OPINION: REFLECTION ON 2O12; PRESCRIPTIONS FOR 2013. A MUST READ

by Jide Ojo (jideojong@yahoo.com)

It’s few days to the end of 2012 and as we count down to the zero hour that will usher in the New Year, it is apt to reflect on some of the defining moments in governance in this year. Essentially, it has been a mixed grill for the country in the outgoing year. As the cliché goes, “a lot of water has passed under the proverbial bridge.” Some of the momentous events in 2012 include the fuel subsidy controversies; the pension scam; the flash flood; the rising cost of governance; the 2012/2013 budgets; the latest Transparency International Corruption Perception Index ranking of Nigeria; the oil and gas,  education,  health,  justice and  power sector reforms as well as the daunting  security challenges among several others.

My training as a Building Resources in Democracy, Governance and Election (BRIDGE) facilitator admonishes me to say the positive aspects of a matter before the shortcomings. Hence, I will start my analysis from areas where I perceive that government has done well. I commend President Goodluck Jonathan and the National Assembly for the unprecedented way they have handled the 2013 budget proposals. It would be recalled that on October 10, President

Jonathan had laid before the joint sitting of the National Assembly a N4.92tn budget proposal while the parliament eventually passed N4.98tn as the Appropriation Bill on December 20, 2012. Though the  lawmakers increased the budget by N63bn and moved few things around such as increasing the capital budget by N100bn and predicating the budget on $79 benchmark rather than the executive’s proposed $75, it is still important to laud the early passage of the estimates as it will leave the executive with no excuses for poor budget performance. It is hoped that the President will sign the Appropriation Bill into an Act before the end of 2012 so that the implementation can commence on January 1, 2013.

I am also happy with the attention being received by some federal roads, the rail and aviation sectors. The renovation of the nation’s airports, the revitalisation and inauguration of Lagos – Kano train services for passenger and cargo movements as well as the road repairs and expansions are all commendable.  Similarly, the smashing of the pension, fuel subsidy and fertiliser scammers are creditable; so also is the increasing credibility of our elections. The response of the states and the Federal Government to the flash floods that swept through no fewer than 21 of the 36 states of Nigeria was also heartening. President Jonathan has also done well at the level of foreign affairs and relations.

Having said that, however, the great expectation of many Nigerians, this writer inclusive, has not been met.   The masses of Nigeria are still experiencing high cost of living rather than high standard of living. The poverty index is worsening or at best stationary. Inflation remains at double digit (12 per cent or thereabout) while interest rate on bank loans in most cases oscillates between 15 and 20 per cent.  In spite of all the Federal Government propaganda about Nigeria being the investment hub for Africa (President Jonathan in his October 1 speech said his government’s investment climate reform programme has attracted over N6.8tn local and foreign direct investment commitments and that the country is ranked first in the top five host economies for Foreign Direct Investment  in Africa, accounting for over 20 per cent of total FDI flows into the continent);  a more dispassionate view of Nigeria’s economy will show that the cost of doing business is still very astronomic. Investors still bear heavy cost on provision of electricity, water, security and also face the challenges of multiple taxation and parasitic government officials whose penchant for bribery and corruption know no bounds. Even though the President said in his Independence Day and Budget speeches that the Gross Domestic Product is growing by 7.1 per cent on the average and that as of the end of the second quarter, the economy recorded an impressive growth of 6.28 per cent compared to 5.4 per cent forecast for sub-Saharan Africa; these are mere statistical growths which have yet to transform into significant development.    

In spite of all the razzmatazz about the implementation of power sector reform such as the increase in electricity tariff, privatisation of generation and distribution companies as well as the management takeover of the Transmission Company of Nigeria by the Canadian firm, Manitoba (a deal which has been embroiled in myriads of controversies), electricity consumers have yet to experience a significant access to electricity supply. Just a few days ago, it was reported that as of early December, the country was still generating about 4,300MW of electricity. Incidence of system collapse has not yet been surmounted while significant energy is still lost to weak transmission lines. This anomalous situation has further entrenched many Nigerians wanting to access electricity to embrace purchase of generators.   

As regards the oil and gas sector, the cloud of darkness that envelops that aspect of the economy though may have been unveiled by the various probe reports from Nuhu Ribadu’s to Dotun Suleiman’s and Kalu Idika’s which were set up in the wake of January 2012 protests against subsidy removal, the implementation of these probe reports inclusive of the one carried out by the Farouk Lawan’s House of Representatives ad hoc committee on subsidy payment has been mired in spiralling controversies. The most discredited of the four itemised reports are those of Farouk and Ribadu. While Farouk’s committee report has been tainted by the $620,000 bribery alleged by businessman Femi Otedola, the Ribadu’s committee report was openly challenged by two members of the committee who accused the chairman of doing a hatchet and inconclusive job.

Even the much-celebrated Petroleum Industry Bill, which was painstakingly put together by Senator Udo Udoma’s committee before being sent to the National Assembly, has met with stiff opposition from Northern senators and international oil companies. It will be recalled that these same elements were responsible for the abortion of the previous PIBs brought before the parliament. The indictment and prosecution of scores of petroleum marketers who are involved in the fuel subsidy scam has ricocheted to perpetual scarcity of petroleum products in Abuja and many other cities across the country.   

PUNCH