Viewpoint

Viewpoint

The period allowed for 2019 elections campaigning is fast approaching and predictably the number of insults, threats, and dire predictions is increasing as is the degree of their severity. Detractors of President Buhari are demonizing him, rubbishing his appointees and not recognizing his successes, while his supporters are deifying him, denigrating all opposition and not recognizing his failures. In the growing political confusion talk of another “mega-party”, political decamping, ethnic violence and preparedness for election rigging, is making many people wonder if Nigeria is coming to its long predicted end.

The thing called an “end” doesn’t exist in relation to a country. Whether or not it still bears the same nomenclature, the land mass currently called Nigeria will still be here when all the major political actors of today are long gone. Former Military Dictator Ibrahim Babangida has said the path to a better nation is for people to support the People’s Democratic Party (PDP) with their “Reposition, Rebrand and Regain agenda”. The problem with that suggestion is the adage in Nigeria that no matter how many times a snake sheds its skin, it remains a snake! The return of PDP cannot possibly be considered as a forward step or viewed with any positive anticipation.

Consequently the attempt to set up a “third force”. But in all truthfulness there is no need for another “Mega Party”. 

Any idea that simply replacing the All Progressives Congress or President Buhari will automatically solve the nation’s problems is sheer bunkum. It is highly unlikely that any of our current crop of political actors could do better. A recent article by Prince Mashela in the Sowetan Times can be paraphrased to reflect the current situation in country. It’s time Nigerians accept that theirs is not some exceptional nation on the coast of West Africa, but just another underdeveloped African country. Nigerians must come to terms with their real character in order to understand where their future really lies. In Nigerian democracy, ordinary people don’t expect much from politicians because they are tired of repeated empty promises. 

They have no illusions about the morality of governance, because they know that those who hold power in Nigeria do so for themselves, their friends and families.

The idea of the State being an instrument for people’s development is a Western concept. Intelligent Nigerians should stop talking as if the country is in Europe where the ideas of democracy have been refined believe over centuries. Nigerians are used to being ruled by paramount rulers to whom the idea of equality is alien. They do things the “Nigerian way” in which compassion and accountability are treated as inapplicable foreign western concepts. 

Nigeria is a typical African country and people must stop entertaining the illusion that a day is coming when the nation will look like America or Europe. Our future will be determined by our continuing mass illiteracy and the fact that our politics will continue to be driven by tribal sentiment. Those commentators forecasting that Nigeria is coming to the end don’t realise that we may be actually coming to the beginning of a real African country away from Western illusions of exceptionalism. Nigeria is not some outpost of European values, yet what makes people restless about the nation’s future is that they have western models in mind. The “end of Nigeria” is an expression of a Western value system where the rule of law, accountability, political morality, reason, and compassion, are absent. 

These are lofty ideals proposed by philosophers like Socrates and Hegel who were not Nigerian. Together with constitutionalism they are concepts far ahead of us as a people and are not part of who Nigerians are. The real hindrance to progress in Nigeria isn’t the number of political parties, it’s the absence of leadership. What needs to be replaced isn’t the APC or PDP, it’s the entire political class which has collectively failed and continues to take the nation for granted. A new political order is required because our current crop of politicians are short-sightedly only interested in their personal progress and winning the next election rather than national development. Nigeria is in dire need of farsighted leadership. 

In Singapore the Finance Minister presented a budget which proposed tax increases from 2021 to 2025 to fund the social services required to take care of their aging population. In Nigeria we don’t even have a 2018 budget! Those who claim to be trying to create a new Nigeria must not get starry eyed. Amilcar Cabal the liberator of Cape Verde used to tell his followers never to confuse the idea in their heads with the reality on ground. Nigeria’s problems are not only about political leadership.

There is no leadership from the clergy, civil society, intellectuals, or from businesses in the “organised private sector”. Nigeria is in decline because the likes of Volkswagen, Michelin, BATA, Nigeria Airways, and BEREC batteries are no more. 

Even though Nigeria is the fifth largest consumer of Japanese products there is no assembly plant for Toyota. Incredulously Nigeria doesn’t assemble any of the vehicles massively imported by government annually for their own use! In spite of Nigeria’s huge electronics market the nation doesn’t have a single production plant for Samsung, Sonny, Nokia, or HP appliances. Corporate executives and politicians prefer foreign training, foreign medical services and foreign clothing. All major software development contracts are farmed out overseas. 

Worst still Nigerian brands now sponsor foreigners. The voice over in Arik Airlines is done by an Englishman! Nigerians now prefer foreign football teams, foreign holiday destinations and foreign drinks to their own. It’s time to take a reality check and accept that the “Giant of Africa” nomenclature is simply a myth.

