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Showing posts with label Goodluck Jonathan.. Show all posts
Showing posts with label Goodluck Jonathan.. Show all posts

EXPOSED: How Jonathan Awarded Many Ghost Projects - Presidency

EXPOSED: How Jonathan Awarded Many Ghost Projects - Presidency

EXPOSED: How Jonathan Awarded Ghost Projects - Presidency
The administration of Former President Goodluck Jonathan awarded many projects on paper without allocating a single kobo for its take off, the President has claimed

The senior special assistant to the President on Media and Publicity, Garba Shehu, who stated this in an interview program on Express Radio in Kano on Tuesday, said a number of projects existing on paper are now being activated, citing the Kano-Katsina dual road project as an example of what he called “deceitful and ghost projects now being given life.”


In his words, “Kano-Katsina dual highway was awarded three years ago by the last administration. They didn’t pay a kobo for its start-up. President Buhari just paid money for the first tranche of 75 kilometers and work has begun apace.”

According to him, Nigeria is taking a giant leap in infrastructure development by speeding up ongoing projects and investing heavily in the construction and repair of highways, railways and power generating plants across the country.

He said that the Buhari administration had chosen to fast track projects related to infrastructure in order to pump money into the economy as a way of pulling the economy out of recession.

To this end, he said that an unprecedented amount of N750 Billion Naira has been released for capital projects in the last five months and that counterpart funds for the take-off of the USD 11 billion Kano-Lagos rail project had been paid.

Malam Garba explained the essence of infrastructure in the country’s economic and industrial take-off, describing it as the equivalent of the arteries forming the bloodstream in the body. “Without infrastructure, the country will not witness growth,” he noted.

On the resurgence of militancy and pipeline vandalism in the Niger Delta region, Malam Garba appealed to militants to maintain peace in the region as the President seeks a permanent solution to the problems that are worrisome to every citizen.

“We must keep national interest above all else and give priority to eschewing violence and destruction,” he urged.

The Presidential spokesman expressed regrets that despite its good faith in pursuing dialogue with the Niger Delta stakeholders, the militant groups have not reciprocated the government’s good gesture in finding peaceful and lasting solution to the crisis in the oil producing areas of Nigeria.

In his words, “Despite the government’s practical demonstration of goodwill by bringing the parties or stakeholders to the round table, the militant groups have continued to blow up national economic assets.”

According to Malam Garba, the continued destruction of oil installations, including those repaired, has thrown a spanner in the works, causing enormous hardships on innocent Nigerians on account of declining oil production output and massive losses of revenues, which in turn, badly affect the ability of governments at all levels to meet their basic obligations, including payment of salaries.

The Presidential Spokesman, while cautioning that violence brings no benefits to anybody, appealed to Niger Delta leaders at all levels to exert every influence they have to stop the violence and economic sabotage “so that normalcy returns to the region.”
EXPOSED: How Jonathan Awarded Ghost Projects - Presidency
The administration of Former President Goodluck Jonathan awarded many projects on paper without allocating a single kobo for its take off, the President has claimed

The senior special assistant to the President on Media and Publicity, Garba Shehu, who stated this in an interview program on Express Radio in Kano on Tuesday, said a number of projects existing on paper are now being activated, citing the Kano-Katsina dual road project as an example of what he called “deceitful and ghost projects now being given life.”


In his words, “Kano-Katsina dual highway was awarded three years ago by the last administration. They didn’t pay a kobo for its start-up. President Buhari just paid money for the first tranche of 75 kilometers and work has begun apace.”

According to him, Nigeria is taking a giant leap in infrastructure development by speeding up ongoing projects and investing heavily in the construction and repair of highways, railways and power generating plants across the country.

He said that the Buhari administration had chosen to fast track projects related to infrastructure in order to pump money into the economy as a way of pulling the economy out of recession.

To this end, he said that an unprecedented amount of N750 Billion Naira has been released for capital projects in the last five months and that counterpart funds for the take-off of the USD 11 billion Kano-Lagos rail project had been paid.

Malam Garba explained the essence of infrastructure in the country’s economic and industrial take-off, describing it as the equivalent of the arteries forming the bloodstream in the body. “Without infrastructure, the country will not witness growth,” he noted.

On the resurgence of militancy and pipeline vandalism in the Niger Delta region, Malam Garba appealed to militants to maintain peace in the region as the President seeks a permanent solution to the problems that are worrisome to every citizen.

“We must keep national interest above all else and give priority to eschewing violence and destruction,” he urged.

The Presidential spokesman expressed regrets that despite its good faith in pursuing dialogue with the Niger Delta stakeholders, the militant groups have not reciprocated the government’s good gesture in finding peaceful and lasting solution to the crisis in the oil producing areas of Nigeria.

In his words, “Despite the government’s practical demonstration of goodwill by bringing the parties or stakeholders to the round table, the militant groups have continued to blow up national economic assets.”

According to Malam Garba, the continued destruction of oil installations, including those repaired, has thrown a spanner in the works, causing enormous hardships on innocent Nigerians on account of declining oil production output and massive losses of revenues, which in turn, badly affect the ability of governments at all levels to meet their basic obligations, including payment of salaries.

The Presidential Spokesman, while cautioning that violence brings no benefits to anybody, appealed to Niger Delta leaders at all levels to exert every influence they have to stop the violence and economic sabotage “so that normalcy returns to the region.”

I Should've ARRESTED, PROSECUTED Buhari In 2015, But... - Jonathan

I Should've ARRESTED, PROSECUTED Buhari In 2015, But... - Jonathan

Daily Times - In what appears like a criticism of his successor’s selective anti-corruption war, and intolerance for freedom of speech, former President, Goodluck Jonathan, has tactically revealed why he did not detain President Muhammadu Buhari, during his reign. 

Recall, that prior to the 2015 election, Buhari, the then Presidential candidate of the All Progressives Congress, APC, had threatened violence, if the 2015 elections were rigged in favour of the Peoples Democratic Party, PDP. 



“If what happened in 2011 (alleged rigging) should again happen in 2015, by the grace of God, the dog and the baboon would all be soaked in blood.’’ Buhari had said. 


He added that, “Nigeria had neither political prisoners, nor political exile under my administration.” 

Jonathan, who was the keynote Speaker at the Nigerian Lawyers Association’s Annual Dinner and Merit Awards ceremony, held in New York, mentioned some factors he considered to be his administration’s democratic credentials.


Daily Times - In what appears like a criticism of his successor’s selective anti-corruption war, and intolerance for freedom of speech, former President, Goodluck Jonathan, has tactically revealed why he did not detain President Muhammadu Buhari, during his reign. 

Recall, that prior to the 2015 election, Buhari, the then Presidential candidate of the All Progressives Congress, APC, had threatened violence, if the 2015 elections were rigged in favour of the Peoples Democratic Party, PDP. 



“If what happened in 2011 (alleged rigging) should again happen in 2015, by the grace of God, the dog and the baboon would all be soaked in blood.’’ Buhari had said. 


He added that, “Nigeria had neither political prisoners, nor political exile under my administration.” 

Jonathan, who was the keynote Speaker at the Nigerian Lawyers Association’s Annual Dinner and Merit Awards ceremony, held in New York, mentioned some factors he considered to be his administration’s democratic credentials.


EXPOSED: CAN Leaders Bribed Me N1m To Shut Up Over N7b Jonathan Election Largess - This Pastor Confesses At Last

EXPOSED: CAN Leaders Bribed Me N1m To Shut Up Over N7b Jonathan Election Largess - This Pastor Confesses At Last

Pastor Kallamu Ali Dikwa
The Nation - A Jos-based clergy, Pastor Kallamu Ali Dikwa, yesterday reignited the controversy over the alleged N7billion ‘donation’ to the leadership of the Christian Association of Nigeria (CAN) by the Goodluck Jonathan campaign organization ahead of last year’s election.

Dikwa said in Kaduna that he was offered N1million of the sum to ‘keep quiet’.

He first blew open the allegation in 2015 when he claimed the money was given to CAN for the purpose of campaigning for the former president.

Jonathan lost the election.


However, CAN President Supo Ayokunle yesterday dismissed the allegation as a mere fabrication. Ayokunle was vice president to Pastor Ayo Oritsejafor, who was CAN President.

Ayokunle said he has never given anyone money since his assumption of office three months ago.

Pastor Dikwa told reporters in Kaduna that he was not out to defame or embarrass anybody, but to let the world know that CAN as a body of Christ should shun illegal money.

He said:”If, as religious body, CAN cannot stand for truth, then Nigeria will continue to grope in the dark. Buhari will never succeed in his fight against corruption if religious leaders can’t shun corruption.”

Asked for proof of the disbursement of the money to CAN, he said, “I don’t have the documents on how the money was handed to CAN, but I have my confidants who were there then and documents on how it was shared.”

He said a particular church was given N50m.

He added, “I maintain my position on the N7b campaign money that was given to CAN and about nine Toyota Jeeps which were shared and distributed among themselves.

“On the 17th of March 2015, at the Department of State Security I was forced to write an undertaking that I will refrain from peddling such information.

“This was prior to a letter written by CAN on 20th February, 2015 to DSS on ‘Complaint against Kallamu Musa Ali Dikwa for false information, defamation of character and mischief likely to cause a breach of public peace’ which led to my arrest and torture for about nine hours by DSS.

“It was after my detention that I wrote to ICPC and EFCC complaining about what I was going through and the need for their necessary action. EFCC responded to me through a text message by one Mr. Ola Oji, Abuja office in December last year: ‘Please be informed that we have vetted your petition to the commission and found it to be civil. Consequently, we decline investigation into same. You may wish to file an action in Court against the subject please.’

“I went to court to challenge my arrest and torture. While the court case was going on, CAN leadership offered me some monetary enticement of N1m in order to withdraw the petition and the matter in court through my bank details. I did that to trap them and to prove the authentication of what is going on.

“It is on record that on 21st of September 2016, CAN through its lawyer  texted me a piece through my mobile line to copy and write to ICPC as my opinion.”

Meanwhile, CAN President, in a telephone interview said, “I don’t know any Dikwa. I have never met any Dikwa in my life. I came on board three months ago and I have never given out any money to any individual. That must be a fabrication.

“He’s not in CAN. This is not the first time he will be making such allegation. He’s looking for people he would get money from. People like me will never do anything like that.

“I have never seen his face though I do read some of his allegations. He’s not somebody of integrity. I’m aware he’s a convert. He’s been sending me text messages but I can never associate with such people.”

Dikwa claimed to have been working with CAN since 2004.


Pastor Kallamu Ali Dikwa
The Nation - A Jos-based clergy, Pastor Kallamu Ali Dikwa, yesterday reignited the controversy over the alleged N7billion ‘donation’ to the leadership of the Christian Association of Nigeria (CAN) by the Goodluck Jonathan campaign organization ahead of last year’s election.

Dikwa said in Kaduna that he was offered N1million of the sum to ‘keep quiet’.

He first blew open the allegation in 2015 when he claimed the money was given to CAN for the purpose of campaigning for the former president.

Jonathan lost the election.


However, CAN President Supo Ayokunle yesterday dismissed the allegation as a mere fabrication. Ayokunle was vice president to Pastor Ayo Oritsejafor, who was CAN President.

Ayokunle said he has never given anyone money since his assumption of office three months ago.

Pastor Dikwa told reporters in Kaduna that he was not out to defame or embarrass anybody, but to let the world know that CAN as a body of Christ should shun illegal money.

He said:”If, as religious body, CAN cannot stand for truth, then Nigeria will continue to grope in the dark. Buhari will never succeed in his fight against corruption if religious leaders can’t shun corruption.”

Asked for proof of the disbursement of the money to CAN, he said, “I don’t have the documents on how the money was handed to CAN, but I have my confidants who were there then and documents on how it was shared.”

He said a particular church was given N50m.

He added, “I maintain my position on the N7b campaign money that was given to CAN and about nine Toyota Jeeps which were shared and distributed among themselves.

“On the 17th of March 2015, at the Department of State Security I was forced to write an undertaking that I will refrain from peddling such information.

“This was prior to a letter written by CAN on 20th February, 2015 to DSS on ‘Complaint against Kallamu Musa Ali Dikwa for false information, defamation of character and mischief likely to cause a breach of public peace’ which led to my arrest and torture for about nine hours by DSS.

“It was after my detention that I wrote to ICPC and EFCC complaining about what I was going through and the need for their necessary action. EFCC responded to me through a text message by one Mr. Ola Oji, Abuja office in December last year: ‘Please be informed that we have vetted your petition to the commission and found it to be civil. Consequently, we decline investigation into same. You may wish to file an action in Court against the subject please.’

“I went to court to challenge my arrest and torture. While the court case was going on, CAN leadership offered me some monetary enticement of N1m in order to withdraw the petition and the matter in court through my bank details. I did that to trap them and to prove the authentication of what is going on.

“It is on record that on 21st of September 2016, CAN through its lawyer  texted me a piece through my mobile line to copy and write to ICPC as my opinion.”

Meanwhile, CAN President, in a telephone interview said, “I don’t know any Dikwa. I have never met any Dikwa in my life. I came on board three months ago and I have never given out any money to any individual. That must be a fabrication.

“He’s not in CAN. This is not the first time he will be making such allegation. He’s looking for people he would get money from. People like me will never do anything like that.

“I have never seen his face though I do read some of his allegations. He’s not somebody of integrity. I’m aware he’s a convert. He’s been sending me text messages but I can never associate with such people.”

Dikwa claimed to have been working with CAN since 2004.


'Talkative' Fani-Kayode In Fresh Trouble Over N26m Fraud

'Talkative' Fani-Kayode In Fresh Trouble Over N26m Fraud

FEMI FANI-KAYODE
Know for his aggressive criticism of President Muhammadu Buhari led government of the All Progressives Congres, Chief Femi Fani Kayose, a former Aviation Minister has been slammed with fresh charges bothering on N26 million financial scam by the Economic and Financial Crimes Commission, the EFCC.

The fresh charges were filed before the Federal High Court in Abuja, reports accounted by Punch Newspaper suggests

FFk as he is fondly called by admirers, was the Director of Media and Publicity in the campaign organisation of ex-President Goodluck Jonathan, is already standing trial before the Lagos Division of the Federal High Court.


He is facing 17 counts of money laundering before the Lagos Division of the court along with a former Finance Minister, Nenadi Usman, Danjuma Yusuf and a firm, Joint Trust Dimension Nig. Ltd.

They were charged with unlawful retention, unlawful use and unlawful payment of money to the tune of N4.9bn.

But in the fresh charges numbered, ‘FHC/ABJ/CR/140/2016’, Fani-Kayode is the sole defendant.

The EFCC filed five counts in the fresh case, in which it accused the defendant of diverting N26m allegedly received from the Office of the National Security Adviser, while Sambo Dasuki was in office.

The EFCC also accused him of using the said N26m without going through financial institution as required under the Money Laundering Act.

The case was mentioned before Justice John Tsoho,of the Federal High Court in Abuja on Friday.

The prosecution team was absent at the proceedings.

Although Fani-Kayode was absent, he was represented by a team of lawyers led by Mr. Wale Balogun.

Balogun wondered why the prosecution, who filed the charges, was not aware of the proceedings.

He complained that his client had yet to be served with the charges as required.

He sought an adjournment and the judge adjourned till November 10 for arraignment.

The judge also ordered that hearing notice be served on the EFCC

FEMI FANI-KAYODE
Know for his aggressive criticism of President Muhammadu Buhari led government of the All Progressives Congres, Chief Femi Fani Kayose, a former Aviation Minister has been slammed with fresh charges bothering on N26 million financial scam by the Economic and Financial Crimes Commission, the EFCC.

The fresh charges were filed before the Federal High Court in Abuja, reports accounted by Punch Newspaper suggests

FFk as he is fondly called by admirers, was the Director of Media and Publicity in the campaign organisation of ex-President Goodluck Jonathan, is already standing trial before the Lagos Division of the Federal High Court.


He is facing 17 counts of money laundering before the Lagos Division of the court along with a former Finance Minister, Nenadi Usman, Danjuma Yusuf and a firm, Joint Trust Dimension Nig. Ltd.

They were charged with unlawful retention, unlawful use and unlawful payment of money to the tune of N4.9bn.

But in the fresh charges numbered, ‘FHC/ABJ/CR/140/2016’, Fani-Kayode is the sole defendant.

The EFCC filed five counts in the fresh case, in which it accused the defendant of diverting N26m allegedly received from the Office of the National Security Adviser, while Sambo Dasuki was in office.

The EFCC also accused him of using the said N26m without going through financial institution as required under the Money Laundering Act.

The case was mentioned before Justice John Tsoho,of the Federal High Court in Abuja on Friday.

The prosecution team was absent at the proceedings.

Although Fani-Kayode was absent, he was represented by a team of lawyers led by Mr. Wale Balogun.

Balogun wondered why the prosecution, who filed the charges, was not aware of the proceedings.

He complained that his client had yet to be served with the charges as required.

He sought an adjournment and the judge adjourned till November 10 for arraignment.

The judge also ordered that hearing notice be served on the EFCC

SHOCKER: Stolen $20b Oil Proceeds Hidden In Dubai By Jonathan's Men EXPOSED - Fresh Reports Reveals; See Names Of Culprits

SHOCKER: Stolen $20b Oil Proceeds Hidden In Dubai By Jonathan's Men EXPOSED - Fresh Reports Reveals; See Names Of Culprits

Goodluck jonthan
A Professor of International Studies and author of President Muhammadu Buhari’s authorized biography, John Paden has alleged that some powerful but corrupt Nigerians stole and hid at least $20bn oil proceeds in Dubai and Abu Dhabi in recent years.

Paden’s allegation was contained in his book entitled, Muhammadu Buhari: The Challenges of Leadership in Nigeria, which was launched earlier in the week.

He claimed that the money was stolen and stashed away in the two cities of the United Arab Emirate by some key officials of the past administration.


The author, among others, listed a former Comptroller-General of the Nigeria Custom Service, former chairman of the defunct Pension Reform Task Team, who was alleged to have stolen $2.8 million, and hidden it in the Arab nation.

According to the book, “In some cases, fake names were used to hold such properties. Nigerian security sources believe that as much as $20 billion in stolen Nigerian funds had been packed in banks and invested in properties in UAE’s two major cities of Dubai and Abu Dhabi.

