Nigeria at Rest in a Global Recession

The current administration is acting the Ostrich!
Sometime ago I wrote an article ‘Is Rabbit Dead….or Dying?’ and there dwelt on how Nigeria as a nation can draw lessons from John Updike’s classic ‘rabbit series’ of books in our efforts to cope with the global recession. Since then I have had some more time to reflect on the Nigerian society as reflected in the headlines of our newspapers and bylines of news broadcast. The major story I find is that there is almost a sense of denial in Nigeria that we are in a recession. I speak of the fact that Nigerians experienced extreme poverty at a time the price of crude oil, the main stay of the economy sold at above $140 per barrel. As a thinking man, I begin to ponder on this-if there was no prosperity when oil was at $140 how are we to see it when oil is below $40 per barrel? And with the way that governments at all levels are carrying on, the policy seems to be to ape the ostrich and bury our head in the sand.
I begin to wonder in my spare time whether we are the way we are because we do not want to solve our problems or because we do not know our problems. One could be forgiven for thinking that Nigeria is awash with cash if one pays attention to the news. Nigeria is hosting a multi million dollar FIFA fiesta in 2009, National Assembly votes hundreds of billions for its maintenance, Governor in 300 million naira wedding extravaganza. That is what I see in the newspapers. I see nothing about the emergency that the president promised to declare in the power sector.
Much as he may have made some mistakes while in office, I was pleased to see one of the more realistic items in the headlines the other day coming from former president Obasanjo. He was reported as saying that Nigerians should prepare for hard times. To me this was such an obvious reality that I was surprised the president had not called for such preparations. You can then imagine my surprise when there was such a hue and cry against Obasanjo for giving his advice!
Does it mean that my country men are yet unaware of what awaits them if they do not retreat from the paths they have allowed themselves to be taken on by leaders whose only objective in office appears to be to revel in the pomp of office?
Could we be in doubt that our economy is contracting when our stock market lost 243 billion naira in one week? If we are still in doubt about the economic times that we live in, others are not in doubt and are beginning to take steps to protect their economies. The British have just increased the points needed by highly skilled migrants before they could qualify for British jobs. Prime Minister Gordon Brown is not shy at saying that British Jobs have to be preserved for British people.
The whole world over, governments have prepared or are preparing bail outs for their industries and businesses. As I write this president Barrack Obama just got his almost one trillion dollar economic bail out bill passed. Germany already has a bail out plan on the go in excess of 500 billion dollars. Every where people are cutting cost and tightening their belts. The state of California the richest place on earth has been reduced to giving out IOUs to its workers and citizens instead of cash.
The point I am trying to make is that everywhere in the world governments and people are waking up to the realization that the world has been living above its means and has to cut back and retrace its steps. My question today is what are we doing in Nigeria to prepare to beat the global recession?
It is not enough to cut the salaries of politicians. Politicians have never depended on their salaries in Nigeria. In fact over the years we have seen politicians who have ‘donated’ their salaries to the public. The public itself has come to see this as an empty gesture.
So what do we do now? Where do we start? One way to protect Nigeria from the global recession is to plug all loop holes. By this I mean the unnecessary expenditure that we engage in year after year without any positive impact on the society at large. Let us examine a few.
Firstly Nigeria is a poor country that has the capacity to be rich, very rich indeed, but as at now we are still a poor country. Even in the best circumstances we can not afford to spend even 5 million naira per annum on our legislators but as I speak to you today we spend more than double that amount per legislator in the National Assembly. Daily we are inundated with newspaper reports of state legislators on a tour of Europe or the Americas and more recently South Africa at staggering cost. I read where legislatures of a very poor state spent 200 million naira on a legislative tour of a European country.
