Opinion
How my team secured $57 million for Water Projects in Ondo State, By Tunji Light Ariyomo
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On Saturday 9th March 2024, scores of my friends and brothers from across the globe including the US-based talented visual artist, Sunday Oluwasomi, the scion of the late Olisa Raymond Olusoga (Prime Minister of Akure Kingdom) Engr Taiwo Olusoga, Aquinarian Tunde Aladenola, and a host of others called my attention to a negative counterclaim of an individual on one of my team’s best legacies in Ondo State. It was about our success in the financial closure of the sum of US dollars 57 million and the actual collection of the first tranche of the money into the purse of the Ondo State Government as well as my team’s accomplishment in securing AfDB first preliminary approval for an additional $112.72 million ($82.72 million for water, $20million for power, and $10 million in grant) whilst I served as the Special Adviser on Public Utilities, supervising Water Resources and Energy at cabinet level before my redeployment. Unknown to me, several other people who admire me had shared screenshots of the apocryphal claims with me via my Whatsapp inbox. My friend’s Dad, one of our political leaders in Ondo State, Chief Ademola Ijabiyi, was also very concerned and requested that it was important I be added to the platform where such dubious claims were made so I could lay them to rest. I was, however, encumbered with a professional assessment report that I had to submit on behalf of one of my mentees and could not react or respond immediately. I promised Chief Ijabiyi and the others that I would respond comprehensively.
In the interim, I did what was the most basic, I called witnesses! I left the duty of articulation of the roles played by my team to eyewitnesses who were part of the process. Today, there are at least one hundred civil servants who played one role or the other and are still in active service. So, individuals like Sunday Oluwasomi, Taiwo Olusoga, and Tunde Aladenola had the privilege of hearing truthful accounts of what happened directly from those who were involved. Even aspects of our patriotic escapades that I had forgotten were brought back to memory. Those who were directly and actively involved in the processes exposed the carefully orchestrated lies of those who desired to piggyback on the success of our sweat and have perhaps been surreptitiously deceiving others about their fabled roles. If individuals could outrightly tell bald-faced lies and deny what just happened only a few years ago where the hard records are still available and the dramatis personae are all alive, then this comprehensive account of what happened is necessary to set the records straight and for posterity.
For the benefit of the reader, the counterclaim against our legacy is that two commissioners under the previous administration of Dr. Olusegun Mimiko were responsible for securing the funds for Ondo State and that all our team did was get there, cash the cheques and begin to spend the money. The claim asserted that they brought in the sum of $75 million from the World Bank for the construction of the transmission mains of the Owena Multipurpose dam and its reticulation to the state capital. I hate to be seen to be addressing issues in a way that appears to pit me against Dr. Mimiko who is an iconic leader in the state in his own right. I will want this not to be misconstrued as that is not my objective. I am only setting the record straight.
Upfront, I herein state unequivocally that when I took over as the de facto leader of the state’s water project in October 2017 (by the Governor’s written directive, I covered the duties of the Commissioners in charge of Water Resources and Electricity Matters), I did not meet any record of the sum of $75 million World Bank fund whether in cash, cheque, bank lodgement, or approval-in-file. I concede that for about 8 years prior to my taking over, there were attempts to secure funds and several offers probably flew around just like I also got the first offer from the AfDB for $112.72 million. But offers are what they are. The real job is being able to develop the business case document, financial models, and ancillary technical documentation required to meet the conditions precedents attached to a serious offer. The serious efforts of those who laboured hard to achieve that must never be dismissed on the altar of cheap politics.
I must also hasten to add, that ever since I even left the water project, not a single kobo in new funds has been added to the state programme. In fact, the most anticipated fund in the state’s water sector today is the AfDB $112.72 million (now negotiated to circa $104 million) which is solely the benefit of the robust foundation laid by my team.
For the avoidance of doubt, the following individuals were part of my team on the state water project as of that time, Engr. Jimmy Akinrimade MNSE, then General Manager of the Ondo State Water Corporation, Engr. Steve Adesemuyi MNSE who was in charge of procurement, and Engr. Toba Akinde MNSE, who I later recommended to the Governor for appointment as the State Coordinator of the project. Other members of my team at the Office of Public Utilities (OPU) which had ministerial supervision of the Ondo State Water Corporation as of then, were Princess Abike Bayo-Ilawole, Engr. Olumayowa Ajumobi, MNSE, Mr. Deji Akinwumi, Dr. (Mrs) Tolulope Pius-Fadipe, Mrs. Doris Adekale, and others. I mentioned these names as they are all alive and well. These are mostly civil servants. They were committed to our success then. They supported me and were active witnesses to all that we did to secure the funds.