“Some officials were believed to be hiding in Dubai, among them the former CG of NCS and the Chairman of the now defunct Presidential Pension Reformed Task Team, who was wanted in Nigeria for allegedly stealing $2.8 million. Several PDP governors, high level PDP officials had property in UAE.”

Buhari had earlier in the year travelled to UAE in an effort to track looted funds and bring the culprits to justice, a mission that led to the signing of Mutual Legal Assistance, MLA, with the government to pave way for the prosecution of the officials and ensure the repatriation of the stolen cash.

Speaking about the loot, the book added, “The two countries signed an extradition agreement which explicitly pledged UAE help on the recovery and repatriation of stolen assets and extradition of Nigerian fugitives.

“In late January, panic began to grip former PDP government officials, who had previously seen no reason to fear that their property holdings in UAE would be exposed and become vulnerable to legal actions by the Nigerian government.”

Paden stated that although Buhari had vowed to do everything in his power to rid the country of corruption, he also made it clear that he would not interfere with the legal process.

“Although a number of senior officials had been tried for corruption, prior to Buhari’s Presidency, the essence of the current corruption court cases in Nigeria is unprecedented. That does not mean that every case would lead to guilty verdict. All of the accused are entitled to their day in court and are likely to have high quality legal representation; and there will surely be appeals and possible plea bargains.

“Cases may drag on for years. But the fact remains: that the law is taking its course. Importantly, in none of these cases (apart from certain military procurement scandals that impacted National security) has the prosecution been sponsored or encouraged by President Buhari.

“He has kept his hands off the judiciary despite enormous pressure for him to come to the aid of the APC allies. The question will arise when criminal cases are concluded as to whether the Nigerian judiciary is up to the task of being even-handed in such high level cases.

“Buhari’s attitude is to let the chips fall where they may, in particular cases, although reforms of the judiciary is one of his larger goals.

“Buhari has often said that if any of his children were accused of corruption and the authorities did not investigate he would never forgive the authorities.

“On numerous occasions, Buhari has urged public officials to do their duties without fear or favour. He has also tried to inspire younger generation to regard public service as an honest calling.

“For instance, the current head of the EFCC, Mr. Ibrahim Magu, was a school boy in Borno, when Buhari was a military governor in 1975. Buhari gave a talk to a group of boys that included Magu and urged them to do their best. Magu was inspired and became a professional policeman.

“In 2015, Buhari asked Magu to head the EFCC, a dangerous job if done well. By mid May 2015 Magu had secured 143 convictions of corrupt officials,” the biographer said.

Meanwhile the book, which has brought to the fore some behind the scene issues, had explained why a former National Security Adviser, NSA, Col Sambo Dasuki(rtd) may not be soon released from detention

Goodluck jonthan
A Professor of International Studies and author of President Muhammadu Buhari’s authorized biography, John Paden has alleged that some powerful but corrupt Nigerians stole and hid at least $20bn oil proceeds in Dubai and Abu Dhabi in recent years.

Paden’s allegation was contained in his book entitled, Muhammadu Buhari: The Challenges of Leadership in Nigeria, which was launched earlier in the week.

He claimed that the money was stolen and stashed away in the two cities of the United Arab Emirate by some key officials of the past administration.


The author, among others, listed a former Comptroller-General of the Nigeria Custom Service, former chairman of the defunct Pension Reform Task Team, who was alleged to have stolen $2.8 million, and hidden it in the Arab nation.

According to the book, “In some cases, fake names were used to hold such properties. Nigerian security sources believe that as much as $20 billion in stolen Nigerian funds had been packed in banks and invested in properties in UAE’s two major cities of Dubai and Abu Dhabi.

“Some officials were believed to be hiding in Dubai, among them the former CG of NCS and the Chairman of the now defunct Presidential Pension Reformed Task Team, who was wanted in Nigeria for allegedly stealing $2.8 million. Several PDP governors, high level PDP officials had property in UAE.”

Buhari had earlier in the year travelled to UAE in an effort to track looted funds and bring the culprits to justice, a mission that led to the signing of Mutual Legal Assistance, MLA, with the government to pave way for the prosecution of the officials and ensure the repatriation of the stolen cash.

Speaking about the loot, the book added, “The two countries signed an extradition agreement which explicitly pledged UAE help on the recovery and repatriation of stolen assets and extradition of Nigerian fugitives.

“In late January, panic began to grip former PDP government officials, who had previously seen no reason to fear that their property holdings in UAE would be exposed and become vulnerable to legal actions by the Nigerian government.”

Paden stated that although Buhari had vowed to do everything in his power to rid the country of corruption, he also made it clear that he would not interfere with the legal process.

“Although a number of senior officials had been tried for corruption, prior to Buhari’s Presidency, the essence of the current corruption court cases in Nigeria is unprecedented. That does not mean that every case would lead to guilty verdict. All of the accused are entitled to their day in court and are likely to have high quality legal representation; and there will surely be appeals and possible plea bargains.

“Cases may drag on for years. But the fact remains: that the law is taking its course. Importantly, in none of these cases (apart from certain military procurement scandals that impacted National security) has the prosecution been sponsored or encouraged by President Buhari.

“He has kept his hands off the judiciary despite enormous pressure for him to come to the aid of the APC allies. The question will arise when criminal cases are concluded as to whether the Nigerian judiciary is up to the task of being even-handed in such high level cases.

“Buhari’s attitude is to let the chips fall where they may, in particular cases, although reforms of the judiciary is one of his larger goals.

“Buhari has often said that if any of his children were accused of corruption and the authorities did not investigate he would never forgive the authorities.

“On numerous occasions, Buhari has urged public officials to do their duties without fear or favour. He has also tried to inspire younger generation to regard public service as an honest calling.

“For instance, the current head of the EFCC, Mr. Ibrahim Magu, was a school boy in Borno, when Buhari was a military governor in 1975. Buhari gave a talk to a group of boys that included Magu and urged them to do their best. Magu was inspired and became a professional policeman.

“In 2015, Buhari asked Magu to head the EFCC, a dangerous job if done well. By mid May 2015 Magu had secured 143 convictions of corrupt officials,” the biographer said.

Meanwhile the book, which has brought to the fore some behind the scene issues, had explained why a former National Security Adviser, NSA, Col Sambo Dasuki(rtd) may not be soon released from detention

Between Tinubu and Buhari: The Modern Day Afonja and Alimi - By Reno Omokri

Between Tinubu and Buhari: The Modern Day Afonja and Alimi - By Reno Omokri

tinubu and buhari
The present trials of Asiwaju Bola Tinubu, the colossus of the Southwest is not surprising to those who have vision. I saw it coming and that was why over two years ago, precisely on Tuesday, May 27, 2014, I wrote a back page op-ed on ThisDay newspaper titled 'From Battleground to Common Ground' and in that piece, I said inter alia as follows:

'A comrade is not for what you are for, neither does he share the same interests as you. A comrade is simply one who is against what you are against. In other words, you are bound by a common enemy.

The All Progressive Congress, is a party founded on this premise.


Those who are enemies of the President (Goodluck Jonathan) and the PDP gathered together to form a party whose foundation is their common enemy.

They share no ideological connection, neither are they friends. In actual fact, they may even hate each other, only that they hate the President and the PDP more and are willing to temporarily suppress their hatred for each other in other to gang up against their common enemy.

In my experience, it is better to have a party built on common interests than to have one built on a common enemy. This is because as even a political novice will tell you, there are no permanent friends or permanent enemies only permanent interests.

Now, if the above is true, what would happen to a party that is built on a common enemy?

Parties built on this foundation last only as long as the enemy is in power. Once their enemy is no longer in power the party disintegrates.'

It does not matter if you hate Reno Omokri's guts, but ask yourself if what I said has not turned out to be the truth. 

In the space of just a month, Bola Tinubu has been deliberately mystified and treated with such contempt that even those who he considered his worst enemies find themselves feeling sorry for him.

But he should have seen it coming! 

The unraveling of Bola Tinubu actually began on the 3rd of June 2016, when President Muhammadu Buhari publicly and right in Tinubu's face told him at a reception the President held for members of the National Assembly at the Presidential Villa that the All Progressive Congress had no such position as a National Leader. 

I know this because a Senator who attended the function called me almost immediately after the event and told me about how the hall descended into almost pin drop silence after the President made that assertion. 

I can assure my readers that President Muhammadu Buhari would never have made such a remark prior to the 2015 elections. But who needs a piece of toilet paper after it has done its job!

That remark was the signal that sleeper agents  within the APC were waiting for to begin the unraveling of the masquerade.

Teaching him a lesson in Ondo state is only the beginning. Bola Tinubu's comeuppance is not yet complete in the eyes of his traducers.

And then look at the way he is portrayed in  Professor John Paden's biography of the president. Paden portrays Tinubu as a desperate power monger who kept throwing himself at Buhari only to be rejected at each instance. Tinubu, see how low you have fallen!

I do not know why Bola Tinubu is angry at Paden. Did he not read that this was an official biography?

Paden was not there during the horse trading. The book was written with the cooperation of President Buhari. The things he wrote about Tinubu were the accounts he was given by the President.

So Tinubu should call a spade a spade. President Buhari merely told the world what he really thinks of Tinubu. 

And look at all the men around President Buhari who got to where they are on the back of Tinubu. Has anyone of them come out to speak in his defense? Where is Vice President Osinbajo? He can blame Jonathan but cannot defend his benefactor. Where is Fashola? He can come up with excuses for giving Nigerians darkness but cannot speak up for his oga? Lai Mohammed is nowhere to be found. Perhaps he is too busy dressing up masquerades or looking for a parastatal under him to loan him some money!

At the end of the day, after all the terrible things the propaganda wing of APC said and did to Ayo Fayose and Femi Fani Kayode, who came to the help of Tinubu but the two men demonized by the very same propaganda machinery that Tinubu helped set up. 

And as for Tinubu, I cannot imagine why someone will write a book and insult you in it and still invite you to the launch and you agree to go simply because he is a president. 

Even worse, they asked you to write a review for the book and you did! Is this the same Tinubu that was so mouthy under Jonathan? Look at how he has become a chihuahua today. Lord have mercy!

Tinubu! Your Afonja too much! 

Did you not see what ex-President Goodluck Jonathan did with the so called Leadership Award. You do not honour a gathering designed to reduce you with your presence. As the late kakanfo MKO Abiola would say 'a man who allows his head to be used to break a coconut may not live to eat it'!

Even the well respected Pastor Osinbajo cannot even publicly come to your defense and tell the truth of how you helped him secure his exalted office. Yet he is the chief beneficiary of your generosity. 

My advise to you, Asiwaju Bola Tinubu, is this: a woman who continues to make herself available to a man that only remembers her when he needs her services to satisfy his lustfulness should not be surprised when her own children deny that she is their mother! 

Finally, going forward, before labeling people like Ayo Fayose and Femi Fani-Kayode as enemies, remember that it is better to be insulted with the truth than flattered with a lie.

Omokri is the founder of the Mind of Christ Christian Center in California, author of Shunpiking: No Shortcuts to God and Why Jesus Wept and the host of Transformation with Reno Omokri

tinubu and buhari
The present trials of Asiwaju Bola Tinubu, the colossus of the Southwest is not surprising to those who have vision. I saw it coming and that was why over two years ago, precisely on Tuesday, May 27, 2014, I wrote a back page op-ed on ThisDay newspaper titled 'From Battleground to Common Ground' and in that piece, I said inter alia as follows:

'A comrade is not for what you are for, neither does he share the same interests as you. A comrade is simply one who is against what you are against. In other words, you are bound by a common enemy.

The All Progressive Congress, is a party founded on this premise.


Those who are enemies of the President (Goodluck Jonathan) and the PDP gathered together to form a party whose foundation is their common enemy.

They share no ideological connection, neither are they friends. In actual fact, they may even hate each other, only that they hate the President and the PDP more and are willing to temporarily suppress their hatred for each other in other to gang up against their common enemy.

In my experience, it is better to have a party built on common interests than to have one built on a common enemy. This is because as even a political novice will tell you, there are no permanent friends or permanent enemies only permanent interests.

Now, if the above is true, what would happen to a party that is built on a common enemy?

Parties built on this foundation last only as long as the enemy is in power. Once their enemy is no longer in power the party disintegrates.'

It does not matter if you hate Reno Omokri's guts, but ask yourself if what I said has not turned out to be the truth. 

In the space of just a month, Bola Tinubu has been deliberately mystified and treated with such contempt that even those who he considered his worst enemies find themselves feeling sorry for him.

But he should have seen it coming! 

The unraveling of Bola Tinubu actually began on the 3rd of June 2016, when President Muhammadu Buhari publicly and right in Tinubu's face told him at a reception the President held for members of the National Assembly at the Presidential Villa that the All Progressive Congress had no such position as a National Leader. 

I know this because a Senator who attended the function called me almost immediately after the event and told me about how the hall descended into almost pin drop silence after the President made that assertion. 

I can assure my readers that President Muhammadu Buhari would never have made such a remark prior to the 2015 elections. But who needs a piece of toilet paper after it has done its job!

That remark was the signal that sleeper agents  within the APC were waiting for to begin the unraveling of the masquerade.

Teaching him a lesson in Ondo state is only the beginning. Bola Tinubu's comeuppance is not yet complete in the eyes of his traducers.

And then look at the way he is portrayed in  Professor John Paden's biography of the president. Paden portrays Tinubu as a desperate power monger who kept throwing himself at Buhari only to be rejected at each instance. Tinubu, see how low you have fallen!

I do not know why Bola Tinubu is angry at Paden. Did he not read that this was an official biography?

Paden was not there during the horse trading. The book was written with the cooperation of President Buhari. The things he wrote about Tinubu were the accounts he was given by the President.

So Tinubu should call a spade a spade. President Buhari merely told the world what he really thinks of Tinubu. 

And look at all the men around President Buhari who got to where they are on the back of Tinubu. Has anyone of them come out to speak in his defense? Where is Vice President Osinbajo? He can blame Jonathan but cannot defend his benefactor. Where is Fashola? He can come up with excuses for giving Nigerians darkness but cannot speak up for his oga? Lai Mohammed is nowhere to be found. Perhaps he is too busy dressing up masquerades or looking for a parastatal under him to loan him some money!

At the end of the day, after all the terrible things the propaganda wing of APC said and did to Ayo Fayose and Femi Fani Kayode, who came to the help of Tinubu but the two men demonized by the very same propaganda machinery that Tinubu helped set up. 

And as for Tinubu, I cannot imagine why someone will write a book and insult you in it and still invite you to the launch and you agree to go simply because he is a president. 

Even worse, they asked you to write a review for the book and you did! Is this the same Tinubu that was so mouthy under Jonathan? Look at how he has become a chihuahua today. Lord have mercy!

Tinubu! Your Afonja too much! 

Did you not see what ex-President Goodluck Jonathan did with the so called Leadership Award. You do not honour a gathering designed to reduce you with your presence. As the late kakanfo MKO Abiola would say 'a man who allows his head to be used to break a coconut may not live to eat it'!

Even the well respected Pastor Osinbajo cannot even publicly come to your defense and tell the truth of how you helped him secure his exalted office. Yet he is the chief beneficiary of your generosity. 

My advise to you, Asiwaju Bola Tinubu, is this: a woman who continues to make herself available to a man that only remembers her when he needs her services to satisfy his lustfulness should not be surprised when her own children deny that she is their mother! 

Finally, going forward, before labeling people like Ayo Fayose and Femi Fani-Kayode as enemies, remember that it is better to be insulted with the truth than flattered with a lie.

Omokri is the founder of the Mind of Christ Christian Center in California, author of Shunpiking: No Shortcuts to God and Why Jesus Wept and the host of Transformation with Reno Omokri

EXPOSED: Fresh Fraud of $17bn Undeclared Crude Oil Exports Under Jonathan, Reps Boils

EXPOSED: Fresh Fraud of $17bn Undeclared Crude Oil Exports Under Jonathan, Reps Boils

Goodluck Jonathan
The House of Representatives on Thursday ordered a probe of the $17bn worth of allegedly undeclared crude oil and liquefied natural gas exports to foreign countries.

The decision followed the adoption of a motion sponsored by Mr. Agbonayinman Ehiozwa at the plenary session of the House presided over by the Speaker, Yakubu Dogara.

While presenting the motion, the lawmaker alleged that the deal involved 20 companies, two government agencies, two law firms and a consultant appointed by the immediate past administration of President Goodluck Jonathan.


Ehiozwa said the motion was predicated on the findings of Molecular Power System Nigeria Limited, which looked into the issue during the last administration.

According to him, it was discovered that from 2011 to December 2014, there was an undeclared crude oil shortfall of 57,830,000 barrels, translating to well over $12bn shipped to the United States of America; over $3bn to China; and $839,522,600 to Norway.

He said, “I am further aware that this job has been done in 51 countries where Nigerian crude oil has been exported; the report of the USA being the largest receiver of crude oil and that of other countries was made available to the former President, the office of the Attorney General of the Federation, the Nigerian Maritime Administration and Safety Agency and the Economic and Financial Crimes Commission.

Ehiozwa stated, “As of today, the country has to its credit over $17bn of recoverable shortfalls from undeclared crude oil exports to global destinations.

“I am dismayed that the fiscalisation policy of the Federal Government, which warrants loading of crude oil from Nigeria to be monitored by the DPR, the Navy, the Customs, the Nigerian Ports Authority and the Nigerian Maritime Administration and Safety Agency, has been crippled over the years.

“These agencies have lost the capacity to go to offshore locations to witness loading. The machines that monitor loading into the vessels  were bought, owned, calibrated and operated by the International Oil Companies without monitoring.”

He expressed disappointment that the data so far gathered indicated that for the LNG, there was a shortfall of 727,460 metric tonnes estimated at about $461.44m from shipments to seven countries.

The motion was adopted by the House but a date has yet to be set for the probe.

Culled From Punch Newspaper
Goodluck Jonathan
The House of Representatives on Thursday ordered a probe of the $17bn worth of allegedly undeclared crude oil and liquefied natural gas exports to foreign countries.

The decision followed the adoption of a motion sponsored by Mr. Agbonayinman Ehiozwa at the plenary session of the House presided over by the Speaker, Yakubu Dogara.

While presenting the motion, the lawmaker alleged that the deal involved 20 companies, two government agencies, two law firms and a consultant appointed by the immediate past administration of President Goodluck Jonathan.


Ehiozwa said the motion was predicated on the findings of Molecular Power System Nigeria Limited, which looked into the issue during the last administration.

