How Nigeria lost 3.3 billion dollars through tax exempts: The ActionAid report

Hamzat Lawal January 20, 2016 0

It was apparent that everyone sitted in the Acacia Room of the Ladi Kwali Hall in Sheraton Hotels & Towers, Abuja were interested in the reason for the event – Nigeria had lost 3.3 billion dollars from tax holidays given to the NLNG consortium made up of Shell, Total, Eni and the Nigerian National Petroleum Corporation [NNPC].

How did this oil rich nation lose so much from tax, when 70% of all its previous budgets were financed from the profits of crude export?

Honourable Herman Hembe, representing Vandeikya/Konshisha federal constituency, Benue State noted that with the global crises arising from falling oil prices, it was time that executive and national assembly revisited policies and laws that granted corporate bodies tax exemptions in Nigeria

In her welcome address, Ms. Ojobo Atuluku, Country Director, ActionAid Nigeria pointed out that tax incentives in developing countries was costing 138 billion dollars yearly. Citing the current research undertaken by the organisation, Nigeria’s current loss of 3.3 billion dollars was equivalent to twice the national education budget and thrice the healthcare budget in 2015.

More statistics shared showed that 10 million children were not schooling and 15 out of 100 children die before turning 5; the leakages in the system could have been put to better use to uplift the citizenry.

She challenged the federal government of Nigeria on the current tax culture and calling for collaboration of the country with other countries to end harmful regional tax completion.

The launch of the report also featured a panel discussion between ActionAid Nigeria, government officials in the Federal Revenue Inland Service [FIRS] and staff from the Ministry of Finance.

You can Download the Report here

Lassa: The Bleeding Fever

Hamzat Lawal January 19, 2016 0

Patients experience fever, nausea, diarrhoea, meningitis and in severe cases bleeding from orifices such as the eyes and the eyes, a complication that leads to death. The mortality rate is steadily climbing, at last count it stood at 44% and various news reports have it that the fever has shown up in Abuja the Federal Capital Territory and 11 states in Nigeria. 43 deaths have now been recorded in Nigeria.

Lassa fever or Lassa hemorrhagic fever (LHF) is an acute viral hemorrhagic fever caused by the Lassa virus and first described in 1969 in the town of Lassa, in Borno State, Nigeria. It is similar to ebola, in the presentation of symptoms by patients especially bleeding via openings.

The first case of the current outbreak in Nigeria was reported from Bauchi state in November, 2015.

Lassa frequently infects people in West Africa. It results in 300,000 to 500,000 cases annually and causes about 5,000 deaths each year. The virus is probably transmitted by contact with the faeces or urine of animals accessing grain stores in residences.

Transmission from person to person has also been established, which presents a risk for healthcare workers. Though no cases have been documented via sexual contact, it is imperative to note that the virus is excreted in urine for 3-9 weeks and in semen for three months.

Control of the Mastomys rodent population is impractical, so measures are limited to keeping rodents out of homes and food supplies, as well as maintaining effective personal hygiene. Gloves, masks, laboratory coats, and goggles are advised while in contact with an infected person.

Prevention of Lassa fever relies on promoting good hygiene in communities to discourage rodents from entering homes. Family members should always be careful to avoid contact with blood and body fluids while caring for sick persons. In health-care settings, staff should always apply standard infection prevention and control precautions when caring for patients, regardless of their presumed diagnosis.

The Minister for Health, Professor Isaac Adewole has advised healthcare workers seeing a patient suspected to have Lassa fever to immediately contact the State Epidemiologist in the state ministry of health or call the Nigeria Centre for Disease Control and Federal Ministry of Health using the following numbers: 08093810105, 08163215251, 08031571667 and 08135050005.

An estimated 51 million Nigerians may be at risk of contracting the disease especially those in rural communities with the annual number of deaths put at 58,330.

For further reading, check this United Nations Fact Sheet

#PowerUpShere: An Isolated Community in The Federal Capital

Hamzat Lawal January 18, 2016 0

CYr74IjUEAA3app Ever imagined there is a community in the Federal Capital Territory that never had access to electricity? You will be shocked to discover there is, and that community is Shere which is under the Bwari Area Council.

