•They are beneficiaries of subsidy payments and also working against the revival of other refineries so that fuel importation will continue
•Read between the lines and take action

STAKEHOLDERS of the South-South have called on President Bola Tinubu to fish out and penalize the petrol barons operating underground to upset the working of refineries in the country, including the recently established Dangote Refinery. 

They said the showdown between Dangote, and the oil industry regulators was a collusion masterminded by the oil industry mafia, urging the President to read between the lines.

Unmask the saboteurs —Ambakaderimo, South-South leader

The Chairman of the Board of Trustees of the Communities’ Development Committee of the Niger Delta, Joseph Ambakaderimo, said: “The breeze is blowing and the rump of the chicken will be exposed”.
“For some of us, the actions taken so far against the Dangote group are deliberate because certainly, the Dangote Refinery came as a disruption, which some vested interests did not see coming.

“It exposes why our refineries have remained comatose, people are feeding fat from the wrong things going there. The government is encouraged to identify and punish those involved in this sabotage of our refineries.”

Tinubu, NASS, govs should stop the mafia —Inwalomhe, JRC

The Executive Director of Justice Research Centre (JRC), Donald Inwalomhe, who spoke in Benin City, the capital of Edo State, said it was obvious that the beneficiaries of the subsidy regime have ganged up to frustrate the Dangote Refinery’s access to crude oil.

“The subsidy billionaires benefitting from subsidy in Nigeria are the mafia within the Nigerian oil industry working against Dangote. They worked for the refineries in Warri and Port Harcourt to collapse so that they would continue to get billions of naira from the subsidy for imported petroleum products.

“They are the ones equally working against the modular refineries that have been completed, they want subsidy to continue, which is why they are denying Dangote crude oil and telling the federal government to continue to import petroleum products.

“That is the challenge we are facing as we speak today. The petroleum industry in the South-South has collapsed, if you go to Warri, the Warri Refinery is like a ghost town since the refinery is no longer functioning. They are like a drug cartel in the petroleum industry, we can call them petroleum barons, who do not want our refineries to work.

“We call on the state governors, all the members of the state Houses of Assembly across Nigeria, and members of the National Assembly, which is the Senate and the House of Representatives to rally around Dangote, and ensure that the Dangote Refinery works. All other modular refineries should be encouraged to start operations.

“Look at Edo state, for instance, we have two modular refineries that are not working, one is in Ologbo built by the Chinese and Edo State government, and another one in Orhionmwon. Both of them are completed but they are not working, if they go into production and add their output to the one coming from Dangote, it will help to solve the issue of importation of petroleum products.

”Our governors should work with President Tinubu to ensure the Dangote Refinery works. The subsidy mafias have destroyed the economy of the South-South, they are making sure that both Warri and Port Harcourt refineries remain dormant.”

This‘s a conspiracy – Gbemre, NDPC

Coordinator of the Niger Delta Peace Coalition, NDPC, Zik Gbemre, in his reaction, said: “This is another conspiracy to fool Nigerians to accept greedy stakeholders’ trumped-up industry challenges to induce continued hikes in fuel prices.”

“The regulators were involved in approvals through the construction to the hurried commissioning. Why are they having issues at the time that Dangote Refinery is putting out products? Remember that this is a refinery the regulators passed as the best in Africa and beyond.

Mr. President should sort out the issue —Jonjon, ex-IYC president

A former president of the Ijaw Youth Congress, IYC, Dr. Onyienfie Jonjon posited that the misunderstanding between Dangote and the regulators was about economic interest.

His words: “Dangote cannot operate without the NNPCL, and NNPCL cannot do without Dangote. The oil cabal does not want Dangote to succeed, and the government still pays subsidies. If Dangote comes full stream, how will the cabal continue to enjoy the subsidy that they are getting?

He suggested that as the Minister of Petroleum, President Tinubu should summon a meeting of NNPCL, and Dangote Refinery to iron out whatever crisis they are having.

”While we do not support monopoly in any guise and form, knowing the impact the Dangote Refinery would have on the Nigeria economy, certain concessions should be made so that we can have a win-win situation for both the investors and Nigerians.

“We urge both parties to put the interest of the country and its people first, and look for amicable ways to resolve this lingering issue.”

More than meets the eye —Idi, NNYM scribe

The Secretary of the Ndokwa National Youth Movement, NNYM, in Delta State, Presley Idi, said, “We find the outburst by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) chief executive, Adamu Farouk, against the Dangote Refinery, shocking, surprising and uncalled for.”

“While we believe there is more to the outburst than meets the eye, it was shocking to hear and this has certainly created bad waves for Nigeria globally, which is not needed this time.

“We think that the issues of product quality of the Dangote Refinery made by Farouk could have been resolved without coming to the press. There is power tussle behind the scenes, and it is sad because the common men bear the brunt.”

Diversionary tactic —Saviour, COMPPART

A human rights activist in Akwa Ibom State and executive director of COMPPART Foundation for Justice and Peace Building, Mr Saviour Akpan, described the friction between Aliko Dangote and the regulators as a diversionary tactic.

Akpan advised Nigerians to do the right thing by asking questions, instead of pointing fingers or buck-passing.

“They deliberately brought their face-off to the public domain to divert our attention so that Nigerians will not ask questions. So they should keep quiet.

”Unfortunately, we run a system that has failed and one of the outcomes of the failed system is what we see today. So, they should stop disturbing our ears. Let everybody do what is right, let us begin to ask questions and speak truth to power.

”Let all of us, including myself, stop buck-passing and finger-pointing. We have had enough of suffering in this country. It is all diversionary tactics on the part of economics and policymakers. There is something that they do not want us to hear or ask questions about”

Explore dialogue —Wills, Ijaw think-tank group

Co-Convener of Embassara Foundation, an Ijaw think-tank for good governance, Iniruo Wills said: “They should robustly explore and enforce the dispute resolution mechanisms embedded in their various contractual agreements and in the law. Was there no proper business plan? Was there no thorough due diligence and documentation, legal and technical? Were there no feedstock commitments locked in way ahead of the plant completion?

”Even promoters of modular refineries know that one of the preliminary requirements to be in place with legal enforceability is feedstock commitment, let alone a mega refinery like Dangote’s.

”Some would go further to make advance off-taker arrangements, though more as a business safeguard than a regulatory requirement. Nigerians are generally perplexed at the ongoing grand comedy.”

FG should probe operators —Akene, ex-commissioner

A former commissioner in Bayelsa State, Surv Furoebi Akene, asserted: “The Nigerian petroleum industry is a big scam. Some of us have raised these issues of high-level insincerity, fraud, oppression, and economic sabotage amongst the Nigerian oil industry players, and consortium in connivance with external forces and agents over the years.”

“The exchange between the Dangote Refinery, the regulators, and their collaborators is not unexpected. They know that the success of Dangote Refinery will expose their intrigues and deliberate efforts to ensure that the government-owned refineries did not work.

“This will stop their lucrative exploit of enriching themselves over the years at the expense of the Nigerian State. If the Federal Government is not culpable, they should probe the activities of the operators of the nation’s refineries, and other related and regulatory agencies for the past decades, and bring those found wanting to book according to the laws of the land.

“Let the blackmail against Dangote Refinery stop, and genuine regulations made for the refinery to operate effectively and efficiently. The actions of these people should be finally curtailed for the industry to work in this country.”

Brickbat good for the oil industry —Oritsetimeyin, stakeholder

A stakeholder in Warri, Delta State, Festus Oritsetimeyin, said: It is good for the oil and gas business sector. We are getting to know hidden things, we are getting to see that people can kill business initiatives that will profit the nation because of personal interest, and greed.”

“In May last year, we read that former president, Muhammadu Buhari, commissioned the refinery, now, we are hearing that the refinery has not been licensed. So the beef is exposing some many hidden deals.”

[Vanguard]

Dangote Petroleum Refinery has denied reselling shipments of crude oil from the United States (US) and Nigeria.

On Wednesday, Reuters reported three sources said the Dangote refinery was reselling due to technical problems at the refiner.

When questioned about the offers and talk circulating in the market regarding the refinery’s operational problems impacting the crude distillation unit, the publication said an executive at Dangote refinery said the unit is operating.

According to the sources, among the grades being offered were cargoes of US West Texas Intermediary (WTI) Midland crude and Nigerian Escravos and Forcados crude.