According to him, it was discovered that from 2011 to December 2014, there was an undeclared crude oil shortfall of 57,830,000 barrels, translating to well over $12bn shipped to the United States of America; over $3bn to China; and $839,522,600 to Norway.

He said, “I am further aware that this job has been done in 51 countries where Nigerian crude oil has been exported; the report of the USA being the largest receiver of crude oil and that of other countries was made available to the former President, the office of the Attorney General of the Federation, the Nigerian Maritime Administration and Safety Agency and the Economic and Financial Crimes Commission.

Ehiozwa stated, “As of today, the country has to its credit over $17bn of recoverable shortfalls from undeclared crude oil exports to global destinations.

“I am dismayed that the fiscalisation policy of the Federal Government, which warrants loading of crude oil from Nigeria to be monitored by the DPR, the Navy, the Customs, the Nigerian Ports Authority and the Nigerian Maritime Administration and Safety Agency, has been crippled over the years.

“These agencies have lost the capacity to go to offshore locations to witness loading. The machines that monitor loading into the vessels  were bought, owned, calibrated and operated by the International Oil Companies without monitoring.”

He expressed disappointment that the data so far gathered indicated that for the LNG, there was a shortfall of 727,460 metric tonnes estimated at about $461.44m from shipments to seven countries.

The motion was adopted by the House but a date has yet to be set for the probe.

Culled From Punch Newspaper

More Fact Exposed: How Patience Jonathan Used DSS Officials To Aid the $23.3 'Theft'

More Fact Exposed: How Patience Jonathan Used DSS Officials To Aid the $23.3 'Theft'

More Fact Exposed: How Patience Jonathan Used DSS Officials To Aid the  $23.3 'Theft'
The ongoing investigation into the alleged $22.3 million discovered to have laundered by the former President Goodluck Jonathan's wife, Patience Jonathan has taken a new twist as fresh facts suggest that the former First lady was aided by some men of the Department of State Security, the DDS in depositing the fraudulent money in Skye Bank accounts

According to Punch Newspaper, the Economic and Financial Crimes Commission has summoned some officials of the Department of State Services, who were attached to Dame Patience Jonathan, the wife of former President Goodluck Jonathan, for interrogation.

It was learnt on Friday that the invitation was part of investigations into the $15m frozen in four company accounts, which Patience had laid claim to.


A letter had been written to the DSS, requesting that the officials be allowed to honour the anti-graft agency’s invitation, Punch Newspaper claimed EFCC official confided

An EFCC detective also confided in our source that the commission had evidence that the DSS officials had, on several occasions, deposited money into some of the accounts in Skye Bank between 2013 and 2015.

The Punch Newspaper quoted the EFCC source to have said, “The $15m, which we have frozen in the four company accounts was not paid into the accounts at once. The money was paid into the accounts over a two-year period.

“However, we have evidence that it was DSS officials attached to Jonathan’s wife that deposited the money. We have gathered bank documents and we have invited them for interrogation.”

When asked why Patience had not been invited by the EFCC, even after she had openly laid claim to the money and dared the anti-graft agency to invite her for questioning, another source told our correspondent that it was because the commission was trying to build a solid case.

The source said, “We will not like to exchange words with her on the pages of newspapers. She says the money belongs to her but she has no evidence to show that she owns the money except the fact that she was given platinum cards to use in withdrawing money.

“Possessing an ATM card of an account that does not bear your name, signature or credentials does not give you the legal right over that account. We froze the accounts as part of investigations into a money laundering case.

“We are still investigating and we may invite her based on the outcome of investigations. We are still trying to build a solid case.”

The EFCC had stumbled on four company bank accounts in Skye Bank while investigating a former Special Adviser to Jonathan on Domestic Affairs, Waripamowei Dudafa.

The names of the four companies are: Pluto Property and Investment Company Limited; Seagate Property Development and Investment Company Limited; Trans Ocean Property and Investment Company Limited; and Globus Integrated Service Limited. The joint balance of the accounts, as of the time it was frozen, was said to be $15, 591,700.

The four companies standing trial before a Federal High Court in Lagos have since pleaded guilty to money laundering.

Jonathan’s wife has, however, accused the EFCC of hiring mercenaries as directors of the company in an attempt to steal her hard-earned money.

Patience, who has sued Skye Bank for N200m, also has another account under the name ‘Patience Ibifaka Jonathan’ in the bank, which had a balance of $5m. The account was, however, not frozen by the commission.

In the suit filed by Patience, while laying claim to the $15m, which is the subject of prosecution of Dudafa and others, one Sammie Somiari, who deposed to an affidavit on behalf of Patience, claimed that Dudafa helped Patience to open the bank accounts in 2010.

According to him, Dudafa had on March 22, 2010, brought two Skye Bank officials to meet Patience at home to open five accounts.

The deponent claimed that Patience was the sole signatory to the accounts.

He, however, claimed that after the five accounts were opened, Patience later discovered that Dudafa opened only one of the accounts in her name while the other four were opened in the names of companies belonging to Dudafa.
More Fact Exposed: How Patience Jonathan Used DSS Officials To Aid the  $23.3 'Theft'
The ongoing investigation into the alleged $22.3 million discovered to have laundered by the former President Goodluck Jonathan's wife, Patience Jonathan has taken a new twist as fresh facts suggest that the former First lady was aided by some men of the Department of State Security, the DDS in depositing the fraudulent money in Skye Bank accounts

According to Punch Newspaper, the Economic and Financial Crimes Commission has summoned some officials of the Department of State Services, who were attached to Dame Patience Jonathan, the wife of former President Goodluck Jonathan, for interrogation.

It was learnt on Friday that the invitation was part of investigations into the $15m frozen in four company accounts, which Patience had laid claim to.


A letter had been written to the DSS, requesting that the officials be allowed to honour the anti-graft agency’s invitation, Punch Newspaper claimed EFCC official confided

An EFCC detective also confided in our source that the commission had evidence that the DSS officials had, on several occasions, deposited money into some of the accounts in Skye Bank between 2013 and 2015.

The Punch Newspaper quoted the EFCC source to have said, “The $15m, which we have frozen in the four company accounts was not paid into the accounts at once. The money was paid into the accounts over a two-year period.

“However, we have evidence that it was DSS officials attached to Jonathan’s wife that deposited the money. We have gathered bank documents and we have invited them for interrogation.”

When asked why Patience had not been invited by the EFCC, even after she had openly laid claim to the money and dared the anti-graft agency to invite her for questioning, another source told our correspondent that it was because the commission was trying to build a solid case.

The source said, “We will not like to exchange words with her on the pages of newspapers. She says the money belongs to her but she has no evidence to show that she owns the money except the fact that she was given platinum cards to use in withdrawing money.

“Possessing an ATM card of an account that does not bear your name, signature or credentials does not give you the legal right over that account. We froze the accounts as part of investigations into a money laundering case.

“We are still investigating and we may invite her based on the outcome of investigations. We are still trying to build a solid case.”

The EFCC had stumbled on four company bank accounts in Skye Bank while investigating a former Special Adviser to Jonathan on Domestic Affairs, Waripamowei Dudafa.

The names of the four companies are: Pluto Property and Investment Company Limited; Seagate Property Development and Investment Company Limited; Trans Ocean Property and Investment Company Limited; and Globus Integrated Service Limited. The joint balance of the accounts, as of the time it was frozen, was said to be $15, 591,700.

The four companies standing trial before a Federal High Court in Lagos have since pleaded guilty to money laundering.

Jonathan’s wife has, however, accused the EFCC of hiring mercenaries as directors of the company in an attempt to steal her hard-earned money.

Patience, who has sued Skye Bank for N200m, also has another account under the name ‘Patience Ibifaka Jonathan’ in the bank, which had a balance of $5m. The account was, however, not frozen by the commission.

In the suit filed by Patience, while laying claim to the $15m, which is the subject of prosecution of Dudafa and others, one Sammie Somiari, who deposed to an affidavit on behalf of Patience, claimed that Dudafa helped Patience to open the bank accounts in 2010.

According to him, Dudafa had on March 22, 2010, brought two Skye Bank officials to meet Patience at home to open five accounts.

The deponent claimed that Patience was the sole signatory to the accounts.

He, however, claimed that after the five accounts were opened, Patience later discovered that Dudafa opened only one of the accounts in her name while the other four were opened in the names of companies belonging to Dudafa.

Patience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSED

Patience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSED

Patience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSED
Penultimate the recent discovery of multi-millions United States Dollar opened in the names of some domestic aides and driver's name by her wife, Patience, jittery former President yesterday ran to two former leaders, a former military dictator, Ibrahim Babangida, and a former military Head of State, Gen. Abdulsalami Abubakar, at their Hilltop residences in Minna, the Niger State capital.

It was gathered that Jonathan arrived Babangida’s residence at about 11am and spent about one hour with his host before he left for Abubakar’s house situated right opposite IBB’s home.

Patience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSEDPatience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSEDJonathan was accompanied to the two former Nigerian leaders by a former Minister of State for Finance, Bashir Yuguda, from Zamfara State and his former Chief of Staff, Chief Mike Oghiadome, from Edo State.

Babangida received Jonathan in his private living room as against the common visitors’ room located downstairs where he usually received ordinary visitors.

The details of the discussions between the former Nigerian leaders were not made known to journalists.

But it was gathered according to Punch Newspaper that IBB and Jonathan held a closed-door meeting for about 50 minutes. While the meeting was going on, it was gathered that  Yuguda and Oghiadome were left at the living room downstairs.

Sources hinted that despite the fact that the details of the meeting with IBB was not disclosed,  the discussion might not be unconnected with the President Muhammadu Buhari’s anti-corruption war and how it had been affecting Jonathan’s relations, particularly his wife, Patience.

Unconfirmed sources added that the meeting might have discussed the postponed Edo State governorship election, the 2019 general election as well as the state of affairs in the People Democratic Party.

It was also learnt that the duo of IBB and Abdulsalami in the separate meetings with Jonathan raised concern over the spate of bombings going on in the Niger Delta by the Niger Delta Avengers and the need to stop the trend.

It was observed that while the meeting lasted at both residences of the two former leaders, visitors were not allowed into the houses.

Jonathan left Minna at about 1pm.
Patience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSED
Penultimate the recent discovery of multi-millions United States Dollar opened in the names of some domestic aides and driver's name by her wife, Patience, jittery former President yesterday ran to two former leaders, a former military dictator, Ibrahim Babangida, and a former military Head of State, Gen. Abdulsalami Abubakar, at their Hilltop residences in Minna, the Niger State capital.

It was gathered that Jonathan arrived Babangida’s residence at about 11am and spent about one hour with his host before he left for Abubakar’s house situated right opposite IBB’s home.

Patience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSEDPatience Strange Dollar Accounts: Why Jittery Jonathan Runs To IBB, Abdulsalami EXPOSEDJonathan was accompanied to the two former Nigerian leaders by a former Minister of State for Finance, Bashir Yuguda, from Zamfara State and his former Chief of Staff, Chief Mike Oghiadome, from Edo State.

Babangida received Jonathan in his private living room as against the common visitors’ room located downstairs where he usually received ordinary visitors.

The details of the discussions between the former Nigerian leaders were not made known to journalists.

But it was gathered according to Punch Newspaper that IBB and Jonathan held a closed-door meeting for about 50 minutes. While the meeting was going on, it was gathered that  Yuguda and Oghiadome were left at the living room downstairs.

Sources hinted that despite the fact that the details of the meeting with IBB was not disclosed,  the discussion might not be unconnected with the President Muhammadu Buhari’s anti-corruption war and how it had been affecting Jonathan’s relations, particularly his wife, Patience.

Unconfirmed sources added that the meeting might have discussed the postponed Edo State governorship election, the 2019 general election as well as the state of affairs in the People Democratic Party.

It was also learnt that the duo of IBB and Abdulsalami in the separate meetings with Jonathan raised concern over the spate of bombings going on in the Niger Delta by the Niger Delta Avengers and the need to stop the trend.

It was observed that while the meeting lasted at both residences of the two former leaders, visitors were not allowed into the houses.

Jonathan left Minna at about 1pm.

$15m Opened In Housemaids, Driver's Names: Patience Jonathan Talks Again, Writes EFCC; Her Explanation'll Shock You

$15m Opened In Housemaids, Driver's Names: Patience Jonathan Talks Again, Writes EFCC; Her Explanation'll Shock You

Patience Jonathan
Following the unearthing of the $15 million deposited in Skye Bank using names of domestic maids and driver, the wife to former President Goodluck Jonathan, Dame Patience Jonathan  has said she was using the $15m, which was frozen in four companies’ accounts, to settle medical bills while she was out of the country.

She, therefore, urged the Economic and Financial Crimes Commission and Skye Bank to lift the restriction on the accounts.

According to Punch Newspaper, Patience said this in a letter with reference number GA/Abibo/00226/2016, written by her lawyers, Granville Abibo (SAN) and Co, which was addressed to the Acting Chairman of the EFCC, Mr. Ibrahim Magu.



A houseboy, a driver and other domestic workers of a former Special Adviser on Domestic Affairs to Jonathan, Waripamowei Dudafa, were named as directors, but Patience’s $15m was lodged in the accounts and she was given a platinum card and exclusive access to the accounts.

The letter read in part, “It is noteworthy to emphasise that the said accounts, which were in US dollar denomination, were card-based accounts and our client is the sole signatory to these accounts.

“However, our client has been operating the said accounts using the cards for her medical bill payments and purchases for her private purposes without any let or hindrance.

“Our client was therefore surprised when the said cards stop functioning on July 7, 2016, or thereabout. Our client immediately, thereupon, contacted Skye Bank Plc through our solicitors.

‘‘It was only then that the bank officials informed our client that the said accounts were placed on a ‘No Debit Order’ following investigations and instruction from your commission and this is without notice to our client by either the bank or the commission.

“It is in the light of the foregoing that we urge you to use your good offices to vacate the ‘No Debit/Freezing Order’ placed on the said accounts.”

Patience, who described herself as a law-abiding citizen, said despite all the explanations she offered to the Lagos Zonal Office of the EFCC, the detectives in charge refused to heed her request.

She, therefore, urged Magu to intervene immediately.

She added, “Despite the foregoing, our client, who is a law-abiding citizen, has watched with surprise how efforts are being made surreptitiously to indirectly harass or harangue her and short-change her of her personal funds in breach of her fundamental human rights.

“We urge you sir, to kindly intervene to stop the untoward and wrongful actions of your officials to embarrass, inconvenience and short-change our client.”

However, a detective in the EFCC said, “We got a relevant court order to freeze those accounts and we have evidence which we will present in court on Friday, Punch Newspaper says

“We did not know that the accounts belonged to Patience Jonathan at the time we froze them. The accounts do not bear her name neither do they carry her BVN (Bank Verification Number). So, how can she accuse us of harassment?

“She has a separate account in Skye Bank with the title ‘Patience Jonathan’, which has a balance of $5m. If she claims she needs money for medical treatment, then the $5m should be alright.”

Patience Jonathan
Following the unearthing of the $15 million deposited in Skye Bank using names of domestic maids and driver, the wife to former President Goodluck Jonathan, Dame Patience Jonathan  has said she was using the $15m, which was frozen in four companies’ accounts, to settle medical bills while she was out of the country.

She, therefore, urged the Economic and Financial Crimes Commission and Skye Bank to lift the restriction on the accounts.

According to Punch Newspaper, Patience said this in a letter with reference number GA/Abibo/00226/2016, written by her lawyers, Granville Abibo (SAN) and Co, which was addressed to the Acting Chairman of the EFCC, Mr. Ibrahim Magu.



A houseboy, a driver and other domestic workers of a former Special Adviser on Domestic Affairs to Jonathan, Waripamowei Dudafa, were named as directors, but Patience’s $15m was lodged in the accounts and she was given a platinum card and exclusive access to the accounts.

The letter read in part, “It is noteworthy to emphasise that the said accounts, which were in US dollar denomination, were card-based accounts and our client is the sole signatory to these accounts.

“However, our client has been operating the said accounts using the cards for her medical bill payments and purchases for her private purposes without any let or hindrance.

“Our client was therefore surprised when the said cards stop functioning on July 7, 2016, or thereabout. Our client immediately, thereupon, contacted Skye Bank Plc through our solicitors.

‘‘It was only then that the bank officials informed our client that the said accounts were placed on a ‘No Debit Order’ following investigations and instruction from your commission and this is without notice to our client by either the bank or the commission.

“It is in the light of the foregoing that we urge you to use your good offices to vacate the ‘No Debit/Freezing Order’ placed on the said accounts.”

Patience, who described herself as a law-abiding citizen, said despite all the explanations she offered to the Lagos Zonal Office of the EFCC, the detectives in charge refused to heed her request.

She, therefore, urged Magu to intervene immediately.

She added, “Despite the foregoing, our client, who is a law-abiding citizen, has watched with surprise how efforts are being made surreptitiously to indirectly harass or harangue her and short-change her of her personal funds in breach of her fundamental human rights.

“We urge you sir, to kindly intervene to stop the untoward and wrongful actions of your officials to embarrass, inconvenience and short-change our client.”

However, a detective in the EFCC said, “We got a relevant court order to freeze those accounts and we have evidence which we will present in court on Friday, Punch Newspaper says

“We did not know that the accounts belonged to Patience Jonathan at the time we froze them. The accounts do not bear her name neither do they carry her BVN (Bank Verification Number). So, how can she accuse us of harassment?

“She has a separate account in Skye Bank with the title ‘Patience Jonathan’, which has a balance of $5m. If she claims she needs money for medical treatment, then the $5m should be alright.”

FACT CHECK: Ben Bruce GOOFED, Jonathan Also BLAMED Past Leaders For His FAILURES As President; See Media Evidences

FACT CHECK: Ben Bruce GOOFED, Jonathan Also BLAMED Past Leaders For His FAILURES As President; See Media Evidences

Ben Murray Bruce
Senator Ben Murray Bruce, a senator representing Bayelsa State has goofed again over claims that former President Goodluck Jonathan was successful in office because he (Jonathan) did not blame the past leaders for his failures, as checks by News Punch has revealed otherwise. 

Ben Bruce via his social media page said Jonathan praised his predecessors instead of blaming them which was what made him successful. 

