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Editorial

BPP’s Revelation On FG’s Inflated Contracts

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A detailed report by the Bureau of Public Procurement (BPP) claiming to have saved N27 billion in 2018 through the reduction of inflated contract costs by government contractors evokes much sadness and signals Nigeria’s final descent into ignominy. The mind-boggling revelation was contained in the bureau’s 2018 annual report.
In addition, the report stated that the savings emanated from diligent scrutiny of awarded contracts by federal Ministries, Departments and Agencies (MDAs) before the contractors were issued the Certificate of No Objection by the bureau. A Certificate of No Objection is a document confirming that due process was followed in the conduct of a procurement process.
In particular, among the reprehensible ministries, the report listed the Ministry of Transportation headed by former Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi, and the Ministry of Power, Housing and Works equally headed by former Lagos State Governor, Barrister Babatunde Raji Fashola.
Digested in the report was the assertion that in 2018, a total of 86 No Objection Certificates were issued to MDAs for an initial contract sum of N1.421 trillion but was reviewed downwards to N1.394 trillion by BPP, hence, saving N27 billion from the awarded contracts.
From the saved sum, N22.22 billion, representing the highest amount of savings made from a single ministry, came from the Ministry of Power, Works and Housing with an initial request of N877.40 billion. Similarly, the bureau saved N1.37 billion on projects from the Transportation Ministry also from an initially quoted amount of N76.22 billion.
The findings likewise revealed that disparate initially quoted contract sums from the Petroleum Ministries, Finance, Defence, Interior Affairs, the Central Bank of Nigeria (CBN) and Federal Radio Corporation were reviewed and a prodigious N1.576 billion was saved for the nation’s coffers. However, the Federal Capital Territory Administration, Ministry of Environment as well as the Ministry of Budget and National Planning were not indicted as savings were not made from them.
We entirely commend the action of these ministries in stoutly repudiating the lusciousness of procurement frauds and back-scratching ravaging the country.
The BPP’s report is perhaps a most disappointing confirmation that corruption is still deeply entrenched in government ministries, departments and agencies despite President Muhammadu Buhari’s avowed resolve to rid the country of the deep-seated culture of graft and usher in a new era of transparency in public office. It, therefore, stands to reason that so much hard work and tenacity are required if the government is to deterge the rot in the ailing bureaucracy.
It is scandalous that fraud in the procurement process has hamstrung the efficacy of public expenditure and the occasions to advance the quality of lives of Nigerians. Regrettably, it has been established by the World Bank’s Country Procurement Assessment Report (CPAR) that out of every N1.00 spent by the Nigerian government on projects, about 70 kobo is lost to underhand practices. This is mind-blowing, indeed.
These reasons precipitated the enactment of the first Procurement Act in 2001 which provides for the harmonisation of existing government policies and practices on public procurement to ensure probity, accountability and clarity in the procurement process. Had it been judiciously observed since its proclamation, the Act would have curbed corruption drastically.
That is why we applaud the bureau’s courageous report. We think that this recent disclosure is a congenial way for the Buhari administration to invigorate the anti-corruption war whose strides have come in fits and starts right from the inception of the regime.
If the BPP, a federal government agency, could uncover highly dubious activities of some MDAs, particularly in those ministries headed by Fashola and Amaechi, two choice members of the current administration, it indicates that regulatory bodies and institutions in our clime can operate independently if left unimpeded by the authorities.
Unfortunately, The Tide observes that procurement-related frauds advance unabated because concerned officers who conspire with bidders to breach the Act are not sanctioned thoroughly to deter them from their offences. In that case, we adjure the anti-corruption agencies to prosecute felons appropriately. Procurement officers, bidders and contractors should be held accountable for their actions.
The BPP has discharged its role in conducting efficient and integrity-based assessment of those inflated contracts. It has whistled against corporate malfeasance, vigorously proving to Nigerians that it can bite. It is left for the anti-graft agencies to conscionably investigate the offending MDAs and prosecute anyone found to be culpable, including members of the administration indicted for variegated financial crimes but who forfend themselves from prosecution.

