Thursday, 20 June 2013
A Governor, Three Ministers and their Burden By Chido Onumah
The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, created a media firestorm last week when he proposed that the civil service be cut by half. Sanusi, of course, is not new to controversy. In the last three and half years of being at the helm at CBN, Sanusi has been variously assailed and praised for such policies as Islamic Banking, the N150,000 ($1000) maximum daily withdrawal, the cashless policy initiative and the introduction of a single N5000 ($33) note, in a country where majority of citizens live on about $2 a day. So, it was expected that his latest comments at the Second Annual Capital Market Committee Retreat in Warri, Delta State, would attract public attention.
“At the moment, 70 per cent of Federal Government’s revenue goes for payment of salaries and entitlement of civil servants, leaving 30 per cent for development of 167 million Nigerians. That means that for every naira government earns, 70 kobo is consumed by civil servants. You have to fire half of the civil service because the revenue of the government is supposed to be for 167 million Nigerians. Any society where government spends 70 per cent of its revenue on its civil service has a problem. It is unsustainable,” Sanusi told his audience, adding that the country did not need 109 senators and 360 representatives to make laws. He called for an end to the “wastage” of funds on the maintenance of 774 Local Government Area chairmen, their aides, councillors and other appendages of the third tier of government and the scrapping of states that are viable.
Lending support to what appears to be the position of the Jonathan administration, the Minister of Finance, Ngozi Okonjo-Iweala (she and Sanusi are members of President Jonathan’s Economic Management Team), who spoke a few days later at the National Economic Summit, had this to say in praise of Sanusi’s position: “Let me tell you, the targets of this fiscal tightening are human beings; they are the ones that must be eliminated to prune down the costs. The cost of personnel in the budget is 32 per cent and that is huge.”
Not surprisingly, the responses to Sanusi’s comments were fast and furious. Some of the responses were genuine; others downright opportunistic. Take for instance the response from the National Assembly via the Deputy Chairman of the House Committee on Media and Public Affairs, Victor Ogene, who accused Sanusi, of heating up the polity with his “frequent controversial utterances.”
According to Ogene, the National Assembly had a total budget of N150bn ($1bn) in 2012 to cater for 360 House members, 109 Senators, thousands of civil servants and political aides while the CBN had over N300b ($2bn). On Sanusi’s suggestion to cut the civil service by half, Ogene was amazed that “a manager of the economy would come up with such a proposal in the face of the socio-economic challenges of today”. Coming from a member of a do-nothing House that wears scandal as a badge of honour, Ogene must have some cojones to lecture us about “socio-economic challenges”. At the last check, Ogene and his colleagues cart home so-called quarterly constituency allowance (read security vote, because you hardly can find any constituent that benefits for that allowance) to the tune of N43m ($286,000).
Clearly, some of the positions that Sanusi canvassed are constitutional matters. Nothing can be done about those issues unless Sanusi himself supports the call for a genuine constitution of “we the people” or better still the restructuring of Nigeria. But on the call for the pruning of the civil service, you have to agree with Sanusi if you have encountered our civil servants or had the misfortune of visiting, for example, the Federal Secretariat in Abuja.
A typical day at the secretariat reminds you of a shopping mall with staff milling around aimlessly, while those in the offices are busy channel flipping. With “ghost workers” everywhere, it is difficult if not impossible to get anyone to attend to your enquiries. Late last year, the Head of Service of the Federation, Isa Bello Sali, informed us that the government had uncovered 71,135 ghost workers on its payroll which cost the country N28bn ($186m) annually.
Undoubtedly, the civil service is bloated and needs to be trimmed for efficiency. But beyond this revelation, there is nothing spectacular about Sanusi’s call. The rot and inefficiency in the civil service is part of the rot and inefficiency in the larger society. It is emblematic of a culture of entitlement, cronyism and waste of which Sanusi is an integral part.
In 2011, there was an allegation of impropriety in a land buy back scam in which the names of President Goodluck Jonathan, the Attorney General of the Federation, Mohammed Adoke, and Lamido Sanusi featured prominently. It was a bizarre story the mainstream media refused to touch. The sordid details are chronicled in my book, Time to Reclaim Nigeria. We have the intrepid online publication, Saharareporters to thank for that amazing investigative report. Days after Saharareporters published the story, the CBN, in a contemptibly inadequate response, acknowledged that it paid almost N20bn ($133m) for a piece of land, originally owned by a government agency, NITEL, to build “a world class conference centre”.