The plant has been importing several crude cargoes a month, traders said, adding that such resale by refineries is rare but not unknown.

However, in a statement addressing the claim, Anthony Chiejina, chief branding and communication officer, Dangote Group, said the report was incorrect.

“Our attention has been drawn to a misleading report on our crude distillation unit and also that we are offering crude for re-sale,” Chiejina said.

“This is outright falsehood as we are not authorised to sell any crude we buy from Nigeria!

“Also, our CDU is working and in perfect condition.

“We advise that you ignore these false narratives being peddled by those bent on the importation of dirty fuels into the country.”

On June 4, Aliko Dangote, Africa’s richest person, said some international oil companies (IOCs) were struggling to supply crude to his refinery.

Speaking on Arise TV on July 15, Gbenga Komolafe, chief executive officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), described the claim as “erroneous” as the Petroleum Industry Act (PIA) has provisions that guide willing buyer-willing seller transactions.

On July 17, the management of Dangote Industries Limited (DIL) insisted that IOCs are frustrating its request to purchase crude feedstock for the Dangote refinery.

The next day, Farouk Ahmed, CEO of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said local refineries, including the Dangote refinery, were producing inferior products compared to the ones imported into the country.

However, on July 20, Dangote refuted claims that petroleum products from his refinery are substandard.

[TheCable]

Geometric Power Ltd, Nigeria’s leading electric power integrated group, has described the death yesterday in Abuja of a foremost elder statesman, Chief Emmanuel C. Iwuanyanwu, as unexpected and shocking.

“He was one of our staunchest supporters”, the company said today in a statement quoting its founder and chairman, Professor Bart Nnaji, as saying.

“Iwuanyanwu, 82, and a Fellow of the Nigerian Society of Engineers (NSE), was extremely proud of the work we are doing at Geometric Power Ltd by fellow Nigerian engineers”.

Continued the former Minister of Power who has also been the Minister of Science and Technology:

“Though he planned to attend in person the commissioning last February 26 of the Aba Independent Power Project comprising a 188-megawatt power plant in the Osisioma Industrial Layout of Aba and the Aba Power Electric Company by Vice President Kashim Shettima on behalf of President Bola Tinubu, he couldn’t eventually make it due to an unforeseen development.

“Just before the commissioning, Dr Iwuanyanwu had granted a major interview to a team of journalists where he spoke eloquently, persuasively and passionately on the project's significance”.

It is understood that Iwuanyanwu had in the interview pledged to consult the Geometric Power group and the Enugu Electricity Distribution Company (EEDC) that provides power to the five Southeastern states with a view to working out an arrangement on how to make the area attain constant, reliable and affordable electricity.

 “Though he was the president general of Ohaneze Ndigbo Worldwide, Chief Iwuanyanwu did not possess a tunnel vision, but rather a national one”, Nnaji declared, adding that the Champion newspaper publisher, a knight of the Anglican Church, had no difficulty giving his daughter to the famous Muslim Aritsekola family of Ibadan in Oyo State because of his broad-mindedness.

Professor Nnaji recalled that Iwuanyanwu was honoured in all parts of the country like “ the late Chief Moshood Abiola with all kinds of titles for his profound contributions to national unity, peace and development, and so justifiably sought to become Nigeria’s president in the Third Republic”.

The former Minister remarked that “Chief Iwuanyanwu excelled in road construction through his Hardel and Enic company, in aviation through his Oriental Airlines, in sports through his Iwuanyanwu Nationale Football Club which won various prestigious competitions, as well as in publishing through the Champion newspapers.

“We are proud that he also excelled in insurance, public relations, property development, philanthropy, and community development.

“No one should forget that Chief Iwuanyanwu was the chairman of the Imo State Airport Committee that raised funds for building Sam Mbakwe Airport, the first airport in Nigeria’s history built by a state government.

“An appreciative nation honoured him with different high national awards, and Nigeria should continue to honour his memory as a foremost nationalist and developer of the Nigerian nation”.

Dr. Nwadiuto Iheakanwa

Group Managing Director

Champion Newspapers

39, Awonoyi Elemo Street,

Ajao Estate

 Lagos

CONDOLENCES

It is with great sadness that we received the news yesterday , of the death of your father, frontline businessman , publisher and an esteemed member of our Association, Chief (Dr.) Emmanuel Iwumanyanwu, the Ahaejiagmba Ndigbo.

He was aged 82.

An engineer by training, Chief Iwunyanwu bestrode the business world leaving an indelible mark in aviation, insurance , road construction, sports and newspapering.

His venture into the newpaper business with the emergence of Champion Newspapers on October 1, 1988, changed the dynamics of newspapering in the country.

The paper pioneered colour printing among Nigerian newspapers and was among the first  to set the stage for simultaneous printing, as the paper rolled out from presses in Lagos and Owerri, giving  readers in the east the experince of reading  same news with their Lagos/western counterparts.

Chief Iwuanyanwu was a sports enthusiast and for a very long time,  his football club Iwuanyanwu Nationale,  rode the crest of competitive  football locally and challenged for thropies on the continent.

A collosus of no mean repute, his passage has created a deep void in the nation's socio-development  landscape.

We are consoled by  the enviable legacies he left as a solid  politician, frontline businessman and a patriot .

On behalf of the Executive Council of our esteemed Association, we commiserate with you  and your  entire family .

We pray that the Almighty God,  will console and uphold each and everyone of you

Once again,  our condolences.

Signed

Kabiru A. Yusuf

President

I was shocked to learn that the Nigerian Senate is planning to establish a federal agency for the conduct of local government elections. The bill, sponsored by Senator Sani Musa (All Progressives Congress, Niger East), is titled, “Local Government Independent Electoral Commission (Establishment) Bill, 2024 (SB. 531).” It passed the first reading at the plenary on Thursday, July 18, 2024.

The draft bill read in part, “To establish the National Independent Local Government Electoral Commission responsible for conducting elections to the office of the local government chairman and councillors, and any other matter thereof to do with local government as a third tier of government. The National Independent Local Government Electoral Commission is hereby established as an autonomous body mandated to organise, oversee, and conduct elections for the offices of local government chairman and councillors across all states.”

The proposed legislation listed the functions and powers of NILGEC to include the conduct of free, fair, and transparent elections for local government chairmen and councillors. Other functions are “to prepare and maintain an accurate and up-to-date voter register; to ensure voter education and public awareness regarding the electoral process; to set and enforce electoral guidelines and regulations for local government elections; to recruit and train electoral officers and staff for efficient election management; to monitor and supervise all electoral activities and processes; and to investigate and adjudicate electoral disputes and grievances.”

The bill indicated that NILGEC shall consist of a chairperson and six commissioners, appointed by the President and confirmed by the Senate. It read, “The chairperson and commissioners shall serve for a term of five years, renewable once.” On its independence and autonomy, it stated that “NILGEC shall operate independently, free from external influence and interference. The commission shall have its own budget, approved by the National Assembly, to ensure financial independence.”

On the electoral offences and penalties, it explained that NILGEC should define and enforce penalties for electoral offences, including but not limited to voter fraud, ballot stuffing, and electoral violence. Offenders shall be prosecuted and punished in accordance with the laws of the land. NILGEC shall collaborate with other relevant government agencies, security forces, and civil society organisations to ensure a secure and credible electoral process. This bill is coming barely a week after the Supreme Court granted autonomy to the local governments.

There are several things wrong with this initiative. First, there are existing State Independent Electoral Commissions established by section 197(b) of the 1999 Constitution. Qualification of members of the SIEC is contained in section 200 (1)(a) which states that “no persons shall be qualified for appointment as a member of any of the bodies (i.e. State Executive Bodies) aforesaid if  he is not qualified or if he is disqualified for election as a member of a House of Assembly provided that a member of any of the said bodies shall not be required to belong to a political party and, in the case of the State independent Electoral Commission, he shall not be a member of a political party.” Some of the aforementioned functions listed for the proposed NILGEC are already being performed by SIECs in the last 25 years.

Related News LG autonomy will enhance security, human rights –AGF FG delays direct payment to LGs as AGF awaits S'Court ruling details Perils of LG Electoral Commission

It is true that there are serious concerns that the quality of elections being conducted by SIECs does not largely reflect the wishes of the people in the LGs who see the polls as mere coronation of the preferred candidates of the governors in the state. Be that as it may, the solution to the challenges of credible elections at the LG level is not to have another centralised body established for the sole purpose of conducting LG elections as currently being proposed by the National Assembly. The antidote lies in strengthening the SIECs the same way the Independent National Electoral Commission was strengthened in the 2010 constitutional amendments and the legislation that birthed the 2010 Electoral Act. What is necessary is for SIECs to be granted administrative and financial autonomy like INEC.