By the way, I was not “only part of the government negotiation team that held meetings with the World Bank and Federal Ministry of Water Resources” as claimed in one of the infantile comments, not at all. Rather, I was the leader of the Ondo State Government team that negotiated the funds with the French Development Agency (AFD), and the International Economic Relations Department of the Federal Ministry of Finance where an Ondo State son, Mr. Timothy Komolafe, ensured we were properly guided to abide by all due process requirements among others. My team simply fast-tracked the processes with our proactiveness and became the first state to execute the SLA on the 26th of March 2018. The claim that “(they) were at the point of accessing the money that (sic) (they) left the government and Akeredolu’s government continued from there” is therefore totally simplistic and untrue. No money could have been accessed by anyone without fulfilling all the conditions precedents, negotiation of terms, as well as the execution of the principal and subsidiary agreements. The agreement indeed marked the definitive period of the effectiveness of the fund for the state. My team delivered all these.
I can thus speak authoritatively about what the team I led did, how we did it, the amount of money involved, and why – at the risk of sounding boastful – what we did to secure that money within a limited time is purely the stuff of legends. Indeed, the last hurdle for us to cross was how to bypass the petition by a private company that had found a way to ensure that AFD inserted the settlement of its claim against the state government as a condition precedent to disbursement. Governor Akeredolu in the presence of the company’s representative gave me the carte blanche to resolve the issue. We took up space at the Heritage Hotel in Akure with the company and spent about four hours without success. They insisted on a payout of as much as N4 billion. It didn’t make sense to me. I reported to the Governor. Time was of the essence and I took permission from him to resolve it the way I could. All we had to do was convince the AFD to drop that requirement as a condition precedent. AFD stood its ground.
Then the epiphany dawned on me of a concept in law called the statute of limitations that we learnt as student engineers in our only introductory contract law class. The contract over which the company was imposing a claim upon Ondo State was already 9 years old. I immediately tried my best to again research the subject of the statute of limitations. The more I did, the more pleasant it sounded that I had found the holy grail as the contract was statute-barred. Having learnt proper legal referencing style from my former Special Assistant, Mrs. Babagbenga Alalade Esq, years back, I decided to produce a draft legal opinion on the subject. I focused extensively on Nigerian laws as my primary authority, followed by copious quotes from the legal jurisprudence of both the United Kingdom and France. Incidentally, the three countries (Nigeria, UK and France) each retain 6 years as the bar for a business-related claim. I inserted the French law deliberately since the AFD legal officers who would review the legal opinion in France were more likely to be French nationals.
After I was done, I decided to call two lawyers who were very close to me, my big Egbon, Rotimi Aladesanmi Esq as well as my good aburo Mrs Sandra Ogunmola, Esq. I told them about my quackery and apologised to them that my office did not have the money to secure the service of a lawyer. Out of patriotism and solidarity with the state, Bar. Aladesanmi asked me if the State Water Corporation had been maintaining correspondence with the company. I told him I had a hunch some months back that we might have insiders acting as fifth columnists and I had thereafter insisted that any correspondence on the matter must be solely by the state Ministry of Justice. I let him know that on several occasions afterwards when the GM approached me to allow him to send a polite letter to the company, I had always declined insisting instead that only the Ministry of Justice should issue any communication to them and that he and I must stick to engineering only. I added that to prevent any mistake when the GM told me that the legal officer of the Corporation was in support of a polite letter, I quickly got the Justice Ministry to write the Corporation to desist from any correspondence. Both lawyers appeared to substantially think I was already making sense. That gave me confidence and I decided to take the draft legal opinion to Mr. Kola Olawoye, SAN, the then Attorney General and Commissioner for Justice, a fantastic administrator who would go to any legitimate length to assist us on our processes. The distinguished SAN read the draft and asked me who produced it. I jokingly told him one ‘charge and bail’ guy did. The Attorney General assumed a friend of mine did and chastised me never to refer to my friend as a charge and bail lawyer because he had produced a brilliant legal opinion! He told me he was adopting it verbatim – no correction.
My Special Assistant, Dr. (Mrs) Tolulope Pius-Fadipe made eye contact with me. I pretended I didn’t see her. The Honourable Commissioner for Justice executed the instrument and handed same to me. By 2 pm, we had scanned and forwarded it to the headquarters of the AFD in France with copies to the country representative in Nigeria. We had the hard copy dispatched by courier. Not quite 30 minutes after the email, I received a phone call from AFD’s Country Manager in Abuja who sought my permission for a conference call with France. Their legal officer in France had reviewed the legal opinion (our letter) and had concurred with us that the requirement that granted an advantage to a private company to more or less put a lien on our request and demanded N4 billion from the government of Ondo State be dropped! Yes. It happened in one day. They apologized and assured me to await an email giving us all clear so we could proceed to the disbursement stage.
The email came and the important line was “There is no more issue on this point as my legal department took into consideration your last letter and agreed to clear the condition precedent”. That was how we resolved the last hurdle on that fund. It was only after I succeeded in removing that final obstacle that I forwarded the ‘all clear’ good news from the then Country Manager of AFD, Ms Jeanne VANUXEM-MILLELIRI, to the then GM of the Ondo State Water Corporation (Engr Akinrinmade) and the then State Coordinator of the Water Project (Engr Akinde) on August 24, 2018 at exactly 3:03 pm.