To reverse the decline in the nation isn’t a matter of increasing the number of political parties or altering election time tables, it’s about ensuring that those elected are not simply opportunists fighting for their personal interests, but far-sighted leaders who understand the problem and can provide a viable solution.

Last modified on Tuesday, 27 February 2018 15:41

One of my many positive flaws is bursting the pipes of miscreants. Detractors have often complained about my hard-ball approach and the way I just rip off band aids without notice. It is not in my genes to dance around a bonfire or do the ring around the roses. However, to set a background for today’s discourse, I must tell a tale. It is a story not so quaint but bountifully apt for getting into the crux of today’s matter.

While I was growing up, I loved the dark; I still do. It was my special friend as I could get away with mischief under the covers of the dark. My sister hated the dark and paid dearly for it. For once the lights went out, I tormented her unreservedly. I would scream for no reason, mimicking the ghost scenes on TV or simply, while she is fast asleep, dump some clothing on my head and abruptly wake her up.

She would scream for help and our mother would come running. So much satisfaction I derived from it. I would guffaw endlessly into the night and my mom would pacify my upset and scared sister. This went on for years until one night; I became the centre of my joke. My mom and sister made a meticulous plot to give me a dose of my medicine. I would be writing a prolix to go into it but I learnt my lesson by having a taste of my own poison. That was the end of my night time pranks.

It was Nelson Mandela, in his autobiography the Long Walk to Freedom who said, “A freedom fighter learns the hard way that it is the oppressor who defines the nature of the struggle, and the oppressed is often left no recourse but to use methods that mirror those of the oppressor. At a point, one can only fight fire with fire”

Benue State is oppressed and has been oppressed by Fulani herdsmen for almost a decade. As a matter of fact, Governor Samuel Ortom in one of his numerous elegies sang, “for several years, these attackers have turned our beautiful and endowed land into their killing fields”. It is no longer news that Benue is under serial herdsmen attacks, but this did not start yesterday.

According to Governor Ortom, these attacks, which started since 2011 have led to the loss of illustrious sons and daughters of the state as well as approximately N95bn.

The manner in which Ortom now conducts and oversees mass burials like a priest amidst sobs and wailing, reminds me of the screams of my sister in the dark decades ago while I plagued her with my mischief.

Recently, he cried wolf while accusing the Federal Government and security agencies of abandoning the citizens of his state to be slaughtered by rampaging Fulani herdsmen. Didn’t Ortom hear the words of the great Madiba? The point has come when one can only fight fire with fire not, with salty tears or lamentations.

My heart keeps breaking for the people of Benue and the massacre they would yet face as long as Ortom keeps wailing but there is one that makes my heart leap for joy. A few days ago, an instructive picture featured on the front page of some national dailies. One of the dailies had this caption: “Ekiti State governor, Mr Ayodele Fayose with hunters in the state, after addressing them at the Government House.”

One would wonder, what was Governor Fayose doing with hunters? Is he planning to learn a few tricks with the Dane gun? The answer to these questions has been reported but I must again make reference to them to form another layer of substratum on this discourse.

Fayose, clad in camouflage to reflect the mood of the nation, urged hunters from the 16 local government areas in the state to defend their territory while explaining that, based on intelligence, some ‘Bororos’ have surreptitiously gained entrance into the state with the mission to maim and make a mockery of his anti-grazing laws.

His words were: “I’m not going to Abuja to start crying like a woman. I will take steps to protect my people. There is nobody that is greater than the laws of the land. We must stop the killers; they must not enter our land. My people arise and defend our land. It is those who want to take our land that will die for us.”

I wasn’t in great Madiba’s head when he wrote Long Walk to Freedom but I can place a wager that this was exactly what he meant when he talked about mirroring the methods of the oppressor.

Nigeria is under attack from Fulani herdsmen and like Noble Laureate Wole Soyinka pointed out, they have declared war against the nation using the weapon of undiluted terror. What can better quench terror than fiercer terror? What can better stop intimidation than a greater form of it?

If Ortom did not read Madiba’s autobiography, he could at least watch Fayose’s actions and take a cue from him.

In a failed republic like ours, waiting for help from big brother is as good as signing one’s death warrant. No, big brother would not be coming to fight off the bullies. The sad, hard truth is this; it has become an ‘On Your Own’ nation. So, if Ortom chooses to fiddle while Benue burns, I am glad for Ekiti that there is a Fayose who will face fire with reinforced fire.

