The Senate and the Kaduna State World Bank Loan

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By Emmanuel Ado

Senator Bukola Saraki, President of the Senate, third in line of succession in the event the President and Vice President are incapacitated, symbolizes and is synonymous with all that is reprehensible and disgusting about Nigerian politics.He epitomizes inordinate ambition for power and corruption – though never convicted, Saraki, like Al Capone the notorious American gangster been accused of every imaginable crime under the sun- from plundering the resources of Kwara State, benefiting from the consultancy fees of the Paris Club refund, to running aground his family Bank Societe General, etc. He is currently facing trial at the Code of Conduct Tribunal (CCT) for  false declaration of assets.Some very uncharitable opponents hold him responsible for the death of his father,due to his refusal to cede power to his sister. The defeat of Gbemi Saraki by the incumbent broke the heart of the old man. The older Saraki definitely died broken-hearted from the crushing defeat in the hands of Bukola.

Saraki is great fan of Machiavelli and like his mentor he demands 100% loyalty, and not 99%. Where Saraki a military ruler, the likes of Senators Ali Ndume, the former Majority Leader and Abdullahi Adamu, who had the effrontery to challenge the ultimate emperor, would most certainly have faced execution by firing squad, because Saraki brooks no dissent, nor forgives one. Saraki is as deadly, as a rattlesnake. And in the typical mafia code of conduct, there is never a second chance with him. He obviously understands power (growing up and learning first hand under his late father) and the uses to which power can be put to, unfortunately in his politics, the common good is not in his consideration. His political opponents – who are legion have successfully woven around him, the toga of a desperate politician who can go to any length to achieve his ambitions, and they are largely correct. Though never convicted of any crime by any competent court, Saraki would live with the burden of  being perceived as a very bad guy like Al Capone or like “soapy Willie” in One Week,One Trouble by Anezi Okoro,who is always finds himself in trouble week in and week out.

The most active Committee of the Eight(8), Senate is the Ethics, Privileges and Public Petitions Committee and not the Appropriations Committee,even when in April Nigeria doesn’t have a 2018 Appropriation Act.The reason being that the “ultimate Emperor” finds the Senator Samuel Anyanwu led Committee convenient for the “summary conviction” of his opponents. The Ethics, Privileges and Public Petitions Committee is the guillotine where dissenting members are roasted raw. So far only Senator Kabiru Marafa, has dared Saraki and survived. Senator Omo -Agege knows the fate that awaits those sent to the “executioner” committee, which explains the frantic efforts to avoid  the guillotine. Everything in the Eight Senate is primarily about Saraki and his interest, public interest is secondary.

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Saraki commands loyalty through a carrot and stick approach,but more with the stick. With the economic downturns and the liquidity crisis Saraki’s deep pocket has come readily available to fund poor senators who need money to service their structures back home. Like the saying goes, it comes at a price – unquestioning 100% loyalty, including if need be carrying his wife’s hand bag,like Dino Meleye his agent provocateur has been known to carry. For his efforts Dino was rewarded with  the Senate Committee Chairman on FCT. Shehu Sani another trusted foot solider and  “enforcer”,was also rewarded with the Foreign and Local Debts Committee chairmanship,ahead of more competent hands. Shehu Sani has never managed anything in his life.

Kaduna State,like Senator Ali Ndume recently tested the specially brewed “Saraki venom syrup”- laced with vengeance. Ali Ndume was kicked out as Majority Leader for daring to support the confirmation of Ibrahim Magu,a mortal enemy of Saraki,a treasonable offense. So while Ndume went to pray, Saraki effected his removal as a warning to others. Ndume was to go on suspension for six months. Magu and Saraki had had previous encounters, all in the line of duty- Saraki will always “run deals and it will always be Magu’s lot to investigate him. Magu’s major crime is that the EFCC provided the evidences for Saraki ‘s trial at the Code of Conduct Tribunal.The crime of Nasir El-Rufai, the governor of Kaduna State are double barrel – one is his unequivocal support for President Muhammadu Buhari,the second being his opposition to the choice of Saraki as President of the Senate. Like a vulture Saraki had patiently waited until the 350 million United States dollars loan issue came up to settle scores. He served the dinner cold in the typical Saraki fashion.

Senator Adamu’s crime which in the typical Saraki fashion fetched him instant sack as chairman of the Northern Senators Forum was questioning the decision of the Senate to amend section 25 of the Electoral Act. The senate by the amendment (sequencing) pushed the presidential elections last,which many believe is for the self preservation of Saraki and his group and targeted at the president. Adamu was not only removed, but was accused of embezzling N70 million belonging to the body by one of his boys – Shehu Sani. Seeing the plight of Adamu, Omo – Agege beat a retreat but the “Emperor” would not let him off easily. Omo -Agage has a date with the Ethics and Privileges committee to explain what he wanted to achieve by Order 73. He might be warned or suspended for three months.