Ayo Sotinrin who was with the Governor when I passed the news via phone later told me that the Governor asked him, “How did Tunji do it?”. As the late Governor Oluwarotimi Akeredolu SAN later acknowledged in a private letter to then President Muhammadu Buhari, “Engr. Olatunji Ariyomo, FNSE, led the team that negotiated and secured the $57 million AFD funding for our administration… His team succeeded in scaling “18 No Objections” under 12 months which was a record by any sub-national government even by AFD standard”.
As if by divine intervention, the AFD sent me a dusburement schedule confirmation for the $57 million (with dates) on the very day we were receiving the Federal Minister for Water Resources. Mr. Yemi Olowolabi, a veteran journalist of the Tell Magazine era who was the Commissioner for Information had to break protocol to get the great news across to Governor Akeredolu carrying my mobile phone with him to enable both the Governor and his guest to read directly the giant leap Ondo just made.
Essentially, ahead of other states that were part of the NUWSRP III scheme, Ondo State reached financial closure in a manner that earned our state the direct commendation of the French Development Agency (AFD). How did we do it?
We were proactive. We did not wait for the AFD to spoonfeed us. During the development of the programme appraisal document, we fast-tracked the process by spending endless sleepless nights to ensure we crafted a programme that would serve the interest of the people of Ondo State. Working with the AFD country office and officers from their headquarters in France, we developed a PAD and Programme Information Manual that would be difficult for anybody to breach. When we eventually secured approval to commence implementation, the least of the RfPs that we produced was that of the PMS and the cartography which contained a minimum of 130 pages. We were yet to select a consultant (PMS), so we did all these by ourselves. I led from the front, drafted and poured through all the pages and knew everything that went into each line. We submitted to all world-class financial probity and accountability processes. We shielded the programme from the vagaries of politics and external influence. This was why I could boast when I was suddenly removed from the project that I was certain that the vile characters that were plotting and scheming to oust me from the project because they were eying the money instead of the goals were on a futile zero-sum mission. I was that certain. Yes, the processes can be delayed at a great cost if incompetent individuals are saddled with anchoring the project or positioned to lead the project. This is why the project is currently 2 years behind schedule. Though time itself is costly. That is the worst that can happen. The money for the project cannot be stolen or looted. They may not even be able to access the funds due to the stringent conditions we imposed from the very beginning. I secured the first tranche of disbursement before my exit from the programme. That was the only tranche accessed up until December 2023. The programme almost went into sleep mode afterwards. Governor Akeredolu had to beg the duo of Ayo Sotinrin and Tope Runsewe to step in and help as the leadership that took over after me was simply unable to understand the programme.
When the Governor announced a cabinet reshuffle and had me assigned to solely Energy, some people suggested that I should write a petition to the AFD and allege political interference in order to stop the project. I refused bluntly. I have never fought over money in my life. The money we secured was for the benefit of the people of Ondo State. Phase one of the project was solely for Akure metropolitan area. As a child, I enjoyed pipe-borne water in Akure. My sole motivation was therefore to help Akure regain that lost era. I have never been a fan of borehole drilling as I saw it as an unsustainable workaround that must not be encouraged because it takes the average aquifer years to recharge adequately. Upon realization that not a single community along the transit route of the water mains from Igbaraoke to Akure was included in the project, I held meetings with notable traditional rulers from Ifedore, particularly the Olowa of Igbaraoke, Oba (Dr) Adefarakanmi Agbede OFR in his palace. I assured Kabiyesi that we would leave no stone unturned to ensure that the water project was extended to all communities adjoining the route of the transmission mains such as Igbaraoke, Ipogun, Ilara, Ibuji, Ijare etc and that we would leverage that advantage to take reticulated water to places like Ondo East and Ondo West. The business mogul, Chief Michael Ade-Ojo also placed a phone call to me, offering to fund the T-off of the water from the mains to Ilara. I thanked Baba Ade-Ojo for his selfless offer and informed him that the governor had already approved my proposal to extend the reticulation to all towns along the mains’ transit route.
