas; it is more about honesty. This is the major difference between management of public finance in underdeveloped or developing and developed nations of the world.
Public officers in advanced democracies effortlessly resign from office once their integrity is called to question. Here, they would fight to retain their positions, not because they are innocent or that they are committed to serving the public interests but because they will lose access to the public treasury once they are out.
Because integrity has become so scarce, anywhere I catch a whiff of it, I become overly excited. In 2003, I voted for Buhari in the presidential election because of the story that my godfather, the late Chief Sunday Bolorunduro Awoniyi, the Aro of Mopa, told me of how he, as federal permanent secretary in the ministry of petroleum and Buhari as federal commissioner in charge of the ministry, negotiated downward a contract for the building of pipelines and tankages for the nation’s refineries with some foreign contractors.
Wait for it: it was not their commitment and ability to bring down the high contract cost that blew my mind; it was their outright rebuff of the suggestion by the foreign contractors that they (contractors) should be furnished with a foreign account number into which the amount negotiated off the high contract could be paid, because they thought Awoniyi and Buhari wanted the amount negotiated off as their own shares.
I was filled with a sense of pride the night Awoniyi told me that story. He deconstructed the Buhari persona and the weight of his integrity: incorruptible, straightforward, uncompromising in matters financial. Awoniyi said he wished he could, single-handed, enthrone Buhari as president in 2003. I did not find it difficult to believe Awoniyi, given his ascetic lifestyle, which bore striking resemblance with Buhari’s.
The totality of Awoniyi’s narratives about Buhari was positive, inspiring and ennobling. Unfortunately, I cannot, in this same token, replicate what he said to me about former President Obasanjo. Most of what he told me is contained in a biographical manuscript that I put together, which he (Awoniyi) was still going through up until the time he had the auto crash in which he sustained fatal injuries that eventually led to his death in a London hospital in 2007.
I completely understand the reason Obasanjo worked against his aspiration to become the national chairman of the Peoples Democratic Party (PDP) at the national convention in 2000. An Awoniyi chairmanship of the PDP would have been impossible for an “imperial” Obasanjo to control or manipulate. He had the moral capacity to look Obasanjo in the eyes and tell him the bitter truth. The founding leaders of the party wanted him but Obasanjo resorted to “Transparent Rigging at the Eagle Square”, à la Segun Adeniyi, to produce Barnabas Gemade as chairman.
Coming back to Buhari, I have no evidence, as of now, to come to the conclusion that he has parted ways with integrity in the area of management of public finance. But anyone can, arguably, accuse him of something else ranging from nepotism, ethnic irredentism to religious bigotry but not deficient moral fiber in money-related matter.
Just as the Buhari story was sweet music to my ears, so also was the story of the former Ekiti state governor, Chief Segun Oni, who is deputy national chairman (south) of the APC. In the three years or thereabouts that he was in office, he was reputed as prudent with public funds. He was said to be shrewd, following the trails of approved funds to targeted purposes.
Oni was derisively said to be financially austere, even to himself. Credible reports said he did not build a house anywhere in the world, not even in his Ifaki home-town, while in the saddle as governor. According to reliable scuttlebutt, it was after he was ousted from office that through the magnanimity of friends, he was able to own a modest bungalow in his town.
But, the particular narrative about Oni’s integrity that still amazes me, if true, was told by a close aide of his. The aide told me a long time ago that on the day the Court of Appeal in Ilorin delivered the judgment that ousted him and emplaced Kayode Fayemi as governor, there was a sum of N100 million security votes in the safe in his office.
The aide said he asked what should be done to the money and Oni replied him, point-blank, that it belonged to the state government and should not be touched. The aide, who thought the money could become a parting gift of sorts, confessed that Oni’s decision angered him. Is it surprising, therefore, that while he was in the PDP before he finally moved to the APC, the Fayemi government could not justifiably point a finger of guilt at him? That is what integrity can do. It is far better than filthy lucre.
The National Youth Council of Nigeria (NYCN), has announced that it has mobilized over 15,000 Nigerian youths to welcome President Muhammadu Buhari to Nigeria from vacation on Monday, February 6.
