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Editorial

Edu’s suspension: Tinubu must not spare questionable appointees, heads of MDAs 

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Recent unveilings of financial misappropriation relating to diversion of public funds into private accounts, involving the Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu attracted wide concern. Order by President Bola Tinubu suspending the minister was a quick action swiftly taken to bring on another layer of insight to the discourse.

Corruption has become endemic in the Country’s public system, frustrating good governance. Edu, according to the report, had asked the Accountant General of the Federation, Mrs Oluwatoyin Sakirat Madein to send public funds to a private account that belonged to Oniyelu Bridget Mojisola, identified as a project manager by the minister.

The minister had approved that N585,198,500.00 should be disbursed into a personal account. The ministry approved funds for flight tickets and airport taxis for her team from Abuja to Kogi State, even though the latter has no airport.

Consequently, President Tinubu suspended Edu and ordered an investigation into the alleged fraudulent activities of the minister. Reactions had trailed the swift action of the President. The ruling All Progressives Congress (APC) had justified the president’s action, saying there are processes information undergoes before it gets to the president.

The National Publicity Secretary of the All progressives Congress, Felix Morka stated this in an interview with Arise had said, “We are talking about the President of the Federal Republic of Nigeria, you don’t expect that every act that happens in a ministry is something that is mirrored in the presidency or that there is a board where the president is seeing everything happening in every ministry.

“When there is a problem, that problem works its way up through the channels of information of vetting and filtering to present information to the president for his assessment and decision.  I don’t think the timeline that you are talking about is less swift because people discussed it first. My point is that the president responded as swiftly as can be and appropriately on this matter.”

Morka had also said no one can regulate the actions of humans, adding that there is no mechanism available for a party to modulate the conducts of its members. He had added that the only thing that can be done is to set standards and consequences for those who take those actions.

“You are expecting superhumans to be members of the APC and therefore people who are high above reproach and will do no wrong. That is not the standard of any democracy or any political party because people populate the parties. The question is not whether people do wrong, there is no mechanism available for a party to modulate human conduct.

“You can set standards and parameters for imposing consequences for when those actions are taken. That is what this president has done. Whether people choose to do what they do is beyond the control of the president.  The question is, has the president responded as expected in a democracy? Yes. He swiftly responded to the appearance that something wrong was done,” he said.

The question over how the silence of the president on the matter without a punitive directive would have further angered the public who are already pressed by the hardship of economic conditions readily comes to view. The Socio-Economic Rights and Accountability Project (SERAP) had earlier called on President Tinubu to direct the Attorney General of the Federation and Minister of Justice Mr Lateef Fagbemi (SAN) and appropriate anti-corruption agencies to promptly and thoroughly probe the alleged payment by the Minister of Humanitarian Affairs, Betta Edu of N585.2 million meant for disbursement to vulnerable people in Akwa Ibom, Cross River, Lagos, and Ogun states into a private account.”

SERAP had also urged him “to direct Mr Fagbemi and appropriate anti-corruption agencies to promptly and thoroughly investigate whether the N585.2 million has been paid into any private account, and to identify and publish the names of anyone who may have received the money.”

SERAP had said, “Anyone suspected to be involved in any improper payment or diversion of public funds should be brought to justice and any diverted public funds returned to the public treasury and paid directly to the rightful beneficiaries.”

In the letter dated 6 January 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation had said: “Paying public funds into private accounts may create the perception or appearance of impropriety and give cover to any potential wrongdoing or diversion.”

According to SERAP, “Investigating these allegations and ensuring that the public funds meant to take care of the poor are transparently and accountably spent and recovering any diverted public funds are serious and legitimate public interests.”

The letter had read in part: “The public interests in safeguarding against the perception or appearance of impropriety or corruption also require your government to remove the opportunity for abuse inherent in the payment of public funds into private accounts.

“The Nigerian Constitution 1999 [as amended], the country’s financial regulations and international obligations impose a fundamental obligation on your government to ensure transparency and accountability in the spending of public funds meant for socially and economically vulnerable Nigerians.

“Your government has a legal responsibility to ensure full compliance with the Financial Regulations 2009, prohibiting the payment of public funds into private accounts, to reduce vulnerability to corruption or risks of the funds being diverted for personal ends or other unlawful purposes.

“Government officials hold positions of public trust. Public officials are expected to ensure compliance with Nigerian laws and international standards in the discharge of their public functions.