Gestures, even small gestures have the power to motivate people in the direction they need to move. Sarah Palin when she was running for governor captured the imagination of the Alaskan people when she promised to sell off the governor’s official plane. It was a small measure meant to help reduce the cost of government but it appealed to the people’s sense that government had to cut cost to reflect the reality of the day. If a state that doubled its own revenue in 2008 is cutting out a plane for its governor how much more so is it more pertinent for a country with shrinking revenue to do away with presidential jets, for the president, the senate president and speaker. Even the British prime minister does not have a prime ministerial plane. He travels in commercial flights, always on British Airways. How ironic that we do not have a Nigerian Airways but we have a Nigerian presidential jet. Did I say jet? I meant jets. As a matter of fact, until the coming of Arik as an airline, the biggest fleet of planes in Nigeria was the presidential fleet. You can tell a lot about the priorities of a people by these little ironies.
One other way we can cut costs is by reducing foreign travels for our civil servants. Nigeria spends literally tens of billions in esta codes for unnecessary foreign trips and our government officials and civil servants have acquired a reputation of turning up for international events in hordes to the consternation of their hosts and other participating countries! A recent example was the historic inauguration of president Barrack Obama. I was to be in Washington D.C for this event but aborted my plans at the last minute and was aghast at the fact that Nigeria had two delegations, one from the presidency headed by Emeka Anyaoku (a man I hold in high esteem) and then another representing the ministry of foreign affairs and headed by the minister in charge of the ministry, Chief Ojo Maduekwe with each official in the delegation raking in hundreds of dollars as daily esta code. To put this in perspective, Kenya which is the source of the president’s roots asked its own officials not to travel to Washington D.C for the event but to watch it on T.V as the country had better use for its resources than to send officials on government’s bill. The president and governors can show their preparedness to cut unnecessary spending by making executive orders that only the most essential overseas trips are allowed. It certainly will save Nigeria billions of naira in unspent esta codes.
I read a lot about how one government official’s convoy or the other has ran into helpless pedestrians killing them. These reports in the newspapers are just regular reminders that our government officials do not need so many cars. Why do the president, governor, minister and commissioner need convoys of sometimes over 30 cars? Pragmatically speaking this is one of the more wasteful ventures that we in Nigeria have come to take for granted. Many people think that these cost only a token, but let us take stock. A brand new car costs about 6 million naira and on the average there are about 5 cars per convoy in Nigeria. So let us say 30 million is spent on each convoy just to purchase cars. A rough estimate of fuelling these cars will probably be 15 thousand naira per month so let us assume that the average convoy is fuelled at a cost of 75 thousand naira per month which will be 900 hundred thousand naira per annum. Now how many convoys are there in a state? Considering that you have the governor, his deputy, their wives and maybe 12 commissioners and 5 special advisers you are probably talking about 15-20 convoys per state. For 36 states you would have between 540-720 convoys. When you now add the Federal Government to the equation with the president, his vice, their aides and ministers, heads of parastatals, the military and paramilitary and the police the figure balloons to perhaps an additional 500. Now we have a conservative estimate of at least a thousand convoys each costing conservatively 30 million in vehicle costs, 900 thousand per annum in fuel cost and perhaps 250 thousand in repair cost. Now we are talking about 30 billion naira in cost of vehicles, annual fueling cost of about a billion naira, plus repair cost of about 300 million. How can these costs be sustained in a country with most of its population living on less than a dollar a day?
In this era of a global economic recession we have to face economic realities. I admire our zeal for religion and believe that any religion is better than no religion, but I sit down sometimes to ask myself why a country with so much poverty insists on spending something like 40 billion naira in sponsoring pilgrims to holy places each year? Surely we must encourage our citizens to be God fearing, but scarce public resources should not be spent in such a manner. 40 billion naira can be better spent on providing one nutritious meal per day to Nigeria’s 25 million primary school students to ensure proper brain development and put them in good stead to develop into the kind of man power that Nigeria needs to develop itself from the bottom up. As former president Bill Clinton famously said a country can not become rich by what is under the ground but what is between the ears. Nigerians must be allowed to go to Mecca and Jerusalem, but there is no reason why the government has to pay for an already over paid and underworked top civil servant to go and seek forgiveness for the over invoicing he has indulged in all year long. We must be prudent, in fact I take that back. We have no choice but to be prudent in order to survive in today’s world.