It is important to note that Nigeria is a federation and should not be run like a unitary system which is antithetical to the spirit and letter of federalism. As I submitted on Monday, July 22, 2024, on Law FM 103.9, Lagos; in a federation, power is decentralised and not the other way round. Because of the unpleasant experiences Nigeria had in the First Republic, the framers of the 1979 Constitution decided to centralise political parties and security, among others. Today, many of the national parties will fare better if they limit their operation to the states or LGs. In a similar fashion, having realised our folly of centralising policing and security, we are now reconsidering the establishment of state police. We have the State High Court, State Civil Service Commission, and State Road Traffic Agencies. Even correctional centres have been moved from the exclusive legislative list to the concurrent legislative list; it does no harm to leave SIECs and just ensure that they have the requisite administrative and financial autonomy.

To my mind, the proposed NILGEC will be a drain on the country’s meagre resources. To be efficient, the new commission will have to run a parallel structure with what INEC currently has. That is, they will have to have offices in the Federal Capital Territory, the 36 states and 768 local government areas. That is if INEC will have to continue to conduct polls to the six Abuja Area Councils; otherwise, this new body will also have to establish a separate Abuja office. All the itemised functions of NILGEC are already being performed by INEC. It would therefore have been more reasonable to propose to scrap SIECs and transfer their functions to INEC. That is what the Justice Muhammadu Uwais Presidential Committee on Electoral Reform of 2008 recommended.

It doesn’t make sense at all to want to implement Steve Oronsaye’s report on the merger of Ministries, Departments and Agencies and at the same time create another huge bureaucracy like NILGEC. It is also for a similar reason that I am against the recent establishment of the Federal Ministry of Livestock Development.

If there is no executive interference from the governors and there is administrative and financial autonomy that ensures that SIECs are well resourced, we will start to see a marked improvement in the conduct of local government elections.  NILGEC is a misadventure. The National Assembly should assist SIECs to wrestle their administrative and financial autonomy from the governors by amending the relevant sections of the Nigerian Constitution to effect this.

It cannot come as a surprise that many negative forces have risen and are training their arrows to fire at Aliko Dangote. Some are already firing from their arsenals. It is enheartening, however, that many powerful voices have also emerged to form a solid rampart of defence around him, not just to ward off the arrows, but to give him necessary and deserved encouragement. In the words of Akinwumi Adesina, Dangote is “a jewel of industrialization in Nigeria.” Adesina went on: “We cannot and must not undermine, disparage or kill local industries, talk less of one that is of this scale…It is more than simply delivering the cheapest product to the market. It is about domestic supply security, driving (and yes, protecting) globally competitive industries, maximizing forward and backward linkages in the local economy, job creation, reducing forex expenses and shoring up the Naira.”

Adesina should know: he is the president of African Development Bank (AfDB). Femi Otedola has spoken in the same vein. As a leading investor himself, he should know where the shoe pinches industrialists—the risks, the pressure they bear. Former Vice-President, Atiku has reacted also. Atiku in his twitter handle states: “The conflict between Aliko Dangote and NMDPRA is troubling. The Dangote Refinery, our nation’s largest private investment, is crucial for Nigeria’s energy and economic stability, and NNPCL’s investment underscores its importance. If we neglect this, we risk deterring vital foreign direct investment. No investor will trust a nation that undermines its key assets. Protecting significant investments like Dangote’s is essential to attract FDI and drive our economic growth.”

When the intrigues against Dangote were brewing, I wrote on a major platform as follows: “I pray that Dangote will not be dispirited with all the negative commentaries. He should regard people ventilating all manner of opinions as natural. We cannot all see the same things the same way. Vision and attitudes are governed by the radiance or dimming of the inner light of each individual. How can Dangote be a monopoly in an environment that will soon witness the roaring back of three other refineries in our land? We have been told Port Harcourt will come on stream before long; together with Kaduna before December. Warri is also being fixed. Certainly these will compete with him and we will have choice.

“We should summon courage and support Dangote and other entrepreneurs in our midst who are doing great things. As our fathers are wont to say: Oko se e ro ni alagbede npoko ta! If it were so easy, the blacksmith would not be content with just producing hoes, he would head for the bush to farm himself! I salute Dangote’s courage, his industry any day. Was he the only one who had contacts in high places? What did the others do with theirs? Dangote is doing the Blackman proud!”

Femi Otedola states: “In Nigeria we have our own titans, and it is imperative that we recognize and support them. Aliko Dangote has broken every boundary in worldwide business and industry. His contributions are not just a testament to his brilliance but a beacon of what is possible when vision meets opportunity. Supporting local champions like Dangote is crucial for our national development and economic independence. Let us continue to foster and support these visionaries who drive our nation’s progress.”

I was later to observe that with every passing day the conspiracies thickened. What they passed as Dangote’s transgressions began to lengthen. As is in character in matters of this nature, there is exhibition of a warped sense of entitlement. Aliko Dangote must do his business, run his industries according to our own vision and the wish of his detractors, not according to rules and regulations of the land. These are demands we do not make on the four public refineries. The last time there was turn-around maintenance with celebratory results was during Obasanjo’s Administration—to my recollection. And Obasanjo vacated the throne 17 years ago. Dangote put the humongous amount sunk into rehabilitating the public refineries at $4tr (US Dollars), the figures flying in the public space is by far more and we have not gotten result.

I recall former Special Assistant to Obasanjo on Petroleum Matters, Funsho Kupolokun, before he succeeded Gaius Obaseki as Group Managing Director of NNPC, going round newspaper houses. His mission to editors as Obasanjo’s salesman was to support the Obasanjo Administration’s thinking to end fuel subsidy. The subsidy in the end could only be reduced to prevent disruption to the economy and social life of the citizenry. It is Bola Tinubu who has had the courage to bite the bullet. Commendable as his step was, however, the timing was reckless. It has ended in creating more problems than he set out to solve. It was not thoroughly thought out. Internal capacity to fill the supply gap was not ready. Everyone started to ask: What were the alternatives? What he ought to have done was to breathlessly pursue the roaring back of the public refineries into activity by kicking the officials in the groin even if it would entail, in his accustomed Lagos boy rascality, moving the Villa to Port Harcourt temporarily, and twice or so a week personally going to Kaduna, taking Mele Kyari with him. At the same time, he would be sending subtle pressure notes to Dangote: ‘Aliko, where are we? Alhaji, what’s up? When are the machines going to roar for commercial production?’ Those with proclivity to being compromised even after the President has personally demonstrated commitment would be replaced by Europeans and Chinese. Any European found compromised to sabotage the President’s effort, of course, knows the consequences back home. He would go through due process of the rule of law, no doubt, but would eventually pay severely for tarnishing the image of his country. Of course, if a Chinese he would be recalled home, and the penalty is death! By now we would have gotten result.

Dangote paid $100million (US Dollars) to the Lagos State Government to acquire the land on which the refinery in Lagos is built. All hope is pinned on his refinery to come to the nation’s rescue. And Buhari could not wait. He hastily commissioned the refinery that could not be said to be ready. No one is sharing in the attendant risks of setting up the refinery, the obvious being the technology that is triggering movement away from fossil fuel to gas-powered auto-mobiles and solar energy to replace diesel in manufacturing firms. Even if the threats seem far and slow in coming, the potentiality is staring us in the face. As we now know he has not received a dime, not even for the vaunted NNPCL purported investment formerly put at 20 percent, later 7percent. NNPCL has not paid for any equity in the refinery.

What we get from that sector is demarketing that the product from the refinery is sub-standard, which has been proven by Dangote to be false. Already, part of the value chain of the Dangote refinery is employment of 30, 000 hands. It has the potential of 100, 000 in the long-run. Is this the kind of person the nation can afford to disparage? Yet, we do not shrink in efforts to frustrate him and splash dirt on his character and linen by drawing up a litany of transgressions! As our fathers would say, Eni ti o se obe ate a ni ki Sango ko pa a; eni ti ko se rara nko? Translated roughly, We pray the god of thunder to strike down the woman who has prepared a tasteless soup. What then do we ask should happen to the one who did not prepare any whatsoever when the household is assailed by hunger?