 Bruce wrote: 
“Do you know why we were progressing under Jonathan? Because he took responsibility and never blamed anyone for the challenges he met. Go ahead, ask yourself when Goodluck Jonathan ever blamed his predecessors. Instead of blaming them, he praised them. You can’t go forward on reverse gear!”
On the contrary, checks by News Punch revealed that former President Goodluck Jonathan consistently, like his successor, President Muhammadu Buhari blamed past leaders and others for his failures while in office as the President.

In 2012, Jonathan blamed the past leaders for the country underdevelopment. This is evident in an online publication by News Ghana on the June 1st 2012, with the headline 'Jonathan blames past leaders for under-development' 

Also on May 29th 2014, former President Goodluck Jonathan laid blame of the kidnapping of Chibok girls on foreign element. This is evident in British Newspaper, CBS News with the headline, "Nigeria leader blames violence on foreigners" 


On March 30th, the Goodluck Jonathan blamed northern governors over same kidnap of Chibok girls. This was published in CODE WIT WORLD NEWS, with the headline "NIGERIA PRESIDENT JONATHAN EXPLODES! BLAME NORTHERN GOVS, NOT ME FOR BOKO HARAM!

On May 10th 2012, in far away Addis Ababa, Ethiopian capital, same former President Jonathan blamed African leaders for the continent underdevelopment saying they are responsible for much of the conflicts and underdevelopment tearing the continent apart. 

Jonathan who made the indictment while speaking at the World Economic Forum on Africa in Addis Ababa was reacting to questions on challenges of leadership on the continent tabled before him and some other Africa heads of state during a plenary session. 

This is also evident in a publication by AllAfrica, an online news platform, with the Headline "Jonathan Blames African Leaders for Underdevelopment" 

Senator Ben Murray Bruce, the 'Common sense' propounder should often use his common sense to check facts before making claims that ended being fictitious
Ben Murray Bruce
Senator Ben Murray Bruce, a senator representing Bayelsa State has goofed again over claims that former President Goodluck Jonathan was successful in office because he (Jonathan) did not blame the past leaders for his failures, as checks by News Punch has revealed otherwise. 

Ben Bruce via his social media page said Jonathan praised his predecessors instead of blaming them which was what made him successful. 

 Bruce wrote: 
“Do you know why we were progressing under Jonathan? Because he took responsibility and never blamed anyone for the challenges he met. Go ahead, ask yourself when Goodluck Jonathan ever blamed his predecessors. Instead of blaming them, he praised them. You can’t go forward on reverse gear!”
On the contrary, checks by News Punch revealed that former President Goodluck Jonathan consistently, like his successor, President Muhammadu Buhari blamed past leaders and others for his failures while in office as the President.

In 2012, Jonathan blamed the past leaders for the country underdevelopment. This is evident in an online publication by News Ghana on the June 1st 2012, with the headline 'Jonathan blames past leaders for under-development' 

Also on May 29th 2014, former President Goodluck Jonathan laid blame of the kidnapping of Chibok girls on foreign element. This is evident in British Newspaper, CBS News with the headline, "Nigeria leader blames violence on foreigners" 


On March 30th, the Goodluck Jonathan blamed northern governors over same kidnap of Chibok girls. This was published in CODE WIT WORLD NEWS, with the headline "NIGERIA PRESIDENT JONATHAN EXPLODES! BLAME NORTHERN GOVS, NOT ME FOR BOKO HARAM!

On May 10th 2012, in far away Addis Ababa, Ethiopian capital, same former President Jonathan blamed African leaders for the continent underdevelopment saying they are responsible for much of the conflicts and underdevelopment tearing the continent apart. 

Jonathan who made the indictment while speaking at the World Economic Forum on Africa in Addis Ababa was reacting to questions on challenges of leadership on the continent tabled before him and some other Africa heads of state during a plenary session. 

This is also evident in a publication by AllAfrica, an online news platform, with the Headline "Jonathan Blames African Leaders for Underdevelopment" 

Senator Ben Murray Bruce, the 'Common sense' propounder should often use his common sense to check facts before making claims that ended being fictitious

How This Government Plunged Nigeria To Her Economic Recession - Sanusi Lamido Sanusi

How This Government Plunged Nigeria To Her Economic Recession - Sanusi Lamido Sanusi

Emir Sanusi lamido
The Emir of Kano, Muhammadu Sanusi, on August 24, warned President Muhammadu Buhari to avoid repeating the mistakes made by former President Goodluck Jonathan so his administration does not end up in infamy like that of his predecessor.

The former governor of the Central Bank of Nigeria also warned the government against continuing to blame previous administrations for the nation’s woes, saying what was important was for the administration to concentrate on putting the nation back on the path of progress.

He gave the warning while delivering a paper entitled, “Nigeria In Search Of New Growth model” at the 15th meeting of the Joint Planning Board and National Council on Development Planning.

The Emir also spoke extensively on the nation’s economic recession.

Here is his full speech at the event:  
First of all, I want to break from tradition. Usually I speak in Hausa in Kano. But, I don’t know how I am going to make an economic presentation in Hausa to 36 states’ commissioners and have someone translate it into English. To avoid things being lost in translation, I will speak in the language of economics.
Let me start by saying congratulations to you minister. This is the first time I am meeting you in an official function since your appointment, and to tell you in public what I have always said in private; that you are one of the sisters I remain extremely proud of your work. I wish you all the best in these challenging times.
I have always told people that Dr. Shamsuddeen Usman, my teacher, (I don’t know if he is an ex or former minister, multiple times) taught me microeconomics. So, he takes a lot of the credits, and none of the blames, for what I have become.

Ladies and gentlemen, I was not given a specific topic to talk on. But, because the concern today is the concern about the recession Nigeria is in technically, and also because it is a meeting of Planning and Budget Ministers, I thought I will do a proper economic presentation and put down my thoughts on where I think we are; why I think we are where we are, and what I think we need to do to get out of this.
I am sure there will be many other presentations specifically on what a state can do to raise revenues and so on. But, having an overarching view of economic policy, and where we may or may not have done wrong, or what the key drivers of growth should be for the Nigerian economy are things I thought we should talk about at this session.
So, I call this presentation, Nigeria: The Search For A New Growth Model.
I will start by going back to the past, not just Nigeria, but Africa. Let’s ask ourselves what were the key drivers of growth in Africa, and what has changed since this golden decade Africa had.
Africa Golden Decade was basically the decade of the 2000s. Africa moved from the previous decade, where it was a hopeless continent, to a new decade that we have one type lifting all story of Africa rising.
This rise in Africa across the world was one of stories of sadness, poverty, famine and hunger to a continent that was full of potentials; where there were opportunities for investments; where capital markets were booming.
All of a sudden people heard countries like Nigeria, Kenya, Ethiopia, Ghana, etc. when previously these were supposed to be a basket case in the world.
The first pillar of this growth was clearly shifting terms of trade, which as we all know in developing economics, can be a mirage.
You can’t have improving terms of trade when you are exporting commodities over short periods of a cycle. But, we know as far back as the 1950s, from the Latin American structure economics, that over the long term, any economy that specialises in exporting primary products and importing manufactures would end up having terms of trade shifting against it. You can have a temporary boost, but If you don’t use that boost to have a structural adjustment that would make for prudent management of the economy, you would be courting trouble.
By 2008, one barrel of oil would buy you one Sanyo flip telephone as against 19 barrels of oil to buy the same phone earlier. That gives an idea how well the terms of trade have shifted.
We had an oil price of $10 a barrel in the time of Babangida. At one point under Obasanjo, it rose to $140 a barrel. This was a time of rapidly improving technology, cheaper manufactured products and therefore our oil could technically import us much more.
This process was not common across all of Africa, because we are aware of other African economies that grew, and certainly it was not just one pillar. Let’s go to the second pillar of growth in Africa in that decade, which was debt.
Between 2002 and 2008, the levels of debt to GDP (gross domestic product) in African countries and what they became after the Paris Club, HIPC debt reliefs and so on. Nigeria was at 50 per cent debt to GDP and came down to literally 5 per cent or so.
This happened across all Africa in the form of debt forgiveness, debt relief, debt restructuring and so on. What this did was that it freed up government balance sheets and in that decade of Africa rising, the countries went back on a borrowing binge.


Nigeria kept borrowing, not externally, but internally. I think our external debt was just about $8 billion on the balance sheet. But, the Naira indebtedness of the Nigerian government, we were spending over 30 per cent (maybe 40 per cent now) of every Naira earned just servicing debts.
That’s what you have. Nobody was noticing it. We have written off the debts, and then we kept building it up bit by bit. And when you look at where that debt was going into, you will see why, or part of the answer to the problem we are having.
So, we have these two pillars – rising commodities prices, and we monetise oil revenue, we will be able spend money. We were able to borrow because the balance sheets could accommodate more debts.
Where did all these debts go? Did it go to roads, power, refineries, or infrastructure? No. The new borrowings were simply recycled into much higher recurrent expenditures. What that did was that it helped sustain a consumption boom. And GDP was growing, largely driven by consumption spending.
If you look at public sector wage bills in real terms, Nigeria, Ghana, Ethiopia and Kenya, you will see it was rising significantly from 2005 to 2014.
In Nigeria, for example, our public sector wage bill went up from N443 billion in 2005 to N1.7 trillion in 2012.
In 2010, the government increased minimum wage to N18,000. I was at the Central Bank, I protested and protested. They had an election coming, they increased the minimum wage N18,000 and basically borrowed money to pay.
In 2012, as governor of Central Bank, I said this was an unsustainable wage bill. We needed to reduce the size of the public service. My own government minister came out to say that was the (CBN) governor’s personal opinion. In fact, she said the government wanted to employ more people. And this is the result.
I am serious. Sometimes I don’t bother. I’m never going to change. I’m never going to be political. I’m never going to stand here and tell people what they want to hear.
The problem is that there is nothing that we are facing today that we did not know would happen. That is the truth. We made mistakes. Many of them deliberate. We ignored every single word that pointed otherwise. Economics is a science. It is not a perfect science. But, over decades and decades and centuries, people have seen that there are certain things that, when you do, will lead to certain consequences.


If you take a brand new car and give a driver who doesn’t have a license to drive it and you have an accident, you really can’t say you were surprised, unless you are some kind of idiot.
We knew that this was going to happen. You can’t just keep borrowing money and paying salaries, not building roads, not improving power and think this will not happen.
We will see the per capita investment development in Nigeria and per capita results we are getting. These were all from a resource in an enclave economy.
And not so that we are not always blaming the previous administration, we have also made mistakes in this administration.
We have started retracing our steps. But, we have to retrace those steps. And if we fall into the same hole that we fell into the last time, where the government is always right.
When the minister is there, you tell them, “You know, Hon. Minister, Nigeria is very lucky to have you in office.” No! You tell the minister that you are doing well, but, you know there are these areas that you must change. If a policy is wrong, it is wrong. Nothing will make it right. And it has to be changed.
So, this is what we did. Look at real sector wages. It was not just Nigeria, it was all over Africa. Look at sovereign debt fuelling growth.
If you take the example of an individual. You happen to know bank MDs and you can make a few phone calls and get loans. You borrow N1 billion here today and build a very nice mansion in Abuja. You borrow another N1 billion and let your family go out on first class ticket as you are travelling all over the world. You borrow another N5 to N6 billion and buy a private jet.
We have very many people in Nigeria who you think are very rich. But, who are really bankrupt, because everything about them are being financed by bank debts. When one debt matures, they have enough connections to call another bank, borrow and refinance that debt. They are not earning anything. They have private jets. They have yachts. Their families travel first class. They go abroad and stay in the most expensive hotels. It happens. And it is happening today.
What do you think of those people? When you think about such people, do you think they are foolish people? Or do you think they are wise people? So, what would you say of a country that does this?
So, you feel growth by borrowing money, pay salaries, people spend money on pure consumption spending, nothing is produced. It’s fine. It’s short term. But, it is not sustainable. How much can you continue to borrow and consume without producing?
And the funny thing is, you did not have to stop borrowing. All you had to do was borrow the right amount and apply them to the right purposes. It doesn’t matter whether they were consumption spending or investment demand, GDP will grow. So, make a choice.
As a country, we made a choice. We wanted votes, popularity or palliatives, so long as people are getting high minimum wage, we keep quiet about all other things that were happening in the economy that we should be talking about.

