Ondo State Election and the Politics of Vote Buying

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Read Time:9 Minute, 6 Second

“Politics cannot be effectively played or carried out without money. Even in those ancient days when politics started, some form of money was involved. At least, money or forms of it, was used in moving from one place to the other.

In fact, people involved in moving from place to place playing politics, spent money to buy food in places outside their places of abode. Again, money breeds corruption. The result of corruption is always money or money’s worth. There is no corruption anywhere in the world without some benefit to someone. And this benefit can usually be quantified in monetary terms. Thus, money, politics and corruption can be said to be bed fellows. They are somehow interrelated. This relationship is quite apparent in Nigeria where corruption is said to have eaten deep into the fabric of the society. The questions that may be asked, are: Has Nigeria always been involved in corruption? What role does money play if any, in politics and corruption in Nigeria? How influential is corruption in Nigeria’s politics? Is it possible for politics to be played in Nigeria devoid of money and corruption?”
Abstract of “Money, Politics and Corruption in Nigeria” – Bernard Oladosu Omisore, Journal of Public Administration and Governance, Vol 3, No 1 (2013)

The Nigerian political mindset and landscape are changing, the problem is whether it is for the better or for worse. This is evident in the recently concluded Ondo State gubernatorial elections. But please, do not let us be lulled or deluded into thinking all was well a hundred, or even eighty percent with that election. Far from it!
But first, we must commend the Independent National Electoral Commission (INEC) for seemingly getting it right this time and doing a very good job considering the intimidating circumstance and the outgoing Ondo State Governor Olusegun Mimiko for his maturity in congratulating the victor and all the candidates for displaying rare sportsmanship in the history of Nigeria elections.
Prior to the election, at each of the parties’ Primaries, we saw some desperation on the parts of the contestants; do-or-die politics; nasty name-callings and abuses; money-politics, and of course, the usual Nigerian political pastime and speculation of fanning embers of disunity within the parties.
It would serve the observers well to come out and tell us the election was free and fair (I seriously doubt this is any Nigerian election, as of now), peaceful (yes, apparently, I did not hear of thuggery, ballot snatching, intimidation, beatings, cutlass, and gun attacks, etc.) and smooth (all seemed to go well)
But we all know the hindering that the PDP candidate went through before he eventually got the ticket to contest, just mere days before the elections. This, let’s be fair, must have greatly impacted on the performance of his party and the final results he got, as he had barely any time to campaign like the rest of his co-contestants. And what or who do we blame? First, his party, which was riven apart by the two factions with incessant court appearances and unintelligible and varying court orders. Secondly, the justice system of this country, which has once again proven its incompetence, bias and corruption.

Not a pretty sight or thought!
But my concern, despite all the above virtues of a peaceful, so-called, or doubtful free and fair election, is the money politics. The rampant and open buying and selling of votes by agents of the parties, with the main offenders being the PDP that currently controls the state and the APC that is in power at the federal level. Rumour abound that even the winning candidate’s party was “spreading” so much money around to buy votes, it was mind-boggling. With this, I cannot but show my disappointment and disenchantment with Barrister Rotimi Akeredolu, SAN, (alias Aketi) the governor-elect, and his political party, the APC, assuming (and of course he will do a disavowal, if asked) that he knew what was going on – the blatant and open buying of votes.
Incidentally, the noted, respected, and debonair Barrister was at my church in Ibadan, two Sundays before the election as the Distinguished Guest of Honour (and he deserves this honour a hundred percent) of the Church’s Harvest Thanksgiving Service. He made every attempt to attend, and though he came a bit late, the congregation used the opportunity to pray for his success at the polls. In fact, our Venerable Reverend was of the belief that Aketi has already won the election. I prayed for him too and believe he would win.
Now, for me, and for many other sincere and discerning Nigerians, we should not see this election as a victory for democracy alone; we should learn lessons from it, and improve on it. Again, I will not subscribe to the general trance that the election was not flawed. It was! The suspicion that money was used to buy votes (allegedly, but we all know this was true) has besmirched the result of the elections in my mind and eyes. I cannot accept that the election was not flawed with vote-buying accusations and rumours flying about.
Financing politics is a good investment in Nigeria. Once a godfather elects his protégée, return is guaranteed. Corruption in financing politics in the country permeates every level of the government and takes many forms. It is no wonder then that political parties are among the three most corrupt institutions, according to governance surveys in Nigeria. However, the problem has not yet received deserved attention.

Take money out Nigerian politics (before your slam me, yes, I know, even the United States elections consume a lot of money, but we all know there is a difference in the way election funds are used, regulated, and accounted for in that country) and what you have are great, conscientious, sincere, honest, and good leaders at all cadres or levels of government and the society emerging at every election, which will be truly free and fair. It is then that Nigerians will truly enjoy what we like to term as “dividends of democracy”.
In a society, such as ours, submersed and immobilised by greed, selfishness, deceit, deception, fraud and corruption, this venture of regulating and accounting for election funding might sound very optimistic and impossible, but as with everything, all it takes is a little bit of altruism and sincerity of purpose from our leaders and of course, awareness, watchfulness, speaking-out, resistance and protection by the general public and society, .
The poverty, ignorance and dispirit in the land are so considerable, and have constituted a formidable barrier to any positive thinking and action from all sections of the society, as well as a daunting barrier to good leadership and good governance.
With such an environment, lies in wait unscrupulous and evil opportunists and political jobbers who emerge, crawling out of the woodwork, virtually unchallenged at every electoral exercise, brandishing wads of money and pretending to love their people, by spending money they have stolen from the people in the first place. In Ekiti State, a new term for this emerged – stomach infrastructure.

