By Emmanuel Ado
Dr. Obadiah Ando,was one of the ministers inherited by then President Goodluck Jonathan from the late President Umaru Yar’Adua. Ando, was undoubtedly an effective Minister of Water Resources ,which explains why Jonathan renominated him after the 2011 presidential elections. Many key players in the sector attest to the fact that Ando, more than merited his reappointment. But the Senate in its infinite “wisdom” roundly rejected Ando, in a “gang up” that was targeted more at General T. Y. Danjuma,than Ando,who became the victim.
Senator 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. Ando,a very religious man,either didn’t understand the game,or if he did, didn’t want to play ball. Ando,was not a wheeler,nor a dealer. He was not cut out for the mid night meetings were deals are struck. He probably thought his “good work” and honesty was enough to get him confirmed,but it didn’t. He was sent home to continue his evangelism. But Nigerians who didn’t understand the Senate game clapped.
But Ando is not the only quality nominee,that has gotten 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 quality service at the Federal Capital Territory that most people agree was breath taking.El- Rufai had alleged that some Senators requested and did indeed receive 54million naira ,from a “patron” to help ensure his smooth passage. Musliu Obanikoro,survived the “Rules” game,because it lacked standard.Though roundly rejected by the three Senators from Lagos State,David Mark,used his powers to overrule the Almighty Senate Rules and approved Obanikoro’s nomination. 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. Was Augusto a politician with the right connection like Obanikoro the Senate would have asked him to take the traditional bow.But he was of no political value,like Obanikoro who decamped from the Alliance for Democracy to the then ruling Peoples Democratic Party. So why Muslim Obanikoro,had to scale through at all cost,Augusto had to go back home and cool his heels. The Senators had earned their fat salaries.
There are many other policies, issues – from nominations to approvals – that have been sacrificed on the alter of the very fragile ego of the Senate, local politics, failure to “lobby” -another word for financial settlement, and of sheer power play by the Senate. In fact most times when the Senate holds public hearing the public impression (which is the truth), is that the Senators want a piece of the action,which the concerned agency refused to part with “quietly” and not its constitutional mandated Senatorial oversight functions.
Last two weeks, precisely on 30th October,2017 The Authority newspaper broke the story of Cash- for – Loans approval involving the Senator Shehu Sani Local and Foreign Loans Committee. The Authority had unequivocally asserted that the Committee had requested for 25 million dollars from Borno and Niger State Governments to facilitate smooth passage of their Loans request.The Authority Report has not been denied nor refuted,and the eloquent silence can only be interpreted to mean “guilty as charged”. These are the ways of the Senate of the Federal Republic of Nigeria – from budget padding to cash for Loans approval. It is still not late in the day for the Senate as an institution to speak up.
The Report of The Authority newspaper contrasts with the public posturing of Senator Shehu Sani,whose Committee is at the center of the controversy. The self acclaimed Peoples Senator, has hinged his opposition to the Loans request of Kaduna State on his abiding love for the masses of the the State. “In view of this, we must ensure that things are done rightly. We must be convinced beyond reasonable doubt what the funds will be used for. I have a duty to ensure that the next generation don’t inherit debts that they cannot pay, and if debts must be left behind, a commensurate infrastructure to justify such debts must equally be left behind” he said in one of his several interviews on the Loan issue.
Sani is a populist,who understands the power of mischief to advance his own narrow political agenda,which is really not definable.Anyone hearing him speak will applaud his altruistic reasons for opposing the Loans,but the fact is that it is all politics. Or is it for cash like the unrefuted story? Subjected to economics the opposition of Sani would be seen for what it is – plain mischief. Sani,who is embroiled in a bitter political fight with Nasir El- Rufai,is obviously enjoying the power of his Committee to delay,frustrate or deny Kaduna State the loan. But if he succeeds in denying Kaduna State the loan,the ultimate losers are the people he claim to love and not Nasir El – Rufai.