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Editorial

Making Power Sector Work

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The Managing Director of Schneider Electric for Anglophone West Africa, Mr. Christophe Begat, was recently reported to have said that about 90 per cent of Nigerians lack access to safe and efficient electricity.
Begat’s disclosure which was made at his firm’s 2019 Digital Innovation Day in Lagos, raises serious concern as it came from an expatriate who expectedly spoke from a professional standpoint rather than a politician whose argument is wont to be laced with unnecessary propaganda.
To be sure, Nigerians had previously bandied figures to illustrate the prostate state of the nation’s power sector but none has been as frightening as the latest rating from a firm that is deeply engaged in the development and management of minigrid power supply systems, especially in Nigeria’s rural areas.
It is sad to observe that Nigerians would find themselves in this near hopeless situation six years after the nation’s power supply structure was unbundled and privatised. As at the time of the September 30, 2013 privatisation, the country had six electricity generating companies (Gencos), 11 distribution companies (Discos), the Transmission Company of Nigeria (TCN), the Nigerian Bulk Electricity Trading Plc (NBET) and the Nigerian Electricity Regulatory Commission (NERC) as the regulatory authority. Unfortunately, these efforts have only yielded a marginal improvement in the power situation.
Prior to 2015, the maximum daily power output across the country was said to be between 1,500 and 2,750 MW. This saw an initial push to 4,000 MW after a genuine attempt was made by the Federal Government to upgrade the existing power infrastructure. But it did not take long before electricity output and supply relapsed to about 3,125 MW, principally on account of a drop in water level, gas supply shortfall and weak transmission lines.
According to Vice President Yemi Osinbajo, while commissioning a power project in his native Ogun State, recently, Nigeria currently has an installed capacity of 13,427 MW of which about 8,340 MW is available whereas the grid has the capacity to transmit only 7,000 MW. But some power sector analysts have quickly countered by saying that the nation currently struggles to produce an average of 5,000 MW out of which about 7.5 per cent is lost in transmission and 30 per cent rejected by the DISCOs.
The epileptic supply of electricity in Nigeria has led to many foreign industrial players relocating their activities to countries where power supply is more predictable. And this means loss of employment, taxes, rents, technology transfer, corporate social responsibility benefits and high cost of goods hitherto produced within. Those who chose to stay back are forced to rely mostly on private electricity generators for their power needs while having to cough out estimated monthly bills for whatever little supply (if any) that may come from the public power source.
The Federal Government was said to have realised $2.5 billion from the power sector privatisation, virtually all of which sum went into the payment of disengaged staff of the defunct Power Holding Company of Nigeria (PHCN); but we are also aware that there have been several government financial interventions in this industry. The latest being the Finance Minister’s announcement of the approval of a $3 billion loan by the World Bank at the just-concluded Bretton Woods institutions meeting in Washington, DC.
Of course, this is outside similar interventions by the Central Bank of Nigeria (CBN) and foreign development agencies like USAID, JICA of Japan, GIZ of Germany, among others. In fact, the CBN recently revealed that it had advanced a total credit of N1.695 trillion to the nation’s electricity industry since the privatisation exercise. Where all this has gone into still beats the imagination us as there is hardly any evidence on the ground to explain such humongous outlay.
The Tide is also not unmindful of the fact that the nation’s power investors are operating under very difficult circumstances. These are businessmen who borrowed hugely at the prevailing foreign exchange rate of N155/US Dollar to pay for the acquisition of power facilities in 2013 only for the Federal Government to devalue the Naira to the level of N360/US Dollar in 2016. However, we think that embarking on a sustained metering process alongside the aforementioned government interventions would have enhanced their capacities to repay such loans than the option of estimated billing. Even their resistance to attempts at eliminating this billing method via the maximum demand customers’ option and the ongoing meter asset providers (MAP) has proved futile.
On its part, the Federal Government should endeavour to reduce its overbearing influence in the power sector. NERC is already a government agency, TCN is wholly owned by the government and NBET Plc is equally a state outfit despite its nomenclature. Let whatever tariff that is approved for the sector reflect the prevailing market situation in so far as every electricity user is metered as to pay for exactly what they consume.
Finally, government and, indeed, the private sector should sustain efforts at diversifying the nation’s energy mix from hydro and gas-powered systems to include solar, wind, coal, biomass/biofuels and nuclear. Off-grid clusters should continue to be developed for Micro, Small and Medium Entreprises (MSMEs). In fact, government needs to declare an emergency in the power sector if Nigeria must take full advantage of the recently signed African Continental Free Trade Agreement (AfCFTA).

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Editorial

Oil Discovery In North: Not Yet Uhuru

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A few days ago, the Nigerian National Petroleum Corporation (NNPC) announced that it has discovered hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North Eastern part of the country.
In fact, the discovery was made at 18.02 hours on October 10, 2019 when one of the reservoirs was perforated and hydrocarbon started flowing to the well head at 21.20 hours in which the gas component was flared to prevent air charge around the rig.
According to the corporation’s acting spokesman, Mr. Samson Makoji, NNPC acquired 435.54km2 of 3.0 Seismic Data over Kolmani Prospect in the Upper Benue Trough, Gongola Basin. This, he said was to evaluate Shell Nigeria Exploration and Production Company, SNEPCo’s Kolmani River I Well Discovery of 33 BCF and explore deeper levels.
“The well was drilled with “IKENGA RIG 101” to a total depth of 13,701 feet, encountering oil and gas in several levels. A Drill Stem Test (DST) is currently ongoing to confirm the commercial viability and flow of the Kolmani River reservoirs.
‘Preliminary reports indicated that the discovery consists of gas, condensate and light sweet oil of API gravity ranging from 38 to 41 found in stacked siliciclastic cretaceous reservoirs of Yolde, Bima Sandstone and Pre-Bima formations.
‘Computation of hydrocarbon volume is ongoing and will be announced in due course”, said Makoji.
Ordinarily, Nigerians of all persuasions should be happy and excited at the discovery. But The Tide believes that the antecedents and effects of previous oil discoveries in the country, especially, in the Niger Delta region calls for trepidation and caution.
We say so because such discoveries in the past, apart from rendering the country a mono-economic nation dependent on oil revenue, have left in its wake, impoverished people in the oil bearing communities with great devastation to their environment and local source of livelihood. The Oloibiri story, where such discovery was first made in commercial quantity in the country in 1958 in present day Bayelsa State is a sore reference point.
Moreso, the acrimony, distrust, communal violence, divide and rule and shortchanging of the people that come with the exploration owing to the policies and activities of government and International Oil Companies (IOCs) are more reasons why the discovery of oil in an area, instead of being a blessing, has become a sort of curse and reason to be afraid by the people.
The Ogoni debacle, the ongoing struggles in several Niger Delta oil bearing communities for equity and development and against environmental degradation, poverty, persecution and discrimination are too glaring today for people to go into ecstasy simply for oil discovery. These are often made possible by the jaundiced policies of government and IOCs that engender the insidious practice of ‘robbing Peter to pay Paul’ to the detriment of the oil bearing communities and their people.
Indeed, the administration of President Muhammadu Buhari has gone to great length and cost to seek for oil in the frontier basins, particularly in the North.
While we hope that the volumetric of the hydrocarbon discovery would be enough for commercial exploitation, it is expected that vital implications of the venture vis-a-vis existing situation in the country is taken into consideration.
Apart from dousing agitations and balancing resource locations in the country, the festering insecurity in the North East, environmental issues, dearth of infrastructure and cost of production are other issues to be considered. Even the implications on economically viable farmlands as well as communities that may be affected and relocated must be put into consideration.
We, therefore, expect the government to, rather than be carried away by the euphoria of the discovery, begin to plan and put in place policies and measures that will ensure peaceful business environment and fair treatment to the host communities. It is time, we believe, for government to abandon those obnoxious policies and practices that made oil discoveries a kind of anathema for the Niger Delta communities.
We also expect the Federal Government to channel and enforce the kind of energy, focus and resources it has deployed to exploration for oil to other frontiers of the national economy. This is because the need to diversify the country’s economy, especially, at a time such as now, cannot be over-emphasised. That the world economy is gradually but steadily moving away from oil is no longer a secret.
That is why we think that Nigeria should begin to explore and exploit all her mineral endowments to the benefit of all, while resuscitating and venturing into other areas like agriculture, Information and Communication Technology (ICT) and Science and Technology.
It does not bode well for the peace, unity and economy of Nigeria that while no effort is spared in exploiting the hydrocarbon deposits in some parts of the country for the benefit of all, most solid mineral deposits, particularly in the North are left to be raped by rogue companies and individuals. This practice has indeed denied the country immeasurable revenue and foreign exchange that would have helped change the fortune of Nigeria.
Until the right policies are put in place in the country, all stakeholders carried along effectively and all parts of the country made to contribute without let or inhibition their own quota of endowment to the national treasury, the discovery and exploration of resources in any part of the country would continue to be like a sore thumb and question mark for the country.

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Editorial

Enough Of Sexual Harassment On Campuses

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For the past two weeks, the media, both conventional and social, have been awash with yet another ugly episode of sex-for-marks in Nigeria’s tertiary institutions. The latest of this infamy involves two senior lecturers in the University of Lagos (UNILAG), Dr Boniface Igbeneghu of the Faculty of Arts and Samuel Oladipo of the Department of Economics. Both were entrapped in a sting operation by the British Broadcasting Corporation (BBC) titled “Sex-for-Grades,” allegedly seducing an ‘admission seeker’.
In a video that has since gone viral, Dr Igbeneghu who is also a pastor in a popular Pentecostal church, (Foursquare Gospel Church) was seen soliciting sex from a BBC undercover female reporter, Kiki Mordi, who posed as a 17-year old admission seeker.
The trending video was part of BBC’s expose’ of unethical sexual harassment practices of randy lecturers in West African universities, including UNILAG.
Although the menace of sexual harassment of female undergraduates in Nigeria’s tertiary institutions is not totally new, its prevalence in recent times has, however, assumed an alarming notoriety. It is fast becoming a norm, even culture, on campuses, with no clear sign of abating anytime soon.
One of such disturbing instances was last year’s escapade involving a senior lecturer at the Obafemi Awolowo University, Ile Ife, Professor Richard Akindele. The errant lecturer who has been dismissed by the university authority is currently serving a two-year jail term for demanding five sex sessions from his student, Monica Osagie in exchange for good grade.
Yet again in 2018, an Associate Professor of Economics at the Lagos State University (LASU) was caught with the help of an NGO, demanding sexual favour from a female student. Another bizarre episode occurred at the Ekiti State University, Ado Ekiti, where an accounting lecturer was caught by students, literally gasping for breath in a bid to harass a female student.
We also recall that in October 2011, five lecturers were suspended by the Ebonyi State College of Education, Ikwo for extortion and sexual harassment of students.
In another development, a dean at the University of Abuja was also exposed in a sting operation soliciting sex in exchange for marks from yet another female undergraduate. Similar repulsive incident was recorded at the University of Ilorin where a former Head of the English Department allegedly resigned after being caught in a video, harassing a 200-level female student. These are some of the sordid revelations that hint at the prevalence of sexual molestation of female undergraduates in our tertiary institutions.
The Tide considers it diminishing and callous for university lecturers who are supposed to be good role models and old enough to be the parents of these students to be involved in such a shameful, immoral act. Besides shame and loss of self-esteem associated with sexual harassment on campuses, the menace has the potential of further degrading and de-marketing the nation’s university education which is already in an appalling state.
Although the latest culprits of this opprobrium, Igbeneghu and Oladipo have been suspended by the UNILAG authorities pending the outcome of investigations, the measure is not enough to deter other randy lecturers from their lecherous activities.
We believe that sexual assault is a criminal offence that should attract stiffer penalty than suspension or dismissal of culprit. It requires more radical approach to put an end to the menace.
With the increasing rate of sex-for-marks in our tertiary institutions, it is imperative that all universities, polytechnics and colleges of education put in place necessary measures that discourage all forms of sexual depravity on campuses.
One of such measures is for the school authorities to enact code of conduct regulating the relationship between female students and their lecturers.
In concrete terms, all tertiary institutions should encourage students to report any form of sexual abuse to the school authorities without fear of being molested or victimised. In doing so, we advise the school authorities to remove all unnecessary bureaucratic bottlenecks that inhibit students from making such complaints. It will not be out of place for schools to create a hotline number to call or a public complaints unit where cases of sexual molestation are lodged.
It is also incumbent on the students union governments in various schools to rise up in defence of their members who are victims of sexual harassment. It is their responsibility to protect students from any form of assault, harassment or victimisation.
Meanwhile, we call on the National Assembly and various state houses of assembly in the country to enact laws that will not only prohibit sexual harassment but will make the menace extremely difficult to thrive in schools. Where such laws are already in place, stiffer penalties should be meted out to culprits.
We are, however, not unaware that many female students seduce lecturers and even go as far as soliciting good grades in exchange for sex. Where this is firmly established, such student(s) should be visited with sanctions, either to repeat a whole session or even outright expulsion from the school.
The Nigerian media also have the social responsibility to launch an investigation into sex scandals in our tertiary institutions. Rather than dishing out spin-offs of what has been uncovered by foreign media like the BBC or CNN, the Nigerian Press should take the lead in unravelling scandals and identifying other prolific sexual predators on our campuses.
Nigeria’s education has suffered enough degradation, courtesy of the triple evil of examination malpractices, sorting and cultism. Adding another medal to its list of ugly laurels will be too disastrous to contemplate.

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