The result is the scuppering of the ideals of democracy, political evolvement, and good governance. When this happens, of course, as we are now seeing, feeling, and experiencing, it is bad news, very bad news for the people/masses – the people, the society, the country suffers.
Any reward given to a person for voting in a particular way or for not voting can be called vote buying. Vote buying is a corrupt election practice. A vote buying bribe is that having a monetary value. The practice of vote buying is banned in most democratic countries. Vote buying is a threat to the conduct of fair elections. Vote buying is an offence when a person knowingly or wilfully gives false information or conspires with another individual for the purpose of encouraging his false registration to vote or illegal voting, or pays or offers to pay or accepts payment either for registration to vote or for voting.
Vote buying is an electoral fraud, it is an electoral malpractice, electoral corruption and election manipulation, or vote rigging and is illegal interference with the process of an election.
Since 1999’s new democratic dispensation in Nigeria (I will leave out 1979 for now), we have had a political campaign finance system that is corrupt and increasingly controlled by stolen money and godfathers, and I fear very much that, in fact, government of the people, by the people, and for the people is really not being practiced in Nigeria.
We cannot allow that to continue to happen. When scrutinised critically, those who were buying the votes did so in their pursuit for such power and wealth that would come their way once they enter government. This is the only logical conclusion; what else? And why do they want to enter government? To loot the treasury.
Let’s be truthful and admit it: this is a political system in which a handful of opportunists and special interests will determine who gets elected or who does not get elected. That is not what democracy is supposed to be about.

Getting unwanted, looted and free money out of politics is vital, if we truly want a democratic country that will be beneficial to “all of us, and not some of them” but much more needs to be done to sustain our democracy.  Notably, we must ensure that all Nigerians are guaranteed an effective right to vote, and their votes MUST count. A nation in which all people, regardless of their income, can participate in the political process, can run for office without begging for gifts from some political godfathers.
We need to get money out of politics and restore our democracy to combat a corrupted political system controlled by rich crooks, thugs and special interests, whose only interests are themselves and what they will gain from the system.

There is no doubt that money politics and vote buying have serious threats to democratic governance in Nigeria. To combat this resonating threat, electoral and other institutional reforms should be effective, and this can only be done by our elected officials, if they are sincere enough. Anti-corruption, intelligence, and law enforcement agencies as well as electoral authorities need to work together with banks and other financial institutions to monitor the movement of cash before and during elections. It is also essential that we change and imbibe a culture of democratic citizenship that begins with an electorate ready to insist on credible and transparent elections. Voters, and in this case, the poor suffering Nigerian masses, should be useful adequately to engage and transplant moral oppositions to vote buying.
Tell the Truth always!!!

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Here’s all you need to know about Nigeria’s 2017 budget of recovery

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Read Time:24 Minute, 40 Second

Recently, President Muhammadu Buhari presented to the joint sessions of Nigeria’s National Assembly the 2017 Appropriation Bill christened ‘Budget of Recovery’. Here is a detail of the content of the bill as analysed.

The budget is based on a crude oil benchmark price of $42.50 per barrel, with an output of 2.2 million barrels per day.

Government’s expenditure is to be funded with the sum of 4.94 trillion Naira while oil is to contribute 1.98 trillion Naira of the amount.

The breakdown was made on Monday by the Minister of Budget and National Planning, Senator Udo Udoma, at the National Assembly in Abuja, the Federal Capital Territory.

He assured Nigerians that the government had no plans to increase the Value Added Tax which is set at 5% in 2017.

The breakdown of the budget, as presented by the Budget Minister, is contained in the statement below:

PROTOCOLS

I am pleased to welcome you to the presentation of the 2017 Federal Government’s Budget proposal christened Budget of Recovery and Growth – the second full year Budget of this Administration, which was recently presented by the President to the National Assembly.

1.0  BACKGROUND AND CONTEXT

  1. As you are aware, the 2016 Budget was presented to the National Assembly (NASS) by Mr. President on 22ndDecember, 2015. The budget was however not signed into law until May 6, 2016; effectively therefore, the 2016 budget has only been operated for about 7 months.  Nevertheless, as will be evident from the review of the 2016 budget performance that I will get to shortly, we have made reasonable progress on its implementation.
  2. The 2017 Budget was presented to the National Assembly by His Excellency, Mr. President on 14thDecember, 2016. The budget reflects our commitment to restore the economy to the path of sustainable and inclusive growth.  Efforts have been made to ensure that the budget aligns with Nigerian’s Economic Recovery and Growth Plan (NERGP).
  3. My profound appreciation goes to His Excellency, President Muhammadu Buhari and His Excellency, the Vice President, Prof. Yemi Osinbajo under whose leadership the 2017 Budget was prepared. I also wish to thank my Cabinet colleagues for their understanding, especially as we all had to work within very tight schedules in the preparation of this budget.
  • REVIEW OF 2016 BUDGET PERFORMANCE
  1. The 2016 Budget, christened the Budget of Change was the first full year budget of the Buhari Administration. It was prepared against the background of general slowdown in global economic growth and massive decline in crude oil prices. It was based on the Zero Base Budgeting (ZBB) principle which requires that Ministries, Departments and Agencies (MDAs) justify every item of revenue and expense, as well as projects/programmes in the budget, a departure from the traditional incremental Budgeting approach that simply adjusts (usually upwards) amounts included in the previous budget. The 2016 Federal Government Budget was predicated on certain key parameters, including:

(i)       Benchmark oil price                  –        US$38/b

(ii)        Oil production                          –        2.2mbpd

(iii)       Exchange rate                          –        N197/USD

(iv)       Deficit (Fiscal Deficit to GDP ratio) – N2.20 trillion (2.14% of GDP)

(v)        Inflation                                   –        N9.81%

(vi)       GDP Growth Rate                      –        4.3%

 

2.1   2016 Budget Performance Against Set Target

  1. With respect to the 2016 Budget set targets, the performance as at Q3 of 2016 is as follows:
2016 Budget Performance against Set Targets
S/No Description (FY 2016 Budget) Q3 Target Actual (as at Q3 2016)
1 Real GDP Growth (%, YoY) 4.37   -1.55
2. Oil Production (mbpd) 2.2   1.81
3. Oil Price ($pb) 38   42.09
4. Inflation Rate (%) 9.81   17.85
5. Exchange Rate (N/$) 197   305
6. Revenue (N’trillion) 3.86 2.89 2.17 (75%)
7. Expenditure (N’trillion) out of which;

(a) Capital Expenditure     N’trillion)

6.06

 

1.77

 

4.55

 

1.33

3.58 (79%)

 

0.75.6*(56%)

8 Fiscal Deficit/GDP (%) -2.14   -1.44

SOURCES: NBS Report: OAGF, Appropriation Act

*Capital spending as at end of October 2016 was N753.6 billion

2.2   Oil Revenue Performance in 2016

  1. The FGN’s oil revenues decreased sharply in 2015 and 2016 because of oil production shut-ins and sharp decline in oil price since 2014. The oil price steadied at an average of $110 per barrel from 2012 to 2014, but dropped to a record low of $29 per barrel in February 2016, a drop of  70%.  Although for most part of the year crude oil prices exceeded the 2016 benchmark price of US$38 per barrel, there has been a significant shortfall in projected revenue caused by the disruptions in crude oil production as a result of militant activity in the Niger Delta.