That was the relationship between public debts and GDP growth.
Today, we are in a new reality. This is what they call the new normal in Africa. And we have a two speed Africa. If we look at the new IMF World outlook, you will see something interesting. Non-commodity Africa will be the fastest growing part of the world, even higher than emerging Asia, whereas commodities Africa (countries like Nigeria and Angola) are among the lowest growing parts of the world, at the rate of Europe and Latin America. And we can’t explain why.
But, think of a country like Ethiopia and then Meles Zenawi, the late Prime Minister. Ethiopia keeps growing year after year at 11-12 per cent. And what did Meles do? The simple things we have been saying for decades and decades and decades. This is a country that came out of a war, remember?
It’s facing insecurities; got Eritrea and other countries that do not like it around it. I’ll give two examples. Coffee. It originated from Ethiopia in the world. But, Ethiopian farmers, before Meles, would get 10 per cent of the value of coffee from their crops.
They would just produce the coffee and sell to companies, and the companies will take their coffee into Latin America and have it improved and dried and and packaged. And Zenawi just asked: “Why can’t we produce coffee in Ethiopia that would go straight from Ethiopia to the coffee shops in Europe?”
And all sorts of responses came. “Well, you know your weather is good for growing coffee. You coffee is very good, but your farmers have bad farming practices.”
So he said: “Why don’t you teach them?” So, he got in touch with the IFC (International Finance Corporation), got a loan, organised Ethiopian coffee farmers into cooperatives, taught them how to grow the coffee, how to dry, prepare and package it.
Today, if you go to coffee shops in Europe and take a cup of coffee that came straight from Ethiopian farm. And Ethiopian farmers are now getting 70 per cent of the value of the coffee, from the former 10 per cent.
So, he tells Aliko Dangote, come and build a cement manufacturing plant here. I am going to give you electricity at three cent per kilowatt hour. For a cement manufacturer, that is all the incentive that you need.
So, Dangote goes, builds the most sophisticated cement plant in Ethiopia, gets electricity almost for nothing and cost of cement drops by 60 per cent.
The construction industries gets boosted. Roads are being built with cement. Jobs are created. And new industry has taken off.
He said to the Chinese, “I don’t like this your idea of coming to buy hides and skin and leather from Ethiopia and sell us shoes. Set up the factory here.”
Nigeria imports 3 million pairs of shoes per annum from China. Nobody knows how much duty they pay. I am not talking about expensive shoes. I am not talking about what you buy from Pierre Cardin, or Gucci. I am talking about shoes people wear on the streets. Shoes that can be bought here in Kano.
We can produce all the shoes, and school bags we want for primary and secondary schools children, millions and millions of pairs. No, we don’t. You know what we do, we export the wet blue and we import from shoes from China, and we have Chinese people coming here to take wet blue to China and bring back shoes.
We are just a very interesting country.
Every single thing we are talking about today about what we need to do have been said before. I have a document “Industrialization Potentials of Northern Nigeria under Ahmadu Bello, 1962.” There is nothing we are saying today that was not part of the industrial plan of Northern Nigeria in 1962.
We are clapping ourselves that after 50 years, we have learnt nothing. The whole industrialisation of Kano, starting from Bombay to Sharada to Challawa  had space on that plan.
These are very simple economic logic. You cannot continue doing the wrong things and expect to have the right result.
Since 1950s and 1960s, they understood what was the essence of colonialism. It was to come to these countries, take our raw materials, process them and sell us manufactured goods, and keep shifting the terms of trade against them, so you get richer at their expense.
They understood that independence was not about the flag, but about reversing that process. They understood it. We did not. And therefore they said we needed to stop exporting our cotton. We need to build textile industries. We need to stop exporting groundnuts.
Kano used to take pride in groundnut pyramids. I still have people who come to me and say: “You know, Emir, you must bring back those groundnut pyramids.”
But, I don’t build groundnut pyramids. I want oil mills. What am I doing with groundnut pyramids? They stopped exporting groundnut pyramids and build all these oil mills. We should stop exporting hides and skin. Huge multinational corporations that came to Nigeria, whose business was to buy hides and skin. A company like John Holt. In Hausa anyone who trades in skins is called ‘Dan Janho’.
It became a Hausa word, because this was a multinational whose duty was to just buy hides and skins and take to Europe to produce shoes for us to buy.
So, they said let us build our own factories and produce our own shoes and bags. It’s so bad in this country.
Tomato paste that our wives use in kitchens is imported from China. At best, it is packaged in Nigeria. Now, we have a paste factory 40 kilometres from Kano. That’s about the first. We cannot process tomato. We have to import tomato from China. It’s a very sad case.
A country of 170 million people last week Nigerians were celebrating, because we went to Rio and came back with one bronze medal. I saw Nigerians jumping. Somebody said at least we were on the medals table.
We don’t have ambitions as a nation. Some of these things are not just about numbers. It is about a mindset and a people and attitude.
Do we really love our country? Do we feel any shame when we say that Malaysia that came and took palm seeds from us is now exporting palm oil?  Palm oil is what Eastern Nigeria people eat. Now, we can’t produce it. Vegetable oil, groundnut oil.
I went to my friend’s house the other day in Lagos and they gave me Moringa tea in a nicely packaged tin. That is the thing that grows wildly here in the Northern part of the country. Somebody takes Moringa, puts it in a tin, packages it. I did not even know it was called Moringa until I took the tea. They packaged it and gave it an English name. I did not even know it again. It was after I drank it that I knew it was Zogale, as it is called in the local language.
If they had packaged it and called it Zogale, it would have been known as Zogale tea all over the world. Just like people know coffee from Ethiopia. But, now that it is called Moringa, a Hausa man does not know what Moringa is, and it is growing in his backyard. Then, he takes pound sterling to import Moringa tea. So, this is what Ethiopia did.
I will show you what countries like Kenya did, which we didn’t do, and therefore Nigeria is right there in the low band and non-commodities Africa is in the upper band.
What is it that works?
What is it that these non-commodities African countries have done that we have not done?
First, take a model that is investment-driven, rather than consumer or consumption-driven.
At the very top, you have Ethiopia, Uganda, Rwanda, Ghana, Kenya and Egypt. Those at the bottom are Angola and Nigeria.
And if you talk today in Africa, they will think Nigeria and Angola are the richest countries, because they are oil producing. But, the truth is that we are the worst performers, in terms of investments to GDP.
If you look at the other countries that do not have oil, look at what they have done.
If you have a high investment to GDP, you will deliver high growth that is also inclusive. If you continue working on consumption and rent-seeking model, your growth is not inclusive, which is why in Nigeria, you have, over the past two decades, increasing income distribution inequalities.
It is very easy to be very rich based on rent.
Again, we can always talk about the policies of previous administrations. We talk about oil subsidies that brought oil billionaires. But, we have also created our own billionaires since 2015 from foreign exchange subsidies. People are shaking their heads. They don’t seem to understand what I mean. Let me give an example.
I did not just become an Emir. Before then I was Governor of Central Bank. Before then, I was a bank MD. So, I have friends in the banking industry.
When the CBN was selling dollars at N197 and people were buying at N300, if I sit in my garden and make calls on the phone, I will have enough people to call in the industry to get me $10 million at official rate. Do you doubt it?
As a former MD, former governor of the CBN and what they now call a royal father? Think about. I sit in my garden and make a few phone calls, and get $10 million at N197 per dollar and sell at N300 to the dollar, I will make a profit of N1.03 billion.
If I do that four times in a year, for doing nothing, I would have had N4 billion. And people were telling us that this policy was to help the poor. We are not devaluing the Naira, because if we do the poor people would suffer. The people that were profiting from this were people that were telling the government that if it devalued the Naira people would suffer.
Meanwhile, they all got the dollars at N197 and priced their goods at N300 to the dollar. The poor paid the price of a devalued currency and the rich schemed off the profits. It went on for one year. We talked and talked and talked.
If this government continues to behave the way the last government behaved, we will end up where Jonathan ended. We may not like it. But, that is the truth. You have to listen. You don’t need to be an economist to know that any system that allows you to sit in your garden and with a telephone call make N1 billion without investing a kobo, that system is wrong.
It is unsustainable, no matter how positive you think about it.
So, the first thing I will like to say is that there are many voodoo economists parading around. And many of them are not economists. They are demagogues. They tell poor people, anyone that says devalue the Naira wants you to pay a high price. It is arithmetics. It is not economics. Many of the arguments I see in newspapers, sometimes I feel like writing back, and I will remember I am an Emir and I am not supposed to.
Even this one I am giving this lecture, maybe someone would say: “Emir, stop giving these kinds of lectures.”
That you have someone who writes what you call a brilliant economic paper, and he is telling you that if you devalue the currency prices would go up. Is that economics or arithmetics? It is arithmetics!
If you ask your boy in Primary 3, if the dollar costs N150 today, and tomorrow it costs N300, what would happen to prices? He will tell you prices will double. He can calculate. One times 300 is two times one times 150. That is not economics. That is arithmetics.
The economics of it is, these billions that are being schemed off by people who get official exchange rate, should you give the states their revenue.
For example, should you take dollars, for every $1 billion taken from the Federation Account and sold by the CBN at N200 to the dollar, the states were losing N100 billion that could have gone into salaries, agriculture, healthcare. Yet, the states were going to borrow from the same government on a bailout when the government was selling dollars cheaply to a small group of people. What kind of economy are we running?
Who is advising the government? I have asked that question before. I want to know so I can talk to the adviser.
We did not have money. Oil prices had collapsed. Niger Delta Avengers were blowing up oil wells. The scarce dollars we had, we were selling cheaply, subsidizing people. What was the argument? We need to promote manufacturing. Right? Thank you. But, what percentage of your GDP is manufacturing? Eight percent.
Let me ask you Commissioner, you are a manufacturer, you are able to secure $10 million from the Central Bank to import raw materials and produce goods, you spend N2 billion to get $10 million, and somebody says to you: “Listen, I will pay you N3 billion for this $10 million, so that you make a profit of 50 per cent for just doing nothing. Just buy the dollars and sell.”
Your option is to buy raw materials, establish a letter of credit, import raw materials, maintain generators, buy diesel, pay labour, produce your goods, take the risk you may not sell at a profit, transport it, or to make a profit margin of 10 per cent over a 120 term period, what would be your choice?
Would you import and manufacture? You have an automatic guaranteed 50 per cent return immediately for no labour. With this every manufacturer abandoned production and started looking for FOREX. I had people who would come to me or telephone me and book an appointment only to ask me: “Your Highness, I want you to help me get dollars.” They wanted to turn me into a dollar middleman. So, every manufacturer decided that he would get the dollar and sell, instead of buying raw materials and producing. So, what happens to production and employment? What do you end up with? A recession. And why are we surprised we are having a recession? We created it.
But, we did not call it recession. We called it demand management. People were using words they did not understand. You want to manage demand? Fine. You will manage demand for industrial raw materials, you are also managing industrial output. You manage demand into inputs to services and manage down service outputs. The result we have was the result that we were always going to get with sets of policies we put in place. And we don’t realise that we made those mistakes. I am glad it seems we have. But, we need to just come out and come clean. That is the best way. We have taken a few wrong steps. It was all done in good faith. We genuinely wanted help the poor people, that’s why we made those mistakes. Now, we are retracing our steps. Now we begin to talk.
Let’s look at the GDP against government spending. For Nigeria, from a base in 2005 to 2015, GDP has been rising nominally, driven largely by recurrent expenditure. If you looks closely, recurrent expenditure seems to spike on the eve of elections.
The economy has quadrupled in nominal terms since 2005. Our population has grown by 40 million since 2005, but capital expenditure has not changed. $0 million more people, but we don’t have more power, roads, schools, hospitals houses, etc. Where are these 40 million people going to be? The Niger Delta creeks and Sambisa Forests?
Our economy, at least in part, created terrorism by simply not creating the opportunities for these young people. If you think the Niger Delta or Boko Haram or other insurgents or something are the issue, let me give you another number.
We have over 160 million Nigerians today. The median age is 19. In the next 20 years, we are going to have at least 80 million Nigerian men and women between the ages of 20 and 40. Maybe in the next generation you can start doing something about it. You can start family planning or something. But, these ones have been born, and we have to prepare for them. Those of us who are alive now, we have to prepare for what we are going to do with these 80 million young people. We can’t kill them. And if we do not expand the earnings and production base of the economy through wise investment and very difficult, but appropriate decisions, we will end up in a classical Malthusian situation, where the resources cannot support the population and we start having wars and pestilence.
This is Rev. Thomas Max, one of the very first lessons you learn in EC101.
Look at the road ahead. You know this is all a combination of old sets of policies. There are times in the history of this country when we had it right. But, we didn’t continue.
A lot of the reforms done in the second term of Obasanjo laid the foundation for sustainable growth. But, then we kept going back and forth. And I am hoping that in here we are not like the ordinary innate Nigerian.
We do feel a level of shame at what we see. You have got your per capita nominal income – Angola, Botswana, Cote d’Ivoire, Egypt, Ethiopia, Ghana and Zambia.
Per capita income in Kenya is $1,388. In Nigeria, it is $2,943. So, on paper, Kenya is half as rich as Nigeria. So, how much is Kenya able to raise as tax revenue per capita? $232. How much was Nigeria raising in 2014-2015? $117. Now, how much was Kenya spending as development spend per citizen?  $129. How much was Nigeria spending? $17.
The research you see don’t just come out of nowhere. They are the direct consequence of deliberate policy decisions. If you choose to make it very profitable for people to produce fake bills of lading and claim fuel subsidy and build estates and private jets, we are never going to have refineries.
If you make it profitable for a Chinese man to come to Kano…. Now in Kano, the Chinese are doing tie and dye. Even the tie and dye pit that has been in Kano for about 600 years are at risk.
We have been talking about the protection of this industries. Minister of Planning, nobody has done anything you know. In the next 10 or 20 years, if people of Kano starts picking Chinese and throwing them into the dye pits, because they are importing simple dye, they took the technology from Kano, went to China and they will now be coming to ask the people the pattern that they want.
They come in, they bribe Customs, and because there is no way you can produce that thing in China and bring it and they sell and our industries are destroyed. The textile Industries in Kano are gone. The tanneries and leather industries are gone. A combination of a lack of electricity and infrastructure, lack of investments and very bad trade policies.
We have to go back to the drawing board. This is why this conference and the Ministry of Planning are the most important economic Ministry. I have always said that the Planning Minister is the most important Economic Minister.
Assuming that, one, he is able to produce a very good plan, and two, that the government listens to him. And this is why I thought instead of coming here to talk about just monetary and fiscal policy, I will talk about them.
But, let’s try to get into a mindset, where at the federal, states and local levels, we can actually look and see what we can do to change this things.
So, are we going to adopt an investment driven model? Now, we talked about the public sector, and public sector fundings, and when I come forward I will show you that for Planning Ministers, you need to think beyond what the government budget is. If you need to build a road, your job is not about whether you can raise enough taxes to build the road, it is whether you can fund that road.
With the combination of taxes, and debts and investment and whatever, that road needs to be built. It doesn’t have to come from the government’s balance sheet. Nobody says the government must fund every single thing that is development. This is where investment becomes important. We are not getting money from oil.
Our non-oil revenue is not rising fast enough. We talk about taxation, but there is a limit to how much you can tax a man who is not able to eat. And also, there is a limit to how much you can continue borrowing  in Naira. You know, we play with these numbers. When I was in the Central Bank, we say: “Oh! You know, our debt to GDP ratio was 25%, therefore it is nothing to worry about. It is not up to 70%. Your debt to GDP ratio is 20%, and you spend 30% of your revenue servicing debt. What does that tell you?
70% of your GDP does not generate government revenue. Agriculture is about 35%. How much tax does it pay? Wholesale and retail trade, how much tax does it pay?  You have a GDP where the tax is coming from the oil sector and telecom’s. That’s your government revenue base. And those sectors constitute maybe 30% of GDP. So, for all intents and purposes, gentlemen, if your debt to GDP ratio is  30%, and only 30% of your GDP is generating revenue, you are at 100%, until you broaden your tax base.
If you just look at debt to GDP ratio, there is no reason why the Nigerian government cannot borrow more than N2-3 trillion. But, let them borrow now. When are they going to pay?  You don’t pay debt from GDP. You service debt from revenue. Nobody talks about debt to revenue.
What’s the good news? It’s that Nigeria is not all about oil. I know we all think it is oil. But it is not!
Oil does not form even a critical part of our GDP, or our growth. Look at these numbers. That’s your GDP per capita.
The present value of your oil reserve in 2016, which was calculated based on 37.2 million barrels, $60 a barrel, production horizon of 40 years and discount rate of 12 per cent.
If you sold the entire oil reserves of Nigeria today, the proceeds will add only $1164 per head, compared to GDP per capita of  3000 in 2016.
So, those making noise about oil should stop making noise about ii. People should stop being afraid, because oil is not critical. It is just a working capital. We sell it.  We get the dollars that we use to import. If you can find another source of working capital, we can do without it. It is 15% of GDP.
When I was governor of Central Bank, the economy was growing at 37%. The oil sector was not adding anything to GDP growth. The growth was coming from agriculture, services and trade, which is also very revealing. If we are now saying we are in a recession, because of the collapse in oil price, we are not being sincere.
You can’t be in recession, because a sector that is 15% of your GDP has declined. What happened to agriculture, trade, services and health?
Something else to look at. This is the slide that got me sacked from my job. You know the truth will always be there and I like this power point presentations because the figures tell you more than a thousand words. These are our external accounts, now look at Nigeria and look at Kenya up there in the blue line. These are current accounts surpluses we have had from 2005 to 2014. Not even one oil price rise in 2014 did we have in our current account deposit. I think today, up to 2014 we have current accounts surpluses. Now, below there you have other investment assets, which will be your capital inflows. I mean your reserve, and you have something called net errors and omissions.
Look at 2014, the errors and omissions were about $20 billion, from about minus 5 to minus 35, about $30 billion actually. So, when you are an accountant and you produce accounts and errors and omissions that are 70% of the numbers, or 60%, what does that tell you?
These are national accounts published by the Central Bank of Nigeria and the Central Bank is telling Nigeria: “Look, all we know is that this is money that we think should be in the economy, but we cannot find it.” And people didn’t want me to talk. Now, we are hearing where the money went. All sorts of revelations that nobody thought where possible. Everyday they were captured in errors and omissions. Now, look at Kenya. They do have errors and omissions, but compare the errors and omissions bar to what they were able to account for.
5%, even 10%, is  acceptable. But when you cannot explain where 50% of your earnings went and the country continues and nobody is asking any questions, and even when you tell Nigerians that this is the thing, they will say: “Don’t mind the man.”
Look at that, so where do we have a problem? First of all, as you can see we have not been able to attract investments. All the other investment assets headed as errors and omissions had been headed out. Which means, the money went out and did not come back. Anything below the zero line represents money that went out of Nigeria and did not come back.
Anything above represents what came in on the net basis. Now, a country like Kenya was having huge trade deficit, and that’s why the blue lines are below zero, but is able to attract investment. And that’s all above the line and that’s why Kenya is growing. We earn the money, we don’t attract any kind of investments, apart from portfolio flows. How much investment do we have in the oil sector, roads, economy, agriculture, refineries. etc.?  When you talk to people, they will tell you this sectors are not profitable. But why are people investing in Kenya agriculture? Why are they investing in roads in South Africa? Why are they building bridges? Why are they investing in power plants in Ethiopia?
I am Chairman of a company called Black Rhino. By the way, I don’t have a kobo in that company, but I am a Chairman. This short man who owns black stone said to us: “Gentlemen, here is $5 billion to invest in power projects in Africa,  a joint venture with Dangote on a condition that for every $1billion you put in, Dangote puts in $1 billion, so we have $10 billion to invest.
We have projects in Ethiopia, Eritrea, and Kenya. I accepted to be Chairman on one condition only, that he will allow me to fix a power project in Kano. And he said: “If you can find a good power project in Kano, I am okay.”
Now, power companies are here trying to invest, negotiating. And what did we hear? One day some judge in a court sits down and says reverse the tariffs. I am here talking to someone in New York who cannot understand that a government can issue a power privatization plan; that investors can come in; that there is a regulator for power; that they looked at the numbers, looked at the cost of power, looked at what is cost recovery, agree on a tariff, announce that tariff, they bring in their money to invest on the basis of that and a court in the same country says this is illegal.
You know, for you sitting here and for Nigerians, this may not sound well, in fact people were saying yes! They are cheating us. But, what that one judgement does in terms of the signals to foreign investors is very disastrous.
There is no country in the world where a court had agreed to interfere with commercial transactions between the government and private investors that are in to attract investments. There is a contract!
The judge did not even say do not give this going forward. He said the ones that have been done is illegal, and you expect somebody now to bring in $3 billion to invest in power in Nigeria?
Knowing that you can tell him this is the tariff, and tomorrow your court can wake up and say the tariff is illegal? So, as planning ministers and commissioners, if you decide upfront that investment is important to you, the entire  system has to be searched, to make sure that these signals are not set.
Your Customs officers should know that okay, this is the duty; pay correct duty. Don’t add anything on top. It is the economy’s investment. If a man is entitled to 5 year visa for bringing some kind of investment, he will get it. He doesn’t need to know anybody in immigration.
The court should respect legal agreements. And the right incentives should be provided, and when you provide incentives, do not review. Every government comes in and the next thing you know, some businessmen comes to them and say: “Your previous government gave this one tax incentive and you start reviewing and reviewing. The next time you offer somebody your own incentive to invest, he will not come, because he believes that the next government will reverse it.”
If the government that has made the mistake is gone, you then offer your own set of incentives and make sure that they are transparent. If you offer somebody an incentive in cement, make sure that every cement manufacturer gets that incentive. Fine, its sectoral.
Assuming cement is important to you, if you offer an incentive for agriculture, make sure that everybody who meets those conditions should get those incentives, not just somebody who knows his way around Abuja. The farms are not in Abuja anyway.
You can see this. Basically, no investment has come in, and as you can see, I am building a consistent story that you have had growth model driven by commodities and consumption, which is your problem, and you now need to shift and you have a growth model that is driven by investment. And for this forum, it means you got to stop thinking so much about how much the government can spend, as in how much can we get into this economy.
Lagos has done very well. If I have money to invest, I will invest it in Lagos, because it is attracting investment. Lagos has realized a long time ago that the government cannot fund all it needs. And I just love what Lagos has done. The Lagos story is a story of what Nigeria can do with itself – transparency, consistency, regulations – and people can be rich. There is no problem if people can be rich while growing an economy. Nobody minds. But, in Nigeria people become rich when people are dying. Let’s take the Lagos story, and that’s why today Lagos state is 30% Nigerian non-oil GDP, and Lagos can do without oil.
Lagos can do without the rest of this country. So, we must not let Lagos go.
This country is better off with Lagos than with the Niger Delta. Let’s not make that mistake. We should be together as a country. Every part of the country is important. But, let us not be so obsessed by a resource, because we have had the commodity driven model, and we are blind to the potentials of an alternative model.
Lagos doesn’t need oil. What is oil anyway? It is a raw material. You don’t drink it. You need it to move your vehicles. Now, you have electricity. You need it to fill your generator. Now you have solar power, and biomass. The future of oil is not there. So, those few people who are trying to break up this country over oil, after sometime that oil will be worthless. You are better off being in a country that is based on this model. This is a country of the future, that is the past.
Exchange rate
Let me start by congratulating the government for making changes. Unfortunately, those changes were a bit late. But, the adjustment has been very severe.
My sense is that where we are today, the Naira is already undervalued. If you look at the real effective exchange rate, we are below the zero line. Basically, what this means is, if the Naira were to strengthen to about 9%, you will get exchange rate palliatives. So, you are not really under any more pressures for a devaluation. This is the nominal exchange rate adjusted for relative prices, and also adjusted for rates of our trading partners. So, on a trade basis, the Naira has gone from one of the most overvalued currencies when we were at N197 to the dollar, to the one that is undervalued. So, that adjustment has been made by the Central Bank. And what the Central Bank needs to do is just to allow this system to operate properly and stop panicking. You know, from what you can see here, even if the markets starts at N320, N340 or N350 to the dollar, if you allow it to operate, it will revalue itself and adjust.
What is causing the problem is all the sense that we are not entirely flexible, and sometimes wrong signals. After you have allowed the flexible markets, you act as if you really don’t believe in it.
These things don’t just work on fundamentals. I was in the Central Bank, the markets works on the basis of confidence and perception. There was a time speculators started hitting the market when I was with the Central Bank. The Kenyan Shilling got hit and got divided by 25%. Ghana got hit by 30%. South Africa got hit and they started heading towards Nigeria.  And I called an emergency monetary policy committee meeting jerked up the monetary policy rate (MPR) by 200 basis points, jacked up CRR (cash reserve ratio) by 400 basis points and declared that I will defend the currency. I didn’t have the money to defend the currency, but everybody believed me and they left me alone. The market works based on confidence. By the time you have taken over one bank, fire one bank MD, they will believe you when you make a threat. I made many threats as governor of the Central Bank that I never carried out. If banks messed up, I will say, I will remove you, and because I have removed bank MDs, they will say sorry sir. They fell in line. So, if you are going on a flexible exchange rate, have the nerves. You have produced a fantastic document, stick to it. You can’t be any worse than you were. You are in a recession anyway, so you are trying something different. So, try it and try it properly.
Real interest rates: Again, Central Bank has raised it and people have been attacking the Central Bank for raising the rates. Why? It’s not just about inflation. It is about stabilizing the currency, because the truth is that where we are today, the only way we are going to reverse this recession is to increase liquidity in the foreign exchange markets and reduce the gap between the official rate and the parallel market rate.And this is what I think the Central Bank needs to keep doing.
A flexible exchange rate regime and a positive real interest rate will combine to bridge that gap. Bring in the dollars that we need to finance imports, and those imports of raw materials are the things that will increase production, and that production is what will lead to growth.
I have been very critical of what the Central Bank has been doing since the beginning of this administration. I am very supportive  of the decisions it has taken in the last  few Monetary Policy Committee (MPC)  meetings, all that we ask is that they have produced a fantastic  document on foreign exchange rate they should do it.
On the treasury single account (TSA), they should just realize the difference between the dollars balance sheets and the Naira balance sheets, because I have seen this whole thing about banks being banned from foreign exchange markets for dollar TSA. The Naira balance sheets of banks is highly diversified. The government deposits may be 20% of deposits. Banks are financial intermediaries. They engage in what is called maturity transformation. They borrow money short term and loan for long term on their Naira balance sheets. They have this money coming every day – current accounts, savings and deposits. If you tell them to pay off government deposits, they pay off and send marketers out and raise money.
On the dollar balance sheets, Nigeria only raise dollar on oil sales. The IOCs (international oil companies) have their money in international banks. NNPC is the only provider of dollar money, and they have lent out that money. If you apply the same rules on the Naira balance sheet and dollar balance sheets, without looking at concentration risk, you bring the banks down. They have lent out these dollars. Look at the maturity of their assets. Give them time to pay back these dollars. For them to pay back these dollars, they have to find dollars elsewhere. Where are they going to find? Who is the other exporter, apart from oil. What do we export in Nigeria?
And that is the point. So, they need to be very careful. So long as you know where the money is, give them the time to sort out their assets and pay back. Don’t precipitate a banking crisis and this idea of banning banks from foreign exchange market.
In the history of this country, and Dr. Shamsudeen Usman knows that, very few banks have ever survived after being  banned from foreign exchange markets, because banks has lent money to customers who depend on import to produce. If banks can’t buy dollars for those customers, they can’t produce. They can’t pay back their debts. You build up non-performing loans. So, let us think through the consequences of some of these decisions that we take. But, apart from that, I am extremely supportive. I think the Central Bank is doing the right thing, and I think we should encourage them. I think the government should be given credit to say we are going to retrace our steps.
The government has said we are going to eliminate wasteful subsidies. I don’t want to go deep into this. I have been saying a lot about fuel subsidy since 2011-12.  We have seen everything. Just an interesting thing.  If you look at 2011-2012, in theory o, because I don’t believe it, we were importing about 60 million liters of premium motor spirit (PMS) every day. Now, we are down to a little above 30million liters every day, has our population gone down? Do we have fewer cars? Are we consuming less? All those numbers were fake.
Again, you can go back to the record 2011- 2012, I sat in front of the House of Representatives and made a presentation. I produced documents. I had documents that showed people claiming they had 15 vessels of 30,000 metric tons offloading in Lagos on the same day, and they were being paid subsidy based on those documents. People sat in their offices produced bills of lading,  bribed everybody from Customs to PPPRA (Petroleum Products Pricing Regulatory Agency)  to whatever and got money out. All they needed was a paper that says you have allocation, and based on that allocation they will go.
I am glad again that we are moving towards removing these subsidies. They are painful. Let me make that clear. If you have to pay more for fuel, it hurts, it bites. The truth is that no system is perfect. And the subsidy system benefited a very small groups of criminals much more than it benefited the poor people.
And if you are going to subsidies, please provide this subsidy in production. Provide cheap gas to power plants and set power prices to a level where they can make a profit without passing on high gas prices to customers. Reduce the cost of setting up a business. Reduce the tax burden on pioneer industries. Subsidize production. Do not subsidize consumption. Rather than give poor people subsidy on fuel that never gets to them, take that money and put it in their hands. We were spending $6 billion, $7billion per annum on fake subsidies. And where is that money today? It is all in private jets, private yacht, expensive jewelries, property abroad, that’s where it is. It is not in this economy. Its gone out. One number I will give you is that  Nigeria earned $16 billion from the oil sector  in 2011. I was the governor of Central Bank. We established LCs worth  $8billion for importing petroleum products  and spent another $8 billion in petroleum subsidy. Every dollar we earned from the oil sector went back to petroleum sector in 2011. Not one dollar went into education, roads, power. It went into importing fuel and  paying subsidy on imported fuel. The numbers are there. And if you look at that  town hall meeting that has been going on, on Channels TV I gave this number then. Not that this one I am saying will change anything o! I am just saying it. But, tomorrow if you invite me, you will hear.
Look at power generation. That is where we need to focus on. Let’s get the power reports back on track. Fantastic policy. Power was privatized. What happened?  People bought DISCOs (distribution companies), because they had connections. Dr. Usman was head of what was called the technical committee on privatization and commercialization in the 1980s. I know because as a Merchant Banker, I privatized Okomu. Okomu oil mill is still there. As a solid company, because when they were in TCPC, they have a process where you don’t just buy a company. If you say you are going to invest, they had a process of making sure that after you bought that company, you make those investments. They don’t just sell assets to you. Privatization is not just about selling assets to people, it is about making sure that they make the investment they are committed to making when they bought it. So, we have people who bought DISCOs who said they will invest, but they have not invested.
Land Registries. Lagos has done well, but you need to do more. In Lagos alone, you have 13 procedures to register land, according to World Land in Business Report.
It takes 77 days, 10% of your property value and  the quality of land  is 7 out of 30, compared to 22 in the OECD countries. Lagos has now moved up, they are merging all relevant laws into a single piece of legislation. The only reason why I am not praising Lagos is, because I want to see the result first. But, they have at least realized that this is a problem. And I hope all states would look at this.
Power and Land reforms are very important and having that data base is critical, especially for agriculture. Mark your land, give a C of O; let the farmer be able to use that land as collateral to borrow, or as security. Many of you had read Henandez  De Sotos’ The Mystery of Capitals. Land is capital. I have that big problem here in Kano, especially in the Muslim villages. A woman’s husband dies and leaves her a farm. She doesn’t farm. So, her husband takes  over the farm, he farms it, but that is her capital, and she gets no return on it. He uses her farm. He earns a living and he gives her chop money from her own money.
I am Chairman of a group call “Babbangona”. We are working on farmers trying to improve their yields, and I am having that problem, and I get to the district heads and say: “Look, get all Muslim women that own farms to sit with their husbands. This money that is being given for seeds, for fertilizer, for inputs is being given to the woman who owns the land.  If your husband wants to be the labourer, let him be. If he doesn’t, let her get someone else. You are the boss, because she owns the land.
If your husband is ready to farm for you for a fee, let him do it. Otherwise, we will find a farmer for you.”
So, this issue of land is crucial to addressing poverty, especially poverty among rural women. Many of them own lands being hijacked by their husbands and they remain poor.  And it is all cultural, but what I learn from “Tudun wada” is that the Christian woman has learned to farm and they come out to farm, because they love it.  But, the Muslim woman has been stopped from farming, but in the name of culture. What the men had done is that they have taken over their capital, and it’s not religion. And therefore, as leaders, we have to address this social issues as part of economic rejuvenation.
Trade Policy:  You know, I keep sounding like a broken record 2012 – 2012.
I wrote an article in the Financial Times in London in which I criticized China’s relationship with Africa. It was very controversial. I don’t know if you read it. But, if you google it, you will see it. Now, look at this. These are our trade with China. We are all importing from China. Those that export to China are exporting oil or solid minerals. China’s interest in Africa is not our development. America’s interest in Africa is not our development. Europe interest in Africa is not our developments. China’s interest is China’s developments. Likewise America and Europe. Please our government! Our interest should be Nigeria’s development.
If the Chinese are going to come back and set up textile factories in Nigeria and buy cotton from our farmers and employ Nigerian workers  and produce these textiles and sell to us, they are welcome. If they are going to produce textiles in Shanghai. Subsidize them. Bring them here.  Bribe our Customs Officers. Come to our markets and destroy our industries, we have to say no sir!
If China is lending us money, and we are going to pay back that money to import equipment from China, we should please check that those equipment are properly and transparently priced; that we cannot get them cheaper from another part of the world; and that they are of high quality. This idea that am lending you $1billion to buy rice mills from me, which you can get at half the price elsewhere, you have already paid interest  of 100%. If you don’t know it, the price is not a cheap loan.
Now, we go to these countries and we think there are no strings attached, especially at this time that the World Bank and the IMF and the Europeans are saying we want you to pursuit policies, China does not interfere. So, we are running to China, it is a good partner.
We must trade with China, India, Europe with America. I have nothing against any of them. What I want us to do is to sit on the table with them and negotiate trade agreements that protect our interest, because that is what they are doing and that is what every reasonable country in the world does.
So, I think we have talked about Fiscal Policy, Monetary policy, Trade and Industrial policy and if there is any message I have tried to send  is that we have a model.
Historically, that was driven by commodity growth, by consumer spending. We have a future that is based on investment that should come in. We need to move to an investment-driven model. We need to have some elements of state planning. We cannot just allow the market. The market will not put money in agriculture, refineries. So, you have to provide the incentive and lead capital so that’s where you are important and that what for me is the way forward.
So what’s the summary? The years of Africa rising where one child  could lift us up are behind us. Sustainable inclusive growth now depends on investment. Please every planning commissioner should remember that its investment.
The role government can play is now by getting appropriate market growth, and we said that you don’t have enough money. You have seen how much money you are raising per head. It is not much. Even if you move money from recurrent to capital expenditure, if the pull does not increase, it is not much. So, the government doesn’t have the pocket to do. If you got to look for private investments, local and foreign, to to do that, and you do that by having a corporate micro-policy and the government is getting it right, finally, and also creating a supportive business environment.
So, set excess rate to intensify it flows, eliminate subsidies, that has been done. Now, address failures in the power sector value chain, starting with the DISCOs, digitize state, land registries, prioritise public spending towards investment and protect infant industries.
Anybody who tells you not to protect your industries is deceiving you. Create a level playing field between the infant industries and the big ones. I am not saying go and protect everything, but they must be a way of ensuring through power, infrastructure, industrial plasters, research and technology, technical and vocational education and through appropriate trade and  tariff policies that critical policies are incubated before they are allowed to go out on the streets.