As Otedola states: “Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers. In fact, the Dangote group often pays more in taxes than the top banks combined. If not for him, we would be importing cement. His contributions extend beyond industrial facilities to critical infrastructure having built major roads such as Apapa Oshodi-Oworonsoki Express Road, Wharf Road, and the Obajana-Kabba Road.”

Otedola adds: “Countries in the nascent stages of industrialization require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals.” He lists them and goes on to say“…These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation. Their contributions were immortalized not in the material wealth they amassed but in the enduring institutions and industries they established. These visionaries were also supported by their government, which recognized the importance of fostering local champions.”

What many working to frustrate Aliko Dangote and pull him down largely out of envy may wish to know is that the table of the Lord is heavily laden for everyone and each human being only approaches it according to his ability. What determines the ability? It is the immutable Laws of Nature and how much compliance have we made as individuals. Obviously a great many are oblivious of the fact that this world, nay, Creation is governed and that there are consequences for every activity be it thoughts, speeches or actions of every human being. Stephen Lampe, in his invaluable book, The Primordial Laws of Creation, puts it more glaringly: “We human beings are equal before the Primordial Laws. But this does not translate into equality in circumstances or conditions of all individuals because individuals do not obey the Laws to the same extent; their unequal extents of adjustments to the Laws result in unequal outcomes.”

The mysteries of equal endowments may be coming from a previous earth-life, not just in materials terms, even in music, in the arts. Those in whom these traits manifest early are referred to as prodigies. For our conditions to change, as I have said a few times in these pages, we must seek knowledge and adjust accordingly. Emir Sanusi Lamido Sanusi has debunked any special favours to Dangote. Emir Lamido Sanusi said: “Aliko Dangote did not fix the price at which the CBN got dollars. Everyone who got dollars from the CBN got dollars at same rate if they bought on the same day. So we cannot blame him for buying dollars at a rate the CBN itself decided to sell to its customers.”

He spoke about Dangote from his knowledge and records as a former Governor of Central Bank. What favours were endued Dangote that were denied others? Did Aliko also receive favours from about 30 African countries where he has established cement firms? In any case if the government sees him as a great asset to the country and it gives him necessary assistance by way of reduced duties for imported machinery or spare parts for his plants, what is wrong with that? Is there anyone in a similar situation whose application for such was turned down? Lamido Sanusi went on, in his characteristic bluntness, putting his fingers on what many have suspected is the crux of the matter, on what is believed to be the cause of antagonism to Dangote from certain quarters: His refinery permanently ending the prospect of the return of fuel importation and the attendant subsidy under whatever guise. “By the way, how much forex did Dangote buy from the CBN at this subsidized rate?” Lamido Sanusi asked. “How much forex did NNPC take from the Federation account in the same year in the name of running and turning around its dead refineries?”

“If any Nigerian came to me as a Central Bank Governor with a project like this refinery I would recognize immediately its potential impact on the economy and give it all the support needed. Let our views on forex policies not becloud our sense of priorities… To my mind, giving dollars for construction of a refinery is better than rice importation and, indeed, almost every other enterprise apart from education and health, given the impact on the macro. It is a very rich argument from an entity that had taken billions of dollars in the name of turnaround maintenance and had not produced a drop of product from four refineries because it is more profitable to continue extracting rent in the name of subsidy…NNPC and its spinoffs have lost any right to talk until they fix the mess they have thrown us into.”
Omo t’o ba gbe’pa la a gbe! You lift a child who signals he wants to be carried by raising his arms! Even if Dangote had sought special support from the government, for our collective good, why should he be denied the help? This should remind us of the Parable of the Talents, (Matthew 25: 14-30). Addressing His Disciples, the Lord Jesus Christ said “To you it has been given to know the secrets of the Kingdom of Heaven, but to them it has not been given. For to him who has will more be given, and he will have abundance; but from him who has not, even what he has will be taken away.” The Lord was drawing attention to the immutable Laws of Nature in activity, in this case the Law of Movement. This teaches us that when we bury our talents there are consequences. There are complaints and recriminations; there is envy; there is ill-will. He who uses them flourishes and harvests multiple results.

Where are we all coming from that we find ourselves at different stations in life? In the Work, In the Light of Truth, The Grail Message by Abd-ru-shin, it is stated: “Only at the beginning of every matter is man free to resolve, free to decide where the Omnipotent Power flowing through him is to be guided, in what direction. He must then bear the consequences arising from the Power that was set in motion in the direction willed by him.”

More from It: “This free decision has at some time or other preceded every reciprocal action, thus every fate! With a first volition man has each time produced or created something in which he himself has to live afterwards, sooner or later. When this will happen, however, varies greatly. It can still be in the same earth-life in which his first volition made the beginning for it, but it can equally well happen in the Ethereal World when the gross material body has been laid aside, or later still in yet another gross material earth-life.”

It is further stated: “The variations are not important here, they do not free man from the consequences. He carries the connecting threads with him continually, until he is redeemed from them, that is to say, ‘detached’ through the final effect that ensues through the Law of Reciprocal Action.

“The one who forms is bound to his own work, even if he has intended it for others!” This calls for deep reflection. Indeed, we will find as Cassius says to his friend Brutus: “The fault, dear Brutus, is not in our stars, But in ourselves, that we are underlings.” Nigeria is a free market economy the only system that provides the environment for the unfolding of talents and abilities. The sky, as they say, is wide enough for all birds to fly and demonstrate their dexterity. Dangote is an exemplar of hard work, a multi-tasked fellow and who excels in all. He is one who undoubtedly listens to stirrings within him—to his intuition!

Otedola says a lot more about Aliko Dangote that a great many do not know about him. Hear him: “My brother, the Visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but Kogi State. Additionally, he has established one of the second-largest fertilizer plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State that already exports globally.”
The least all men of goodwill can do and which is expected of them is to give Aliko Dangote encouragement. He should not hand over the refinery to NNPCL that cannot run its own four refineries. All men of character and goodwill should form a wall of defence around him, a titan, yet disarmingly simple, and a jewel. Dangote, a pride of the Black race!

It cannot come as a surprise that many negative forces have risen and are training their arrows to fire at Aliko Dangote. Some are already firing from their arsenals. It is enheartening, however, that many powerful voices have also emerged to form a solid rampart of defence around him, not just to ward off the arrows, but to give him necessary and deserved encouragement. In the words of Akinwumi Adesina, Dangote is “a jewel of industrialization in Nigeria.” Adesina went on: “We cannot and must not undermine, disparage or kill local industries, talk less of one that is of this scale…It is more than simply delivering the cheapest product to the market. It is about domestic supply security, driving (and yes, protecting) globally competitive industries, maximizing forward and backward linkages in the local economy, job creation, reducing forex expenses and shoring up the Naira.”

Adesina should know: he is the president of African Development Bank (AfDB). Femi Otedola has spoken in the same vein. As a leading investor himself, he should know where the shoe pinches industrialists—the risks, the pressure they bear. Former Vice-President, Atiku has reacted also. Atiku in his twitter handle states: “The conflict between Aliko Dangote and NMDPRA is troubling. The Dangote Refinery, our nation’s largest private investment, is crucial for Nigeria’s energy and economic stability, and NNPCL’s investment underscores its importance. If we neglect this, we risk deterring vital foreign direct investment. No investor will trust a nation that undermines its key assets. Protecting significant investments like Dangote’s is essential to attract FDI and drive our economic growth.”

When the intrigues against Dangote were brewing, I wrote on a major platform as follows: “I pray that Dangote will not be dispirited with all the negative commentaries. He should regard people ventilating all manner of opinions as natural. We cannot all see the same things the same way. Vision and attitudes are governed by the radiance or dimming of the inner light of each individual. How can Dangote be a monopoly in an environment that will soon witness the roaring back of three other refineries in our land? We have been told Port Harcourt will come on stream before long; together with Kaduna before December. Warri is also being fixed. Certainly these will compete with him and we will have choice.

“We should summon courage and support Dangote and other entrepreneurs in our midst who are doing great things. As our fathers are wont to say: Oko se e ro ni alagbede npoko ta! If it were so easy, the blacksmith would not be content with just producing hoes, he would head for the bush to farm himself! I salute Dangote’s courage, his industry any day. Was he the only one who had contacts in high places? What did the others do with theirs? Dangote is doing the Blackman proud!”

