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Nigeria: Black Wednesday, Bad Year

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Original Post Date: 2010-11-07 Time: 09:00:04  Posted By: News Poster

By Mallam Kyari

Wednesday, 27 October, 2010, was our Black Wednesday. The darkness of that day was not obvious, because we did not connect the dots. But the information was on the net and in the local press.

On that day, Transparency International’s global corruption index for 2010 was published. The Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Justice Emmanuel Ayoola, complained that both the Federal Government and the national legislature were frustrating the fight against corruption.

By way of coincidence the Economic and Financial Crimes Commission (EFCC) had also issued an “advisory” list of those alleged or on trial on account of abuse of public trust. The list may be selective, contentious and at this stage based on allegations, but the import is that, if corruption is considered a major issue, political parties are being put on notice of the signals they send in fielding certain people. That day was about corruption, corruption, corruption!

The Transparency International Index ranked Nigeria at No.134 out of 178 countries. Our score was 2.4 out of 10. In the 134th position, we were joined with eight other countries – Azerbaijan, Bangladesh, Honduras, Philippines, Sierra Leone, Togo, Ukraine and Zimbabwe. None of the countries we were tied with nor the 36 states we were ahead of has a 20:2020 ambition or contending to be the next BRIC. Nor do any of them aspire to lead their continents. None is a candidate for a seat on the Security Council. Our score of 2.4; puts us a mere 1.3 “better” than the most corrupt country – Somalia with a score of 1.1.

Many may rightly question the rationale or the weights assigned to certain indices in getting an overall rating but several independent and internationally recognized institutions using different sets of variables came to broad similar conclusions on Nigeria – and what we see and experience each day appear to corroborate the findings of these international bodies.

The ICPC, for example, was not properly empowered to function since its inception. The complaint of the current chairman was the same cry of the first Chairman, Justice Mustapha Akanbi. But for a judge to directly indict both the Executive and Legislature of being unserious about confronting corruption is a very grave matter indeed.

The EFCC’s “advisory” list of 2010 is not less controversial than the 2007 list. The reaction and objection to the list were predictable. But it was the reaction of the Federal Government from the Attorney-General of the Federation – the nation’s chief law officer – that was beneath contempt, and goes to confirm Justice Ayoola’s indictment. How can the attorney-general complain that allegations of corruption against people, most of whom are not in government amount to embarrassment to the government and capable of heating the polity? May we remind the attorney-general that it is corruption that should embarrass the government, shame the country and be viewed as capable of heating the polity not efforts at fighting it. Not even Michael Aondoakaa could have descended to this low. In Kenya, allegations of corruption against the foreign minister led to his resignation to allow for investigation.

Apart from a few comments in the press, black Wednesday did not shame the Federal Government; rage the opposition; agitate students and unions; nor engage the press in any serious way to the consequences of a country synonymous with corruption. In the Solomon Islands, ranked above us at No.110, the opposition called on the government for a combined effort to improve the country’s rating after Transparency’s publication.

If Wednesday, 27 October was our black Wednesday in terms of corruption, the year 2010, even if lucky for some, is a bad year for Nigeria. During the year, two memoirs; Lord Browne’s autobiography and Marc Rich’s authorized biography, Mo-Ibrahim Index and Jim O’Neil of Goldman Sacks, all portrayed Nigeria in very bad light. There was also a television sting operation on the soccer World Cup bids.

Nobody is better placed to talk about corruption in Nigeria than oil executives and oil merchants; and Nigeria’s big business is oil. In his memoir, Lord Browne, the former Chief Executive of British Petroleum, contrasted two countries afflicted with Resource Course – Angola and Nigeria; his verdict: “I pushed things in the right direction in Angola. However, in one country I found it was not possible to make any headway. That country was Nigeria…… I felt we just could not operate in Nigeria. We sold our Nigerian licences and I never wanted to go back”. But Lord Browne is reportedly heading a private equity firm that is making a $4 billion bid for Shell’s assets in Nigeria. Never say Never John Browne! His putting Angola ahead of Nigeria is not supported by either the T..I. or Mo-Ibrahim Index. Nigeria is ahead of Angola in both. His U-turn on doing business in Nigeria, call into question the integrity of his judgment. But his indictment of Nigeria is on record and some people will be guided by it.

The second book is the biography of the acclaimed King of Oil – Marc Rich. It was him, who broke the monopoly of the majors in the oil trade. At one time only about 5 per cent of oil traded out of the circle of the majors, Rich invented the spot market and broke the monopoly. He knows the oil business and has had a long experience of Nigeria and knows a lot about Nigeria’s oil business. His verdict on Nigeria is simple. It is “the global capital of corruption”.

Another unwelcome publication is the Mo-Ibrahim Index of African Governance 2010. Nigeria is ranked No. 40 out of 50. This ranking is consistent with the T.I. ranking. The top four countries in the Mo-Ibrahim Index – Mauritius, Seychelles, Botswana and Cape Verde – are also the only African countries that are ranked in the top 50 of the T.I. index.