Thank you.

Excerpted From Premium Times

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Emir Sanusi lamido
The Emir of Kano, Muhammadu Sanusi, on August 24, warned President Muhammadu Buhari to avoid repeating the mistakes made by former President Goodluck Jonathan so his administration does not end up in infamy like that of his predecessor.

The former governor of the Central Bank of Nigeria also warned the government against continuing to blame previous administrations for the nation’s woes, saying what was important was for the administration to concentrate on putting the nation back on the path of progress.

He gave the warning while delivering a paper entitled, “Nigeria In Search Of New Growth model” at the 15th meeting of the Joint Planning Board and National Council on Development Planning.

The Emir also spoke extensively on the nation’s economic recession.

Here is his full speech at the event:  
First of all, I want to break from tradition. Usually I speak in Hausa in Kano. But, I don’t know how I am going to make an economic presentation in Hausa to 36 states’ commissioners and have someone translate it into English. To avoid things being lost in translation, I will speak in the language of economics.
Let me start by saying congratulations to you minister. This is the first time I am meeting you in an official function since your appointment, and to tell you in public what I have always said in private; that you are one of the sisters I remain extremely proud of your work. I wish you all the best in these challenging times.
I have always told people that Dr. Shamsuddeen Usman, my teacher, (I don’t know if he is an ex or former minister, multiple times) taught me microeconomics. So, he takes a lot of the credits, and none of the blames, for what I have become.

Ladies and gentlemen, I was not given a specific topic to talk on. But, because the concern today is the concern about the recession Nigeria is in technically, and also because it is a meeting of Planning and Budget Ministers, I thought I will do a proper economic presentation and put down my thoughts on where I think we are; why I think we are where we are, and what I think we need to do to get out of this.
I am sure there will be many other presentations specifically on what a state can do to raise revenues and so on. But, having an overarching view of economic policy, and where we may or may not have done wrong, or what the key drivers of growth should be for the Nigerian economy are things I thought we should talk about at this session.
So, I call this presentation, Nigeria: The Search For A New Growth Model.
I will start by going back to the past, not just Nigeria, but Africa. Let’s ask ourselves what were the key drivers of growth in Africa, and what has changed since this golden decade Africa had.
Africa Golden Decade was basically the decade of the 2000s. Africa moved from the previous decade, where it was a hopeless continent, to a new decade that we have one type lifting all story of Africa rising.
This rise in Africa across the world was one of stories of sadness, poverty, famine and hunger to a continent that was full of potentials; where there were opportunities for investments; where capital markets were booming.
All of a sudden people heard countries like Nigeria, Kenya, Ethiopia, Ghana, etc. when previously these were supposed to be a basket case in the world.
The first pillar of this growth was clearly shifting terms of trade, which as we all know in developing economics, can be a mirage.
You can’t have improving terms of trade when you are exporting commodities over short periods of a cycle. But, we know as far back as the 1950s, from the Latin American structure economics, that over the long term, any economy that specialises in exporting primary products and importing manufactures would end up having terms of trade shifting against it. You can have a temporary boost, but If you don’t use that boost to have a structural adjustment that would make for prudent management of the economy, you would be courting trouble.
By 2008, one barrel of oil would buy you one Sanyo flip telephone as against 19 barrels of oil to buy the same phone earlier. That gives an idea how well the terms of trade have shifted.
We had an oil price of $10 a barrel in the time of Babangida. At one point under Obasanjo, it rose to $140 a barrel. This was a time of rapidly improving technology, cheaper manufactured products and therefore our oil could technically import us much more.
This process was not common across all of Africa, because we are aware of other African economies that grew, and certainly it was not just one pillar. Let’s go to the second pillar of growth in Africa in that decade, which was debt.
Between 2002 and 2008, the levels of debt to GDP (gross domestic product) in African countries and what they became after the Paris Club, HIPC debt reliefs and so on. Nigeria was at 50 per cent debt to GDP and came down to literally 5 per cent or so.
This happened across all Africa in the form of debt forgiveness, debt relief, debt restructuring and so on. What this did was that it freed up government balance sheets and in that decade of Africa rising, the countries went back on a borrowing binge.


Nigeria kept borrowing, not externally, but internally. I think our external debt was just about $8 billion on the balance sheet. But, the Naira indebtedness of the Nigerian government, we were spending over 30 per cent (maybe 40 per cent now) of every Naira earned just servicing debts.
That’s what you have. Nobody was noticing it. We have written off the debts, and then we kept building it up bit by bit. And when you look at where that debt was going into, you will see why, or part of the answer to the problem we are having.
So, we have these two pillars – rising commodities prices, and we monetise oil revenue, we will be able spend money. We were able to borrow because the balance sheets could accommodate more debts.
Where did all these debts go? Did it go to roads, power, refineries, or infrastructure? No. The new borrowings were simply recycled into much higher recurrent expenditures. What that did was that it helped sustain a consumption boom. And GDP was growing, largely driven by consumption spending.
If you look at public sector wage bills in real terms, Nigeria, Ghana, Ethiopia and Kenya, you will see it was rising significantly from 2005 to 2014.
In Nigeria, for example, our public sector wage bill went up from N443 billion in 2005 to N1.7 trillion in 2012.
In 2010, the government increased minimum wage to N18,000. I was at the Central Bank, I protested and protested. They had an election coming, they increased the minimum wage N18,000 and basically borrowed money to pay.
In 2012, as governor of Central Bank, I said this was an unsustainable wage bill. We needed to reduce the size of the public service. My own government minister came out to say that was the (CBN) governor’s personal opinion. In fact, she said the government wanted to employ more people. And this is the result.
I am serious. Sometimes I don’t bother. I’m never going to change. I’m never going to be political. I’m never going to stand here and tell people what they want to hear.
The problem is that there is nothing that we are facing today that we did not know would happen. That is the truth. We made mistakes. Many of them deliberate. We ignored every single word that pointed otherwise. Economics is a science. It is not a perfect science. But, over decades and decades and centuries, people have seen that there are certain things that, when you do, will lead to certain consequences.


If you take a brand new car and give a driver who doesn’t have a license to drive it and you have an accident, you really can’t say you were surprised, unless you are some kind of idiot.
We knew that this was going to happen. You can’t just keep borrowing money and paying salaries, not building roads, not improving power and think this will not happen.
We will see the per capita investment development in Nigeria and per capita results we are getting. These were all from a resource in an enclave economy.
And not so that we are not always blaming the previous administration, we have also made mistakes in this administration.
We have started retracing our steps. But, we have to retrace those steps. And if we fall into the same hole that we fell into the last time, where the government is always right.
When the minister is there, you tell them, “You know, Hon. Minister, Nigeria is very lucky to have you in office.” No! You tell the minister that you are doing well, but, you know there are these areas that you must change. If a policy is wrong, it is wrong. Nothing will make it right. And it has to be changed.
So, this is what we did. Look at real sector wages. It was not just Nigeria, it was all over Africa. Look at sovereign debt fuelling growth.
If you take the example of an individual. You happen to know bank MDs and you can make a few phone calls and get loans. You borrow N1 billion here today and build a very nice mansion in Abuja. You borrow another N1 billion and let your family go out on first class ticket as you are travelling all over the world. You borrow another N5 to N6 billion and buy a private jet.
We have very many people in Nigeria who you think are very rich. But, who are really bankrupt, because everything about them are being financed by bank debts. When one debt matures, they have enough connections to call another bank, borrow and refinance that debt. They are not earning anything. They have private jets. They have yachts. Their families travel first class. They go abroad and stay in the most expensive hotels. It happens. And it is happening today.
What do you think of those people? When you think about such people, do you think they are foolish people? Or do you think they are wise people? So, what would you say of a country that does this?
So, you feel growth by borrowing money, pay salaries, people spend money on pure consumption spending, nothing is produced. It’s fine. It’s short term. But, it is not sustainable. How much can you continue to borrow and consume without producing?
And the funny thing is, you did not have to stop borrowing. All you had to do was borrow the right amount and apply them to the right purposes. It doesn’t matter whether they were consumption spending or investment demand, GDP will grow. So, make a choice.
As a country, we made a choice. We wanted votes, popularity or palliatives, so long as people are getting high minimum wage, we keep quiet about all other things that were happening in the economy that we should be talking about.