Femi Otedola states: “In Nigeria we have our own titans, and it is imperative that we recognize and support them. Aliko Dangote has broken every boundary in worldwide business and industry. His contributions are not just a testament to his brilliance but a beacon of what is possible when vision meets opportunity. Supporting local champions like Dangote is crucial for our national development and economic independence. Let us continue to foster and support these visionaries who drive our nation’s progress.”

I was later to observe that with every passing day the conspiracies thickened. What they passed as Dangote’s transgressions began to lengthen. As is in character in matters of this nature, there is exhibition of a warped sense of entitlement. Aliko Dangote must do his business, run his industries according to our own vision and the wish of his detractors, not according to rules and regulations of the land. These are demands we do not make on the four public refineries. The last time there was turn-around maintenance with celebratory results was during Obasanjo’s Administration—to my recollection. And Obasanjo vacated the throne 17 years ago. Dangote put the humongous amount sunk into rehabilitating the public refineries at $4tr (US Dollars), the figures flying in the public space is by far more and we have not gotten result.

I recall former Special Assistant to Obasanjo on Petroleum Matters, Funsho Kupolokun, before he succeeded Gaius Obaseki as Group Managing Director of NNPC, going round newspaper houses. His mission to editors as Obasanjo’s salesman was to support the Obasanjo Administration’s thinking to end fuel subsidy. The subsidy in the end could only be reduced to prevent disruption to the economy and social life of the citizenry. It is Bola Tinubu who has had the courage to bite the bullet. Commendable as his step was, however, the timing was reckless. It has ended in creating more problems than he set out to solve. It was not thoroughly thought out. Internal capacity to fill the supply gap was not ready. Everyone started to ask: What were the alternatives? What he ought to have done was to breathlessly pursue the roaring back of the public refineries into activity by kicking the officials in the groin even if it would entail, in his accustomed Lagos boy rascality, moving the Villa to Port Harcourt temporarily, and twice or so a week personally going to Kaduna, taking Mele Kyari with him. At the same time, he would be sending subtle pressure notes to Dangote: ‘Aliko, where are we? Alhaji, what’s up? When are the machines going to roar for commercial production?’ Those with proclivity to being compromised even after the President has personally demonstrated commitment would be replaced by Europeans and Chinese. Any European found compromised to sabotage the President’s effort, of course, knows the consequences back home. He would go through due process of the rule of law, no doubt, but would eventually pay severely for tarnishing the image of his country. Of course, if a Chinese he would be recalled home, and the penalty is death! By now we would have gotten result.

Dangote paid $100million (US Dollars) to the Lagos State Government to acquire the land on which the refinery in Lagos is built. All hope is pinned on his refinery to come to the nation’s rescue. And Buhari could not wait. He hastily commissioned the refinery that could not be said to be ready. No one is sharing in the attendant risks of setting up the refinery, the obvious being the technology that is triggering movement away from fossil fuel to gas-powered auto-mobiles and solar energy to replace diesel in manufacturing firms. Even if the threats seem far and slow in coming, the potentiality is staring us in the face. As we now know he has not received a dime, not even for the vaunted NNPCL purported investment formerly put at 20 percent, later 7percent. NNPCL has not paid for any equity in the refinery.

What we get from that sector is demarketing that the product from the refinery is sub-standard, which has been proven by Dangote to be false. Already, part of the value chain of the Dangote refinery is employment of 30, 000 hands. It has the potential of 100, 000 in the long-run. Is this the kind of person the nation can afford to disparage? Yet, we do not shrink in efforts to frustrate him and splash dirt on his character and linen by drawing up a litany of transgressions! As our fathers would say, Eni ti o se obe ate a ni ki Sango ko pa a; eni ti ko se rara nko? Translated roughly, We pray the god of thunder to strike down the woman who has prepared a tasteless soup. What then do we ask should happen to the one who did not prepare any whatsoever when the household is assailed by hunger?

As Otedola states: “Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers. In fact, the Dangote group often pays more in taxes than the top banks combined. If not for him, we would be importing cement. His contributions extend beyond industrial facilities to critical infrastructure having built major roads such as Apapa Oshodi-Oworonsoki Express Road, Wharf Road, and the Obajana-Kabba Road.”

Otedola adds: “Countries in the nascent stages of industrialization require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals.” He lists them and goes on to say“…These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation. Their contributions were immortalized not in the material wealth they amassed but in the enduring institutions and industries they established. These visionaries were also supported by their government, which recognized the importance of fostering local champions.”

What many working to frustrate Aliko Dangote and pull him down largely out of envy may wish to know is that the table of the Lord is heavily laden for everyone and each human being only approaches it according to his ability. What determines the ability? It is the immutable Laws of Nature and how much compliance have we made as individuals. Obviously a great many are oblivious of the fact that this world, nay, Creation is governed and that there are consequences for every activity be it thoughts, speeches or actions of every human being. Stephen Lampe, in his invaluable book, The Primordial Laws of Creation, puts it more glaringly: “We human beings are equal before the Primordial Laws. But this does not translate into equality in circumstances or conditions of all individuals because individuals do not obey the Laws to the same extent; their unequal extents of adjustments to the Laws result in unequal outcomes.”

The mysteries of equal endowments may be coming from a previous earth-life, not just in materials terms, even in music, in the arts. Those in whom these traits manifest early are referred to as prodigies. For our conditions to change, as I have said a few times in these pages, we must seek knowledge and adjust accordingly. Emir Sanusi Lamido Sanusi has debunked any special favours to Dangote. Emir Lamido Sanusi said: “Aliko Dangote did not fix the price at which the CBN got dollars. Everyone who got dollars from the CBN got dollars at same rate if they bought on the same day. So we cannot blame him for buying dollars at a rate the CBN itself decided to sell to its customers.”

He spoke about Dangote from his knowledge and records as a former Governor of Central Bank. What favours were endued Dangote that were denied others? Did Aliko also receive favours from about 30 African countries where he has established cement firms? In any case if the government sees him as a great asset to the country and it gives him necessary assistance by way of reduced duties for imported machinery or spare parts for his plants, what is wrong with that? Is there anyone in a similar situation whose application for such was turned down? Lamido Sanusi went on, in his characteristic bluntness, putting his fingers on what many have suspected is the crux of the matter, on what is believed to be the cause of antagonism to Dangote from certain quarters: His refinery permanently ending the prospect of the return of fuel importation and the attendant subsidy under whatever guise. “By the way, how much forex did Dangote buy from the CBN at this subsidized rate?” Lamido Sanusi asked. “How much forex did NNPC take from the Federation account in the same year in the name of running and turning around its dead refineries?”

“If any Nigerian came to me as a Central Bank Governor with a project like this refinery I would recognize immediately its potential impact on the economy and give it all the support needed. Let our views on forex policies not becloud our sense of priorities… To my mind, giving dollars for construction of a refinery is better than rice importation and, indeed, almost every other enterprise apart from education and health, given the impact on the macro. It is a very rich argument from an entity that had taken billions of dollars in the name of turnaround maintenance and had not produced a drop of product from four refineries because it is more profitable to continue extracting rent in the name of subsidy…NNPC and its spinoffs have lost any right to talk until they fix the mess they have thrown us into.”
Omo t’o ba gbe’pa la a gbe! You lift a child who signals he wants to be carried by raising his arms! Even if Dangote had sought special support from the government, for our collective good, why should he be denied the help? This should remind us of the Parable of the Talents, (Matthew 25: 14-30). Addressing His Disciples, the Lord Jesus Christ said “To you it has been given to know the secrets of the Kingdom of Heaven, but to them it has not been given. For to him who has will more be given, and he will have abundance; but from him who has not, even what he has will be taken away.” The Lord was drawing attention to the immutable Laws of Nature in activity, in this case the Law of Movement. This teaches us that when we bury our talents there are consequences. There are complaints and recriminations; there is envy; there is ill-will. He who uses them flourishes and harvests multiple results.

Where are we all coming from that we find ourselves at different stations in life? In the Work, In the Light of Truth, The Grail Message by Abd-ru-shin, it is stated: “Only at the beginning of every matter is man free to resolve, free to decide where the Omnipotent Power flowing through him is to be guided, in what direction. He must then bear the consequences arising from the Power that was set in motion in the direction willed by him.”