“The persistent lack of transparency and accountability in the spending of public funds meant to take care of the poor raises issues of public trust, makes the funds vulnerable to corruption or mismanagement, and undermines the integrity of poverty intervention programmes.

“Your government has a legal obligation to probe and prosecute allegations of abuse of office and corruption in the spending of public funds meant to improve the conditions of vulnerable Nigerians.

“SERAP is concerned that successive governments have failed to ensure transparency and accountability in the spending of public funds budgeted for social safety-nets and poverty alleviation programmes and projects.

“Any risks of corruption in the spending of public funds meant to take care of the poor would erode the effectiveness of the government’s oft-repeated commitment to address the impact of the removal of fuel subsidy on vulnerable Nigerians.

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.

“Any failure to investigate these grave allegations, bring suspected perpetrators to justice and recover any diverted public funds would undermine the integrity of the government’s poverty intervention programmes.

“It would also create cynicism, and eventually citizens’ distrust about the ability of your government to prevent corruption or the appearance of corruption in the programmes.

“Nigerians have the right to be free from poverty. Any risks of diversion of public funds budgeted to lift vulnerable Nigerians out of poverty would pose both direct and indirect threats to human rights, and exacerbate extreme poverty in the country.

“It would also undermine your government’s legal obligations to effectively and progressively address and combat extreme poverty as a matter of human rights.

“SERAP also urges you to direct Betta Edu to publish details of spending of public funds drawn from the account of the National Social Investment Program (NSIPA), an agency under the Ministry of Humanitarian Affairs and Poverty Allegation, including the names of beneficiaries and details of the amounts received by them since 29 May 2023.

“SERAP urges you to instruct the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) to jointly track and monitor the spending of any public funds drawn from the account(s) of the National Social Investment Program (NSIPA).

“According to our information, the Minister of Humanitarian Affairs, Betta Edu, in a memo dated 20 December 2023 reportedly requested the Accountant General of the Federation, Oluwatoyin Madein, to transfer public fund – N585.2 million – into a private account of an official in her ministry.

“According to the memo, the money was transferred from the National Social Investment Program office account and is meant for disbursement to vulnerable people in Akwa Ibom, Cross River, Lagos, and Ogun states, under the federal government poverty intervention project called Grants for Vulnerable Groups. N219.4 million is to be transferred to the vulnerable people in Akwa Ibom State, N73.8 million to Cross River State, N219.4 million to Lagos State, and N72.4 million to Ogun State.

“SERAP is seriously concerned that years of allegations of corruption and mismanagement in the spending of public funds meant to support and assist vulnerable Nigerians and entrenched impunity of perpetrators have undermined the ability of successive governments to support those most in need.

“Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power’ in the country.

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’

“Chapter 7, Section 713 of the Federal Government’s Financial Regulations 2009, provides: ‘Personal money shall in no circumstances be paid into a government bank account, nor shall any public money be paid into a private account.’

“Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on your government to ensure proper management of public affairs and public funds, and to promote sound and transparent administration of public affairs.”

While the allegation has been subjected to investigation and it is not yet officially proven, it is pertinent to note that it is an act of impunity and disgust for a Minister overseeing a ministry meant to alleviate poverty to be found indulging in misappropriation of funds, translating to further impoverishing the people. The act of corruption has eaten deep on the fabric of the nation and has brought her to the knees. It is high time the menace be tackled headlong.

President Tinubu’s swift action is commendable but it must not just stop at that. He must not spare the rod from any of his appointees or any heads of Ministries, Departments, and Agencies (MDAs). The president must keep an open eye to give a clear picture that his government is meant for work and to be marred with corruption.

Hence, the president must be strictly disposed not to condone any official, no matter who it may concern, nor to tolerate anyone who is found culpable or questionably indulging in any corrupt act of misappropriating public funds. This is pertinent to safeguard the system at a time when scarce resources and dwindling revenue has handicapped the government.

Editorial

Nigerians groan under high cost of living 

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Barely fourteen days to the first year anniversary of this federal government, Nigerians have continued to groan under high cost of living, amidst a catalogue of failed promises. Despite its chants of ‘Renewed Hope Agenda,’ a cup of garri/rice has since gone out of the reach of an average Nigerian. There is a continuous hike in fuel and other petroleum products. Transportation fares, local, inter-state or international are a no-go area. Nigerians have lost count of pledged dates for the commencement of operations or production of our refineries, especially Port Harcourt Refinery.