The senate is no doubt a tyrannical institution. The Rules of the Senate that gives it powers to approve appointments,loans etc is the one weapon that it has used most times in the interest of its members than the larger society. Dr. Obadiah Ando, undoubtedly an effective Minister of Water Resources, was renominated by Jonathan, but the  Senate in its infinite “wisdom” roundly rejected Ando, in a “gang up” that was targeted at General T. Y. Danjuma, than Ando. Aisha Alhassan, the present Minister of Women Affairs championed the onslaught against Ando, cashing in on the “dubious” Senate Rules,that every nominee must have the support of at least two senators from their state, to be confirmed. The oracle had spoken and Nigeria lost the Service of Ando. And because they got away with it,they became more emboldened.

But Ando is not the only quality nominee,that got caught up in the funny Senate Rules,that is used at their whims and caprices, to do and to undo. But for Olusegun Obasanjo, Nasir El-Rufai,the governor of Kaduna State would never have been confirmed as a Minister of the Federal Republic of Nigeria and Nigeria would have been denied the outstanding service he rendered at the Federal Capital Territory that remains unequaled. El- Rufai had alleged that some Senators asked and received N54 million from a “patron” to help ensure his smooth passage. Maybe the “born again” Ibrahim Mantu will speak on this. Knowing the ways of the Senate Obasanjo forced them to confirm El-Rufai.

But because the Senate lacks standard Musliu Obanikoro,though roundly rejected by the three Senators from Lagos State,David Mark,used his powers as president of the senate to over rule the Senate Rules and confirm  Obanikoro as a minister. But Bode Augusto, a world class financial expert wasn’t so lucky.Not only was he rejected,he was humiliated by the Senate,which could have affected his standing in the financial world. Augusto was rejected because he didn’t decamp from Alliance for Democracy to the then ruling party, like  Muslim Obanikoro.

The senate claims it rejected the 350 million dollars World Bank loan because Kaduna State is one of the most indebted states and because the governor didn’t consult “critical” stakeholders. That Kaduna State is owing, is not in doubt but the debt is not a life sentence,like the Senate is making it look. To ensure proper fiscal health, the Fiscal Responsibility Act laid out conditions and key is section 41(1(a), that “Government at all tiers shall only borrow for capital expenditure and Human development, provided that, such borrowing shall be on concessional terms with low interest rate and reasonable long amortization period”. The other key requirement is that the loan must be within the sustainable debt level, which is capped at 40%. This is to ensure continued capacity to pay salaries and carry on other services.

The Loans documents shows that if Kaduna State is to repay today all the loans including the 350 million dollars the total monthly debt service would be N757.735 million representing 23% of total deductions from its monthly FAAC allocation which currently averages N3.295 billion. Presently the monthly debt service is N467.12 million,excluding repayment for the 350 million dollars. So it is a burden that it can comfortably shoulder and that’s the beauty of arithmetic- figures don’t lie. The other big question is the capacity to pay. Because Kaduna State has reformed the Kaduna State Internal Revenue Service,with impressive results,it is obvious that it can pay,especially as there is ten(10) years moratorium. In 2015 the IGR was a mere N13.56 billion,it grew to N23.92 billion in 2016 and N27 billion in 2017. In 2018,the target is N43 billion. So the commitment towards a steady growth is not in doubt.

Loans would always be an emotional issue,due to rampant cases of misapplication. But things have drastically changed in terms of disbursement. Which the Senate members don’t know,due to lack of capacity. For the 350 million loan,there are 10 Disbursement Linked Indicators (DLIs), which must be verified by independent verifier, that report directly to the World Bank,before funds are released by the Bank. The projects must also reflect critical elements of performance required to achieve the loan objectives,which includes the development of the legal and institutional framework to undertake private public partnership transactions and the  funding of capital projects with socioeconomic impact. The World Bank loan popularly known as Programme for Results,focuses on results,as basis for disbursement.

Kaduna State under El-Rufai has lunched multiple reforms to improve fiscal Sustainability. It publishes its Audited Statement of Account within six months of financial year end,online publication of it’s Budget, implemented the Treasury Single Account, biometric capture of civil servants and an efficiency unit. It has the ambition to be the destination for business for the northern states and that it’s citizens have access to high quality and affordable healthcare and education. It is this ambition that the senate wants to sacrifice in the alter of politics.

The Senate is a place, according to Lee Met­calf of Montana “where you have to do a lot of favors for others before they start doing them for you.” Clearly the rejection of the Kaduna State loan request was a political favour, not economics and an act of “Senatorial solidarity” with its colleagues that have problems with the party and the government. Shehu Sani has cashed the I.O.U. Saraki owed him from past favours. Or will Shehu Sani, insist that in this particular instance it was several interests coalescing,in which case Saraki still owes him?

There are policies- from nominations to approvals – that have been sacrificed on the alter of the very fragile ego of the Senate, failure to “lobby” -another word for financial settlement, and of sheer power play by the Senate- the rejection of the loan is another example. The question is how can such abuses of its powers be checked in future, especially as the senate decision are limited by their politics, which most times are crude? A senate that has held up the national budget,that held up the confirmation of the all important MPC members deserves to be reformed. Most senators of the 8th Senate are talented men of mischief, debates are not robust- because you can’t give what you don’t have.

Process of loan approval is pain staking and rigorous. The Senate of “bow and go” “deserves” praise for suddenly becoming thorough and questioning. But passing the loan request of Ogun State,whose documentation is not completed is an open wound,that will forever hunt it as an institution.

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