More from It: “This free decision has at some time or other preceded every reciprocal action, thus every fate! With a first volition man has each time produced or created something in which he himself has to live afterwards, sooner or later. When this will happen, however, varies greatly. It can still be in the same earth-life in which his first volition made the beginning for it, but it can equally well happen in the Ethereal World when the gross material body has been laid aside, or later still in yet another gross material earth-life.”

It is further stated: “The variations are not important here, they do not free man from the consequences. He carries the connecting threads with him continually, until he is redeemed from them, that is to say, ‘detached’ through the final effect that ensues through the Law of Reciprocal Action.

“The one who forms is bound to his own work, even if he has intended it for others!” This calls for deep reflection. Indeed, we will find as Cassius says to his friend Brutus: “The fault, dear Brutus, is not in our stars, But in ourselves, that we are underlings.” Nigeria is a free market economy the only system that provides the environment for the unfolding of talents and abilities. The sky, as they say, is wide enough for all birds to fly and demonstrate their dexterity. Dangote is an exemplar of hard work, a multi-tasked fellow and who excels in all. He is one who undoubtedly listens to stirrings within him—to his intuition!

Otedola says a lot more about Aliko Dangote that a great many do not know about him. Hear him: “My brother, the Visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but Kogi State. Additionally, he has established one of the second-largest fertilizer plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State that already exports globally.”
The least all men of goodwill can do and which is expected of them is to give Aliko Dangote encouragement. He should not hand over the refinery to NNPCL that cannot run its own four refineries. All men of character and goodwill should form a wall of defence around him, a titan, yet disarmingly simple, and a jewel. Dangote, a pride of the Black race!

The brouhaha is a symptom of the deeper problems of Nigeria’s political economy. It demonstrates how the Nigerian state and its government has failed to create a real economy that works for all Nigerians by lifting millions from poverty to prosperity, but instead has promoted vested interests of various kinds in the name of the “private sector” and “business.” Dangote is far less the issue, in reality, than is the Nigerian government and its track record.

Amidst the controversies over Aliko Dangote’s massive refinery and the stand-off between him and the Nigerian government, let’s not lose sight of the real issues. The brouhaha is a symptom of the deeper problems of Nigeria’s political economy. It demonstrates how the Nigerian state and its government has failed to create a real economy that works for all Nigerians by lifting millions from poverty to prosperity, but instead has promoted vested interests of various kinds in the name of the “private sector” and “business.” Dangote is far less the issue, in reality, than is the Nigerian government and its track record. Because whatever anyone accuses Dangote of, assuming that those allegations were even to be true in the first place, could not be so if the Nigerian government was awake to its responsibilities. This is an opportunity to return to the fundamental questions about our economy, and seek solutions.

Can we? Will we? It would surprise me if the Dangote refinery saga – in which Dangote alleges an intent within the Nigerian National Petroleum Corporation, oil regulators, and the international oil companies to sabotage his refinery by refusing to supply it with crude oil, while the government oil regulators accuse Dangote of seeking to monopolise the oil refining market, in violation of the national oil company’s pre-existing contractual obligations with other customers — results in any real solutions to the fundamental problems of economic governance in Nigeria. These challenges, as is evident, are corruption and rent-seeking, incompetence, and intellectual emptiness when it comes to economic management. This last issue of intellectual vapidity in the management of Nigeria’s economy has been pronounced and dominant over the past 10 years. These factors are the real reasons 133 million Nigerians live in multidimensional poverty. And that figure is certainly outdated because it was established well before the cost of living crisis that has pushed tens of millions more into poverty in the past year since President Bola Tinubu’s administration entered into office.

We love drama in Nigeria – effervescent controversies that appear as if they will bring down the roof on the house but only serve, ultimately, as part of a daily diet of distractions from addressing the underlying challenges of the Nigerian state. They keep our tongues wagging over chilled bottles of beer, wine or in WhatsApp chat groups populated by millions who increasingly can afford neither beer nor wine. The Federal Government and the NNPC – the “prize” public corporation of Nigeria’s political economy – have for years allowed our national refineries to lie defunct, despite the billions of dollars allocated over decades for the repairs and rehabilitation of the same refineries. Now, they turn around to accuse Dangote of monopolistic tendencies after he built one of the largest refineries in the world in Lagos. If that allegation is remotely true, who has allowed it? Where has the government been? Where is the serious thinking, policy and its implementation, and the political will for Nigeria and its citizens to achieve real prosperity? I respect Dangote’s grit and achievements, and his refinery certainly has important potential implications for the Nigerian economy. But, let’s get it straight: Dangote’s wealth is personal to him. It hasn’t made Nigerians broadly rich on any significant scale. Moreover, the question is pertinent: Is that his responsibility?

Who will take us seriously when our business environment, despite its potential, is evidently awash with political and other risks, and the “market” is increasingly impoverished? In any case, foreign investment is no magic wand for our economic problems if the essential conditions of infrastructure, in particular electricity, and skilled human capital are absent.

The controversy over the Dangote Refinery is a national and global embarrassment for our country. It shows us up to the world as unserious at a time our public officials traverse the world seeking “foreign investment.” Who will take us seriously when our business environment, despite its potential, is evidently awash with political and other risks, and the “market” is increasingly impoverished? In any case, foreign investment is no magic wand for our economic problems if the essential conditions of infrastructure, in particular electricity, and skilled human capital are absent.

The heart of the matter is that a succession of Nigerian governments, including the current one, have been unable to do either of two things. Thay have failed to stimulate, through effective economic policy, a set of strategic oligopolies across sectors, under which smaller businesses and supply chains connected to such giant corporations can thrive, creating a successful national economy as in South Korea. Even such oligopolies ought to be subject to “close marking,” so they understand that they are strategic agents of the national economic interest, not that they have put the government in their pocket – as Daewoo’s founder in South Korea discovered when he was jailed for 10 years, for embezzlement and accounting fraud in 2006. Neither has the government, on the other hand, been able to facilitate a truly competitive, level playing field for business in Nigeria, so that wealth creation can be more democratic.

This is a deeply unfortunate outcome of what passes for governance, including its economic aspect, in Nigeria. Capitalism and free markets have faced criticisms, most of them valid. It is an undisputed fact, however, and one supported by historical evidence, that for all its weaknesses, capitalism remains the greatest creator of wealth that the world has seen. It is what helped China – after it abandoned economic socialism – lift 700 million people from poverty into the middle class in 40 years. It is what has lifted millions from poverty into a comfortable life in Brazil, South Korea, Malaysia, and Vietnam. This is because the capitalist system accords most with the basic human instinct to strive and thrive.

…for capitalism to be transformative of broad societies, certain conditions are necessary. Else, what happens, as in the case in Nigeria and most African countries, is the wealth of a tiny few but the poverty of the many. In order words capitalism, to have been successful for any country – socialism having certifiably failed – must create the wealth of nations and not simply that of a small elite. This is the whole argument about inclusive, broad based growth versus mere GDP growth…

But for capitalism to be transformative of broad societies, certain conditions are necessary. Else, what happens, as in the case in Nigeria and most African countries, is the wealth of a tiny few but the poverty of the many. In order words capitalism, to have been successful for any country – socialism having certifiably failed – must create the wealth of nations and not simply that of a small elite. This is the whole argument about inclusive, broad based growth versus mere GDP growth, which economic thinking in Nigeria and much of Africa erroneously worships.To achieve this outcome, we need a competent state – a government that has a deep philosophical understanding of the kinds of capitalism – entrepreneurial, welfarist, crony, or “state” a la the Chinese model – and makes conscious choices between these models or combinations of them.

Such a government must understand the right balance between the role of the state and that of the market. The state cannot be the market. No market can thrive and create wealth without the steady, measured hand of a competent – but not overbearing – state. And the government must understand, and apply that understanding to policy, the fundamental conditions for capitalist success. These are: full property rights, an innovation ecosystem that pipes useful inventions into the market, and across-the-board access to capital.

Finally, the economy cannot prosper without an enabled business environment. This condition includes a secure environment, infrastructure, especially electricity, avoidance of multiple taxation, efficient port and customs, respect for contracts and the rule of law, keeping a lid on corruption, and ensuring a level playing field that avoids distortionary monopolies through effective competition policy. Microsoft and Google are major tech corporations. But they are not allowed to run their competitors out of town. In 2023, the United States government successfully brought antitrust cases against both corporations for violations of competition law in the American market. That’s how capable states function to regulate their markets and give everyone a fair chance.

Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria, is the chairman of Africa Private Sector Summit (APSS).

Not too many judicial interventions have been, and will ever be as consequential as the July 11, 2024, Supreme Court ruling on the Local Government (LG) autonomy litigation, filed in May 2024, by the nation’s Attorney General and Minister for Justice, Mr. Lateef Fagbemi, SAN. In a write-up it, widely published in both the traditional and social media in Nigeria, I made an attempt to alert the nation to the profound implications of one scenario vis a vis the much-awaited judgement. Specifically, the Punch online newspaper, in its May 31 edition, published the piece, titled, “That LGA Autonomy Litigation.” Nigerian Tribune online, also did the same, on June 1. The argument made in that piece can be summarized in this form. The litigation had the potential of toppling the apple cart vis a vis Nigeria’s outlook on federalism; as it would move the country further in the direction of centralization, consistent with a unitary model of government. It was a thinly veiled attempt to undermine the State governments, while strengthening the central government, thereby moving the country further away from the goals of devolution of powers to the States, which are the federating units in Nigeria’s evolving federal system. If the position of the Federal Government was affirmed by the Court, it would, in practical terms, mean that the average State and its LGAs, in most probability, would begin to work at cross purposes. That is, the State would drive in one direction, while the LGAs, which it was supposed to superintend under the Constitution, would drive in another; and this would be the very recipe for major governance crises. The paper called on the President to get the Attorney-General to back off from the litigation process; and concluded thus, “The consequences attendant upon getting a ruling favourable to the Federal Government at the Supreme Court are too grave to be contemplated. We must stand up for a federal, and against a unitary Nigeria.” A number of newspaper editorials, which came up later, evidently drew from the arguments made in the article.

The Judgement

The Supreme Court judgement has since been given; and it is totally in agreement with the Attorney-General’s position. Asserting that its right to adjudicate on relations between the central and State governments was unlimited, the Court proclaimed unequivocally that “the justice of the case demands that the Local Government (LG) allocations should henceforth be paid directly to LG accounts”; and that Governors shall neither exercise the power to dissolve elected LGAs, nor interfere in how the later were run. It is obvious in this regard that the judgement, in its key elements, has confirmed our worst fears. This is the point to which this piece is directed. Having researched on, and taught courses on Federalism, and Comparative Political Economy, to both undergraduate and graduate students, in Nigeria and elsewhere, for years, it behoves me to, once again, share my thoughts on the wider implications of the Supreme Court judgement, on Nigeria’s governance structure going forward; and this in as simple a manner as possible.

I have followed keenly, the various analyses on the subject. One thing that is clear therefrom is that most commentators do not seem to understand the real meaning of the ruling, and its implications for jurisprudence, and governance in the country. They marginalize the ahistorical nature of the ruling, and the inevitable consequences thereof, on the organization of relations between the spatial constituencies that make up the nation. While there could be momentary, or short-term (political) advantages going the way of the litigants, as well as transient LG practitioners, my concern is that these critical stakeholders may not be fully acquainted with the wide-ranging implications of the judgement for federalism and good governance in Nigeria, in spite of their advertised commitment to these twin concepts. On air, and in print, we got a whole lot of verbiage from pundits, whose analyses are largely driven by banal populism, and predicated upon emotions, rather than rational inferences. But we must transcend this emotion-laden analyses, and make yet another attempt to clarify the issues. In doing this, I try to highlight the implications of the judgement; discuss the probable follow-up actions expected of the protagonists of the LGA autonomy initiative; and draw attention to the (hidden) consequences for governance in Nigeria. I had availed myself of the opportunity to do this at a webinar a day or so after the judgement, which video clip, I understand is already in circulation.

Implications, In Seven Chapters

In the first instance, it is evident that the 11 July judgment is completely at variance with the principle of federalism, to which Nigeria pledges commitment, and by which the country is named, as Federal Republic of Nigeria. While admitting of some minor variations, the position is clear in federalism literature that a federation speaks to “The method of dividing powers so that the general and regional governments are each within a sphere co-ordinate and independent.” This is how K. C. Wheare, regarded as the father of federalist thought, described it, in his seminal work, The Federal Government, first published in 1963. Same goes for the founding fathers of US federalism, whose treatises on the subject were published as The Federalist Papers, described by the US Library of Congress as “a series of 85 essays written by Alexander Hamilton, John Jay, and James Madison between October 1787 and May 1788,” directed at persuading New Yorkers “to ratify the proposed federal Constitution, … drafted in Philadelphia in the summer of 1787.” While the contextual specificities of these sources are not in doubt, all being essentially informed by the nature of the American experience, they nevertheless represent the critical starting point in any informed discussion of federalism. Significantly, they all agree that federalism is about division of governmental powers between a central government, and the federating units. None imagined the concept, ‘federating units,’ to go beyond its ordinary meaning; and thus, none suggested that municipalities and LGAs could in any way qualify to be referenced as ‘federating units.’ This is why no constitution, including the American, ventures to mention by name, counties, municipalities, or LGs, as the case may be. The federating units, 16 of them in Germany, are called ‘Landers.’ In the Swiss federal system, they are ‘cantons,’ and of course, States, in both Nigeria and the US, among others. In none of these is any suggestion made that the municipalities are anything near federating units; because they are not.

In the Swiss federal system, there are actually about 2,300 of these municipalities, so small that they are basically governed via referenda, in a manner reminiscent of the era of direct democracy. But the federalist foundation of the Swiss system is underscored, first, by the principle of subsidiarity, to wit, that no power exercisable by a lower level of government is allowed a higher level; and secondly, that membership of the executive branch at the central government level is made up of representatives of the federating units, the ‘cantons,’ the headship (presidency) of which is rotated every two years, from one ‘canton’ to the other. This puts in bold relief one of the more critical anomalies in the Nigerian 1999 Constitution (as amended), which involves listing of some 774 LGAs. Even so, the Constitution did not make the mistake of asserting that the LGAs were federating units. Rather, it says, in Section 2(2), that “Nigeria shall be a Federation consisting of States and a Federal Capital Territory.” That is why the governance structure of the LGAs is not only located within the rubrics of the State, but indeed, made a subsidiary of same, throughout the document. The Supreme Court judgement in reference here has simply made nonsense of this principle, and surreptitiously proclaimed the LGAs, to all intents and purposes, as federating units. This is not appropriate.

Secondly, the idea underscoring the clamour for LGA autonomy, and direct transference of LG share of the Federation Account to them directly, is ahistorical. It denies the fact that prior 1999, when LGs got their funds directly from the Federation Account, many of them, especially the more cosmopolitan and populous ones, which also paraded more staff, and a broader range of infrastructural challenges, found it practically impossible to survive. They were not paying their primary school teachers, and owed their administrative workforce several months of salaries. To then imagine that we feel that sending monies to the LGAs directly is all that is required to advance the cause of good governance, is some convoluted thought that denies the fact of history. Indeed, the whole idea of State Joint LG Account Committee was an initiative put in place to address this problem.

Thirdly, it is evident that the judgement of the Supreme Court is completely at variance with provisions of the 1999 Constitution (as amended) on this subject of revenue allocation. In Section 162 (6), the document makes it explicit that “Each State shall maintain a special account to be called State Joint Local Government Account into which shall be paid all allocations to the local government councils of the State from the Federation Account and from the Government of the State.” And in Sub-section 8, it drills down on the matter by stating unequivocally that “The amount standing to the credit of local government councils of a State shall be distributed among the local government councils of that State on such terms and in such manner as may be prescribed by the House of Assembly of the State.” Whence, therefore, in the face of these unambiguous provisions, did the Supreme Court find the basis of its ruling, to the effect that funds from the Federation Account begin to go directly, and outside of the rubrics of the State, to the LGAs? There is none.