2.3   Revenue Performance As At Q3 2016

  1. The FGN’s 2016 revenues have been low because of the sharp decline in oil-production. In particular, the revenue target for January to September 2016 was N2.8 trillion as against the sum of N2.2 trillion realised during the period.  The projected independent revenue was N1.1 trillion as against N0.2 trillion realised during the period.  The projected revenue for Custom was N0.3 trillion as against N0.2 trillion realised, while the projected non-oil tax receipts for the 1st– Q3 of 2016 is N0.8 trillion as against N0.5 trillion realised during the period.

3.0   BACKGROUND TO THE 2017 BUDGET

  1. Global economic activities remained sluggish in 2016. In particular, Global GDP growth rate is projected at 3.1% for 2016 from 3.2% in 2015. Due to:

(i)     Lower-than-expected economic activity in the U.S

  • Uncertain economic, political and institutional implications of BREXIT
  • Slowdown in China’s growth
  • Weak demand in advanced economies and its spill-over effects
  • Geopolitical tensions in several countries
  1. In spite of the foregoing developments, the Global outlook remains bright. In this regard, global GDP growth rate is expected to rise to 3.4% in 2017.

3.2   The Domestic Environment in 2016

  1. The Challenges in the domestic environment include:

(i)     Crude oil production shut-ins resulting from vandalism of oil facilities.   In particular, 4 strategic oil fields affected including Trans-Niger Pipeline and Nembe Creek Trunkline axis as well as the Qua – Iboe Terminal

  • Insurgency in parts of the North East
  • Fuel shortages and increase in electricity tariffs, kerosene and PMS prices in the first half of the year
  • Foreign Exchange (FX) scarcity

 

  1. The foregoing factors have constrained fiscal operations, real sector activities, and the external accounts. Other challenges in the domestic economy included:

(i)     Contraction in growth         (-2.24% in Q3)

  • High unemployment rate (13.9% as at Q3)
  • Higher inflation rate (18.5% as at November 2016)
  • Pressures on foreign reserves ($25.04 billion as at 14th December)
  • Slow down in corporate sector resulting in lower credit quality and rising non-performing loans.

4.0    THE NIGERIAN ECONOMIC RECOVERY AND GROWTH PLAN (NERGP)

  1. A Medium Term Economic Recovery and Growth Plan (ERGP 2017 – 2020) is being finalised which addresses the current economic challenges and is aimed at restoring growth. The Plan builds on the existing Strategic Implementation Plan (SIP), and contains strategic objectives and enablers required to revive the economy.  The strategic objectives of the NERGP are: (i) Pulling the economy out of recession; (ii)        Investing in our people (iii) Laying the foundation of diversified, inclusive and sustainable growth.
  2. The NERGP focuses on 5 broad areas namely:

(i)     Macroeconomic Stability

(ii)    Competitiveness

(iii)   Growth and Diversification

(iv)   Social Inclusion

(v)    Governance & Enablers

 

  1. The 2017 Budget proposal reflects many of the reforms and initiatives in the SIP and NERGP and in the 2017-2019 Medium Term Sector Strategies (MTSS), as well as the 2017-2019 Medium Term Fiscal Framework. A Multi-criteria analysis (MCA) approach was adopted to prioritize and select 2017 capital projects for 14 large capital spending MDAs involved in the MTSS.  Projects were linked to government policies and strategic priorities.  MDAs that were not involved in the MTSS process used the Rapid Appraisal Project Identification and Prioritization System (RAPIPS). Zero-Base Budget (ZBB) principles were used in preparing the Budget. ZBB ensured that expenditures in the 2017 Budget are linked to government’s strategic reforms and initiatives for economic recovery.
  • APPROACH TO THE 2017 BUDGET
  1. The 2017 Budget is designed to expand partnership between public and private sectors, including development capital to leverage and catalyse resources for growth. Other key objectives of the 2017 Budget include:
    • focusing on critical on-going infrastructure projects such as roads, railways, power, ICT, etc., that have quick positive effects on the economy;
    • utilizing Special Economic Zones and Industrial Parks as vehicles to accelerate domestic economic activity for innovation and wealth creation;
    • contributing to food security and creating platform for agro-business in agriculture supply chains through the Agriculture Green Alternative Plan;
    • establishing a Social Housing Fund to deepen the mortgage system and expand its availability across all states of the Federation;
    • encouraging and stimulating the growth of small and medium scale industries for innovation, job creation, productivity and wealth creation; and
    • providing social safety nets for poor and vulnerable Nigerians.

 

  • KEY ASSUMPTIONS AND MACROFRAMEWORK FOR THE 2017 BUDGET

 

  1. The key assumptions and macro-framework for the 2017 Budget are:

(i)     Oil production                            – 2.2mbpd

(ii)    Benchmark oil price                    – US$42.5/b,

(iii)   Exchange rate                            – N305/US$

(iv)   Inflation rate                              – 15.74%

(v)    GDP Growth Rate                       – 2.5%

(vi)   Nominal Consumption (N’trillion)  – 87.95

(vii)   Nominal GDP (N’trillion)              -107.96

  

6.1   Key Budgetary Reform Initiatives

 

  1. The Key Budgetary Reform Initiatives to improve the revenue base of the country include:

 

  • Subjecting the JV operations to a new funding mechanism, which will allow for Cost Recovery. Additional oil-related revenue include: Royalty Recoveries, Marginal Field Licenses, Early licensing renewals, etc;
  • Sustaining the use of TSA to monitor the financial activities of over 900 MDAs from a single platform;
  • Broadening the tax base, improve effectiveness of revenue collecting agencies, improve tax compliance etc;
  • Reducing leakages by tacking trade mis-invoicing and introducing the single window to drive customs efficiencies;
  • Improving the performance of independent revenue of government by ensuring that all MDAs (particularly revenue generating MDAs) present their budget in advance, and remit their operating surpluses as required by the FRA;
  • Extension of the Integrated Personnel Payroll Information System (IPPIS) to all MDAs.

7.0   2017 Budget Revenue Proposals – Where the Money is Coming    From?

(a)    An Overview of the Revenue framework

  1. Based on the key assumptions and budgetary reform initiatives, the 2017 Budget envisages a total FGN revenue of N4.94 trillion, exceeding FY 2016 projection by 28%. The Projected revenue receipt from oil is N1.985 trillion and Non-oil is N1.373 trillion.  The contribution of oil revenue is 40.2% compared to 19% in FY 2016 driven mainly by JVC cost reduction, higher price, exchange rate and additional oil related revenues.
  2. The details of the revenue as summarised below:

7.1   2017 Budget Expenditure Proposals – Where The Money is Going

  1. The 2017 Budget has an outlay of N7.298 trillion. This represents an increase of 20.4% over the 2017 budget provision of N6.06 trillion.  The details are:
  • Statutory transfers of N419.02 billion
  • Debt service of N1.66 trillion (22%);
  • Sinking fund of N177.46 billion (2.4%) to retire certain maturing bonds;
  • Non-debt recurrent expenditure of N2.98trillion (40.8%); and
  • Capital expenditure of N2.24 trillion (30.7%) inclusive of statutory transfers.

 

7.2   Financing the Deficit

 

  1. The overall projected budget fiscal deficit of N2.36 trillion for 2017, which is about 2.18% of GDP. This is within the threshold stipulated in FRA.  The budget deficit is to be financed mainly by borrowings which have been projected at N2.32 trillion.  Of this amount, N1.067 trillion (46% of this borrowing) is intended to be sourced externally, while N1.25 trillion will be sourced domestically. The debt service to revenue ratio is projected to be about 33.7% in FY2017.

7.3   Break down of Recurrent (Non-Debt) Expenditure

  1. The Recurrent non-debt expenditure of N2.98 trillion is made up of:
  2. Personnel costs – N1.86 trillion    (63%)
  3. Overhead – N229.81 billion (7%)
  • Service-Wide Vote pensions                 – N89.98 billion   (3%)
  1. Consolidated Revenue Fund Pensions – N191.63 billion (6%)
  2. Other Service-Wide Votes – N116.50 billion         (5%)
  3. Presidential Amnesty Programme         – N65 billion       (2%)
  • Refund to Special Accounts – N50 billion, and (2%)
  • Special Intervention Prog. (recurrent) – N350 billion     (12%)
  1. The largest recurrent allocations are for the following four MDA’s namely:
  2. Ministry of Interior                 – N482.37 billion;
  3. Ministry of Education                 – N398.01 billion;
  • Ministry of Defence                 – N325.87 billion;
  1. Ministry of Health                 – N252.86 billion.

 

  1. These four MDAs collectively take up about N1.46 trillion (about 70% of the combined provision for personnel and overhead). They have the largest share because of the size of their personnel. Some of the agencies and parastatals under these MDAs are yet to be captured on the Integrated Personnel Payroll Information System (IPPIS) platform. The sum of N2 billion has been provided in the 2017 Budget for the capturing to ensure all personnel that are not enrolled on the platform are captured.

7.5   Capital Expenditure in the Proposed 2017 Budget

  1. The Administration has committed to allocating at least 30% of the Budget to Capital from 16% allocation in 2015. In dollar terms, the 2017 budget proposal at ($23.80bn) is lower than 2016 estimates ($30.76bn).  As a % of GDP, we have grown the size of the Budget from 4.7% in 2015 to 5.9% in 2016 and to 6.7% in 2017.  Compared with South Africa (20.7%) and Ghana (19.2%) as at 2015, this is very low.  The ratio of capital spending in total increased from 16% in 2015 to 30% in 2016 and 30.7% in 2017.  The increase in infrastructure spending is expected to enhance revenue generation opportunities and over time significantly reduce deficit.

 

7.6   MDAs Capital Allocations by Pillar

  1. A significant part of the budgeting provision was allocated to reflect the Administration’s development priorities. This is aimed at engendering good governance practices and providing enablers for economic recovery and growth. Some of the key sectoral capital allocations in the 2017 Budget are as follows:

(i)         Infrastructure                                     56%

(ii)        Governance and Security                     20%

(iii)       Economic Reforms/Growth                  12%

(iv)       Social Development                             7%

(v)                States and Regional Development         4%

(vi)       Environment                                       1%

 