Malam Gambo Jagindi, Special Adviser on Media and Publicity to the President of NYCN, Murtala Gamji, said in a statement today, Friday that the group would welcome the President at the Nnamdi Azikiwe International Airport Abuja upon his arrival.
“The National Youth Council of Nigeria (NYCN) has concluded arrangements to mobilize not less than 15,000 of its members to be at Abuja airport on Feb. 6, to welcome President Buhari from vacation.
“It is on record that integrity, discipline and honesty are gradually returning to our public life unlike in the past when impunity was the order of the day,’’ the spokesman said.
Speaking on the rumour on death of the President, he said: “we all know that they do not have the interest of our country at heart and are only wishing to carry on with the looting of our treasury in the absence of our president.”
He commended the President’s efforts to wipe out from the nation what he described as, “undesirable elements’’ who did not mean well for Nigeria and Nigerians.
He said that in spite of the “corrupt mafias working to undermine the anti-corruption war, Nigerian youths under NYCN would continue to support Buhari’s laudable programmes.” [myad]
Over 1,500 members of the All Progressives Congress (APC) in Radda town, Charanchi Local Government Area of Katsina State have defected to the Peoples Democratic Party (PDP) with their leader, Alhaji Mustapha Radda.
Mustapha Radda, the leader of the defectors, said he decided to dump the APC for the PDP to rescue his people from alleged maltreatment.
“We have done a lot for the APC, but today my people especially the youths that I mobilised have nothing to show for it.
“We did not benefit from the APC poverty alleviation programme meant to rescue women and youths from poverty; we have presented several requests to those that matter but we were rejected.”
Also, the former APGA governorship candidate of the All Progressive Grand Alliance (APGA), Mr. Tata said that the defectors were prepared for the restructuring of the PDP for effective service delivery.
He said that the leadership of the PDP had promised to assist the youths with capital to establish their business.
The PDP state chairman, Alhaji Salisu Majigiri, said that the party had already constituted reception committee to receive defectors to the party.
“The committee is mandated to receive all the people who defected to our party from other parties. We shall treat all those who defected to our party equally without any form of discrimination.
“Just this week, we received Alhaji Umar Tata APGA governorship candidate in the 2015 election to our party together with his supporters.
“We are ready to provide level playing ground to old and new members during future elections and there will be no imposition of candidates this time around.”
The minister of the Federal Capital Territory (FCT), Malam Muhammad Musa Bello is believed to still be contending with ghost workers, as a result of which the January workers’ salaries are yet to be paid as at today, Friday, February 3rd. Information reaching us at Greenbarge Reporters showed that the minister is still in shock that many names that were not in the services of the Federal Capital Territory Administration (FCTA) were smuggled into the January salary voucher, which he promptly detected and returned to sender. It was gathered that when the over bloated voucher was presented to the minister for his signature, he queried the astronomical increase in the salary bill, unusually from the previous ones. The minister was said to have asked the account department to re-do the voucher, as a result of which the administrative department had embarked on screening of individual worker’s file, in addition to the filling of the annual emolument form. It was gathered that workers’ salaries were last paid before December 20 last year, in the spirit of Christmas and New Year festivities, even as the minister had long promised to be paying salaries before or on 25th of every month. Workers in many departments of the FCTA are now grumbling and complaining bitterly that over 40 days since they received salaries, they are yet to be paid, irrespective of what happened. “The authorities do not even find it expedient to communicate the workers on the unusual delay that has left many families in hunger and frustration,” a staff in the agric department complained. [myad]
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A group of those who professed to be fighting corruption in the spirit of President Muhammadu Buhari’s Change mantra, posted the following material on the social medial. The group, which did not name its members, titled the material: “Why We Have Recession” and went on to give details as follows, claiming that:
The budget is perhaps the most important instrument for the development of any modern state apart from the constitution. It can be argued that it is only through the instrumentality of the budget that government can allocate resources to deliver services to the people, especially the poor and excluded. But in Nigeria, there are a lot of blockages to effective budgeting.
The minister of the Federal Capital Territory (FCT), Malam Muhammad Musa Bello is believed to still be contending with ghost workers, as a result of which the January workers’ salaries are yet to be paid as at today, Friday, February 3rd.