What the Supreme Court has done is simply to yank off a clear provision of the Constitution, and replace it with something completely foreign to it. To imagine that some lawyers, some of them quite senior, would endorse this type of dangerous precedent simply because of animus against the governors, is quite difficult to internalise. For, what the Supreme Court has done in the instant case is akin to waking up one day, and on the basis of a nondescript litigation, ruling that the tenure of Governors and the President is no longer four years in the first instance, as provided for in the Constitution, but now – by judicial fiat – 10 or more years! Nobody needs the say-so of any pundit to appreciate that this is a very dangerous scenario; yet, it is something many ordinarily enlightened people are celebrating.  This is the danger in relation to how the Supreme Court may want to begin to exercise what the Court referenced as its “unlimited powers” to pronounce on issues between States and the Federal Government. It thus, technically, treats cavalierly, the very first section of the 1999 Constitution (as amended), Section 1(1), which states in clear terms, that “This Constitution is supreme and its provisions shall have binding force on the authorities and persons throughout the Federal Republic of Nigeria.”

Fourthly, in relation to land, I am persuaded that many Nigerians who are quick to applaud the ruling are completely ignorant of the profound implications of same for the Land Use Act, and our extant land holding patterns generally. Under the current dispensation, State Governors hold all non-urban lands in trust for the citizens in a fiducial form of relationship. This is what has made it possible for State Governments to stave off the intrusiveness, nay, shenanigans of some overbearing federal governments in the recent past, by simply refusing to allocate lands for some very controversial programmes that were highly steeped in exclusivity. Under the emerging dispensation, in which the Federal Government is inputting itself into the scheme as the potentate and, to all intents and purpose, manager of the LGAs, it is going to be like a piece of cake for any overbearing federal government to access land via the LGAs, which are constitutionally placed in charge of non-urban (rural) lands, howsoever defined. Hitherto, the LGAs would not venture out of line to do this, given that they operated within the boundaries of the provisions made by the State House of Assembly. With the Supreme Court judgement, not anymore!

Fifthly, I make bold to assert that what the Supreme Court has done, perhaps unwittingly, is to drill down on injustice and inequity, underlying the creation of LGAs, and indeed, States, perpetrated when Nigeria was under military rule. There are no objective and unimpeachable criteria for the number of LGAs created. The creation was simply done on the basis of the whims and caprices of the military generals that bestrode these climes like a colossus in those years. Two examples that I cite are Osun/Ondo States, and Lagos/Kano States. Whereas Osun and Ondo States have comparable land mass at 14,875 square kilometres and 15,500 square kilometres respectively, and populations of 4.4 million and 5.3 million respectively in 2022, Osun was gifted 30 LGAs, while Ondo has only 18. Lagos and Kano States started off in 1967 with 20 LGAs each. Many years later, in 1991, Jigawa was excised out of Kano, but between them today, both States have 71 LGAs, while Lagos retains its original 20, which anomaly then Governor Bola Tinubu tried to correct by creating 57 LGAs. His effort was shot down by the Supreme Court then, making him to invent the concept of Local Council Development Authorities (LCDA). Significantly, the LCDA initiative has now practically become otiose given that monies are now to pass directly, only to the constitutionally recognised LGAs, which remain just 20 for Lagos State. Meanwhile, number of LGAs in each State is not just one of the bases for sharing revenue from the Federation Account, it also determines the number of seats (representation) in the House of Representatives! My conviction that this could not have been the intention of the President informed my call in the article referenced above that, “President Bola Tinubu, who himself as Lagos Governor, fought this inequity on the status and place of LGAs in our federation, shouldn’t be the one doing this. Rather, he should look at the obstacles that made his attempts at creating new LGAs in Lagos to flounder, and push for the necessary constitutional amendments to take care of the obstacles.”

Methinks rather than seeking to consolidate this arrant confusion, nay injustice, what the Supreme Court should have done was to leave things as they were, pending when the country would be able to find its way around this structural anomaly, which is one of the factors fuelling anger and instability in the system. This, by the way, is one of the bases for the restructuring advocacy, which seeks to move Nigeria further in the direction of federalism, through substantial devolution of powers to the federating units, i.e., the States.

Sixthly, considering that the LG system, just like the presidency and the State governments too, is not peopled entirely by saints, what guarantees do we have that if the Governors were corrupt in the manner in which they tended to manage public funds, that the elected and appointive staffers of the LG system are going to be any different? What structures of control and accountability have we emplaced to ensure that rather than having to deal with 36 theatres of (mis)management of public funds, we are now having a motley of 774 to deal with? None of the pundits trumpeting support for this unusual judgement has weighed in on this primary question well enough.

Seventhly, what the Supreme Court has forced down the nation’s throat by its 11 July judgement, is akin to what Decree 34 of 1966, established. In one fell swoop, that Decree threw out Nigeria’s regional structure, substituting for it what, to all intents and purposes, amounted to a unitary structure. Thus, if in 1966, Decree 34, sent regionalism packing, the Supreme Court judgement of 11 July has now completely flushed the residue of federalism in Nigeria down the drain! The task the military junta under Major-General JTU Aguiyi-Ironsi began, is what the Supreme Court has now completed and consolidated. But it is difficult to imagine that this is the direction in which a President Tinubu would go, given that he was in the vanguard of the advocacy for devolution of powers to the States in order to enable Nigeria have a credible chance of autochthonous development. In practical terms, the ruling has now made nonsense of those long years of advertised commitment to restructuring and devolution of powers. For, if anything, given that the new Federal Government will now practically superintend the LGs, Nigeria has moved almost completely away from, and can now, at best, only exist on the fringes of federalism. Meanwhile, the argument has been made variously that considering that the Nigerian society is itself thoroughly federal in nature, the only workable constitution with which it can be successfully governed is a federal one. The failure to accept this reality – which is already demonstrated beyond any reasonable doubt, both in theory and praxis, is what has continued to make the country’s governance system basically dysfunctional.

The only silver lining in the Supreme Court judgement relates to its ruling on the sacrosanctity of democratic structures at the LGA level. On this, I had argued in my earlier piece, that “The only things that should be of concern, and on which attention should be focused, are first, that governance at the LGA level be by elected leaders, only; and secondly, how to prevent State Governors from wantonly dismissing elected LGA leaders and substituting for them, caretaker committees.” My position was substantially informed by Section 7(1) of the 1999 Constitution (as amended), which proclaims that “The system of local government by democratically elected local government councils is under this Constitution guaranteed ….” The Court should, therefore, have limited itself to the subject of democratic governance at the LGA level, proclaiming as it did that funds may not be accruing to any LG that is not governed by elected officials, for as long as that lasted. This would have been consistent with the Constitution, which at any event, has indicated in Section 14(1) that “The Federal Republic of Nigeria shall be a State based on the principles of democracy and social justice.”

After the over-centralisation of about thirty years of rule by brass hats had contributed hugely to the country’s persistent underdevelopment, a civilian president ought not to be foisting increased federal power on the country. The urgent first steps are: (i) immediate review of the distorted revenue allocation formula inherited from the military in 1999 by assigning 65 per cent to subnational governments and 35 per cent to the central government…

The announcement of the imminent establishment of a Federal Ministry of Livestock Development raises two important questions. First, is creating a 49th federal ministry consistent with the advertised objective of the Tinubu administration to reduce the cost of governance through the Oronsaye Committee Report Implementation Committee? Second, is an enhanced role for the Federal Government in livestock development consistent with reducing its functions as promised in president Tinubu’s 80-page manifesto that was released in 2022? 

While the seriousness and urgency of tackling livestock-related problems in the country are unquestionable, the solution is NOT in creating a federal ministry. After highlighting the terrible consequences of farmers/herders’ conflicts – “over 60,000 deaths across 22 states since 2001” – the PUNCH editorial of 15 July proffered an eminently sensible remedy: “The solution lies in commercial cattle ranches, which must be the prerogative of the states (subnational governments) and private investors…The government should limit itself to technical and financial interventions to support settled ranchers.” The contrary plea in the editorial of THE NATION on 23 July – “Creation of Ministry of Livestock Development should be given a chance” – is wrong-headed. 

After the over-centralisation of about thirty years of rule by brass hats had contributed hugely to the country’s persistent underdevelopment, a civilian president ought not to be foisting increased federal power on the country. The urgent first steps are: (i) immediate review of the distorted revenue allocation formula inherited from the military in 1999 by assigning 65 per cent to subnational governments and 35 per cent to the central government; and (ii) significant reduction in the central government’s legislative list that will be consistent with the new revenue allocation formula, similar to the provisions in 1954 and 1963 constitutions. Then, at a stroke, an over powerful and overreaching central government that is funding the establishment of Development Commissions for geopolitical zones and the creation of a new federal ministry will become history.  

Ladipo Adamolekun writes from Fairfax, Virginia, United States of America.