This is what led to our additional effort to secure the $112.72 million from the African Development Bank (AfDB) starting in May 2019 with an earlier Mission Visit by the AfDB team. This second fund was to address (i) the outstanding 50% reticulation coverage of Akure metropolitan area under the AFD’s sponsored Owena Multipurpose Dam Water Project and reticulation to all satellite towns and communities along the water transmission route from Igbara-oke to the state capital, (ii) the reconstruction of the collapsed spillway and the restoration of the raw water line and the High Lift Pumps for the new intake at the Owena–Ondo road (Elegbudu agba) water supply scheme with design capacity of 19,800m3/day of treated water, which was originally built in 1965 but had since been in deplorable conditions, (iii) rehabilitation of treatment plants and augmentation scheme for Owena Ondo road, (iv) rehabilitation of Olokuta booster station serving the Owena Ondo road scheme, (v) construction of booster station for the rising mains serving Idanre and Ondo towns (in Ondo West and East LGAs) in addition to the relocation of transmission pipelines on that route, (vi) rehabilitation of Owo-Osse water supply treatment plants and augmentation scheme, (vii) repair, relocation and reconstruction of Owo Township water distribution pipes, (viii) upgrade and rehabilitation of the 2,115m3 service reservoir in Owo, (ix) replacement of damaged transmission mains to Owo and adjoining satellite beneficiary communities, (v) as well as critical intervention in Ilaje local government areas in Ondo South. Our engineering estimate for these projects at the time was USD 82.72 million. In addition, the state government was providing off-grid electricity supplies to communities in Ondo South that were far away from the national grid. We, therefore, made an allowance of USD 20 million for the implementation of commercial mini-grid power projects in 10 communities with distribution infrastructure, metering and other ancillary services. The late Governor fully supported my initiatives and via a letter with reference number H.E/VOL III/138c dated 3rd of June 2019 presented a formal request to the Federal Ministry of Finance and the AfDB for a total sum of USD 102.72 million with an additional grant component of USD 10million to enable the state government implement quick-win water and power projects across the state. The Governor put the state’s Office of Public Utilities which I headed, the state’s Technical Team and Steering Committee on Urban Water Supply which I chaired, the state’s Water Corporation which I supervised, the state’s Electricity Board which I supervised and the state’s Technical Team on Power which I headed, in charge, with the duty to midwife the processes. We secured the preliminary concurrence of AfDB shortly after. Of course, following my exit from the programme, I learnt that these clearly defined project pipelines that cut across the state were altered and the estimates for off-grid power intervention in Ondo South were completely expunged despite their detailed communication to the AfDB and the Federal Ministry of Finance.
The AFD and not the World Bank gave Ondo State the sum of $57 million for the construction of the transmission main and the reticulation infrastructure in the state capital. The project is ongoing. The money cannot be looted – not with the way we designed the programme. The World Bank invested in a lot of institutional strengthening and water sector governance being spearheaded by the Federal Ministry of Water Resources. Incidentally, an engineer and an Ondo State son, Engr. Benson Ajisegiri was the Director at the Federal Ministry of Water Resources as of then. The World Bank provided the sum of $2.3 million for each of the 9 states on the NUWSRP III programme with a substantial works component. I worked with other Commissioners and Advisers on Water Resources to correct the attempt by the Ministry to target that money solely at institutional governance at the expense of tangible works programmes. In fact, I spoke on behalf of the others. I showed the officials of the Federal Ministry of Water Resources from the principal approval by the World Bank that the $2.3 million was structured to substantially address works – physical output specification, tangibles that the ordinary people on the street could appreciate and that could further engender confidence in political leaders to support water-related programmes. Officials of the Federal Ministry of Water Resources led by Engr. Ajisegiri concurred with my argument. For Ondo State, we agreed that ahead of the effectiveness of the AFD fund, we would rehabilitate parts of the Owena Ondo Road water scheme as a Quick Win and have the water transmitted to a ring-fenced and commercially viable place in the state capital since the residents were adjudged in the entire Ondo State by our survey as the people most likely to pay. It was agreed that it would be our opportunity to practically assess water commercialization ahead of the full-scale reticulation project.
So, let’s put it in context, ever since my exit from the state water project, there was no new fund attracted to the water programme by any of my successors. The funds expended on water-related projects in Ondo State were solely the ones my team succeeded in creating, attracting, initiating or fast-tracking. This included the $2.3 million which the procurement was eventually done by the Federal Ministry of Water Resources, the N702 million counterpart funding that I secured from Access Bank Plc with procurement done in Ondo State, and the first tranche of $5 million being part of the larger $57 million from the AFD. Indeed, because the project was lagging, the new handlers could not access any more money from the $57 million until December 2023! Likewise, the biggest funding prospect for future activities in the water sector in the state is the AfDB fund that I initiated! Essentially, years after exiting the state’s water project, I have earned the bragging right to say that my efforts continue to pave the way for the state in an enduring manner. I have been part of a Federal Government project worth $7.1 billion, yet, I will defend a legacy that costs only $1 if it is threatened by folks who know nothing about the sweat quotient that goes into project development.
By the way, it must be stated that the whole Owena water transmission and reticulation project was inspired by the late Dr. Olusegun Agagu. He birthed the vision and succeeded in getting President Olusegun Obasanjo to cede the water distribution aspect of the Owena Multipurpose Dam project to the Ondo State Government. Dr. Agagu already paid half of what was required to the contractor before his sudden exit from the government but the project was subsequently bungled and frustrated.
I have done my best to stick to issues that celebrate the accomplishment of my team in this piece. I could never have achieved any of these without the support of those earlier mentioned and my friends in Abuja who provided accommodation on those occasions when my office could not fund same or those like Taiwo Olusoga who repaired my ‘dakudaji’ official car. I wasn’t provided an official car while in government. I walked into the old yard of the Water Corporation and picked an abandoned ‘SUV’ I learned was bought by Boye Adegbemisoye several years back when Dr Agagu was the Governor and I enjoyed using it, no doubt, bar the incessant breakdown. I am sure I am still owing mechanics on that ‘SUV’ including Engr Taiwo Olusoga! Nonetheless, I am leaving the motive behind my removal from the water project after I successfully secured the first tranche of disbursement into the Access Bank accounts that I opened for the project to history to judge.