7.7.  Major MDA Capital Allocations

  1. There is a need to emphasize that the thrust of the 2017 Budget is to partner with private and development capital to leverage and catalyse resources for growth. By setting aside N2.24 trillion (inclusive of capital in statutory transfers), which is 30.7% of the total budget for capital expenditure, the objective, as set out in the SIP, of devoting at least 30% of the budget to capital expenditure has been achieved. Much of the capital provision is directed at those projects which will facilitate economic growth, diversification, competitiveness, ease of doing business, social inclusion, jobs as well as governance. This will ultimately engender the attainment of the Sustainable Development Goals (SDGs). In this regard, focus will be on initiatives in sectors such as agriculture, manufacturing, solid minerals, and services. Consequently, capital allocations to MDAs within these sectors were significantly enhanced.
  2. The largest capital allocation goes to FederalMinistry of Power, Works and Housing – N564 billion (7.7%) (25% increase over 2016 estimate). To address contractors’ liabilities the Federal Government intends to issue over N2 trillion worth of bonds to clear outstanding contractors’ liabilities. These bonds would have a 10-year maturity and the amortisation is expected to begin in 2018. With regard to existing liabilities on bonds which were issued to contractors by past administration, we have set aside the sum of N177.46 billion in the 2017 budget as a sinking fund to retire the maturing bonds. The second largest capital allocation is for the Ministry of Transportation which has the sum of N277 billion.
  3. The 2017 Budget is an Infrastructure Budget. A total of N1.047 trillion is dedicated to key infrastructural spending, made up as follows:
  4. Power, Works and Housing:                 – N529billion;
  5. Transportation: – N262 billion;
  • Special Intervention Programmes: – N150 billion.
  1. Defence: – N140 billion;
  2. Water Resources: – N85 billion;
  3. Industry, Trade and Investment:      – N81 billion;
  • Interior: – N63 billion;
  • Education – N50 billion
  1. Universal Basic Education Commission – N92 billion
  2. Health:         – N51 billion
  3. Federal Capital Territory: – N37 billion;
  • Niger Delta Ministry:                          – N33 billion;
  • Niger Delta Development Commission – N61 billion
  • Agriculture – N91 billion

 

8.0   Strategic Focus of the 2017 Budget

  1. The thrust of the 2017 Budget is to partner with private and development capital to leverage and catalyse resources for growth. Much of the capital provision is directed at those projects which will facilitate:

(i)     economic growth

(ii)    diversification

(iii)   competitiveness

  • ease of doing business
  • jobs and social inclusion
  • improved governance and security
  1. The spending focus will be on critical economic sectors that have quick transformative potentials such as infrastructure, agriculture, manufacturing, solid minerals, services and social development.

8.1    New Initiatives in the 2017 Budget

  1. Some of the new initiatives introduced in the 2017 Budget are:
  • A new Social Housing Programme
    • N100 billion provisioned for a new Social Housing Programme towards a N1 trillion fund

 

  • Special Economic Zone Projects
    • N50 billion for Special Economic Zone Projects to be set up in each of the geo-political zones to drive manufacturing/exports

 

  • Export-Expansion Grant (EEG)
    • N20 billion voted for the revival of EEG in the form of tax credit

 

  • Recapitalization of Bank of Industry (BOI) and Bank of Agriculture (BOA)
    • N15 billion provisioned to support these development finance institutions to support Micro, Small and Medium Scale Enterprises (MSMEs)

 

  1. These new initiatives will support economic diversification and inclusion in our growth-drive.

8.2. Some Projects in the 2017 Budget

  1. The highlight of some of the projects in the 2017 Budget are as follows:
  • Power
  • N20bn Rural Electrification projects in Federal Universities
  • 7bn as counterpart funding for the construction of 3,050mw Mambilla hydropower project
  • 12bn for the completion of power evacuation facility for 400mw Kashimbila hydropower plant.
  • Housing
  • N41bn federal government National Housing Programme nationwide.

 

  • Works
  • Over 65 roads & bridges construction and rehabilitation projects across the 6 geo-political zones of the country.
  • N20bn nationwide intervention fund for roads.
  • 5bn for the rehabilitation/reconstruction and expansion of Lagos – Shagamu – Ibadan dual carriageway sections I & II in Lagos and Oyo states.

 

  • Education
  • N5 billion for the provision of security infrastructure in 104 colleges (Perimeter fencing, Solar Street light, solar powered motorised borehole & CCTV).

 

  • Transportation
  • 14bn for various railway projects (Lagos-Kano, Calabar-Lagos, Kano- Kaduna, Ajaokuta-Itakpe-Warri, Kaduna-Idu) / counterpart funds and other rail projects
  • 03bn for the construction of terminal building at Enugu airport.
  • 08bn for airside rehabilitation of Abuja airport.
  • 47bn for the construction of an inland river port and supply of cargo handling equipment at Baro, Niger State.

      Health

  • 72 billion for joint venture investments in tertiary institutions with Nigeria Sovereign Investment Authority.
  • 65 billion for procurement of vaccines and devices.
  • 46 billion for Global Fund and GAVI counterpart funding.

 

  • Water Resources
  • 86 billion for water supply schemes nationwide.
  • 3 billion for construction and rehabilitation of dams nationwide.

 

  • Agriculture & Rural Development
  • 5bn Rural Roads and Water Sanitation programme
  • 61bn Promotion and Development Of Wheat Value Chain
  • 13bn Guaranteed Minimum Price payment.

 

 

  • Mines & Steel Development
  • 0 billion for the establishment of mega regulatory agency for the sector
  • N 2.58 billion for detail mineral resources evaluation, equipping national geo-science laboratories and other projects.

 

  • Communications
  • N1 billion for extension of government service portal and deployment of additional National Spectrum Management System.

 

  • Niger Delta
  • 55 billion for dualization of East-West Road {Sections 1 to 5 covering Warri – Kiama – Ahaoda – Port Harcourt – Eket – Oron – Calabar}.
  • N8 billion counterpart fund contribution for East-West road

 

  • Social Intervention Programmes
  • N500 billion for FGN Special Intervention Programme (including Home Grown School Feeding Programme, Government Economic Empowerment Programme, N-Power Job Creation Programme, Conditional Cash Transfers and Social Housing Fund).

 

  • Regional Interventions.
  • N65 billion for reintegration of transformed ex-militants under the Presidential Amnesty Programme.
  • N45 billion North East intervention fund.

 

  • SDGs
  • N20 billion for SDGs conditional grants and social safety nets.