Shere is a community with an estimated population of about 3000 people in Bwari Area Council of the Federal Capital Territory. For a community that is located just few minutes away from the Federal Capital, one would expect it to have access to basic amenities, but unfortunately this community never had access to electricity in its almost 200 years of existence, the roads are bad, no access to clean water, ill-equipped health care facilities, high rate of illiteracy and school dropouts.

Going to Shere from Bwari, you will be welcomed by abandoned road and power projects; upon arrival in Shere, your body will be covered in dust after surviving the 25 minutes bike ride on the bumpy roads. You will find a dilapidated building with the roofs torn off by the wind over 2 years ago serving as their health clinic; 14 classes, most of them with half roofings or no roofs accommodating over 1,000 students; 2 toilets serving over 14 teachers and 1,000 students; a well filled with sand-colored water which serves as the major water source of the community. That is the reality of Shere community; a community not far from the Federal Capital but far away from advancement and civilisation.

 

Skin & Bones: The Great Green Wall Project

Hamzat Lawal January 7, 2016 0

The dry, dusty trade wind, blows over the West African subcontinent thinly coating surfaces with dust, cracking up skins and drying up moisture in the atmosphere. Harmattan – the yearly phenomenon which sends winds from the Sahara Desert into the Gulf of Guinea has brought with it a period of hotter days and colder nights than experienced in recent years.

The earth is getting warmer; climate change is tipping on the negative.

The Great Green Wall Project or Great Green Wall of the Sahara and the Sahel Initiative is a planned project to plant a wall of trees across Africa at the southern edge of the Sahara desert as a means to prevent desertification. It was developed by the African Union to address the detrimental social, economic and environmental impacts of land degradation and desertification in the Sahel and the Sahara.

Contributing to improved local incomes, the Great Green Wall will be a global answer to the combined effect of natural resources degradation and drought in rural areas. The Initiative is a partnership that supports the effort of local communities in the sustainable management and use of forests and other natural resources in drylands.
The bulk of the work on the ground was initially slated to be concentrated along a stretch of land from Djibouti, in the east to Dakar, Senegal, in the west—an expanse 15 kilometers (9 miles) wide and 7,775 kilometers (4,831 miles) long. The project later expanded to include countries in both northern and western Africa.

In 2007, during the eight ordinary session of the Conference of Heads of State and Governments held on January 29 and 30, 2007 in Addis-Ababa (Ethiopia), African Heads of State and Government endorsed the Great Green Wall for the Sahara and the Sahel Initiative.
Subsequently, in June 2010, a convention was signed by Burkina Faso, Chad, Djibouti, Eritrea, Ethiopia, Mali, Mauritania, Niger, Nigeria, Senegal and Sudan in Ndjamena, Chad, to create the Great Green Wall (GGW) Agency which created the Panafrican Agency of the Great Green Wall (PAGGW).

The land degradation experienced is a factor of both human-related and natural activities; poor farming activities, overgrazing, illegal waste management, and extreme weather are the most common causes.
It is estimated that 500 million people in sub-Saharan Africa are affected by land degradation which poses threats to agricultural productivity which is a main source of livelihood.

The project’s $2 billion budget, stemming largely from World Bank co-financing and partnerships fostered by the African Union, ensures participating countries will have the means to see the project through to the end. Examples of success include more than 50,000 acres of trees planted in Senegal.

Nigeria GGWNG

Figure 1: The expected growth path of the GGW project

Implementation of the project in Nigeria takes place in eleven frontline States of Adamawa, Bauchi, Gombe, Kebbi, Sokoto, Zamfara, Katsina, Kano, Jigawa, Yobe and Borno. Covering over 43 LGAs and rehabilitate 225,000 Hectares of land.

The Follow The Money team decided to do on-site visit in November 2015 to the projects in Kebbi [Bachaka], Kano [Kadandanni] and Jigawa [Jeke]; Kebbi because the GGW was flagged – off in Kebbi State in November 2014, Kano to compare the success of the GGW to the state’s government reforestation program, and Jigawa because it shares an international border with the Republic of Niger.

Abubakar Maiyaki (Mai Yakin Bachaka) the deputy of the traditional leader of Bachaka said the Great Green Wall project has made significant impact in their community. “Community members have undergone training and recruited as forest and security guards, an orchard was created where economic trees were planted, shelter belts were also planted and are flourishing, two boreholes were provided to the community, social mobilization and sensitization of the community on the importance of tree planting were carried out, school children were trained on how to plant trees and gardening”

For Maiyaki, the Great Green Wall project provides an opportunity to empower and educate the community on the importance of tree planting

In Kano, the team visited Kadandanni community in Makoda LGA and welcomed by Adamu Abdullahi, the traditional leader of the community who expressed that the community were initially excited about the project; an optimism that has waned with the passing months.

“The Kadandani inhabitants are much aware about the benefit of planting trees, owing to awareness and training programmes by the government, but it has had its own challenges, at the beginning of the GGW, we were promised water, an important amenity to us and our livestocks, but looking back, this is not the case if you visit the proposed site for this amenities”

Abdullahi felt that the project had become politicised as the norm with pressing issues in Nigeria.
An assessment of the existing infrastructure in the community showed poor maintenance of the solar powered pumps for water – the borehole had stopped working six months ago, the storage shed for tools had been blown away winds earlier, the orchard was drying up and dying.

The team also met with the representative of the women association, Hajiya Mari who was selected to head to Katsina state for 2-day seminar on the importance of the project. Mari said they were trained on how to grow plants and given date seedlings to plant in the community to fight off desertification, and she has planted 10 in her house.

The story isn’t any different at Jeke, a dry community located in Sule Tankarkar LGA in Jigawa state. Yakubu Magaji, the community leader who took the team to inspect the site of the project expressed dismay at the state of the nursery, orchard and wind-powered borehole.

“The wind is not strong enough to fully power the borehole”

Magaji says as the community has to subsidise using the borehole three times a week to generate water needed.

MOVING ON …
As much as the Great Green Wall project is seen as means to reduce the expansion of the Sahara into Nigeria, it represents an opportunity to restore land once rich with biodiversity and vegetation. There is a commitment by the Federal Government of Nigeria and other governments to the project but the pace is almost negligible.

If the project comes to fruition, it can really help the sub-Saharan part of Africa and the continent on a whole in its drive to help the climate, provide a means of empowering communities and create a large social impact.

2016: ON THE PREMISE OF CHANGE

Hamzat Lawal January 4, 2016 0

Happy New Year!!! Welcome to 2016; as we slowly and sadly leave the holidays [which I enjoyed, hope you did] and kick-start the year let’s look at what trends are expected to shape Nigeria socio-economically as many people expect the “change” mantra of the Buhari’s administration to enter full gear.

January kicks off with a 50 kobo [N0:50K] decrease in the pump price of petrol, making the black gold retail at the price of N86:50k for Africa’s most populous nation, a change that many Nigerians feel has no major effect and a change many petrol stations are not complying to.

Budget: The 2016 federal budget was presented before a joint session of the National Assembly last year which was proposed at N6.08 trillion, and was dubbed a non-oil budget as only 13% of the budget outlay is expected to come from oil.
The situation could get harder than envisaged as the International Monetary Fund [IMF] has said that crude oil prices may slump to as low as $20 per barrel in 2016.

With Nigeria expected to produce 2.2 million barrels of crude oil per day in 2016 and sell at $38 per barrel, the country expects to generate $83.6 million per day in 2016 – $30.514 billion in the year 2016.
Going by IMF’s predictions at $20, Nigeria would generate $44 million per day in 2016, amounting to $16.060 billion in the year.

This would mean that Nigeria would get at least 47.4 percent less revenue from oil than what is already projected
The debate in past years has always been how close the benchmark should be to the price of crude. Excess crude account was created in the good old years to warehouse the difference between benchmark and actual price. This is no longer the case as Government now has to plan with expectation that actual crude price will rise back to benchmark.

Perhaps, balancing the exchange rate amy help cushion the effect. Official exchange rate is currently N197 to a Dollar.

Budget 2016

Budget 2016

Security: The deadline given to the Army by President Buhari for the insurgency in most of the North East passed and it was celebrated that victory had been accomplish; hopefully it would be the roadmap to a peaceful year in terms of security save a little hiccups here and there.
With faith lost by the populace in the Nigerian Police Force, we can only hope that hope is rekindled in 2016 as the police are first responders to issues of domestic insecurity and violence.

Justice: Moving on, the performance of Buhari’s administration would be a topic for every occasion as issues surrounding Supreme Court verdicts for Akwa Ibom, Rivers and Taraba states governorship elections being expected in the first quarter of this year, it is envisaged that whatever becomes the outcome would alter the political configuration of the affected states. Not to forget the legal confusion in Kogi State after the demise of late Prince Abubakar Audu who was the running candidate of the ruling APC party.

Corruption: The President’s stance on corruption is also going to be tested given his commitment to stamp the menace and the general that he is a “no-nonsense” person.
Issues like “Dasukigate”, the scandal facing the former National Security Adviser Lieutenant Colonel Sambo Dasuki (rtd) and others over the embezzlement of 2.2 billion Dollars, the Hyde Park Lane saga facing former Minster of Petroleum, Diezani Allison-Maduekwe and many more cases that Nigerians are itching to hear.
It is interesting to note that more than just hearing about the gazillions that are looted from the nation’s purse, citizens are clamouring for stringent convictions.

Unemployment: Finally, N5,000 stipends to be paid to unemployed youth as promised during the campaign of Mr. President and the growing state of idle youth. A policy that many analysts view as one that said in the heat of the moment.
Concerns are centred around how feasible is the policy and what baseline data would be used to assess the number of unemployed youth [for a nation that has 70% of its population leaving below the poverty line]

With the harmattan in full swing, it’s never been a better time to put on your shades, buy some popcorn and watch the drama unfold daily. Happy New Year & God Bless Nigeria.

Breaking The Corruption Chain

Hamzat Lawal December 15, 2015 0

SDG Goal 1 - No Poverty

SDG Goal 1 – No Poverty

The 9th of December of every year since 2005 is set aside by the United Nations [UN] as the “International Anti-Corruption” day as adopted by the United Nations Office on Drugs & Crime [UNODC].

This year’s theme is ‘Break The Corruption Chain’ already being popularised on social media using the campaign #breakthechain. The aim of this campaign is to show the cross-cutting and impact corruption has on all aspects of human endeavour and sustainable development for the planet.

Official Logo for #breakthechain Campaign

Official Logo for #breakthechain Campaign

Secretary-General of the UN, Ban Ki-moon in his message said that the 2030 agenda for sustainable development looking at GOAL 16, recognizes the need to fight corruption in all its aspects and calls for significant reductions in illicit financial flows as well as for recovery of stolen assets.

Back home, in Abuja, Nigeria’s capital, Connected Development joined fellow CSOs, key government stakeholders and the international community to mark the Anti-Corruption Day by being part of an anti-corruption seminar convened by Centre for Social Justice with Stop Impunity Nigeria, Say No Campaign, Transparency Nigeria and Zero Corruption Coalition in close cooperation with the Presidential Advisory Committee [PAC] on Anti-Corruption and funded by the European Union under the ‘Project on Support to Anti-Corruption in Nigeria’.

In his welcome address, Myani Bukar, representing Professor Bolaji Owasanoye of the PAC explained the mandate and role of the PAC while encouraging the continuous participation of CSOs in the fight against corruption’; meanwhile the rep for the Country Director of the United Nations Development Program [UNDP], Pa Lamin Beyai, noted that the adopted Sustainable Development Goals [SDGs] which were crafted in far more consultative manner that the Millennium Development Goals [MDGs], has shown the importance of good governance and accountability as enshrined in GOALS 7- 11.

Corruption in Nigera is a story that needs no introduction, the current administration of President Buhari defines corruption as the greatest form of human right injustice. Many people believe that oil boom and the dismal dispensation of duties administration by public officers has supported the rise of corruption. Other factors such as greed, nepotism and an ostentatious lifestyle have also supported corruption.

One of the highlights of the seminar was the presentation of a ‘vox populi’ video which touched on key topics surrounding corruption. Panels were held as well on corruption practices in Nigeria and how CSOs, Faith-based organisations and other associations to share insights on fighting the scourge of corrupt practices and fortifying anti-corruption chains through cooperation.

Some of the recommendations offered the CSO reps included increasing capacity building for CSOs on understanding the instruments that support enabling acts such as the FOI act, building better knowledge bases for affairs on key MDAs that some CSOs have their work centered around, in addition, CSO workers should be courageous in speaking up on matters beyond the National level and look at both State and Local levels. Finally, Citizens were encouraged to see governance as their responsibility, given that it was in pursuance of their civic rights that our leaders are now in power.

CODE, through its Follow The Money initiative breaks the corruption chain by ensuring transparency and accountability in the implementation of funds [international aid or government spending] intended for local communities.