Last modified on Tuesday, 27 February 2018 07:45

On Valentine’s Day, February 14, 2018, Jacob Zuma resigned as the president of South Africa. The resignation occurred less than 24 hours before his party, the African National Congress (ANC), was scheduled to debate a no-confidence vote on him by the parliament. He had been asked by the party a week earlier to resign or be removed.

The road to Zuma’s exit was paved by repeated cases of corruption and scandals involving allegations that he allowed the Gupta brothers, business associates of his son Duduzane Zuma, to influence cabinet appointments and the award of government contracts. In March 2016, South Africa’s top court found that he had violated the constitution by failing to pay back $542,000 of public funds spent on his private rural estate. Earlier, in April 2016, the High Court in Pretoria ruled that there was no basis to drop the 18 charges relating to 783 counts of corruption, fraud, racketeering and money laundering brought against him in 2009. The Supreme Court subsequently upheld the High Court’s decision in 2017.

These scandals provoked public opprobrium, which was expressed in the media, in litigations and street demonstrations by civil society groups. But Zuma tried to subvert the independence of key state institutions. For instance, he abused his powers by handpicking judges heading commissions of inquiry and hiring and firing the operational heads of the police and national prosecuting authorities. He also long employed a strategy of fighting judgments through the courts. As the leader of the majority party, he was able to subvert several no-confidence votes in the parliament. He virtually turned parliament into a rubber stamp, in spite of the persistent cries of opposition voices like Julius Malema of the Economic Freedom Fighters party.

Meanwhile, Zuma’s presidency had been devastating for the ANC. Disillusionment with corruption led to hundreds of thousands of ANC voters abstaining during the 2016 municipal elections. The party list (proportional representation) electoral system enabled opposition parties to win seats in Cape Town and Tshwane, in the biggest city, Johannesburg, and in the former ANC heartland, Nelson Mandela Bay. Thus, in the December 2017 elective conference of the party, Cyril Ramaphosa won the day after Zuma’s faction antagonised other members in an attempt to rig the vote through gatekeeping. Since then, resentment against Zuma within the party had deepened. Thus, the ANC leadership perceived victory in the forthcoming election to be clearly threatened by Zuma’s remaining at the helm. He had to go.

The recall of Zuma owes to the party’s view of all government officials, including the president of the country, as “deployees” of the party who are required to follow party orders. Thus, when the party leaders considered that  Zuma’s unpopularity had become a threat to the ANC’s electoral victory, they recalled him.  Even so, it took the threat of certain defeat in a no-confidence vote in parliament, to be brought by an opposition party, to force him to resign.  Given the institutionalisation of the party and the clear and direct threat to its victory in the forthcoming election, Zuma had to resign. Before the party’s move, he had resisted Constitutional Court orders, surmounted the vocal opposition Economic Freedom Fighters (EFF), ignored the media, and disregarded the protest by South Africa’s citizens and civil society groups in order to remain in power.

Although the parliamentary and proportional representation electoral system contributed to the centrality of the party and party discipline in delivering the eventual positive outcome, it is the collective force of these groups that prevailed on the party to put an end to Zuma’s calamitous and corrupt reign. Active citizens, persistent and courageous opposition parties, determined civil society groups, independent courts and the media united against corruption and irresponsible governance and forced the party’s hand. In Nigeria, parties have remained fragile and uninstitutionalised. Disagreement over matters of propriety and national values often end in schism within the parties. This is because such disagreements are quickly undermined by religious and ethnic cleavages.

The elite have not been able to uphold the morality, propriety and national values enshrined in the constitution as foundation for democratic governance. A president quickly rises above the party. Factional leaders and sections hold sway as the quest for power fails to reckon with the aspirations of citizens. These negative behaviours must be corrected for party discipline and party institutionalisation to occur. Upholding the values of integrity, discipline, social justice and rule of law, values that are enshrined in the 1999 Constitution, is essential to strengthening governance institutions for democratic advancement and economic prosperity.

Tribune

A SERAP report exposes the corruption underbellies in our higher institutions 

An unrelieved litany of woes: That, in sum, is what emerges from the report issued last week by the non-governmental organisation Socio-Economic Rights and Accountability Project (SERAP) on the condition of Nigerian universities.

In the main, it speaks of how corruption has stripped down the universities and “stolen the future” for which they are supposed to be preparing their wards, and how malpractices have been entrenched by a culture that neither investigates allegations thoroughly nor punishes substantiated malfeasance.

