STATE HOUSE PRESS STATEMENT
Since his defeat in the last election, former Vice President Atiku Abubakar has shown more interest in undermining President Bola Ahmed Tinubu than in addressing his party’s implosion. We suspect he is envious of Tinubu’s position—an office he has unsuccessfully sought six times.
It is perplexing that he would elevate his untested, hypothetical proposal, which Nigerians soundly rejected during the 2023 Presidential Election, and seek to present it as a superior alternative to the multi-faceted reform programmes implemented by the Tinubu administration. If his plan lacked popular appeal, he must acknowledge that merely repackaging it will not resolve the social and economic challenges his People’s Democratic Party (PDP) bequeathed after 16 years in power.
Atiku’s economic analysis demonstrates a significant misunderstanding of Nigeria’s realities. His narrative, “What We Would Have Done Differently,” indicates an inability to engage with the pressing economic realities being revitalised multidimensionally under President Tinubu’s leadership.
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What reforms would Atiku propose at the onset of his hypothetical and fabled presidency? While he suggests a consultation period upon assuming office, the reality is that the Nigerian economy requires immediate and decisive action. A leader must be prepared to tackle challenges from Day One, as President Tinubu has done.
Atiku, going further to accuse President Tinubu of “stealing his presidency,” exposed his sense of entitlement and his disconnect from the electorate. The truth is that Tinubu rightfully won the presidency, a position Atiku was simply unqualified for due to his arrogance, insensitivity to Nigeria’s diversity, and the decision to disregard his party’s power rotation arrangement between the North and the South after eight years of President Muhammadu Buhari.
Atiku’s idea of a consultation period upon entering office shows a troubling lack of awareness regarding the state of the economy, which was in dire need of urgent action. The Tinubu administration came prepared with a firm action plan to address the shortcomings that persisted during President Olusegun Obasanjo’s time when Atiku was vice president.
We can only speculate what detrimental impact Atiku’s proposed lengthy town hall and Village Square meetings would have had on Nigeria’s economy if he had been elected president and taken such an approach. The country needed a proactive leader such as Tinubu, who immediately set to work on addressing economic challenges rather than one who would have squandered precious time on consultations and a questionable privatisation agenda.
Atiku’s critiques of Tinubu’s presidency are mere harebrained propositions devoid of realistic alternatives. He must reckon with the decades of mismanaged economy inherited by the current administration, including exorbitant subsidy expenditures far exceeding government earnings from crude oil. As of mid-2023, the landing cost of fuel was between N500 and N600, while it was sold nationwide at an average of N200. The 2023 budget allocated N3.36 trillion for fuel subsidies until June 2023 against a projected N2.23 trillion in oil revenue for the year. The Nigerian state was on life support.
Instead of conjuring imaginary scenarios, we expect the former vice president to engage with these urgent realities.
The estimated N5.4 trillion savings from subsidy removal in 2024 are being actively directed toward infrastructure development and social intervention programmes, initiatives that will benefit all tiers of government and enhance Nigerians’ quality of life.
We expect Atiku to commend what the Tinubu administration has done concerning revenue generation for the Federation. Without factoring in oil sales, revenue proceeds generated by the Federal Inland Revenue Service almost doubled in the first half of 2024, compared with the level Tinubu met in 2023. The states and councils are more prosperous because of it, as many states have increased the minimum wage for their workers to between N70,000 and N85,000.
Atiku’s proposal to privatise the four government-owned refineries, which collectively can only meet a fraction of the nation’s daily fuel consumption when activated, lacks originality.
In 2007, investors were only willing to offer $160 million for 51% equity in the Port Harcourt Refinery, while the Kaduna Refinery had an offer of $102 million. According to industry experts and the late President Umar Musa Yar’Adua, Nigeria’s Head of State at the time, who cancelled the sale of the refineries by the Obasanjo-Atiku government, the offered bids were considered scrap value.
As vice president, Atiku oversaw the sale of the nation’s assets to private individuals and cronies at low prices. Today, most public enterprises Atiku sold have been stripped and become dead assets.
The model of farming the completely rehabilitated refineries to private sector managers at an agreed-upon rate of return to the government, as adopted by Tinubu’s government, is more practical and value-laden than selling our national patrimony to some private interests that are not technically capable of operating the refineries. The Tinubu administration focuses on revitalising these refineries while supporting modular refineries and the Dangote Refinery, which has greater capacity.