■ Engineer Olatunji Light Ariyomo, FNSE, is a former Special Adviser on Public Utilities/Energy to the Government of Ondo State.
Opinion
MUSINGS ON THE “RENEWED HOPE” AGENDA CABINET
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BY BOLAJI AFOLABI
For many football loving Nigerians, commencement of the 2024/25 league season across Europe was a welcoming break from the recurring palpitations occasioned by multi-dimensional and multi-sectoral challenges pervading national space. Given the ecstasy and excitement it provides, spectators and fans are very hopeful that for about 40 weekends, something cheering would occupy their minds; away from the ever-increasing national problems. Back in the ’80s, *INDEEP* , was a New York-based musical group that released ‘ *when boys talk’* after it’s hugely successful ‘ *last night a DJ saved my life* .’ A line in the former that, ‘ *boys* *talk politics* …’ came to mind after the Liverpool versus Ipswich Town English Premier League opener few weeks back.
Over an hour of chit chat which included analysis, opinions, arguments, and more; a regular fixture at most viewing centres the topic of discourse veered into politics. From national to states and party politics, it was a robust and enlightening exchange between and among all. To add colour, panache, and rib-cracking to the scenario, the writer threw a puzzle; asking the name of the person who superintendents a particular ministry. For over thirty minutes, the gathering became a mini “who wants to be a millionaire” show. Responses were funny, cynical, and befuddling. At the end, many got it wrong, no where near the actual answer.
Buoyed by this disturbing discovery, the writer did random survey asking name(s) of ministers from people. The results were thought provoking, challenging and revealing. Names of few ministers are readily called. Somehow, the ‘playful’ exercise brought concerns to the writer. That people cannot readily recall names of their respective state’s representative on the cabinet list was shocking. That many had to resort to Google for “escape route” was saddening. That educated elites flunked the poser gives worrying signs.
August last year, when President Bola Tinubu sworn in his 46-member cabinet team after successful screening and confirmation by the Senate, there were varied opinions. While some people criticized the number arguing that it would stifle the economy, others believed it was the right way to go considering urgent need for pragmatic development. A school of thought postulated that aside being the largest ministerial cabinet since 1999, the names do not evoke confidence and believability. Another school countered that with the injection of achievers in the private sector, and creation of new ministries, Tinubu’s cabinet should perform. Yet, a different group inferred that with the creation of new ministries including Creative Economy; and re-modelling of few such as Health and Social Welfare; Agriculture and Food Security; Water Resources and Sanitation the cabinet was primed to deliver.
After one year in their various capacities as ministers, just as it was during composition, opinions and views of Nigerians are divided about their performances. There has been wide-ranging comments and criticisms about the cabinet. From reports, it has been deluge of condemnation and few commendation. What about consistent talks of large numbers; wrong deployments; lack of understanding of briefs; and more? For many people, the ministerial team has not lived to the expectations of Nigerians. Some opined that they have not justified the confidence reposed in them by Tinubu.
By their actions, inactions, and activities one can categorize the cabinet in five groups. There are the performers; those showing promises; those who flatter; those missing in action; and outright failures. Some merely make ‘politically correct’ statements with less or no corresponding action. Sadly, there are those who have taken, and maintained sleeping-modes. Some do not have any concrete and ‘see-able’ programme. Some have been innocuously silent, absent, and forgotten by Nigerians. Some have performed abysmally low in spite their initial boastful, and pretentious posturing.
Though there has been near-unanimity of opinion about the whimsical and undulating performances of the ministers, it is not all gloom and moody. Given the aggregation of views and opinions by people, there are few bright lights that evokes inspiration and confidence. In the midst of the class of largely non-ingenious, somewhat confused, overwhelmed, and disappointing failures, few have earned the applause and encomium of Nigerians. To reasonable extent, they have added depth and deliveries to the Tinubu administration. A bird’s eye review of these ministers; in no ranking order will suffice.
Nyesom Wike as the 17th minister of the federal capital territory is a paradox. To some, he is controversial and aggressive. Many others love his direct, frank, and open style of administration. Like or loathe him, vast majority of Abuja residents, and regular visitors commend his business-like approach to the delivery of outstanding projects and programmes spread in and around Nigeria’s capital. Under his watch, in addition to massive infrastructural development geared towards transforming Abuja, he has increased revenue generation to about 126.54 billion naira in the first 6 months of 2024, which is 53.5 percent higher than the figure in 2023. Public service reforms leading to establishment of FCT Civil Service Commission; appointments of Head of Service, and a dozen Permanent Secretaries; creation of Women Affairs, and Youth Development Secretariats. Extension of development to Area Councils to open up, and boost rural economy. Impressed by his excellent work rate and visible achievements, many describe him as the ‘poster boy’ of Tinubu’s government.