 

9.0   CONCLUSION

  1. Nigeria is in recession. Inflation and unemployment have been rising. As a Government, we are determined to bring succour to our people. The only way we can do this is by taking strong action to change, in a fundamental way, the current trajectory of the Nigerian economy. This is not the time for a timid and cautious approach. This is a time for bold and focussed action. To get out of this recession and back on the path of growth, Government must find the resources to spend on infrastructure, and to spend to reflate the economy. This spending will help to stimulate and attract private sector capital and private sector spending. This is what the 2017 Budget proposals seek to do.
  2. We should not allow ourselves to be discouraged by those who say we can’t find the money to fund the spending required to implement this budget. We must, and we can, find the resources. We will challenge our revenue generating agencies, particularly the FIRS and Customs to improve their efficiencies and broaden their reach so as to achieve the targets set for them in the 2017 Budget. They must be tasked to leverage technology to drive revenue collection. We will be issuing new guidelines and templates for computing the operating surpluses of the various Government Agencies so that we can achieve the targets we have set for independent revenues.
  3. Most importantly, we must maximize the revenues we can generate from the oil and gas sector. We cannot determine the price of crude oil but we can engage more extensively with the communities and people of the Niger Delta to minimize disruptions to oil production. We can introduce creative measures to improve on the efficiencies in that sector so as to increase the Government take. Indeed, a Cabinet Committee has been set up by President Muhammadu Buhari to come up with innovative and creative ways to raise additional revenues from the oil sector, and other sectors, to support the funding of the 2017 Budget. The report of this committee will be ready in time for the National Assembly to take this into account in considering the Budget in the New Year, when they return from their Christmas recess.
  4. Finally, our experience this year shows clearly that we have not just a revenue problem, but specifically, a foreign exchange problem. We must find ways of solving our foreign exchange shortages. 95% of our foreign exchange comes from the oil sector so the work we are doing on improving the level of our oil sector receipts will certainly help.
  5. However, we need to do more than this. Much more. We must reduce the demand for foreign exchange by producing as much as possible of what we need in Nigeria. From refined petroleum products to textiles, clothing and most of our food items. But we will continue to need imported items so we must increase the supply of foreign exchange by tweaking some of our policies to make them more investor friendly, and by creating the right incentives for non-oil exports. Ultimately, the sustained growth of our economy must be on the back of an export led revival. The proposals in the 2017 Budget are aimed at creating the right incentives for Nigerians to achieve all these. The 2017 Budget proposals are therefore also a call to action.
  6. These are difficult times, no doubt. But with the indomitable spirit of the Nigerian we can turn these difficulties into opportunities. It is to that indomitable spirit that this Government now appeals. I am confident that Nigerians will respond to this call to action. To truly revive this economy, we must turn Nigeria into a nation of producers.
  7. I wish you all a Merry Christmas and a better New Year during which we shall get out of recession.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Leading Steering Committee Announced for West African International Petroleum Exhibition and Conference

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Read Time:2 Minute, 13 Second

The committee will guide the content of over 25 business, technical and special focus sessions, featuring more than 75 prominent industry speakers and representatives from both the regional and international oil and gas community

LAGOS, Nigeria, December 20, 2016/ — The steering committee driving the programme for the West African International Petroleum Exhibition and Conference (WAIPEC) (www.WAIPEC.com) 2017 has officially been announced, representing a cross section of key senior business leaders and stakeholders from across Nigeria’s oil and gas sector.

WAIPEC, hosted by the Petroleum Technology Association of Nigeria (PETAN) (www.PETAN.org) will take place on 21-23 February 2017 at the Eko Convention Centre, Lagos and will promote Nigerian expertise and key projects throughout West Africa, whilst supporting the development of major new collaborations for the benefit of the region’s petroleum economy.

The steering committee representatives will feature:

    Ademola Adeyemi- Bero, Managing Director, FIRST Exploration & Petroleum Development Company Limited and Chairman, Nigerian Independent Oil Companies
    Austin Ojunekwu Avuru, Chief Executive Officer, SEPLAT Petroleum Development Company
    Bank Anthony Okoroafor, Chairman, Petroleum Technology Engineers Association of Nigeria (PETAN)
    Bayo Ojulari, Managing Director, The Shell Nigeria Exploration and Production Company (SNEPCo)
    Emeka Ene, Petroleum Technology Engineers Association of Nigeria (PETAN)
    Geoff Onuoha, Vice Chairman, Petroleum Technology Engineers Association of Nigeria (PETAN)
    Ahmadu-Kida Musa, Deputy Managing Director, TOTAL Exploration and Production
    Ranti Omole, Chairman, Conferences Committee PETAN
    Engr. Simbi Kesiye Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB)
    Dr. Mazadu Bako, Nigerian National Petroleum Company (NNPC)

WAIPEC is the only oil and gas event to be held fully in partnership with Nigeria's petroleum industry and the ten committee members, alongside PETAN will draw on their unrivalled global resources to ensure that the event delivers to the needs of all stakeholders in Nigeria and through the region.

The committee will guide the content of over 25 business, technical and special focus sessions, featuring more than 75 prominent industry speakers and representatives from both the regional and international oil and gas community. Running alongside the conference – an exhibition is projected to attract more than 200 exhibiting companies and 6,000 visiting professionals from West Africa, Europe, Americas and Asia.

Bank Anthony Okoroafor, Chairman, PETAN explains; “PETAN has put together an esteemed panel of representative from both public and private exploration, production and services companies – their expertise together ensuring a programme that presents an invaluable insight for all stakeholders and participants in WAIPEC 2017.”

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Wike, Stop Blackmailing Amaechi; Face The Police Probe Now

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Read Time:2 Minute, 10 Second

A Right group; Integrity Youth Alliance has called on the Governor of Rivers State, Govenor Nyesom Wike to stop diverting attention of Nigerians from the leaked audio threat he made against the INEC official that conducted the December 10th Re-run Assembly election in Rivers State.

Since an online news platform; Sahara Reporters exposed Governor Nyesom Wike, the IYA said that Wike has been looking for ways to divert the attention of Nigerians and the international communities from his threat.

“It is on record that the same Governor Wike that claimed to introduce Amnesty by mopping up guns from cultists could not account for those guns which probably went back to his hatch men that killed several people including DSP Mohammed Alkali and his driver in Uju Forest of Rivers State.
 
“Governor Nyesom Wike in his usual manner has mobilized some jobless youths led by his SA Social Media and Lere Olayinka, SA Public Affairs to Governor Ayodele Fayose to shift the killings of DSP Mohammed Alkali and his driver on Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi.