Shehu Sani,is a powerful man. But like all powerful men,if he mismanages the power,he will sooner than later, become an “yesterday man”. Committees are very essential for the effective operation of legislatures World over. And some committees – like the Services and Appropriations are very powerful.In the United States Senate the Appropriations Committee is the largest Committee with 31 members and the chairman of the Appropriations Committee has enormous power to bring home special projects (sometimes referred to as “pork barrel spending“) for his or her state. He also has the final say on other senators’ appropriation requests. For example, in 2005 fiscal year , per capita federal spending in Alaska, the home state of then-Chairman Ted Stevens, was $12,000, double the national average. Alaska had 11,772 special projects at a combined cost of $15,780,623,000. This represents about four percent of the overall spending in the $388 billion Consolidated Appropriations Act of 2005 passed by Congress. Shehu Sani needs to under study the likes of Ted Stevens. As a senator this is probably the only ” favour ” he can do his kaduna State.
But the fact is that Kaduna State documentation for the Loans,answers all the questions that Senator Shehu Sani has been asking. Meaning he must have made up his mind abi initio to frustrate the request,no matter how justifiable the request is. The flip side is that Ogun State whose 350 million United States loan the Senate approved last week, has a questionable “documentation”, which is why the World Bank hasn’t approved its loan.So when Shehu Sani said “As a committee, we are committed to doing our job effectively without any form of sentiments or political inclination and we will be guided by the law”, he was not being factual. There are clear and obvious evidence that the Minister of Finance Kemi Adeosun,used her position to “fix” the loan for her home State,because of the very attractive terms – 0.05% interest rate,10 years moratorium. While Kaduna State which has the world bank approval due to the “Prior Results,Ease of Doing Business and the other reform programmes like the Public Finance Management is being threatened with denial by the Committee.
The critical questions are ; why is Shehu Sani singing the praises of how the 350 USD Loan will boost the socio- economic development of Ogun State,the same objectives that his State intends to achieve, which he is hell bent denying them? And why has his Committee refused to do the real hard work that will address issues around Loans – be them Local or Foreign? Anyone questioning the justification for the federal or sub – national Government obtaining loan is simply playing the proverbial ostrich, as borrowing remains the quickest way to fund the provision of infrastructure and to jump start the economy especially a recessed one,by creating jobs.
In 2010 the House of Representatives organized a Workshop on the Process and Procedure for Obtaining Foreign Loans. But there was no follow up to the ” beautiful proposals” and seven(7) years after the necessary amendment that will address some of these questions about borrowing haven’t been addressed. The distinguished Senator Shehu Sani and his Committee rather than misleading the people,should address the fundamental issues – that consistently leads to protest whenever the federal or sub- national government wants to borrow. Key is the use of the Loans for purposes for which they were obtained.This is one area the Local and Foreign Loans Committee should focus its attention. The other is; why hasn’t the Fiscal Responsibility Act strengthened and stabilized Nigeria’s fiscal responsibility framework? How can the Central Bank of Nigeria,the Debt Management Office,the Security and Exchange Commission (SEC), etc be empowered to stop processing or approving pubic debt that doesn’t comply with the provisions of the Act?
The objective of the Fiscal Responsibility Act (FRA)2007. is to ensure prudent management of the nation’s resources, long-term macro-economic stability, greater accountability and transparency in fiscal operations and debt sustainability, among others.
The Act provides that the Federal Government, should set limits on the consolidated debts of the Federal, State and Local Governments,which hasn’t been done. This is where the Committee for effect should concentrate efforts.As it stands today,the Committee can’t stop Kaduna State or any State that has met the conditions which include; legislative approval of the loan, purpose, cost-benefits analysis and assurance that the loan would be used for the purposes it is meant for.
The challenge for the Senate Committee on Local and Foreign Loans is to make the Fiscal Responsibility Act work. It should take a look at the Section 55 of the FRA which provides that “the President shall make regulations generally for the purposes of carrying into effect the provisions of this Act,” which hasn’t been complied with. This provision would definitely assist in streamlining the procedure and process for the management of public debt, and obtaining loans.