One can conclude that the Interior Minister, Olubunmi Tunji Ojo has shown passion, dedication, commitment in his tour of duty. The 42-year old Ondo state-born former lawmaker has displayed ingenuity and fervour in piloting the ministry. With the rare combination of brilliance, education, exposure, and experience, he has recorded achievements. These includes innovative templates for passport processing; clearance of over 200,000 passport backlogs in just 3 weeks. Facilitated the release of over 4,000 prison inmates; payment of outstanding allowances, and improvement of existing welfare structures of agencies; rehabilitation and upgrade of facilities. Cleared over 10 billion naira debts, owed by his predecessors in his first few months; procurement of patrol vehicles, and other necessary operational components for surveillance activities.
Doris Nkiruka Uzoka-Anite, the medical doctor turned banker and financial investment expert superintendents the nation’s industry, trade, investment ministry. Though she oversee a largely unknown but critical sector, she has made encouraging achievements which is expected to manifest from the third quarter of 2025. These includes $30 billion investment commitments by some international companies and agencies; $14 billion worth of FDI inflow; $10 billion offshore investments commitment in Nigeria’s oil and gas free zones. Secured $3 billion facility from AFREXIM to build an industrial park, and light manufacturing expected to generate about 20,000 jobs; over $2 billion partnership with an African Finance Corporation subsidiary to resuscitate the cotton and textile industries for massive economic boost, and job creation. Arguably, the best in the ministry since 1999, she needs to improve her public affairs management.
Under the pragmatic leadership of Engr. Dave Umahi, the Works ministry is being positioned to effectively and efficiently meet the expectations of Nigerians.The Abuja-Kano, Port Harcourt-Enugu expressways, and other federal roads critical to national development are receiving positive look-in. It is expected that Umahi will galvanise the FERMA to fix bad patches of roads across the country. The Aviation and Aerospace Development Ministry has posted some encouraging feats. Under the leadership of Festus Keyamo, the ministry facilitated Air Peace’s Lagos-London route; the US-Nigeria Open Skies Air Transport Agreement which is expected to enable local airlines operate more freely on this routes; resolution of trapped funds for foreign airlines; resolution of the Nigeria/Emirates Airline crisis, and few other initiatives.
Few other ministers overseeing justice; solid minerals; housing and urban development; finance and budget; health and social welfare; digital economy merits measured commendation. Can one say same about their colleagues in defence; education; environment; tourism; science and technology; creative economy; blue economy; agriculture and food security; steel development; water resources and sanitation; and niger delta affairs? Indeed, their respective contributions to the renewed hope agenda requires robust public scrutiny and citizenry inquisition.
Having grossed one year as cabinet ministers, the searchlight has been on them. There has been repeated calls for total overhaul of the team. Some believe that the non-performance of many ministers has led to preponderance of socio-economic challenges. Pushing further, some argue that Nigerians are wallowing in pervasive poverty, escalating inflation, and gradual moral depravity due to the glaring disconnect between government and citizens. There is the general believe that re-jigging the cabinet is most ideal. Tinubu’s ministers should count themselves lucky for being chosen among 200 million Nigerians. A Yoruba proverb that you can facilitate employment for someone but you can’t do the job is most appropriate at this time. Tinubu should do the needful by embarking upon major surgery on his cabinet; to increase citizens believe, re-focus government, and ensure immediate service delivery. Capacity, competence, experience, and relevance should form the criterion for emplacing the proposed cabinet makeover.
* *BOLAJI AFOLABI, a development communications specialist was with the Office of Public Affairs in The Presidency*
Opinion
Before load shedding by telecoms operators begins
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By Sonny Aragba-Akpore
Nigerians are commonly used to electricity power load shedding which strategically reduces or cuts off electricity supply to different consumers or areas in a controlled manner. “This process helps balance demand with available resources.”
It is often planned and negotiated with local building owners. Utility providers monitor electricity demand and identify when it exceeds supply or nears capacity limits. They then create a load shedding plan that entails rotating power outages, temporary current disconnections and incentives to building owners for complying. Once demand decreases or additional power resources become available, the utility provider restores power to the affected areas.
Load shedding can also happen without prior planning. Power customers might experience involuntary load shedding when a utility electrical provider lowers or stops electricity distribution across a coverage area for a short period of time.
This type of load shedding is commonly referred to as a rolling blackout. Brownouts, another type of involuntary load shedding, are caused by a power supplier lowering voltage distribution during peak usage times to balance supply and demand.
Load shedding is about survival when telecom operators might start turning off some of their cell sites during less busy times to save on energy and costs.
This could help them minimize resources better and keep services running, even when it’s not a perfect solution. If telecom operators implement load-shedding, the quality of service could decline sharply. Load-shedding would likely result in reduced network coverage, slower internet speeds, and an increase in dropped calls according to an analyst.
According to the Nigerian Communications Commission (NCC), Nigeria had over 164 million million active internet subscriptions as of March 2024,with mobile data accounting for the majority. A reduction in service quality could severely impact these users, leading to widespread frustration,this analyst added.