“The Wike Hatch men are claiming on social media that one Kachi Nwokocha who is the sponsor of the killing during the Rivers Re-run is an aide of Rt. Hon. Chibuike Rotimi Amaechi because he was a former Commissioner under the Amaechi administration.

“We find this so ridiculous of Wike because the same Wike was an aide of Rt. Hon. Chibuike Rotimi Amaechi during his administration in Rivers State, can we then say Wike who threaten to kill INEC official is an aide of Rt. Hon. Chibuike Rotimi Amaechi up till now? Asked the Danjuma Lamido, the Secretary General of Integrity Youth Alliance.

“We are challenging Governor Nyesom Wike to prove to the World that Kachi Nwokocha is an aide of Rt. Hon. Chibuike Rotimi Amaechi or else face a legal action within 7 days for defamation of Character of Rt. Hon. Chibuike Rotimi Amaechi.

“We are aware that Wike paid agents have taken over the social media to blackmail Rt. Hon. Chibuike Rotimi Amaechi and divert the attention of the security agencies from probing the audio message from Nyeom Wike, we therefore called on the Inspector General Police, the DG of DSS and the National Security Adviser to swiftly move into action to probe the killings and the audio message of Governor Nyesom Wike to avoid future occurrence of killing innocent citizens and security agents who are supposed to protect the unity of our great country, Nigeria.

Signed:

 
Danjuma Lamido,

Secretary General,

Integrity Youth Alliance

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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ministry of petroleum resources ends 2016 on a high as kachikwu signs landmark agreement

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Read Time:4 Minute, 45 Second

 In a move which will restructure the financing template for oil earnings, increase investments and boost government revenues, the Minister of State, the Federal Government has reached agreement on a new cash call exit policy with the international oil companies (IOCs).

         The historic agreement which will bring clarity and stability to the management of the country’s main revenue source was announced by the Minister of State, Petroleum Resources while giving an account of key achievements of the Ministry in 2016 yesterday has already received the approval of the Federal Executive Council.

         It is part of new measures and strategies aimed at eliminating the burden of Joint Venture Cash Call arrears and securing future funding for the Upstream Petroleum Sector.

These strategies which are fully supported by the National Economic Council (NEC) will lead to an increase in national production from the current 2.2mbpd to 2.5mbpd by 2019, as well as reduction in Unit Technical Costs from $27.96/Barrel Oil Equivalent (boe) to $18/boe.

The net payments to the Federation Account is expected to double from about $7Billion to over $14Billion by 2020 and the immediate effect of the new cash call policy will increase net FGN Revenue per annum by about $2billion.

         Dr. Kachikwu outlined other innovations and initiatives championed by the ministry over the past year which have revamped the sector, restored investors’ confidence which was at an all-time low and positioned Nigeria’s Oil and Gas value chain for profitability.

         It would be recalled that based on historical records, the current Cash Call system has been structurally defective and has failed to address the perennial Joint Venture funding challenges being experienced in the industry where the Federal Government underfunding of the industry through JV Cash Calls stood at $9.125 billion by September 2016. This arrangement will guarantee payments of statutory Oil and Gas Royalties and taxes by NNPC and its JV partners as well as profit from its investments in the Joint Ventures.

         At US$42.5 per barrel Oil price which the 2017 budget is predicated on and US$24 per barrel fiscal cost recovery proposed for 2017 in FGN Medium Term Expenditure Framework (MTEF) recently submitted to NASS, over US$13 per barrel will accrue to Government as Royalties & Taxes from Joint Venture Oil and Gas Production apart from US$2.8 per barrel estimated as Government share of profit, at 57% equity.

This will restore investors’ confidence and achieve accelerated production growth in the Joint Ventures. New Governance processes will also be introduced.

        The negotiation on behalf of the Federal Government of Nigeria which was led by Dr. Kachikwu resulted in a remarkable agreement by the IOCs who have agreed to be paid their accumulated arrears up to December 2015, payable over the period of about five years. It is important to note that this will not be a cash burden on the Federal Government as payments will be made via incremental production from each JVC.

         Aside this key agreement on Joint Venture Cash Call Arrears Payment and Future Funding Mechanism signed today, it would be noted that under the stewardship of Dr. Emmanuel Ibe Kachikwu as Minister of State for Petroleum Resources and leadership of President Muhammadu Buhari, the Ministry has also made considerable accomplishments in the international frontiers through maintaining robust relationships and strengthening linkages within and outside the petroleum producing community.

        Achievements recorded in 2016 include the following:

ü    Successful tenureship and handover of the Presidency of four key international energy organisations namely:

–              The Gas Exporting Countries Forum (GECF)

–              Organisation of Petroleum Exporting Countries (OPEC);

–              African Petroleum Producers Association (APPA); and

–              West African Gas Pipeline Authority (WAGPA).

Successful election of Mohammed Sanusi Barkindo of Nigeria as  the Secretary – General of the OPEC

Successful mobilization of OPEC members and Non-OPEC Oil Producers to dialogue on the stabilization of the global market in Doha; Algiers which culminated into the achievement of freeze on production at the 171st conference in Vienna

Rise in oil prices to US$55/per barrel for the first time in 16 months after negotiations with non-OPEC producer

Nigeria's successful negotiation of an exemption from the production freeze;

Successful hosting of the 52nd Conference of Ministers of African Petroleum Producers Association in March 2016 (APPA);

Provided leadership and support to other APPA members in the development of legislation, institution and systems for local content in Africa

         Finally, The Minister of State pledged that the Ministry will continue to drive innovation and change in its approach to delivering an oil and gas industry that is internationally competitive and is governed by open and transparent processes to ensure security of investment for both domestic and international investors.

Idang Alibi

        Director, Press

        Ministry of Petroleum Resources

        December 15, 2016

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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AXILSPOT Expands Operations To The Middle East & Africa

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Read Time:4 Minute, 0 Second

Dubai, UAE, December 20, 2016:AXILSPOT, a global vendor in enterprise wireless networking, announced the launch of its operations in the Middle East and Africa (MEA) region. As part of its regional expansion plans, the company will appoint reputed distributors and strengthen its channel network by onboarding partners across the region.