The 58-page comprehensive report, produced with funding support from the MacArthur Foundation, presented to the media by Bolajoko Dixon-Ogbechi, an associate professor of Business Administration at the University of Lagos, identified practices that call into question not just the integrity of the university system but the very purpose of the university.

According to the report, the system is rife with recruitment of marginally qualified or totally unsuitable persons to  fill administrative and faculty positions, absenteeism and dereliction of duty, cronyism, issuance of fake transcripts, contract inflation, irregularities in student admissions, short-circuiting of procedure, bribery, intimidation, interference by political officials, falsification of results, arbitrary disposal of university assets, sexual harassment, laxity in proctoring examinations, and nepotism, and executing personal projects with official funds.

Official Visitations to federal universities have highlighted many of these issues time and again. It is a measure of the stubborn persistence of those same issues that SERAP found it necessary to dwell on them so copiously in its report.

However, it is necessary to enter some caveats.

Only two of more than 40 federal universities figure in the report:  the University of Lagos – and not even the university proper, but its College of Medicine — and Ahmadu Bello University, Zaria, substituted for the University of Abuja in the original design because the latter was on vacation.

The findings may well be indicative of the problem with federal universities but they are by no means conclusive. A wider study may well come up with a more nuanced report, or one that may exculpate or censure more strongly some of the universities.

Just how much access to the various constituencies of the universities in the study, and to financial statements, official records of meetings of key academic and administrative bodies?  How representative of these constituencies are the parties it interrogated?

SERAP says it employed questionnaires, personal interviews and observation techniques, as well as random and convenience sampling, to gather data from relevant staff and students at the two selected federal universities. A sample of 1,500 respondents comprising of 900 students, 300 academic and 300 non-academic staff.

A response rate would have helped in evaluating how representative the data was. It should also be kept in mind that those  disaffected with the system for one reason or another are usually the most likely to respond in studies of this nature, even when controls are built into the design.  Convenience samples, such as were employed in part for the study, rarely conduce to reliable findings.

But even with these caveats, the SERAP report deserves close official scrutiny.

As was noted by the senior attorney Femi Falana at the presentation of the report, former vice chancellors of three federal universities are currently standing trial on fraud charges. Also, credible intimations of serious fraud have been uncovered at the Joint Admissions and Matriculation Board (JAMB), an important affiliate of the university system.

Overall, then, there is sufficient concern to warrant a comprehensive Visitation to the federal university system and allied institutions.

The Nation

 

 

The authorities could do more to contain the menace

The recent decision by the National Agency for the Prohibition of Trafficking in Persons (NAPTIP), to engage the services of native witch doctors to curb trafficking in persons, tells the enormity of the challenges and the urgent need by all stakeholders to rally round the agency in combating the menace. Expressing the agency’s readiness to confront the criminal activities of human traffickers head-on, the NAPTIP Director General, Mrs Julie Okah-Donli, said the agency had gathered “witch doctors’’ in Benin, Edo State capital and made them ambassadors in fighting against the menace. “When we gathered these witch doctors recently to sensitise them on what human trafficking victims go through in Europe, they were shocked. And they have made their commitments to work with us to fight the menace of human trafficking,” said Okah-Donli.

Instructively, the danger posed by human traffickers has also attracted the attention of the respected Benin Monarch, Oba Ewuare II who recently expressed concern over rising cases and illegal migration. Expressing surprise about the development considering the increasing number of religious worship centres in the society, the Oba stated that reports indicated that many of the clerics may have been encouraging human trafficking and illegal migration, instead of discouraging it. The Oba promised that the Palace would collaborate with security agencies to reduce the crime in the state.

With many of the women involved in prostitution ring in Europe said to be of Edo stock, this is reassuring: everything within the framework of the law must be done to stop these illegal activities by some criminally minded persons, which is tainting the image of the country in many of the European nations and indeed, the world over.

However, human trafficking is both international and local – we have the source, the transit and destination states. Records have shown that the proportion of the local trafficking almost equal international dimension of the criminal act. Some unscrupulous Nigerians recruit from their villages and towns young girls with the promise of securing for them good jobs in urban centres only to turn them to prostitutes. That explains why it is urgent and important for the NAPTIP to partner with other organisations in tackling this threat.

The latest and most heinous dimension to trafficking is that it has gone beyond sexual exploitation. The traffickers now trade in human organs. They sell human organs for financial benefits. The harvesting of organs has become attractive to these criminals because there are so many people in need of kidney, liver and heart transplants, and records reveal that these organs are in high demand, especially in developed countries. There is therefore need for collaborative efforts by the relevant local agencies, state governments and the international partners in dealing with the issue.