This approach will guarantee domestic production and stabilise retail prices by reducing foreign exchange challenges. It includes selling crude oil to the refineries in Naira, enabling potential cost reductions that could reflect in retail prices.
Regarding Atiku’s allegations of corruption within the NNPC, the fuel subsidy has historically been the leading corruption enabler in the state-owned oil company. President Tinubu’s removal of this subsidy eliminated the most significant incentive for corruption within the NNPC. During his eight-year tenure as Vice President, Atiku and his boss had an opportunity to address this issue but failed to make any significant reforms in the oil sector.
In any case, is it not ironic that an Atiku, who was entangled in corruption allegations, including one in which his wife was indicted and his business associate, former US Congressman William Jefferson, was jailed for 13 years, is now talking about corruption matters?
The suggestion of phased-out subsidy removal is an outdated approach that has historically led to fiscal challenges for countries like Indonesia, which Atiku references. Nigeria has gradually phased out subsidies since 1978, with numerous adjustments made. Fuel prices were adjusted 22 times between 1978 and 2020. Rather than pushing for unrealistic timelines, Atiku should recognise the necessity of President Tinubu’s bold reforms.
Notably, while Atiku peddles his economic fantasies, he has yet to denounce President Tinubu’s removal of the fuel subsidy because he knows that the reform was necessary and correct. We can only urge him to purge himself of the petty, derisive politics of a sore loser.
To alleviate the effect of the fuel subsidy removal on the very poor and vulnerable, the Tinubu administration has embarked on an active social intervention campaign involving cash transfers and the distribution of palliatives. So far, 20 million Nigerians are being targeted for direct cash transfers, an established social protection mechanism described as economically transformative by the World Bank and many development partners. The Tinubu administration has designed well-targeted social inclusion programmes, including student loans, consumer credits, and the Presidential CNG Initiative, all initiated within the first 12 months.
In his foreign exchange management proposal, Atiku declared that a fixed exchange rate system was out of the question. Yet his managed float proposal, another gradualist approach, is still the same as the old fixed exchange rate system, which stagnated the national economy by subsidising forex up to $1.5 billion monthly to a privileged few.
Atiku should remember that a managed float is also known as a dirty float because of its inherent flaws. The system combines elements of fixed and floating exchange rates. The CBN will still have to set the exchange rate and make it available to people and businesses. Access is not guaranteed to all, as it is now.
In conclusion, Atiku’s economic proposals fail to present a viable alternative to Tinubu’s decisive reforms. We encourage him to reassess his approach and repair his reputation as a statesman. The rejection of his proposals in the 2023 election indicates that Nigerians will be reluctant to entertain his future political ambitions.
President Tinubu remains focused on leading Nigeria toward a prosperous future and addressing our nation’s real challenges. Atiku Abubakar should abandon his politics of distraction and fantasies and focus on constructive discourse.
Bayo Onanuga
Special Adviser to the President
(Information & Strategy)
November 10, 2024
Stop Wike, governors from giving cars, houses to judges, SERAP tells Tinubu
Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to “stop the minister of the Federal Capital Territory (FCT), Mr Nyesom Wike and Nigeria’s 36 governors from usurping the authority and responsibilities of the National Judicial Council (NJC) and heads of court through giving cars and houses to judges.”
SERAP said, “Such practices are clearly antithetical to the constitutional principles of separation of powers, checks and balances and the rule of law, and may create the perception that the judiciary is subservient to the executive.”
“SERAP also urged him to “direct the Attorney General of the Federation and Minister of Justice Mr Lateef Fagbemi, SAN, as a defender of public interest, to challenge in court the constitutionality and legality of the practices by members of the executive of giving cars and houses to judges in Abuja and across the states.”
In the open letter dated 9 November 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “Politicians ought to keep their hands off the judiciary and respect and protect its integrity and independence. Politicians must treat judges with dignity and respect.”
SERAP said, “The Nigerian Constitution and international standards make clear that the judiciary is neither subservient to the executive nor the legislature.”
The letter, copied to Ms. Margaret Satterthwaite, UN Special Rapporteur on the Independence of Judges and Lawyers, read in part: “Undermining the fundamental principle of separation of powers risks constraining the ability of the judiciary to act as a check on the executive.”
“SERAP urges you to substantially improve funding for the judiciary to enhance their working conditions, welfare and pensions through existing constitutional arrangements and mechanisms, to uphold the independence and autonomy of the judiciary and to protect judges from executive interference.”