One other headline that keeps recurring in Nigerian newspapers is that of governors donating money to different organizations. On reading these stories one may be forgiven if you left with the impression that these donated monies were the governors’ personal funds. Not at all. I have never heard of another country where governors have so much power and liberty to make gifts of public money. How and why can a governor donate 5 million naira at a book launch for private citizen? Why should a governor donate public funds to his old boys association? Why should a governor donate public funds to a beauty queen’s pet project? Each of these scenarios is real in today’s Nigeria. In fact Nigerians may be surprised to know that in every year since 1999 when Nigeria returned to supposed civil rule (I thought civil rule was meant to be civilized) more than 1 billion naira has been donated each year by governors and other government officials. How easy it must be to donate money that does not belong to you, Nigerian governors have it made!
In a related issue I can not begin to express my frustrations at the rate Nigerian governors and government officials are building new or refurbishing existing state houses. In these lean times even in the best of times it is certainly not a priority to build a new place for a governor to live in. imagine one of these governors was proud to list one of his achievements in offices as the building of a befitting government house! What can be more befitting than for a governor to stay in his house and spare the state the cost of building another mansion that will be rejected by the next elected governor as unfitting for his taste? There is too much opulence in Nigerian state government house. It is not a coincidence that in California the wealthiest geographic location per capita known to man, many governors have lived in their own abodes sparing the state the cost of running the governor’s mansion. Any wonder why the state’s citizens are the wealthiest in the world. Governor Jerry Brown stayed in a condo and he did not consider it unbefitting and this was a man whose father was also governor of California.
As we face this global recession, it may be inevitable that Nigeria has to make immense sacrifices. But, no longer, can we push these costs on the backs of poor Nigerians. With all our country’s resources, our long, rich history of capitalism, our immense oil reserves, and our extensive human capital, how do we remain so poor? We need to remake Nigeria — the way it is governed, the way it operates. We need to give ordinary Nigerians an opportunity to build the future they want and deserve. And we need to do it now.
There has never been a better time to reign in our elite’s excesses, to go to war with corruption, to end the /two Nigeria’s/ that we see every day. As the global recession deepens, this isn’t a time to just get by — to survive — as Obasanjo warns. It is a time to make dramatic change. We will not survive the next 2-3 years by bearing costs on our poor. We will prosper by ending corruption; we will prosper by restructuring our economy
I have taken time to read Nigeria’s newspapers to see if we are living as a people who are aware of the world that we live in and the rapid changes we are facing. The advanced world who are better able to afford a life of excess has woken up to the fact that they have been living beyond their means and are taken steps, making frenzied efforts to adjust to the reality of today. My fellow Nigerians are we doing the same? Well reading about governors and their 300 million naira wedding extravaganzas, billions being budgeted for sporting fiesta we can barely afford, 2.3 billion naira being spent on cars for legislators who already have more than enough personal cars and our continued thirst for foreign imports that are eating away at our foreign reserves all lead me to say to Nigerians WAKE UP! If we are to frustrate that analysis by Senator Russ Feingold on Nigeria becoming a failed state, the time to act is now, even yesterday.
PU

The recent decision by the Senate of the National Assembly to pull out of the Joint Committee on Constitution Review leaves one aghast at the fate of Nigeria under the PDP whose members dominate the Senate. We are told that they are unable to reach a concord with the house and so are pursuing their own amendment efforts. How does the PDP which prides itself OF being the largest party in Africa come to terms with the fact that though it has a majority in both the house and Senate, it is helpless to call its legislators to order? Any one familiar with the root cause of this crisis will realize that ego rather than patriotism has caused this divide in our parliament.


It is really a shame that an administration that came in by way of questionable elections is turning out to be very intolerant of contrary opinions. First time President Yar’adua bared his fangs he shut down Channels T.V for publishing a news item that purportedly emanated from the News Agency of Nigeria (NAN) and which was first carried by the international media. And then in the run up to and after math of the Ekiti re run “election” (if it can be so called) the FG shut down Adaba FM a station that allowed the AC candidate Fayemi to broadcast his message. And now the government has come all out to stop Gen. (Rtd) Buhari from broadcasting his jingles on the radio!