The global community has already seen this act as a threat and many have expressed disappointment over the slow approach by the Nigerian government. A recent report by an organ of the UN on human trafficking rated Nigeria poorly in tackling human trafficking. Before the latest report, Nigeria got to “first tier’’ and later dropped to “tier-two watch list.’’ And one of the reasons given for the downgrade was that child soldiers were being used in the North-east.

While we condemn human trafficking, we are of the strong belief that a demonstration of political will to diligently prosecute offenders would serve as deterrent to those engaged in the nefarious trade.

Thisday

 
 

The construction of a $6.7bn Ibadan to Kaduna rail line was among some of the projects reported to have been approved by President Muhammadu Buhari’s Federal Executive Council meeting that took place recently. The Minister of Transportation, Rotimi Amaechi, announced that the project is expected to last three years.

Now this piece of news may appear like some positive news until one realises that, going by the antecedent of this government, this may just end up being what it is: Another piece of news.

One would wonder why it took 33 months for this government to make this approval, and what has happened to the famed Lagos to Kano line and countless other projects across the country like it, that have all been trending for quite some time now, and have all fallen to ill-attention.

Can’t I be excused therefore if I say this government is just chasing shadows and pursuing propaganda, a thing which many say it is very good at?

I will explain why I believe this is the case shortly, but not before sharing my opinion on the kind of projects that I think are important to this President, this government, than Nigeria’s development.

I made the point recently that if this government and indeed the APC were really serious about developing this great giant with feet of clay, they knew exactly what to do from the outset. But alas, it appears their intentions are of a different kind.

Although I supported President Buhari in 2015 -a thing I deeply regret today- his actions since have proved beyond doubt that just as a “rightist” cannot learn the use of the left hand at an old age, a leopard does not change its spots.

It is on record that in 1984, as then Head of State, Buhari promoted his Daura tribe to the most powerful force in Dodan Barracks, Lagos, which was then the seat of power.

To the utter disappointment of those who argued that the man has indeed changed, all the evidence today suggests that, far from a genuine interest in development, the real intention is to promote and entrench the power of a certain group. Some have even argued that tribe and religion have once again taken over.

Far from Amaechi’s announcement, recently, our President made what many believe was a real announcement when he said that: “Negotiations are also advanced for the construction of a rail line…, firstly, from Kano to Maradi in Niger Republic passing through Kazaure, Daura, Katsina, Jibia to Maradi…”

For those who may gloss over this information, how many realise that Maradi is the third largest city in Niger Republic with a predominantly Fulani population?

A close friend from the North once told me of how, with just less than N1,000, one could literarily evaporate in Daura, Nigeria and recondense in Niger Republic.

In fact, Daura Emirate stretches deep into Maradi and Zinder, both of them populated with the Fulani, a people that many have argued are a tiny percentage in the Nigerian population demographics.

During the 2015 general elections, there were reports of thousands of people crossing from Niger Republic, many of whom were underage voters as was recently reported in the Kano LG election, through our extremely porous borders to vote in our elections in favour of a particular candidate, without questioning from election officials.

As if to buttress this fact, recall how President Buhari, upon achieving his lifelong ambition, was received like a triumphant son of the land who just returned from a war,  when he visited Niger Republic, as his very first foreign trip after he was sworn in.

How many of us know that in 2016, the President of Niger Republic emblazoned Buhari’s photograph beside his own on vehicles during his campaign?

Any wonder then why some have argued that the planned railway network is a selfish project that has nothing to do with the interest of Nigerians?

What is so urgent about a rail line from Nigeria to Niger when as we speak, our education system in a shambles? We need not look far than the dilapidated infrastructure in our universities and the fall in standard of our morals and educational values in our pupils to know see this.

I am in my mid-thirties, and as I write, I have hardly witnessed a day without power cut in this country since I was born. And there are many more who go for months without it at a time where South Africa which is four times less than our population is generating four times megawatts more than us.

There are no roads, no security, God forbid that one is caught in an emergency situation and then one will know the bitter truth of this fact. Many times, we have seen how, in road accidents, our road safety officials pile human bodies in rickety wagons like meat sellers coming from their abattoirs.

As we speak, Nigeria does not have a standard airport, when the country actually deserves two airports of international standard, one in the North and the other in the South, both serving the entire West African sub region. Only one trip to a decent country, even South Africa, is enough to show us how much of a junk all our airports are.