AXILSPOT offers state-of-the-art enterprise wireless connectivity solutions including wirelessaccess points, bridges, base station, enterprise WLAN management platforms and PoE Switches to name a few. A key differentiator of AXILSPOT from its competitors is its patented multi-beam smart selection array systemcalled Rscan, that reduces interference, allows the highest transmission speeds, successfully manages hundreds of concurrent users and offersthe more precise location based service (LBS).

"The Middle East and Africa has some of the fastest growing mobility growth rates as well as state of the art service provider technologies. With the arrival of 4G+ technologies in the region, end users want the same lighting fast mobile experiences available from service providers inside their offices, homesand in some public places too. Rscan, theAXILSPOT patented antenna array technology, fitted into all of our products, allows end users to experience the fastest wireless networking transmission speeds with minimum drop outs and line of sight interference," said Bruce Zhou, CEO, AXILSPOT.

In order to tap the fast-growing mobility opportunity in the region, AXILSPOT also announced its intention to appoint key channel partners in the region across its three partner categories. These include Authorised Solution Partner, Authorised Value Added Distributor, and Master Distributor.

Based on the above levels, AXILSPOT channel partners are variably offered Price Discounts, Online Training, Onsite Training, Deal Registration, Market Development Funds, Sales and Marketing Tools, Account Manager, Purchase Demo Kits, Dedicated Sales Person, Dedicated Trained Engineer, Marketing Activities.

"We have a simplified channel partner structure that allows partners to engage with us in the way best suited to their business. We offer significant discount and value benefits to all the three levels of channel partners. Based on our global experience and the large number of leisure hotels, shopping malls, tourist destinations, business events and conferences, in some of the countries in the MEA region, we are very confident that our products will dramatically change the experience of mobile users and visitors in these countries,” Bruce Zhou explained.

“This will help us to get traction with the wireless and network solution integrators, as well as technology decision makers. We are very confident of high levels of our business growth in this region, along with our prospective channel partners," he added.

AXILSPOT is a recent entrant in the global enterprise wireless networking industry with its core intellectual property rights. The company is committed to providing superior products and solutions for the most critical issues in wireless networks today, including how to create affordable reliability and how to meet dramatically increasing needs for connectivity, all over the world.

Swift, sensible, secure, stable, smart, scalable, simple, AXILSPOT is dedicated to providing consistent and the highest-speed wireless coverage and transmission solutions with the 7S WLAN experience. Catering to the entire enterprise and SME market including industry verticals and smart city projects, AXILSPOT provides smarter wireless solutions in four seriesDorado Series, Dolphin Series, Mobula Series and Seal Series.

With patented Rscan Smart Antenna Array Technology, AXILSPOT can deliver very high density of 800+ concurrent users with 5.3G capacity. The patented Rscan Smart Antenna Array Technology ensures AXILSPOT wireless solutions a consistent and high speed wireless coverage over the targeted area without being dropped off due to blind spots and interferences.

Over the next few months, AXILSPOT plans to offer high speed wireless connectivity to different industry verticals and will unveil its entire range of WLAN solutions for customers in the MEA region. 

“More than Connection” – AXILSPOT’s sloganconveys the company’s will to deliver the most secure and outstanding wireless access experience globally and create more business value service based on big data,cloud management platform, cloud service , BI to name some.

About AXILSPOT:

AXILSPOT is a new force to reckon in the global Enterprise WLAN industry with the core intellectual property rights. AXILSPOT delivers Global Quality Products with superior innovative solutions to the most critical issues we are facing today in wireless networks: how to create affordable reliability and how to overcome dramatically increasing connected needs all over the world. AXILSPOT is dedicated to provide the most consistent and highest-speed wireless coverage and transmission solution(s) – anywhere, everywhere, all the time.

AXILSPOT is dedicated to provide the most consistent and highest-speed wireless coverage and transmission solutions. Their solutions are widely applied in SMEs, Large Corporate Enterprise, Government, Education, Hospitality, Transportation, Manufacture, Financial, Health etc. To know more please visit: http://www.AXILSPOT.com/.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Nigerian Gen. Boroh makes a case for repentant Militants

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Read Time:1 Minute, 54 Second

… Tasks NIMASA on engagement of 1325 skilled Ex Agitators

The Special Adviser to the President on Niger Delta Affairs and Coordinator of the Presidential Amnesty Programme, Brigadier General Paul Boroh (Rtd) has stepped up his resolve to finding a lasting solution to the restiveness in the Niger Delta region.

Focusing on the Training, Engagement and Reintegration of ‎the 30000 Ex Agitators is one major strategy the amnesty office is using to secure peace and stability in the region.

On Tuesday 13th December 2016, Gen Boroh and a small delegation paid a courtesy call on the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside, in the National Headquarters of the Agency in Lagos. Top on the agenda was the proposed partnership of the both agencies.

‎Gen. Boroh, in his remarks, called for collaborative efforts in the resettlement and reintegration of the ex-agitators in the Niger Delta Region, noting that it would foster the growth and development of the economy.

He also highlighted that the Amnesty Office has trained ‎1325 Ex Agitators in various Maritime courses, and pleaded that NIMASA as a brother agency, take up the responsibility of engaging these skilled youths as a means of resolving the unrest in the Niger Delta.

In his words “Both our agencies have a similar responsibility of ensuring stability in the Niger Delta, especially in the water ways, where most of these boys reside. We have invested a lot in training these boys, and ask that NIMASA come to our aid by engaging the few, skilled in Maritime related fields"

In his response, the NIMASA DG, Dakuku Peterside, commended Gen Boroh for his apolitical approach to handling the activities of the Amnesty Office. He acknowledged the need for synergy amongst the two agencies and committed to a well organised partnership between the two agencies. Peterside also said that the agency would set up a special desk to look at the young men and women in the amnesty programme. He said the special desk would be set up with a view to creating opportunities for them to apply the skills they acquired in the maritime industry.

 

 

Sent in by: Wabiye Idoniboyeobu

Media Consultant – Niger Delta Presidential Amnesty Programme

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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