More bad news. In a recent piece in the Financial Times, Jim O’Neil, the Goldman Sachs Chief Economist, who coined the acronym BRICS, has reviewed Africa’s Bric potential to 2050. His team considered an index of 13 variables that are critical for sustainable growth and productivity. Our score out of 10 is 3.5.

Our persistent failure on all scores from different sources has wider implication. Our inability to get our act together – the obstacle being corruption – is also retarding Africa’s progress. The four successful African economies of Botswana, Seychelles, Mauritius and Cape Verde, with a combined population of just over 4 million about ¼ of Lagos State, cannot shake the continent. South Africa, though a more developed economy, but a population of 45 million, is too small to make the big things.

If only Nigeria, with a population of about 20 per cent of Africa and 47 per cent of West Africa will get “everything right”. Until that happens, we will remain a big, populous country that cannot even do little things. In particular the West African sub-region, heavily dependent on Nigeria cannot move faster because of Nigeria. We are the elephant in the room.

Even in sports, we are frequently associated with corruption. Since seeing and hearing is not believing, suffice to say that, Mr. Amos Adamu, our representative at FIFA’s Executive Board was alleged to have offered on television to “sell” his vote for £500,000 in the soccer World Cup hosting bids. With this experience, when the fearless and forthright columnist Sam Nda Isaiah – advocates permanent membership of UN Security Council, I will like to put a tiny caveat. We should get our Security Council seat on the condition that our vote may not be for sale.

Our corruption is not limited to the public sector. The private sector, dominated by services, whose players are buccaneers, not productive entrepreneurs, is just as corrupt. The recent revelations in the financial services sector and hub of the private sector, the Nigerian Stock Exchange (NSE) are a clear testimony. The private sector often turns out to be just as inefficient. The major ports have been concessioned to private operators, but there is hardly any improvement in operations. A Ghanaian company that once imported certain product from the Nigerian market, stopped doing so. One of the reasons was that it was faster to ship from Vietnam to Ghana than from Apapa to Tema. Our GSM services are a nightmare.

Massive corruption in the public sector; corruption in the private sector, corruption in sports – corruption at all levels and in all sectors, is what the world associates with us and is the sole reason for our failure to be productive, prosperous and peaceful.

No beneficial capital will flow into a country where bribery is as routine as business expenses.

The result is obvious and we are living the experience. Abject poverty in the rural areas giving rise to banditry in the countryside, unemployment and squalor in the urban conurbations, leading to crimes and drug abuse and lack of healthcare and education all over the country.

The Nigerian state has all but breached its duty to society; it has failed in its primary responsibility of protecting its citizens and providing basic services. Yet, it does not seem to care. The general assumption is that people are too hungry and weak to be angry and revolt. As Amarty Sen puts it: “A starring wretch can be too frail and dejected to fight a battle, and even to protest and holler. It is thus not surprising that often intense and widespread suffering and misery have been accompanied by unusual peace and silence”.

But not anymore, unless we deny that insurgency in the Niger Delta and the insurrection in Borno, which we dismiss as Islamic militancy is not the beginning of young people questioning why they should obey and owe allegiance to a state that has reduced them to hopelessness in their lives.

In his preface to his book – Justice: The Social Bases of Obedience and Revolt – Barrington Moore Jr. stated thus: “Why people so often put up with being victims of their societies and why at other times they become very angry and try with passion and forcefulness to do something about their situation.”

We are now approaching the crossroads, the time when people are becoming very angry and trying to do something about their situation. In similar situations, research conducted in the United States in the 1960’s showed that young people, mostly from poor backgrounds “actually do acquire the courage to stand up to oppressive authority”.

The Movement for the Emancipation of Niger Delta (MEND), Boko Haram, kidnapping syndicates, even if their activities are labelled crime, are also manifestation of the consequences of state failure on account of corruption.

If we conduct a governance index in Nigeria, the centres of insurgencies, insurrections and kidnappings will rank the lowest. No one hears about the menace of area boys in Lagos anymore. By common consent, Lagos will top the good governance index.

We are sitting on ticking time bombs. This election is an opportunity to make corruption and governance the major issues. But that does not seem to be happening. Instead, a new laughable agenda is about digital presidency. At least since 2007, we have had two digital and graduate presidents. Within this period, the excess crude account which stood at over $20 billion three years ago has been diminished to less than $400 million, with nothing to show.

In the last two years, our ranking in T.I. index dropped 10 points, from 124 in 2008 to 134 in 2010. Digital corruption is more dangerous than the analogue one. Funds are moved at the speed of light! We should seek for a patriotic and public spirited leadership that puts the interest of the country and welfare of the citizens above any other consideration.

Mallam Kyari is former Managing Director of United Bank for Africa (UBA) Plc.

Original Source: This Day (Lagos)
Original date published: 4 November 2010

Source: http://allafrica.com/stories/201011050605.html?viewall=1