If President Buhari is so interested in connecting Nigeria to another country, what stops him from initiating the process of building world class roads, connecting Nigeria, all the way from southern Nigeria, through coastal cities like Calabar and so on, through Lagos to economically viable places like Port Novo, Lome to Abidjan?

We are not saying Buhari should wave a magic wand and change the rots that have plagued this nation overnight, No. The point is that he should have started the process of healing, of accountability, of a massive investment in infrastructure, and opening up of the economy of this country.

But what did we get instead from a President who swore an oath to uphold the constitution of Nigeria and look out for the best interest of her people at all times?

In the face of the satanic killings going on all over the country, biting hardship,  an economy in a downward spiral, the suffering of the people emanating from increase in virtually every commodity in the market, and recent negative ratings coming from reputable international bodies like Transparency International etc, President Buhari has displayed his belief in acute tribal and religious politics.

Where does the APC hope to get the funds to execute the rail project to Maradi if not from borrowing or from an impoverished southern region whose people continue to be marginalised as we speak?

For all those still defending the APC and those still committing the sin of silence in the face of all this anomaly in Nigeria, for whatever reason,  especially the misguided youths still singing their praise, I hope you all choke on the pricking of your conscience.

Nobody, no matter how highly placed, should be allowed to take what belongs to all of us for himself and his kinsmen alone?

I was moved when I saw this same President cry in front of the cameras and promised he would not contest elections again if he failed the 2011 election, and was even more touched when he told a pressman that at over 70, he had less years to spend in Nigeria compared to the young man, in case Nigeria was not fixed. That was when I said to myself, this had to be the man. So, what is the point of the tears? Clannishness, tribalism and religious bigotry?

I won’t be fooled a second time…

Akanbi is a researcher and novelist

Last modified on Tuesday, 27 February 2018 07:47

It is gratifying to note that the Independent National Electoral Commission, INEC, headquarters has accepted the challenge of probing the alleged underage voters scandal, videos of which went viral after the recent local government polls in Kano State.

Chairman of the Kano State Independent Electoral Commission, KSIEC, Professor Garba Sheka, had expressed his Commission’s readiness to cooperate in any investigation of the incident. Professor Mahmood Yakubu, the National Chairman of INEC quickly empanelled the eight-man committee led by Abubakar Nahuche, an engineer, to “ascertain if the voter register requested by the Kano State Independent Electoral Commission, KSIEC, was actually used in the election,” and make any other recommendations towards unravelling the affront to our democracy.

Confusion arose following the broadcast of the videos showing scores of children well under ten queuing to vote in the election. INEC’s spokesman, Oluwole Osaze- Uzzi, had distanced the Commission from it, blaming the KSIEC and adding that the Commission has no power to conduct local government elections.

At a public function however, the Kano State Commissioner for Information, Mr Mohammed Garba, reported that the pictures and videos of the underage voters were captured during the 2015 elections which incidentally brought President Muhammadu Buhari, Governor Abdullahi Ganduje and other currently serving elected officials to power.

All these disclosures make the investigation even more crucial because if it is credibly conducted, it will unravel a lot of truths hitherto hidden about the fidelity of our elections in the past and present, with a view to correcting them in the general elections which come up a year from now.

This issue might even necessitate an indepth probe on the circumstances leading to the death of the Kano State Resident Electoral Commissioner, Alhaji Mukaila Abdullahi, who after conducting the 2015 polls perished along with his family in a mystery fire which the police blamed on electric surge.

We call on the National Assembly, the media, civil society groups and the general public to keenly track this probe and ensure that the whole truth about it is unravelled to maintain the integrity of our electoral process and bring justice to those who might have been injured or cheated.

Vanguard

Last  Monday, the nation was once again in the throes of anger and desperation following the abduction of students of Government Girls Science and Technical College, Dapchi, Yobe State, by Boko Haram. The incident came four years after the same terror group invaded a female school in Chibok, Borno State, taking into captivity, more than 200 girls. Up till now, more than 100 of those hapless girls remain in captivity, despite the repeated promises by the government that it would secure their release after a tripartite negotiated freedom for a number of their colleagues last year. Although the terrorists have sustained their sporadic attacks on mostly soft targets over time, the Monday onslaught on Dapchi College is most frightening, and virtually all the concerned authorities are enmeshed in panicky measures and cacophonies.  None has been able to provide concrete clues on the circumstances surrounding the abduction, particularly the actual number of the “unaccounted for girls.”

At the initial stage, the authorities declared that none of the girls was missing, only for the military and the state government to later claim that the Army had rescued 50 students. The state governor, Ibrahim Gaidam, promptly recanted and issued an apology, claiming that he was misled by a false intelligence report from a security agency involved in the war against insurgency. Sadly, almost a week after the tragedy, the actual number of students abducted or rescued remains speculative. Governments at state and federal levels and the military authorities are mired in claims and counter-claims. While President Muhammadu Buhari’s apology following the national embarrassment is a welcome development, the way the whole crisis has been handled is most nauseating, inconsiderate and discourteous. The government’s conduct following the calamity is shameful and degrading. It raises disturbing questions about its capacity and readiness to guarantee the safety of life and property across the country.

In particular, the government’s conduct has fuelled public anger and made the parents and guardians of the abducted girls to question its capacity to manage crisis. It is totally unreasonable and callous for the government to preoccupy itself with fairy tales, claiming that some of the girls yet to be accounted for might be hibernating in the villages to which they fled after the onslaught on their college, instead of making serious efforts to track their whereabouts.

We believe that the Dapchi abduction is not just another national calamity and embarrassment but an avoidable tragedy. If the various authorities had done the needful more diligently and faithfully, the back and forth between the state government and the military over security lapses before the incident and the rescue operation would have been entirely unnecessary. At this stage, it is important to caution that the Dapchi abduction should not be allowed to degenerate in the manner that the Chibok Girls saga did. Enough of buck-passing among the concerned authorities; the girls must be rescued without further delay. The somberness on the part of the Presidency must translate into quick re-uniting of the students with their families.

Lastly, the whole episode should be investigated   and  whoever is found culpable should be sanctioned appropriately to show the place of discipline, professionalism and decorum in public service. Those who shirked their responsibility to protect life and property must not be allowed to go scot-free.

Tribune

CBN’s order to banks on dividend payments could not have come at a better time

Worried by the tide of rising Non-Performing Loans (NPLs), the Central Bank of Nigeria (CBN) last week directed Deposit Money Banks (DMBs) and discount houses (DHs) with huge bad loans and low capital base to stop payment of dividends to shareholders.

Part of the letter dated January 31, read: “Globally, retained earnings have been identified as an important source of growing an institution’s capital. Advantages of retained earnings include being a source of long-term finance; being easier and cheaper to raise than external finance; curtailment of financial risks; and improving liquidity and profitability.

“However, it has been observed that rather than take advantage of this beneficial means of capital generation, some institutions pay out a greater proportion of their profits, irrespective of their risk profile and the need to build resilience through adequate capital buffers.”

It added: “In order to facilitate sufficient and adequate capital build-up for banks in tandem with their risk appetite, the following directives will now apply:

“Any Deposit Money Bank or discount house that does not meet the minimum capital adequacy ratio shall not be allowed to pay dividend.

“The DMBs and DHs that have a Composite Risk Rating of ‘High’ or a non-performing loan ratio of above 10 per cent shall not be allowed to pay dividend.

“The DMBs and DHs that meet the minimum capital adequacy ratio but have a CRR of ‘Above Average’ or an NPL ratio of more than five per cent but less than 10 per cent shall have dividend pay-out ratio of not more than 30 per cent.

“The DMBs and the DHs that have capital adequacy ratios of at least three per cent above the minimum requirement, the CRR of ‘Low’ and the NPL ratio of more than five per cent but less than 10 per cent, shall have dividend pay-out ratio of not more than 75 per cent of profit after tax.”

The directive, apart from being explicit, is certainly timely. Aside underscoring the seriousness that the apex bank attaches to the issue of rising cases of bad loans, it comes as an emphatic signal that the corporate derelictions which allowed the problem to fester would no longer be condoned. After all, to say that the situation is bad is to put things mildly. At a time the CBN’s prescribed minimum NPL threshold is five per cent for banks, the level of NPL had long hit 15.18 per cent as of September 2017 – a leap of 50 percent from N1.6tn in December 2016 to N2.4tn.

Whereas the development ordinarily, should have stoked the alarm button, what we have instead are pretensions by lenders that things are looking up even when their financials present a different picture; a situation where poor performers are allowed to get away with blue murder – through outlandish management expenses, fat executive compensations and crass, opportunistic dividend pay-outs, even if it involves dragging the entire financial services industry perilously along.

The directive therefore comes across as a necessary dual-edged sword – one meant to sift the wheat from the chaff, while offering a lifeline for marginal performers to shore up their capital bases.

Understandably, there are those who would baulk at the idea of ‘punishing’ the hordes of investors for the poor credit decisions of the banks’ management. In other words, why go after the hapless investors while sparing the executives behind most of the poor credit decisions of the regulatory axe? While the question is no doubt legitimate, no less legitimate is whether the shareholders are themselves not complicit in their acquiescence to a number of the questionable decisions by the management of the institutions.