An alalyst describes load shedding as a deliberate shutdown of telecom services in a part or parts, generally to prevent the failure of the entire system when the demand strains the capacity of available infrastructure.
Plagued by incessant rising cost of operations, including the increased prices of diesel, infrastructure maintenance, and a depreciating naira, “have called on the NCC to approve a tariff increase to help mitigate their financial burdens.”
MTN, for instance,with a subscriber base of 81.7million as of March 2024,reported a first loss after tax of N137 billion since its 2019 listing on the Nigerian Stock Exchange in 2023. The telco incurred FX losses of N740 billion ($815.79 million at N907.1/$).
> “Airtel Africa, which had 63.3 million subscribers in Nigeria as of March 2024, reported a loss after tax of $89 million for its full year ended March 2024, primarily due to FX headwinds in Nigeria and Malawi. It lost $1.26 billion to derivative and FX exposures, with $770 million attributed to the naira’s devaluation.”
This has led to dwindled investment in the telecoms sector, Carl Cruz, chief executive officer of Airtel Nigeria, stated, adding that, “The devaluation of the Naira moving from N420/dollar to N760/dollar in a month’s time, to about N1500/dollar today, had indeed affected telecoms industry who rely heavily on importation of infrastructure to grow the sector.’
In the same vein, Karl Toriola, CEO, MTN Nigeria, said operators are reluctant to invest, simply because of the high operating cost and the devaluation of naira, among other issues that have marred the growth of the sector.
According to him, the telecoms sector in Nigeria is now in an intensive care unit (ICU) gasping for breath, while calling on the government to intervene.
The sector is facing a lot of challenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. To rescue the sector from collapsing, there is a need to increase prices of telecom services.”
Despite repeated pleas, the regulatory body has remained silent on the issue, causing frustration and uncertainty among industry players.
ALTON had earlier sent a working paper (memo) to the telecom regulator (NCC) saying that “the telecommunications industry has been significantly impacted by a myriad of macroeconomic challenges experienced in recent years due to the resulting exponential increase in broad business costs.”
“Of particular importance are:
*the upward trajectory in the inflation rate from 11.98% in 2019 to 21.34% in 2022 and currently 27.33% as at October 2023;
•rapid devaluation of the Naira evidenced by the recent upward movement at a rate of 68.5% from N461/$1 in December 2022 to N777/US$ as at the end of September 2023;and now over 1,590/a dollar.
•Sustained rise in energy prices with diesel currently retailing at an average price of N1,400/litre from N250/litre in January 2022.
With energy costs representing >40% of Mobile Network Operators’ operating expenses, tighter external financing conditions, higher debt service payments, and increased pressure on the Nigerian FOREX market, there has been a significant increase in the cost of production which has jeopardized MNOs’ capacity to maintain healthy margins in such a capital-intensive and FOREX- dependent industry as ours.
Despite these adverse economic headwinds, the telecommunications industry remains the only industry that has yet to effect any general tariff increase for its services in the last five years due to regulatory and political restrictions limiting the MNOs’ ability to react to the increased cost of doing business with our applications for these general increases still pending with the Commission one year after submission. The same cannot be said for our counterparts in other critical industries who have adjusted the retail prices of their goods and services with the support of their industry regulators to be reflective of their true business costs of production as a means of cushioning the net effect of the sky rocketing costs of doing business. We have attached, for the EVC’s consideration, a detailed overview of examples of such price increases in other sectors.
The operators also lament regulatory overlaps where unbudgetted expenditures are spent to defray unexpected expenses.
In their own position,ALTON also advocates for the co-creation of policies for the ICT sector,
better collaboration between ICT and non-ICT regulators with oversight over the sector (environment and consumer and corporate
governance) given the cross-cutting nature of digital services, which span multiple subject areas and regulatory frameworks.
“The Federal Government should also give the telecoms sector a special status like
> Agriculture and Manufacturing and introduce fiscal incentives for the sector, for example, the reduction of spectrum and numbering fees,replicate Road Infrastructure Tax Credit scheme for digital infrastructure projects.”
“ There is also a need to encourage market consolidation/collaboration arrangements to build stronger market players in the industry.”
“Implementation of the Open Data policy to make data accessible such that companies can collaborate with third-party developers, startups,
>> and other industries to develop applications, analytics tools, and
>> personalized services which will unlock new data-driven revenue
>> streams not only for telecoms but also for other industries such as banking, agriculture, manufacturing, “
“ We also require capable regulatory agencies overseeing and regulating these innovations. As such, the staff of relevant agencies will need to upskill and broaden their knowledge base while revising their frameworks to enhance technical and analytical capabilities.”
> ALTON laments that amid the formidable challenges facing the industry, “MNOs have also had to contend with a protracted history of non-payment by Deposit Money Banks (DMBs) and other Financial Institutions (FIs) for their utilization of Unstructured Supplementary Service Data (USSD) services provided by MNOs from September 2019 till date.”
> “Regardless of the numerous ministerial and joint regulator-led interventions on this issue, commencing with the intervention of the immediate past Honorable Minister of Communications and Digital Economy (HMoCDE) in 2021, the consequent approval for disconnection of the banks issued by the Commission further to the HMoCDE’s directive in 2022, and the recent joint resolutions issued by the Commission and the CBN in August 2023 on the terms for defraying the debts owed, the DMBs and FIs have brazenly and persistently refused to meet their obligations to the MNOs through the malicious non-payment or, in many instances, the payment of a minuscule portion of their monthly invoices which has led to the accumulation of a massive debt of ⁓N200 Billion.”
> As a former Executive Director, Technical Services at the Nigeria Inter-Bank Settlement System PLC (NIBSS), “we believe the EVC appreciates the facilitative role of telecommunications in the provision of financial services to Nigerians and how the USSD service has transformed digital banking and advanced financial inclusion in Nigeria, thereby, positively impacting the balance sheet of the DMBs and FIs.”
> “We maintain that it is beyond the pale for the banking industry to hold the telecommunications industry to ransom by its impenitent freeloading activities.
We, therefore, respectfully urge the EVC to take decisive action to put an end to this deplorable practice moreso as the provision of such USSD services to DMBs and FIs come at considerable cost to MNOs. “
> USSD services require substantial investment in enabling platforms such as Applications Programming Interface (APIs) and USSD Gateways for service delivery, cost of establishing signaling channels (a limited and critical network resource essential for the hitch-free service delivery) and the opportunity cost of utilizing these signaling channels and network services for USSD services instead of other prepaid network services such as Call/SMS set-up and delivery which cannot run in parallel with a USSD session.
Opinion
MAN LIKE WIKE
![](https://naijablitznews.com/wp-content/uploads/2024/08/images-2024-08-06T183021.959.jpeg)
By Elder OSF
I don’t want this piece to be about the man Wike. But in truth I’m writing about him. I believe there’s a difference between writing about someone and writing of someone, or by someone and with someone.
Don’t mind me I’m just messing with you. It’s about Wike I’m writing, yes. Whether it’s of him or by, through or with him is, at best, misleading semantics.
There’s something in Wike that everybody should have. Yes, your mind has caught it too.
That relentless drive to push beyond limits, to chart new courses, to break barriers, is something every human being needs to have.
First off, Wike is not Jesus Christ. This is not about his values as a person. We will have to agree that our opinions on his values will be different, and that despite the difference we can examine his life to pick some lessons.
Why Wike, someone might ask. It’s because it is Wike. His story checks out well in the space we occupy as Nigerians. It is Wike. Everybody knows Wike – with all his flaws and accomplishments.
How Wike became a Minister, no I don’t mean being the Minister-Governor of Abuja, I mean being junior Minister of Education under President Jonathan, was by defying the odds placed before him by the political system of that era. It also involved facing stiff opposition by his erstwhile boss, our forever beloved CRA, the then powerful Governor of Rivers State.
How Wike became Governor, was by first refusing to cancel himself even on the basis of ethnicity, given that CRA whom he was seeking to succeed was of the same ethnic stock as he was in a multi-ethnic and diverse state as Rivers. He was relentless. He went the full nine yards and beyond. Some of his tactics are definitely indefensible but his relentless drive somehow counts for something.
How Wike ousted Atiku from being President, insisting on power rotation to the South, which favoured the incumbent President is itself worth studying. Make no mistakes about the fact that I am aware that there are various variants of narratives on how that happened. My interest is not the story. It is the fact that Wike got what he wanted.
He got more. He is the first Nigerian politician to influence the politics of both the ruling political party and its main opposition in his home State of Rivers. The very first person in history to accomplish that.
How does Wike’s mind work?
I’d tell you. It is solutions oriented. The impossibility of accomplishing anything has been so stifled in Wike’s thinking that it is impossible not to see possibilities, a way out of the myriad of complexities he navigates in the labyrinth of his daily political affairs. He is like a slippery fish. At least he’s proven to be that so far. You can’t hold him down.
Many times we’ve expected it to be the end of his political career, but somehow, he manages to wriggle himself out. Fayose his friend knows some things he has not told us. He only alluded to Wike’s opponents seeing spirits when they oppose him. But that’s not enough. What does Fayose know?
He knows how Wike’s mind works. He knows that Wike finds the way and where he can’t, he creates a new pathway.
This is how every human being should be wired. Wike’s creativity is not unique to him. But he has masterly mined the power of the human mind to his own advantage. Showing time and again, that impossibility is nothing.
As I said earlier, this is not about Wike. It is about the mind that powers his moves. If we can frame our minds like that and taint them with the values that we cherish, we will live more fulfilled lives.
This is how a regular guy from Rumuepirikom was able to be Governor of two Nigerian states back to back even without being a member of the political party of the latter.
Curse him for many reasons. He is a politician. He signed up for it. But when you’re done, give the man his flowers. He deserves them.
Elder OSF
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