Most citizens have lost hope in the current political leadership in the country. Fuel today is being sold at between N800 to N950 per litre and still counting. A bottle of kerosene is about N2,000 and this an essential product being used by almost 90 percent of the population, especially the lower cadre. In the past, the colour of kerosene used to be like spring water from a rock, but today the product is sullied with impurities, its colour of kerosene almost like that of groundnut oil. Yet, it remains scarce and costly. What a country.

Nigeria is possibly the only country with abundant crude oil deposits that prefers to throw away the crude at giveaway price to other countries in the name of exportation, only to  buy the refined products from the crude at exorbitant prices, in the name of importation.  The first refinery in Port Harcourt was built about nine years after oil was discovered in commercial quantity in Oloibiri in 1956 in the present day Bayelsa State. And up till today there is no intentional attempt to rebuild it, or be religious in maintaining it.

The Naira debuted as the national currency of Nigeria, at 75K to $1, but today N1,500 is exchanging $1. Yet, we are ranked among the highest producers of oil and gas in the comity of nations. The unadulterated truth is this: Nigerians are suffering in the midst of plenty which should not be the case.

The poor leadership of the old brigade, who have held sway since independence, should leave the stage for younger generation. The current President of France, Emmanuel Macro is below forty years. The recent election in Senegal produced a 44-year-old man as president. Whether we like it or not, once a person passes retirement age of 60, his mental faculty starts dropping.

Inflation rate is now 33-35% in the country. Unemployment rate is soaring and the Federal Government had the gut to propose N48,000 as minimum wage for Nigerian workers, possibly as part of the ‘renewed hope agenda.’ This is as against N860,000 being proposed by the organised labour, comprising the Nigeria Labour Congress (NLC) and Trade Union Congress(TUC).

We are not surprised therefore when the organised labour walked out of the negotiation table and handed down a 14-day ultimatum to the Federal Government to think right.

We hope the federal government will really do all it needs to do to avoid another showdown with Nigerian workers who are like wounded lions and have been patient enough with the economic torture currently being experienced by workers in the country. We hope and pray that the tail of a sleeping tiger, will not be unnecessarily pulled. It could amount to unpleasant consequences. The government should fulfil its campaign promises and ensure peace and tranquility throughout the nation.

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Editorial

Minimum wage Saga: FG, let the people go…

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For years, the narrative has been the same — the economy withers and the common man cries out for reprieve, only to be met with an endless array of impediments. When it is time to intercede for the poor, Nigerians are met with pointless bureaucracy and palliatives. Foreign aid is rendered ineffectual thanks to the gauze-hand of leaders, through which it all slips through into an oblivion of their own invention.

In April 2024, the headline inflation rate rose to 33.69 percent, up from 33.20 percent in March 2024, marking an increase of 0.49 percent points according to the Nigeria Bureau of Statistics (NBS). Yet, to raise the minimum wage to a level that will help beat back hunger in the poorest families has become a problem for the government.

Per the International Monetary Fund, IMF, a determined and well-sequenced implementation of government’s policy intentions would pave the way for faster, more inclusive, resilient growth in Nigeria. Without reforms — such as raising the minimum wage — to enhance the business environment, improve security, implement key governance measures, develop human capital, boost agricultural productivity, Nigeria’s growth potential will never leave the realm of imagination.

“These reforms are crucial to boost investor confidence, unlock Nigeria’s growth potential and diversify the economy, and address food insecurity, and underpin sustainable job creation,” IMF noted in its recent report, adding that over the last decade, limited reforms, security challenges, weak growth and now high inflation had worsened poverty and food insecurity in Nigeria.

“While Nigeria swiftly exited the COVID-19 recession, per-capita income has stagnated. Real Gross Domestic Product (GDP) growth slowed to 2.9 percent in 2023, with weak agriculture and trade, and in spite of the improvement in oil production and financial services.

“Growth is projected at 3.3 per cent for 2024 as both oil and agriculture outputs are expected to improve with better security. The financial sector has remained stable, in spite of heightened risks. Food insecurity could worsen with further adverse shocks to agriculture or global food prices. Adverse shocks to oil production or prices would hit growth, the fiscal and external position, and exacerbate inflationary and exchange rate pressures,” the IMF said.

Yet, on Wednesday the pattern continued. Negotiations reached a deadlock due to the government’s perceived unwillingness to engage in fair discussions with Nigerian workers. The NLC National President, Joe Ajaero, in a sense is right to say that the government’s proposal of N48,000 as the new minimum wage is an insult to Nigerian workers.

It is no surprise that the labour unions are demanding a higher minimum wage to reflect the current economic realities and alleviate the suffering of Nigerian workers. The stalemate in negotiations may lead to industrial action, which could have far-reaching consequences for the economy.

Many labour in vain for decades for peanuts, only to be denied their pensions in old age. Of course, the Nigerian worker will down his tools in the face of great poverty, and seeming apathy from the government. The relationship between wage rate and employment is well established. Most revolutions throughout the world are dependent on the satiation of the labour force. The Federal Government should maintain an atmosphere of charity and responsibility. Like the Israelite Moses said millennial ago, let our people go.

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Editorial

Inflation as major threat to life security

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Millions of Nigerians are groaning because of the devastating inflationary pressure that is making it impossible for many to consume the minimum calories required for a healthy living.

It is known that Nigeria’s macroeconomic environment has become very harsh in its diminutive impact on the purchasing power at the disposal of the citizenry.

Many cannot also conveniently afford to transport themselves to their workplace or move around for routine activities.

Meanwhile, the price of other payment obligations for services such as house rents, school fees, utilities (including cable television), health and recreation services are rising on a daily basis.

This shows that the quality of life enjoyed by Nigerians is deteriorating as poverty becomes more pervasive and endemic.

According to official statistics, the November inflation rate was 14.89 percent and it is fast heading towards the 15 percent mark.

Meanwhile, the Rural inflationary pressure is also climbing as the rate climbed to 12.28 percent in July even when the price of Premium Motor Spirit and electricity tariff had not been hiked. Prices are just rising freely.

This applies to production inputs (except labour), consumer durable, agricultural products as well as services.

This unfortunately is the case irrespective of the basket of goods one uses as a measure outside the standard yardstick.

A close look at the policy framework of the government shows that the recent surge in general price level is not unconnected with structural bottlenecks, fiscal and monetary policies, deregulation, and trade policies as well as inefficiency on the part of regulatory agencies.

The government has for too long paid lip service towards unbundling of the shackles of growth and development such as poor budgetary implementation on capital projects, outdated laws and a toxic business environment that constrain the economy.

This has indeed, slowed down economic growth and resulted in shortage of goods and services and their attendant impact on inflation.

The government seems to be heating up the system by keeping its spending open-ended even as it cries of inadequacy of revenue to finance its expenditure obligations.

The disconnect between recurrent account, capital account and public debt operations is certainly having a destabilising effect on public finance operations of the country.

This has given rise to fiscal domination that describes the aggregative impact of the uncoordinated expenditure activities of all the governments in our strange three-tier federal arrangement.

It also appears that the Central Bank is losing sight of its inflation-targeting monetary policy which has been on its front burner for more than two decades now.

This is certainly not what the nation needs now when virtually all the macroeconomic variables are in disarray.

Here, attention of CBN must be called to its Naira management policy especially as it affects the regimented devaluation and depreciation which impact heavily on the domestic and external value of the currency.

The external value requires attention considering that the Nigerian economy carries a monolithic production base and import orientation.

The gross loss in the value of Naira is having a horrible impact on the life of Nigerians as misery and hopelessness characterise the daily songs of the lower income strata and whatever is left of the middle class.

It must be pointed out also that the government policy on agriculture in general and rice production appears to suffer a backlash.

Whereas local production has increased appreciably the farmers and agricultural marketers are engaging in exploitative pricing practice.

They simply jack up their prices arbitrarily. This is particularly the case with respect to rice where the price of the local varieties is at par with the foreign brands.

The recent increase in the price of premium motor spirit and electricity tariff have surely added more salt to the injury.

These two products are directly tied to production and distribution of goods and services and as such raising their individual prices simply translates to increasing the price of everything that is bought and sold in the open and underground economies.

Unfortunately, all these are happening when the nominal income of the average citizen has either stagnated or declined as the minimum wage has not been paid by many states of the federation.

The same is characterised by controversy in those states and some federal agencies that have implemented the new salary regime.

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