This leads to the question of whether the CBN can afford to do nothing. The situation, as it appears, comes basically to the simple choice – between the festering cannibal rage on the ailing entities on the one hand, and denial of current earnings on investments to guarantee the entities a chance to thrive on the other. Between the former and the later, it should not be difficult to see which of the alternatives the lesser evil is.

The Nation

THE directive from the Central Bank of Nigeria (CBN) stopping the payment of dividends to shareholders by Deposit Money Banks (DMBs) and Discount Houses (DHs) with huge bad loans and low capital bases is a welcome approach to the strengthening and protection of the financial services sector.

Concerns have been mounting over the declining assets and solvency of some banks and discount houses in recent years, and the CBN has a responsibility to address them. According to the directive dated January 31, 2018, and signed by the Director, Banking Supervision Department, Mr. Ahmad Abdullahi, the apex bank said it had observed that rather than grow their capital by retaining earnings, some banks pay out a greater proportion of their profits, irrespective of their risk profile and the need to build resilience through adequate capital buffers.

To avoid this risk, the regulator said banks and discount houses with Non-Performing Loans (NPLs) above 10 percent must, henceforth, stop paying dividends to their shareholders. While noting that “globally, retained earnings have been identified as an important source of growing an institution’s capital,” the CBN reminded the banks and discount houses of the advantages of retaining their earnings. These include the fact that the retained earnings will be a source of long-term finance that would be cheaper and easier to raise than external finance. They will also help with the curtailment of financial risks and improve liquidity as well as profitability. The banking regulator further said that rather than take advantage of this beneficial means of capital generation, some of the financial institutions follow the narrow, short-term path that is fraught with risk by ingratiating shareholders via dividend payments.

In addition, the directive said “the DMBs and DHs that meet the minimum capital adequacy ratio but have a CRR (Cash Reserve Ratio) of ‘Above Average’ or an NPL ratio of more than five percent but less than 10 percent, shall have dividend payment ratio of not more than 30 percent.” This CBN intervention is a helpful initiative that should steer our banking and other financial institutions away from the stormy waters many of them are sailing into.

It is instructive that the minimum NPL threshold for banks is five percent. This means that lenders’ bad loans should not exceed five percent of their loan books. But, as the CBN’s Financial System Stability (FSS) report showed in February, 2017, some of the banks far exceeded this threshold. While this may not necessarily call for panic, it clearly indicates that all hands should be on deck to strengthen the fundamentals of the banks in the critical areas of assets and capital planning, adequacy and generation.

Undoubtedly, it is every shareholder’s joy to get good dividends at the end of every financial year. Coming a few days to the release of the 2017 financial year annual reports by commercial banks and discount houses, the CBN directive seems a killjoy. However, the stability and solvency of our financial institutions are fundamental and should be protected by all necessary means.

Currently, the declining assets and bad loans of the banking industry are becoming worrisome. For instance, figures from the Nigeria Deposit Insurance Corporation (NDIC) show that as at September 2017, the banking sector’s NPLs stood at a disturbing 15.18 percent. They had shot up from N1.6 trillion in December 2016 to N2.4trn in September 2017.

Shareholders will certainly not like what the CBN has done. The move, however, is also for their protection as it is in their best interest to keep the institutions stable and profitable on the long run. The directive mirrors the state of affairs in the concerned institutions. The FSS report already referred to measures the soundness of the banks using indicators such as assets quality, capital and income adequacy and the ratio of NPLs.
In almost all these key indices, many Nigerian banks have not performed well. Discount houses are, perhaps, worse. Over the years, the banks’ NPLs have been increasing steadily. For example, in 2016, bad loans amounted to N2.08trn. In the 2015 NDIC Annual Report, banks’ NPLs increased to N648.8bn, from N354.34bn in 2014, an increase of 82.8 percent. There is no doubt that bad loans are dangerous to the health of financial institutions.

The banks and discount houses must, therefore, strive to check their NPLs and keep their capital bases at the required levels so that they can pay dividends to their shareholders. The shareholders should not be the victims of the institutions’ failure to meet the criteria set out by the CBN to pay dividends.

All in all, the decision of the CBN should not be seen as harsh on shareholders. Rather, it is one of the measures rolled out by the regulator to put the financial institutions in good stead and keep them focused on their core mandates. The current economic environment in which commercial banks and discount houses are operating makes it expedient to continuously keep them in check through reasonable regulatory measures.

Sun