It seems our rulers know a thing or two about world class event centres because while Sanusi was busy dreaming of a lean, efficient and effective civil service, news came that the government was planning to build another banquet hall for Mr. President at the cost of N2.2bn ($15m). “We noticed that it (existing hall) is inconveniencing; it is not in tandem with what is outside the country. Even smaller countries have better Banquet Halls near their Presidential residences,” the minister of the Federal Capital Territory (FCT), Bala Mohammed, said in defence of the scandalous approval for the unbudgeted project by the Federal Executive Council (FEC) at its last meeting. Again, this hollow argument about what obtains in other countries. It seems our rulers are too blind to see the good network of roads, constant electricity and reliable infrastructure in other countries. That our youth, the future of this country, migrate in droves to smaller countries like Ghana for university education is certainly not of concern to Mr. Mohammed.
Mr. Mohammed who appears beholden to President Jonathan is on familiar territory (no pun intended). He recently expressed outrage, during a ministerial inspection tour, that the construction of new homes for the four presiding officers of the National Assembly in one of the choicest parts of the capital city, Maitama Extension (which the minister had renamed Goodluck Jonathan District), was not going as planned. The presiding officers are the Senate President, David Mark and his deputy, Ike Ikweremadu, Speaker of the House of Representatives, Aminu Waziri Tambuwal and his deputy, Emeka Ihedioha.
At a budget defence last year, the minister told lawmakers why their leaders needed new residences outside their current Apo Legislative Quarters residences. “We were there on inspection and so we cannot guarantee the safety and security of principal officers of the National Assembly who take decisions on very serious and sometimes critical issues that may impinge on the sensibilities, perception and feelings of others. We must as a government protect the principal officers of the National Assembly”, the minister said.
These new, secure and luxury homes will cost about N1bn ($7m) each for the Senate President and the Speaker. Add another N1bn ($7m) for the homes of their deputies and do the math. The minister did not disappoint during his 2013 budget defence. His ministry, he confirmed, will spend N2bn ($13m) in 2013 as part of the N7.1bn ($47m) approved for a “befitting” residence for the Vice President, Namadi Sambo. The week in review ended with an affront from our oil goddess, Diezani Alison-Madueke, who clarified why the Ministry of Petroleum Resources would spend N6.2bn ($41m) on the Petroleum Industry Bill awareness campaign. The less said about this the better.
These incidences highlighted, a drop in the ocean of brazen pillage currently going on in the name of governance in the country, represent the face of the decadent culture in Nigeria that we need to do away with quickly. There is something sinister about our democracy. It is that our so-called elected represented see their position as an opportunity to get their share of the proverbial national cake. It is, therefore, not surprising that the highest decision-making body in the country, the FEC, as well as MDAs have become veritable money laundering platforms in the guise of contract awards.
While Nigerians die in their dozens every day from preventable diseases, poverty, terror and associated ills, it is this brazen plunder that should concern the likes of Sanusi and Okonjo-Iweala who still have the scruples to talk about reducing the cost of governance.
conumah@hotmail.com
@Ezeanyika - I thought you were thick!
(I am yet to read the article, and may likely not do so).
But I find the contribution by Ezeanyika interesting, especially having drawn me into the fray. Are some people thick, or are they just simply THICK? I am not surprised that Ezeanyika compares the cost of building a house in Nigeria with that of the US. Comparing oranges, how can Ezeanyika fail to recognise that building materials, fixtures, fittings and appurtenances, such as Cement, fitted Kitchen, fitted bathroom, furniture, etc, are mostly imported into Nigeria?
To give him a little insight of how things work in the world. My house in London (UK) cost about 4 times my brother's in Columbia, MO, yet it is about 3 times smaller (in size) than his house. Think beyond the US, my friend! $5 million may not buy even a flat in some parts of London.
(BTW, I am by no means justifying the building of a VP lodge).
Nigerians ultimately will
Nigerians ultimately will have to fight for themselves. It is clear that those in power are there for what they can get for themselves. Power they say belongs to the people. It breaks my heart to see how low my dear country has sunken due to the actions of a few.
Buhari was given the same
Buhari was given the same reason which led him to sack over one million civil servants-in the 80s. What is the result of that exercise? Our intellectuals are most fraudulant humans on mother earth-can Sanusi in his hearts of hearts, call for the introduction of fiscal federalism as his ancestors agreed to in 1954? Which states are not viable in Nigeria?-almost all the states in the boko haram controlled areas of the north, are not being run on the resources of the zones-if states in the North can have over 40 LGAs whereas the states that feed the nation state of 9ja are left with as little as 8, then we are in trouble-let them take a census of civil servants in 9ja-u will discover that the areas that produce the wealth of the nation are least represented-resource control is the answer-so that each zone will fend for herself-and not have Niger deltans feed 160 9jas daily with their oil resources
Reduce Reduce Reduce
In order to reduce all the reduceables, many steps must be taken. First the president. Mr Jonathan's feed money should be reduced to N1m a year, that saves us N1.299b every year. Stop also building of new kitchen the buying same kitchen equip every year.
His fly fly and travels should be rerouted through public transportation. That saves us around N20b. Repairing of the same dome every year at the old banquiet hall must stop. Remove dome and put flat roof.
Sack all ministers of state, presidential advicers without advice and running mouth assistants. Ban all foreign medical trips.
There millions of ways to save money and save Nigeria.
One of the BEST Article so far
Chido!
Wow, keep on writing like this and you will soon be in an exclusive class. In fact, I am personally convinced that you are one of the best.
Well reasoned.
Excellent write up with facts
Excellent write up with facts and figures to buttress. always enjoy reading from you. makes you shudder with disgust - the level of plain stupidity and utter arrogance of our so called leaders.every last one of them is corrupt to the core...nothing left to save...ALL CORRUPT. tufiakwa!!!
Thank you Onumah
This is a beautiful piece. If this type of privilege for the few who add no value to the lives of majority of Nigerians is what we call democracy, then we can as well have a military dictatorship that is focused and can meet the aspirations of the people. After all the military in South Korea laid the foundation of the development we are seeing in that country today.
6.2 bn on an awareness campaign ?
This is a terrible slap on the face of Nigerians.All you kleptocrats looting us dry please note all these is being documented thanks to an increasingly globalised world.In short time you shall all be brought to justice.Whoever told Gaddafi or Mubarak that a year like 2011 will come will have been laughed at.God is alive,this crime against humanity will not go scot free be you from the south or north or east or west.
Re: Sanusi's 50% Cut proposal
The solution is to identify all the actual and physical workers in the civil service, and then remove all ghost workers from government salary list. The issue of 'Ghost workers' and flagrant corrupt tendencies of political office holders is the main problem of this Nigeria, starting from the LGAs to the State govts and the Federal ministries.
If corruption can be eliminated from Nigeria govt, the civil service could be increased by 50% more instead the advocated reduction.
GEJ lacks the political will to fight corruption in his administration for reasons known to him.
Well done, sir!
The revelations in this piece are quite disturbing. However, Onuma should keep it up. Even if these economic parasites do nothing to correct the situation today, tomorrow will surely catch up with them. These contradictions in our society will definitely destroy the unviable system!
Re: Sanusi's 50% Cut proposal
Do you think that proposal can be wished away? Lamido may used as a whistle blower for the president, and he Sanusi Lamido may be saying what's in the mind of the president. GEJ maybe planning the cut as a gift to Nigerians before the end of 2015. He must have decided to use Lamido to start the process so as to watch the heat go up and come down, then move to implement it. Nigerians, be ready for surprises from this man you have as president.
Leave Sanusi alone, he is merely doing the biddings of his boss
We are Waiting!!!!!
Well written,carefully worded and thought proking piece. Nigerians are waiting when the workforce will b reduced as sanusi as sugested. Let them build mansions in miatama for whoever they want. When the time comes which to me E NO TAY AGAIN they will run and beg for mercy by then it will be too late because we have been waiting.
Nigeria is a wasteland, not a country! (3)
All around the world, leaders are THINKING solutions to problems and challenges that militate on the welfare of the citizens. Nay, in Nigeria, everyone in political power and in the MDAs, from the Minister to the office cleaner, is busy hatching schemes that would ensure for him/her and his/her cohorts, millions of US dollars to the detriment of the citizens.
One day Nigerians will wake up to the news that ASO ROCK is no longer a befitting structure for Jonathan and Dame Patie. We will hear that security cannot be assured there as BH could strike effortlessly and therefore the duo deserves an edifice that would cost US$1 billion! I bet you that news is surely coming.
No one thinks of the fate of the mass of Nigerians. Ebele, Diezani, Bon Otti and Stella Odua, the core of PH mafia, are busy hatching how to surpass IBB and Abacha in cornering the treasury. Is it any surprise that they have turned Nigeria into a wasteland?! Happy weekend, o jare. END.
Nigeria is a wasteland, not a country! (2)
There is a mansion of 50 rooms with several appurtenances in the United States currently in the market for US$5 million. Now, this VP residence that would gulp US$13 million, would it have 130 rooms to accommodate his entire "Kilishi-eating" and "gworo-chopping" villagers including the Almajiris in Kaduna State? That means the mansion would be almost three-times the size of that one at the Minna Tophill. Eh?
My in-law, Diezani, needs US$41 million for PIB campaign! Otio, when has campaigns become part of Jonathan's governance style? