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Opinion

Budget Padding: Salient Questions Nobody is Asking Ningi, By Ola Awoniyi

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What was the motive of Distinguished Senator Abdul Ahmed Ningi for raising a controversy over the 2024 federal budget?

Since the Senate at its Plenary of Tuesday 12th March, 2024 deliberated over the matter and handed a three-month suspension to the Bauchi Senator, there have been countless commentaries in the media on the issue but few of them have considered the pertinent questions that would have helped Nigerians see what Senator Ningi sought to achieve by essentially stirring up a hornests’ nest.

To start with, Ningi is not just a Senator of the Federal Republic of Nigeria. He is a ranking Senator with vast experience in legislative business. Ningi was first elected to the House of Representatives at the beginning of the Fourth Republic in 1999 and is one of the longest serving federal lawmakers in Nigeria. He was the Majority Leader in the House of Representatives between 2003 and 2007, and Deputy Majority Leader in the Senate for another four years between 2011 and 2015. Those were privileged positions that made him a Principal Officer in both chambers of the National Assembly. That also means that the Bauchi Senator has participated actively in the passage of the federal budgets at the highest level.

With his experience from all those privileged positions in his long tour of duty at the National Assembly, Ningi understands the nitty-gritty of the legislative and Appropriation processes in both Chambers of Parliament.

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Also, as a Distinguished Senator, he has unfettered access to all legislative documents. So it should be disturbing when a Senator of that calibre claimed that there were two versions of the 2024 budget and that the budget, which he actively participated in its passage, was padded with projects costed at trillions of Naira and skewed against his own section of the country.

Let’s note at this point that Ningi never said in his hell-raising BBC (Hausa Service) interview or at that Tuesday Plenary or in any of his subsequent media shows that he was denied access to the budget document, whether as proposed by the Executive or as passed by the two Chambers of the National Assembly. He has the entire document, like every other Senator or Member of the House of Representatives.

Are you not wondering then why he didn’t raise his observations when the document was being processed and during the final passage by the two Chambers?

Given his many years in parliament, it is incredible that Senator Ningi said at that Tuesday Plenary that he didn’t know the full details of the budget. Even more so the claims that he was unaware that the National Assembly jerked up the original budget proposals by N1.2 trillion, from N27.5 trillion to N28.7 trillion, and that he had no knowledge of Statutory transfers of N3.32 trillion to Government institutions and agencies on first line charge.

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And curiously, Senator Ningi has not stressed in his media campaign the fact that he is a member of the Senate Appropriation Committee, which anchored the processing of the national budget in parliament. So he is familiar with the document, its content and processing more than many other of his colleague Senators.

The 2024 Appropriation Bill was signed into law on 31st December, 2023. But Ningi waited until 7th March, 2024 to rally some members of the Northern Senators’ Forum (NSF) to complain to the President of the Senate, Godswill Obot Akpabio, about the budget. Why did it take an experienced ranking Senator and a member of the Senate Appropriation Committee two months and seven days after passage to realised that something was amiss with the Appropriation Bill, which is often the most important law passed by Parliament? Why did Ningi wait that long after the Bill had been signed into law to hire a consultant (for N30 million) to scrutinise a document that was presented to the National Assembly on 29th November, 2023?

It was commendable that Senator Ningi at least drew the attention of the Senate President to his “discoveries,” however belatedly.

The Senate President asked to see the details of the “discoveries” made by the consultant. A fellow member of the NSF, Distinguished Senator Ali Ndume, said he also asked Ningi for the same information. But rather than availing them with it, Ningi headed to BBC Hausa Service, the day after the meeting with the Senate President, to grant his explosive interview. Why? And why BBC Hausa Service? Was it to play the ethnic card?

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The members of the NSF at the meeting with the Senate President agreed on the need to establish the facts before any further step was taken. So why was Senator Ningi impatient to have his claims verified, even by members of his own Forum, and exhaust internal mechanism for correction of any anomaly before escalating it to an international audience?

Senator Ningi has said repeatedly that the “discoveries” are known to him and only him alone. He has exclusive knowledge of the report of the consultant that he hired, most likely in the name of the NSF. No other member of the Forum is privy to the findings of the consultant. Isn’t that awkward?

Why is he keeping the “findings” to himself? Why is he reluctant to share them with even Distinguished Senators in his Forum?

Some of them implored him to apologise at the Plenary after his claims had been established to be fictitious. But rather than heed their advise, Senator Ningi flew from the main issue to unrelated matters like the take home pay of the Senate President and the number of aides the Senate President and other Principal Officers have! Why?

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According to the Senate Leader, Michael Opeyemi Bamidele, Ningi’s astonishing fiction was merely the opening salvo in a plot for Senate leadership change. As it turned out, that plot failed because the protagonist has no backing of any group in the Upper Chamber, not even of the Forum he chaired before the gambit forced him to step aside from the chair.

***Awoniyi, Media Aide to Senate President, writes from Abuja

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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.

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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.

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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.

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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*

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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.

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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.

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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.”

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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.”

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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.

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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.

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“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.”

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> 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. “

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> 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.

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Opinion

MAN LIKE WIKE

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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.

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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.

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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?

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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.

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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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