“Your government has the constitutional and international obligations to promote public confidence in the judiciary and safeguard the rule of law.”
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government and the attorneys general of the 36 states to comply with our request in the public interest.”
“The reports that members of the executives in the FCT and across several states are giving cars and houses to judges appear to take place without following any constitutional or procedural process, which may have a chilling effect on the rule of law and access to justice and effective remedies.”
“Promoting the effective implementation of constitutional provisions and international standards on the financial autonomy of the judiciary would contribute towards ensuring the balance of power between the executive and the judiciary, and judicial integrity and independence.”
“Your government has the constitutional responsibility to ensure equality of arms in the relationship between the three branches of government: the judiciary, executive and legislature and to uphold the principles of separation of powers and checks and balances.”
“An independent judiciary, the essential guardian of the rule of law, is the linchpin of the scheme of checks and balances through which the separation of powers is assured. Members of the executive should not have any control over the judiciary’s funds.”
“The rule of law is the bedrock of a democratic society. It is the only basis upon which individuals, private corporations, public bodies and the executive can order their lives and activities. And if the rule of law is to be upheld it is essential that there should be an independent judiciary.”
“Because it is the executive that exercises the power of the State and because it is the executive, in one form or another, that is the most frequent litigator in the courts, it is from executive pressure that judges require particularly to be protected.”
“SERAP urges you to direct Mr Fagbemi to ensure full compliance by Mr Wike and the 36 state governors with the provisions of sections 81(3) and 121(3)(a)-(h) of the Nigerian Constitution 1999 [as amended], and to respect and protect judicial integrity and independence.”
“SERAP urges you to ensure that the Federal Executive Council (FEC) under your leadership stops the practice of approving construction of houses for judges, as the exercise of such responsibility is entirely inconsistent and incompatible with the provisions of the Nigerian Constitution and the country’s international obligations.”
“According to reports, the Federal Executive Council (FEC) recently approved the construction of 40 houses in Abuja for judges of the Federal High Court and the Court of Appeal.”
“Several of Nigeria’s 36 state governors including Abia, Benue, Cross River, Delta, Imo, Kogi, Lagos, Oyo, Osun, and Rivers also reportedly routinely engage in the practices of giving cars and houses to judges in their states.”
“Section 121(3)(b) of the Nigerian Constitution provides that, ‘Any amount standing to the credit of the – (b) Judiciary in the Consolidated Revenue Fund of the State shall be paid directly to the heads of the courts concerned.’”
“Under section 121(4) a Supplementary Appropriation Bill shall be passed if the amount appropriated by the Appropriation Law for the judiciary is insufficient; or a need has arisen for expenditure directly to the judiciary.”
“Section 81(3) of the Nigerian Constitution contains similar provisions, stating that ‘The amount standing to the credit of the – (c) Judiciary in the Consolidated Revenue Fund of the Federation shall be paid directly to the National Judicial Council for disbursement to the heads of the courts’ for the Federation and the States.”
“Similarly, the UN Basic Principles on the Independence of the Judiciary provides in article 1 that, ‘It is the duty of all governmental and other institutions to respect and observe the independence of the judiciary.’”
“The Basic Principle in article 2 obligates states including Nigeria to protect the judiciary from ‘any restrictions, improper influences, inducements, pressures, threats or interferences, direct or indirect, from any quarter or for any reason.’”
“Under article 7, ‘It is the duty of each Member State to provide adequate resources to enable the judiciary to properly perform its functions.’”
“Judicial independence and autonomy means that judges must be appropriately remunerated commensurate with their special responsibilities, have adequate support staff and equipment, and adequate welfare and pension provisions.”
“SERAP notes that while exercising his powers under section 5 of the Nigerian Constitution former president Mohammadu Buhari signed Executive Order No.10 of 2020, to ensure that the judicial arms of government in the 36 states of the federation no longer have to wait on state governors for funds.”
“Specifically, the Executive Order states that allocation of appropriated funds to the state judiciary in the state appropriation laws in their annual budget shall be a charge upon the Consolidated Revenue Fund of the State, as a First Line Charge.”
Kolawole Oluwadare
SERAP Deputy Director
10/11/2024
Lagos, Nigeria
Emails: info@serap-nigeria.org; news@serap-nigeria.org
Twitter: @SERAPNigeria
Website: www.serap-nigeria.org
For more information or to request an interview, please contact us on: +2348160537202