That was the relationship between public debts and GDP growth.
Today, we are in a new reality. This is what they call the new normal in Africa. And we have a two speed Africa. If we look at the new IMF World outlook, you will see something interesting. Non-commodity Africa will be the fastest growing part of the world, even higher than emerging Asia, whereas commodities Africa (countries like Nigeria and Angola) are among the lowest growing parts of the world, at the rate of Europe and Latin America. And we can’t explain why.
But, think of a country like Ethiopia and then Meles Zenawi, the late Prime Minister. Ethiopia keeps growing year after year at 11-12 per cent. And what did Meles do? The simple things we have been saying for decades and decades and decades. This is a country that came out of a war, remember?
It’s facing insecurities; got Eritrea and other countries that do not like it around it. I’ll give two examples. Coffee. It originated from Ethiopia in the world. But, Ethiopian farmers, before Meles, would get 10 per cent of the value of coffee from their crops.
They would just produce the coffee and sell to companies, and the companies will take their coffee into Latin America and have it improved and dried and and packaged. And Zenawi just asked: “Why can’t we produce coffee in Ethiopia that would go straight from Ethiopia to the coffee shops in Europe?”
And all sorts of responses came. “Well, you know your weather is good for growing coffee. You coffee is very good, but your farmers have bad farming practices.”
So he said: “Why don’t you teach them?” So, he got in touch with the IFC (International Finance Corporation), got a loan, organised Ethiopian coffee farmers into cooperatives, taught them how to grow the coffee, how to dry, prepare and package it.
Today, if you go to coffee shops in Europe and take a cup of coffee that came straight from Ethiopian farm. And Ethiopian farmers are now getting 70 per cent of the value of the coffee, from the former 10 per cent.
So, he tells Aliko Dangote, come and build a cement manufacturing plant here. I am going to give you electricity at three cent per kilowatt hour. For a cement manufacturer, that is all the incentive that you need.
So, Dangote goes, builds the most sophisticated cement plant in Ethiopia, gets electricity almost for nothing and cost of cement drops by 60 per cent.
The construction industries gets boosted. Roads are being built with cement. Jobs are created. And new industry has taken off.
He said to the Chinese, “I don’t like this your idea of coming to buy hides and skin and leather from Ethiopia and sell us shoes. Set up the factory here.”
Nigeria imports 3 million pairs of shoes per annum from China. Nobody knows how much duty they pay. I am not talking about expensive shoes. I am not talking about what you buy from Pierre Cardin, or Gucci. I am talking about shoes people wear on the streets. Shoes that can be bought here in Kano.
We can produce all the shoes, and school bags we want for primary and secondary schools children, millions and millions of pairs. No, we don’t. You know what we do, we export the wet blue and we import from shoes from China, and we have Chinese people coming here to take wet blue to China and bring back shoes.
We are just a very interesting country.
Every single thing we are talking about today about what we need to do have been said before. I have a document “Industrialization Potentials of Northern Nigeria under Ahmadu Bello, 1962.” There is nothing we are saying today that was not part of the industrial plan of Northern Nigeria in 1962.
We are clapping ourselves that after 50 years, we have learnt nothing. The whole industrialisation of Kano, starting from Bombay to Sharada to Challawa  had space on that plan.
These are very simple economic logic. You cannot continue doing the wrong things and expect to have the right result.
Since 1950s and 1960s, they understood what was the essence of colonialism. It was to come to these countries, take our raw materials, process them and sell us manufactured goods, and keep shifting the terms of trade against them, so you get richer at their expense.
They understood that independence was not about the flag, but about reversing that process. They understood it. We did not. And therefore they said we needed to stop exporting our cotton. We need to build textile industries. We need to stop exporting groundnuts.
Kano used to take pride in groundnut pyramids. I still have people who come to me and say: “You know, Emir, you must bring back those groundnut pyramids.”
But, I don’t build groundnut pyramids. I want oil mills. What am I doing with groundnut pyramids? They stopped exporting groundnut pyramids and build all these oil mills. We should stop exporting hides and skin. Huge multinational corporations that came to Nigeria, whose business was to buy hides and skin. A company like John Holt. In Hausa anyone who trades in skins is called ‘Dan Janho’.
It became a Hausa word, because this was a multinational whose duty was to just buy hides and skins and take to Europe to produce shoes for us to buy.
So, they said let us build our own factories and produce our own shoes and bags. It’s so bad in this country.
Tomato paste that our wives use in kitchens is imported from China. At best, it is packaged in Nigeria. Now, we have a paste factory 40 kilometres from Kano. That’s about the first. We cannot process tomato. We have to import tomato from China. It’s a very sad case.
A country of 170 million people last week Nigerians were celebrating, because we went to Rio and came back with one bronze medal. I saw Nigerians jumping. Somebody said at least we were on the medals table.
We don’t have ambitions as a nation. Some of these things are not just about numbers. It is about a mindset and a people and attitude.
Do we really love our country? Do we feel any shame when we say that Malaysia that came and took palm seeds from us is now exporting palm oil?  Palm oil is what Eastern Nigeria people eat. Now, we can’t produce it. Vegetable oil, groundnut oil.
I went to my friend’s house the other day in Lagos and they gave me Moringa tea in a nicely packaged tin. That is the thing that grows wildly here in the Northern part of the country. Somebody takes Moringa, puts it in a tin, packages it. I did not even know it was called Moringa until I took the tea. They packaged it and gave it an English name. I did not even know it again. It was after I drank it that I knew it was Zogale, as it is called in the local language.
If they had packaged it and called it Zogale, it would have been known as Zogale tea all over the world. Just like people know coffee from Ethiopia. But, now that it is called Moringa, a Hausa man does not know what Moringa is, and it is growing in his backyard. Then, he takes pound sterling to import Moringa tea. So, this is what Ethiopia did.
I will show you what countries like Kenya did, which we didn’t do, and therefore Nigeria is right there in the low band and non-commodities Africa is in the upper band.
What is it that works?
What is it that these non-commodities African countries have done that we have not done?
First, take a model that is investment-driven, rather than consumer or consumption-driven.
At the very top, you have Ethiopia, Uganda, Rwanda, Ghana, Kenya and Egypt. Those at the bottom are Angola and Nigeria.
And if you talk today in Africa, they will think Nigeria and Angola are the richest countries, because they are oil producing. But, the truth is that we are the worst performers, in terms of investments to GDP.
If you look at the other countries that do not have oil, look at what they have done.
If you have a high investment to GDP, you will deliver high growth that is also inclusive. If you continue working on consumption and rent-seeking model, your growth is not inclusive, which is why in Nigeria, you have, over the past two decades, increasing income distribution inequalities.
It is very easy to be very rich based on rent.
Again, we can always talk about the policies of previous administrations. We talk about oil subsidies that brought oil billionaires. But, we have also created our own billionaires since 2015 from foreign exchange subsidies. People are shaking their heads. They don’t seem to understand what I mean. Let me give an example.
I did not just become an Emir. Before then I was Governor of Central Bank. Before then, I was a bank MD. So, I have friends in the banking industry.
When the CBN was selling dollars at N197 and people were buying at N300, if I sit in my garden and make calls on the phone, I will have enough people to call in the industry to get me $10 million at official rate. Do you doubt it?
As a former MD, former governor of the CBN and what they now call a royal father? Think about. I sit in my garden and make a few phone calls, and get $10 million at N197 per dollar and sell at N300 to the dollar, I will make a profit of N1.03 billion.
If I do that four times in a year, for doing nothing, I would have had N4 billion. And people were telling us that this policy was to help the poor. We are not devaluing the Naira, because if we do the poor people would suffer. The people that were profiting from this were people that were telling the government that if it devalued the Naira people would suffer.
Meanwhile, they all got the dollars at N197 and priced their goods at N300 to the dollar. The poor paid the price of a devalued currency and the rich schemed off the profits. It went on for one year. We talked and talked and talked.
If this government continues to behave the way the last government behaved, we will end up where Jonathan ended. We may not like it. But, that is the truth. You have to listen. You don’t need to be an economist to know that any system that allows you to sit in your garden and with a telephone call make N1 billion without investing a kobo, that system is wrong.
It is unsustainable, no matter how positive you think about it.
So, the first thing I will like to say is that there are many voodoo economists parading around. And many of them are not economists. They are demagogues. They tell poor people, anyone that says devalue the Naira wants you to pay a high price. It is arithmetics. It is not economics. Many of the arguments I see in newspapers, sometimes I feel like writing back, and I will remember I am an Emir and I am not supposed to.
Even this one I am giving this lecture, maybe someone would say: “Emir, stop giving these kinds of lectures.”
That you have someone who writes what you call a brilliant economic paper, and he is telling you that if you devalue the currency prices would go up. Is that economics or arithmetics? It is arithmetics!
If you ask your boy in Primary 3, if the dollar costs N150 today, and tomorrow it costs N300, what would happen to prices? He will tell you prices will double. He can calculate. One times 300 is two times one times 150. That is not economics. That is arithmetics.
The economics of it is, these billions that are being schemed off by people who get official exchange rate, should you give the states their revenue.
For example, should you take dollars, for every $1 billion taken from the Federation Account and sold by the CBN at N200 to the dollar, the states were losing N100 billion that could have gone into salaries, agriculture, healthcare. Yet, the states were going to borrow from the same government on a bailout when the government was selling dollars cheaply to a small group of people. What kind of economy are we running?
Who is advising the government? I have asked that question before. I want to know so I can talk to the adviser.
We did not have money. Oil prices had collapsed. Niger Delta Avengers were blowing up oil wells. The scarce dollars we had, we were selling cheaply, subsidizing people. What was the argument? We need to promote manufacturing. Right? Thank you. But, what percentage of your GDP is manufacturing? Eight percent.
Let me ask you Commissioner, you are a manufacturer, you are able to secure $10 million from the Central Bank to import raw materials and produce goods, you spend N2 billion to get $10 million, and somebody says to you: “Listen, I will pay you N3 billion for this $10 million, so that you make a profit of 50 per cent for just doing nothing. Just buy the dollars and sell.”
Your option is to buy raw materials, establish a letter of credit, import raw materials, maintain generators, buy diesel, pay labour, produce your goods, take the risk you may not sell at a profit, transport it, or to make a profit margin of 10 per cent over a 120 term period, what would be your choice?
Would you import and manufacture? You have an automatic guaranteed 50 per cent return immediately for no labour. With this every manufacturer abandoned production and started looking for FOREX. I had people who would come to me or telephone me and book an appointment only to ask me: “Your Highness, I want you to help me get dollars.” They wanted to turn me into a dollar middleman. So, every manufacturer decided that he would get the dollar and sell, instead of buying raw materials and producing. So, what happens to production and employment? What do you end up with? A recession. And why are we surprised we are having a recession? We created it.
But, we did not call it recession. We called it demand management. People were using words they did not understand. You want to manage demand? Fine. You will manage demand for industrial raw materials, you are also managing industrial output. You manage demand into inputs to services and manage down service outputs. The result we have was the result that we were always going to get with sets of policies we put in place. And we don’t realise that we made those mistakes. I am glad it seems we have. But, we need to just come out and come clean. That is the best way. We have taken a few wrong steps. It was all done in good faith. We genuinely wanted help the poor people, that’s why we made those mistakes. Now, we are retracing our steps. Now we begin to talk.
Let’s look at the GDP against government spending. For Nigeria, from a base in 2005 to 2015, GDP has been rising nominally, driven largely by recurrent expenditure. If you looks closely, recurrent expenditure seems to spike on the eve of elections.
The economy has quadrupled in nominal terms since 2005. Our population has grown by 40 million since 2005, but capital expenditure has not changed. $0 million more people, but we don’t have more power, roads, schools, hospitals houses, etc. Where are these 40 million people going to be? The Niger Delta creeks and Sambisa Forests?
Our economy, at least in part, created terrorism by simply not creating the opportunities for these young people. If you think the Niger Delta or Boko Haram or other insurgents or something are the issue, let me give you another number.
We have over 160 million Nigerians today. The median age is 19. In the next 20 years, we are going to have at least 80 million Nigerian men and women between the ages of 20 and 40. Maybe in the next generation you can start doing something about it. You can start family planning or something. But, these ones have been born, and we have to prepare for them. Those of us who are alive now, we have to prepare for what we are going to do with these 80 million young people. We can’t kill them. And if we do not expand the earnings and production base of the economy through wise investment and very difficult, but appropriate decisions, we will end up in a classical Malthusian situation, where the resources cannot support the population and we start having wars and pestilence.
This is Rev. Thomas Max, one of the very first lessons you learn in EC101.
Look at the road ahead. You know this is all a combination of old sets of policies. There are times in the history of this country when we had it right. But, we didn’t continue.
A lot of the reforms done in the second term of Obasanjo laid the foundation for sustainable growth. But, then we kept going back and forth. And I am hoping that in here we are not like the ordinary innate Nigerian.
We do feel a level of shame at what we see. You have got your per capita nominal income – Angola, Botswana, Cote d’Ivoire, Egypt, Ethiopia, Ghana and Zambia.
Per capita income in Kenya is $1,388. In Nigeria, it is $2,943. So, on paper, Kenya is half as rich as Nigeria. So, how much is Kenya able to raise as tax revenue per capita? $232. How much was Nigeria raising in 2014-2015? $117. Now, how much was Kenya spending as development spend per citizen?  $129. How much was Nigeria spending? $17.
The research you see don’t just come out of nowhere. They are the direct consequence of deliberate policy decisions. If you choose to make it very profitable for people to produce fake bills of lading and claim fuel subsidy and build estates and private jets, we are never going to have refineries.
If you make it profitable for a Chinese man to come to Kano…. Now in Kano, the Chinese are doing tie and dye. Even the tie and dye pit that has been in Kano for about 600 years are at risk.
We have been talking about the protection of this industries. Minister of Planning, nobody has done anything you know. In the next 10 or 20 years, if people of Kano starts picking Chinese and throwing them into the dye pits, because they are importing simple dye, they took the technology from Kano, went to China and they will now be coming to ask the people the pattern that they want.
They come in, they bribe Customs, and because there is no way you can produce that thing in China and bring it and they sell and our industries are destroyed. The textile Industries in Kano are gone. The tanneries and leather industries are gone. A combination of a lack of electricity and infrastructure, lack of investments and very bad trade policies.
We have to go back to the drawing board. This is why this conference and the Ministry of Planning are the most important economic Ministry. I have always said that the Planning Minister is the most important Economic Minister.
Assuming that, one, he is able to produce a very good plan, and two, that the government listens to him. And this is why I thought instead of coming here to talk about just monetary and fiscal policy, I will talk about them.
But, let’s try to get into a mindset, where at the federal, states and local levels, we can actually look and see what we can do to change this things.
So, are we going to adopt an investment driven model? Now, we talked about the public sector, and public sector fundings, and when I come forward I will show you that for Planning Ministers, you need to think beyond what the government budget is. If you need to build a road, your job is not about whether you can raise enough taxes to build the road, it is whether you can fund that road.
With the combination of taxes, and debts and investment and whatever, that road needs to be built. It doesn’t have to come from the government’s balance sheet. Nobody says the government must fund every single thing that is development. This is where investment becomes important. We are not getting money from oil.
Our non-oil revenue is not rising fast enough. We talk about taxation, but there is a limit to how much you can tax a man who is not able to eat. And also, there is a limit to how much you can continue borrowing  in Naira. You know, we play with these numbers. When I was in the Central Bank, we say: “Oh! You know, our debt to GDP ratio was 25%, therefore it is nothing to worry about. It is not up to 70%. Your debt to GDP ratio is 20%, and you spend 30% of your revenue servicing debt. What does that tell you?
70% of your GDP does not generate government revenue. Agriculture is about 35%. How much tax does it pay? Wholesale and retail trade, how much tax does it pay?  You have a GDP where the tax is coming from the oil sector and telecom’s. That’s your government revenue base. And those sectors constitute maybe 30% of GDP. So, for all intents and purposes, gentlemen, if your debt to GDP ratio is  30%, and only 30% of your GDP is generating revenue, you are at 100%, until you broaden your tax base.
If you just look at debt to GDP ratio, there is no reason why the Nigerian government cannot borrow more than N2-3 trillion. But, let them borrow now. When are they going to pay?  You don’t pay debt from GDP. You service debt from revenue. Nobody talks about debt to revenue.
What’s the good news? It’s that Nigeria is not all about oil. I know we all think it is oil. But it is not!
Oil does not form even a critical part of our GDP, or our growth. Look at these numbers. That’s your GDP per capita.
The present value of your oil reserve in 2016, which was calculated based on 37.2 million barrels, $60 a barrel, production horizon of 40 years and discount rate of 12 per cent.
If you sold the entire oil reserves of Nigeria today, the proceeds will add only $1164 per head, compared to GDP per capita of  3000 in 2016.
So, those making noise about oil should stop making noise about ii. People should stop being afraid, because oil is not critical. It is just a working capital. We sell it.  We get the dollars that we use to import. If you can find another source of working capital, we can do without it. It is 15% of GDP.
When I was governor of Central Bank, the economy was growing at 37%. The oil sector was not adding anything to GDP growth. The growth was coming from agriculture, services and trade, which is also very revealing. If we are now saying we are in a recession, because of the collapse in oil price, we are not being sincere.
You can’t be in recession, because a sector that is 15% of your GDP has declined. What happened to agriculture, trade, services and health?
Something else to look at. This is the slide that got me sacked from my job. You know the truth will always be there and I like this power point presentations because the figures tell you more than a thousand words. These are our external accounts, now look at Nigeria and look at Kenya up there in the blue line. These are current accounts surpluses we have had from 2005 to 2014. Not even one oil price rise in 2014 did we have in our current account deposit. I think today, up to 2014 we have current accounts surpluses. Now, below there you have other investment assets, which will be your capital inflows. I mean your reserve, and you have something called net errors and omissions.
Look at 2014, the errors and omissions were about $20 billion, from about minus 5 to minus 35, about $30 billion actually. So, when you are an accountant and you produce accounts and errors and omissions that are 70% of the numbers, or 60%, what does that tell you?
These are national accounts published by the Central Bank of Nigeria and the Central Bank is telling Nigeria: “Look, all we know is that this is money that we think should be in the economy, but we cannot find it.” And people didn’t want me to talk. Now, we are hearing where the money went. All sorts of revelations that nobody thought where possible. Everyday they were captured in errors and omissions. Now, look at Kenya. They do have errors and omissions, but compare the errors and omissions bar to what they were able to account for.
5%, even 10%, is  acceptable. But when you cannot explain where 50% of your earnings went and the country continues and nobody is asking any questions, and even when you tell Nigerians that this is the thing, they will say: “Don’t mind the man.”
Look at that, so where do we have a problem? First of all, as you can see we have not been able to attract investments. All the other investment assets headed as errors and omissions had been headed out. Which means, the money went out and did not come back. Anything below the zero line represents money that went out of Nigeria and did not come back.
Anything above represents what came in on the net basis. Now, a country like Kenya was having huge trade deficit, and that’s why the blue lines are below zero, but is able to attract investment. And that’s all above the line and that’s why Kenya is growing. We earn the money, we don’t attract any kind of investments, apart from portfolio flows. How much investment do we have in the oil sector, roads, economy, agriculture, refineries. etc.?  When you talk to people, they will tell you this sectors are not profitable. But why are people investing in Kenya agriculture? Why are they investing in roads in South Africa? Why are they building bridges? Why are they investing in power plants in Ethiopia?
I am Chairman of a company called Black Rhino. By the way, I don’t have a kobo in that company, but I am a Chairman. This short man who owns black stone said to us: “Gentlemen, here is $5 billion to invest in power projects in Africa,  a joint venture with Dangote on a condition that for every $1billion you put in, Dangote puts in $1 billion, so we have $10 billion to invest.
We have projects in Ethiopia, Eritrea, and Kenya. I accepted to be Chairman on one condition only, that he will allow me to fix a power project in Kano. And he said: “If you can find a good power project in Kano, I am okay.”
Now, power companies are here trying to invest, negotiating. And what did we hear? One day some judge in a court sits down and says reverse the tariffs. I am here talking to someone in New York who cannot understand that a government can issue a power privatization plan; that investors can come in; that there is a regulator for power; that they looked at the numbers, looked at the cost of power, looked at what is cost recovery, agree on a tariff, announce that tariff, they bring in their money to invest on the basis of that and a court in the same country says this is illegal.
You know, for you sitting here and for Nigerians, this may not sound well, in fact people were saying yes! They are cheating us. But, what that one judgement does in terms of the signals to foreign investors is very disastrous.
There is no country in the world where a court had agreed to interfere with commercial transactions between the government and private investors that are in to attract investments. There is a contract!
The judge did not even say do not give this going forward. He said the ones that have been done is illegal, and you expect somebody now to bring in $3 billion to invest in power in Nigeria?
Knowing that you can tell him this is the tariff, and tomorrow your court can wake up and say the tariff is illegal? So, as planning ministers and commissioners, if you decide upfront that investment is important to you, the entire  system has to be searched, to make sure that these signals are not set.
Your Customs officers should know that okay, this is the duty; pay correct duty. Don’t add anything on top. It is the economy’s investment. If a man is entitled to 5 year visa for bringing some kind of investment, he will get it. He doesn’t need to know anybody in immigration.
The court should respect legal agreements. And the right incentives should be provided, and when you provide incentives, do not review. Every government comes in and the next thing you know, some businessmen comes to them and say: “Your previous government gave this one tax incentive and you start reviewing and reviewing. The next time you offer somebody your own incentive to invest, he will not come, because he believes that the next government will reverse it.”
If the government that has made the mistake is gone, you then offer your own set of incentives and make sure that they are transparent. If you offer somebody an incentive in cement, make sure that every cement manufacturer gets that incentive. Fine, its sectoral.
Assuming cement is important to you, if you offer an incentive for agriculture, make sure that everybody who meets those conditions should get those incentives, not just somebody who knows his way around Abuja. The farms are not in Abuja anyway.
You can see this. Basically, no investment has come in, and as you can see, I am building a consistent story that you have had growth model driven by commodities and consumption, which is your problem, and you now need to shift and you have a growth model that is driven by investment. And for this forum, it means you got to stop thinking so much about how much the government can spend, as in how much can we get into this economy.
Lagos has done very well. If I have money to invest, I will invest it in Lagos, because it is attracting investment. Lagos has realized a long time ago that the government cannot fund all it needs. And I just love what Lagos has done. The Lagos story is a story of what Nigeria can do with itself – transparency, consistency, regulations – and people can be rich. There is no problem if people can be rich while growing an economy. Nobody minds. But, in Nigeria people become rich when people are dying. Let’s take the Lagos story, and that’s why today Lagos state is 30% Nigerian non-oil GDP, and Lagos can do without oil.
Lagos can do without the rest of this country. So, we must not let Lagos go.
This country is better off with Lagos than with the Niger Delta. Let’s not make that mistake. We should be together as a country. Every part of the country is important. But, let us not be so obsessed by a resource, because we have had the commodity driven model, and we are blind to the potentials of an alternative model.
Lagos doesn’t need oil. What is oil anyway? It is a raw material. You don’t drink it. You need it to move your vehicles. Now, you have electricity. You need it to fill your generator. Now you have solar power, and biomass. The future of oil is not there. So, those few people who are trying to break up this country over oil, after sometime that oil will be worthless. You are better off being in a country that is based on this model. This is a country of the future, that is the past.
Exchange rate
Let me start by congratulating the government for making changes. Unfortunately, those changes were a bit late. But, the adjustment has been very severe.
My sense is that where we are today, the Naira is already undervalued. If you look at the real effective exchange rate, we are below the zero line. Basically, what this means is, if the Naira were to strengthen to about 9%, you will get exchange rate palliatives. So, you are not really under any more pressures for a devaluation. This is the nominal exchange rate adjusted for relative prices, and also adjusted for rates of our trading partners. So, on a trade basis, the Naira has gone from one of the most overvalued currencies when we were at N197 to the dollar, to the one that is undervalued. So, that adjustment has been made by the Central Bank. And what the Central Bank needs to do is just to allow this system to operate properly and stop panicking. You know, from what you can see here, even if the markets starts at N320, N340 or N350 to the dollar, if you allow it to operate, it will revalue itself and adjust.
What is causing the problem is all the sense that we are not entirely flexible, and sometimes wrong signals. After you have allowed the flexible markets, you act as if you really don’t believe in it.
These things don’t just work on fundamentals. I was in the Central Bank, the markets works on the basis of confidence and perception. There was a time speculators started hitting the market when I was with the Central Bank. The Kenyan Shilling got hit and got divided by 25%. Ghana got hit by 30%. South Africa got hit and they started heading towards Nigeria.  And I called an emergency monetary policy committee meeting jerked up the monetary policy rate (MPR) by 200 basis points, jacked up CRR (cash reserve ratio) by 400 basis points and declared that I will defend the currency. I didn’t have the money to defend the currency, but everybody believed me and they left me alone. The market works based on confidence. By the time you have taken over one bank, fire one bank MD, they will believe you when you make a threat. I made many threats as governor of the Central Bank that I never carried out. If banks messed up, I will say, I will remove you, and because I have removed bank MDs, they will say sorry sir. They fell in line. So, if you are going on a flexible exchange rate, have the nerves. You have produced a fantastic document, stick to it. You can’t be any worse than you were. You are in a recession anyway, so you are trying something different. So, try it and try it properly.
Real interest rates: Again, Central Bank has raised it and people have been attacking the Central Bank for raising the rates. Why? It’s not just about inflation. It is about stabilizing the currency, because the truth is that where we are today, the only way we are going to reverse this recession is to increase liquidity in the foreign exchange markets and reduce the gap between the official rate and the parallel market rate.And this is what I think the Central Bank needs to keep doing.
A flexible exchange rate regime and a positive real interest rate will combine to bridge that gap. Bring in the dollars that we need to finance imports, and those imports of raw materials are the things that will increase production, and that production is what will lead to growth.
I have been very critical of what the Central Bank has been doing since the beginning of this administration. I am very supportive  of the decisions it has taken in the last  few Monetary Policy Committee (MPC)  meetings, all that we ask is that they have produced a fantastic  document on foreign exchange rate they should do it.
On the treasury single account (TSA), they should just realize the difference between the dollars balance sheets and the Naira balance sheets, because I have seen this whole thing about banks being banned from foreign exchange markets for dollar TSA. The Naira balance sheets of banks is highly diversified. The government deposits may be 20% of deposits. Banks are financial intermediaries. They engage in what is called maturity transformation. They borrow money short term and loan for long term on their Naira balance sheets. They have this money coming every day – current accounts, savings and deposits. If you tell them to pay off government deposits, they pay off and send marketers out and raise money.
On the dollar balance sheets, Nigeria only raise dollar on oil sales. The IOCs (international oil companies) have their money in international banks. NNPC is the only provider of dollar money, and they have lent out that money. If you apply the same rules on the Naira balance sheet and dollar balance sheets, without looking at concentration risk, you bring the banks down. They have lent out these dollars. Look at the maturity of their assets. Give them time to pay back these dollars. For them to pay back these dollars, they have to find dollars elsewhere. Where are they going to find? Who is the other exporter, apart from oil. What do we export in Nigeria?
And that is the point. So, they need to be very careful. So long as you know where the money is, give them the time to sort out their assets and pay back. Don’t precipitate a banking crisis and this idea of banning banks from foreign exchange market.
In the history of this country, and Dr. Shamsudeen Usman knows that, very few banks have ever survived after being  banned from foreign exchange markets, because banks has lent money to customers who depend on import to produce. If banks can’t buy dollars for those customers, they can’t produce. They can’t pay back their debts. You build up non-performing loans. So, let us think through the consequences of some of these decisions that we take. But, apart from that, I am extremely supportive. I think the Central Bank is doing the right thing, and I think we should encourage them. I think the government should be given credit to say we are going to retrace our steps.
The government has said we are going to eliminate wasteful subsidies. I don’t want to go deep into this. I have been saying a lot about fuel subsidy since 2011-12.  We have seen everything. Just an interesting thing.  If you look at 2011-2012, in theory o, because I don’t believe it, we were importing about 60 million liters of premium motor spirit (PMS) every day. Now, we are down to a little above 30million liters every day, has our population gone down? Do we have fewer cars? Are we consuming less? All those numbers were fake.
Again, you can go back to the record 2011- 2012, I sat in front of the House of Representatives and made a presentation. I produced documents. I had documents that showed people claiming they had 15 vessels of 30,000 metric tons offloading in Lagos on the same day, and they were being paid subsidy based on those documents. People sat in their offices produced bills of lading,  bribed everybody from Customs to PPPRA (Petroleum Products Pricing Regulatory Agency)  to whatever and got money out. All they needed was a paper that says you have allocation, and based on that allocation they will go.
I am glad again that we are moving towards removing these subsidies. They are painful. Let me make that clear. If you have to pay more for fuel, it hurts, it bites. The truth is that no system is perfect. And the subsidy system benefited a very small groups of criminals much more than it benefited the poor people.
And if you are going to subsidies, please provide this subsidy in production. Provide cheap gas to power plants and set power prices to a level where they can make a profit without passing on high gas prices to customers. Reduce the cost of setting up a business. Reduce the tax burden on pioneer industries. Subsidize production. Do not subsidize consumption. Rather than give poor people subsidy on fuel that never gets to them, take that money and put it in their hands. We were spending $6 billion, $7billion per annum on fake subsidies. And where is that money today? It is all in private jets, private yacht, expensive jewelries, property abroad, that’s where it is. It is not in this economy. Its gone out. One number I will give you is that  Nigeria earned $16 billion from the oil sector  in 2011. I was the governor of Central Bank. We established LCs worth  $8billion for importing petroleum products  and spent another $8 billion in petroleum subsidy. Every dollar we earned from the oil sector went back to petroleum sector in 2011. Not one dollar went into education, roads, power. It went into importing fuel and  paying subsidy on imported fuel. The numbers are there. And if you look at that  town hall meeting that has been going on, on Channels TV I gave this number then. Not that this one I am saying will change anything o! I am just saying it. But, tomorrow if you invite me, you will hear.
Look at power generation. That is where we need to focus on. Let’s get the power reports back on track. Fantastic policy. Power was privatized. What happened?  People bought DISCOs (distribution companies), because they had connections. Dr. Usman was head of what was called the technical committee on privatization and commercialization in the 1980s. I know because as a Merchant Banker, I privatized Okomu. Okomu oil mill is still there. As a solid company, because when they were in TCPC, they have a process where you don’t just buy a company. If you say you are going to invest, they had a process of making sure that after you bought that company, you make those investments. They don’t just sell assets to you. Privatization is not just about selling assets to people, it is about making sure that they make the investment they are committed to making when they bought it. So, we have people who bought DISCOs who said they will invest, but they have not invested.
Land Registries. Lagos has done well, but you need to do more. In Lagos alone, you have 13 procedures to register land, according to World Land in Business Report.
It takes 77 days, 10% of your property value and  the quality of land  is 7 out of 30, compared to 22 in the OECD countries. Lagos has now moved up, they are merging all relevant laws into a single piece of legislation. The only reason why I am not praising Lagos is, because I want to see the result first. But, they have at least realized that this is a problem. And I hope all states would look at this.
Power and Land reforms are very important and having that data base is critical, especially for agriculture. Mark your land, give a C of O; let the farmer be able to use that land as collateral to borrow, or as security. Many of you had read Henandez  De Sotos’ The Mystery of Capitals. Land is capital. I have that big problem here in Kano, especially in the Muslim villages. A woman’s husband dies and leaves her a farm. She doesn’t farm. So, her husband takes  over the farm, he farms it, but that is her capital, and she gets no return on it. He uses her farm. He earns a living and he gives her chop money from her own money.
I am Chairman of a group call “Babbangona”. We are working on farmers trying to improve their yields, and I am having that problem, and I get to the district heads and say: “Look, get all Muslim women that own farms to sit with their husbands. This money that is being given for seeds, for fertilizer, for inputs is being given to the woman who owns the land.  If your husband wants to be the labourer, let him be. If he doesn’t, let her get someone else. You are the boss, because she owns the land.
If your husband is ready to farm for you for a fee, let him do it. Otherwise, we will find a farmer for you.”
So, this issue of land is crucial to addressing poverty, especially poverty among rural women. Many of them own lands being hijacked by their husbands and they remain poor.  And it is all cultural, but what I learn from “Tudun wada” is that the Christian woman has learned to farm and they come out to farm, because they love it.  But, the Muslim woman has been stopped from farming, but in the name of culture. What the men had done is that they have taken over their capital, and it’s not religion. And therefore, as leaders, we have to address this social issues as part of economic rejuvenation.
Trade Policy:  You know, I keep sounding like a broken record 2012 – 2012.
I wrote an article in the Financial Times in London in which I criticized China’s relationship with Africa. It was very controversial. I don’t know if you read it. But, if you google it, you will see it. Now, look at this. These are our trade with China. We are all importing from China. Those that export to China are exporting oil or solid minerals. China’s interest in Africa is not our development. America’s interest in Africa is not our development. Europe interest in Africa is not our developments. China’s interest is China’s developments. Likewise America and Europe. Please our government! Our interest should be Nigeria’s development.
If the Chinese are going to come back and set up textile factories in Nigeria and buy cotton from our farmers and employ Nigerian workers  and produce these textiles and sell to us, they are welcome. If they are going to produce textiles in Shanghai. Subsidize them. Bring them here.  Bribe our Customs Officers. Come to our markets and destroy our industries, we have to say no sir!
If China is lending us money, and we are going to pay back that money to import equipment from China, we should please check that those equipment are properly and transparently priced; that we cannot get them cheaper from another part of the world; and that they are of high quality. This idea that am lending you $1billion to buy rice mills from me, which you can get at half the price elsewhere, you have already paid interest  of 100%. If you don’t know it, the price is not a cheap loan.
Now, we go to these countries and we think there are no strings attached, especially at this time that the World Bank and the IMF and the Europeans are saying we want you to pursuit policies, China does not interfere. So, we are running to China, it is a good partner.
We must trade with China, India, Europe with America. I have nothing against any of them. What I want us to do is to sit on the table with them and negotiate trade agreements that protect our interest, because that is what they are doing and that is what every reasonable country in the world does.
So, I think we have talked about Fiscal Policy, Monetary policy, Trade and Industrial policy and if there is any message I have tried to send  is that we have a model.
Historically, that was driven by commodity growth, by consumer spending. We have a future that is based on investment that should come in. We need to move to an investment-driven model. We need to have some elements of state planning. We cannot just allow the market. The market will not put money in agriculture, refineries. So, you have to provide the incentive and lead capital so that’s where you are important and that what for me is the way forward.
So what’s the summary? The years of Africa rising where one child  could lift us up are behind us. Sustainable inclusive growth now depends on investment. Please every planning commissioner should remember that its investment.
The role government can play is now by getting appropriate market growth, and we said that you don’t have enough money. You have seen how much money you are raising per head. It is not much. Even if you move money from recurrent to capital expenditure, if the pull does not increase, it is not much. So, the government doesn’t have the pocket to do. If you got to look for private investments, local and foreign, to to do that, and you do that by having a corporate micro-policy and the government is getting it right, finally, and also creating a supportive business environment.
So, set excess rate to intensify it flows, eliminate subsidies, that has been done. Now, address failures in the power sector value chain, starting with the DISCOs, digitize state, land registries, prioritise public spending towards investment and protect infant industries.
Anybody who tells you not to protect your industries is deceiving you. Create a level playing field between the infant industries and the big ones. I am not saying go and protect everything, but they must be a way of ensuring through power, infrastructure, industrial plasters, research and technology, technical and vocational education and through appropriate trade and  tariff policies that critical policies are incubated before they are allowed to go out on the streets.

Thank you.

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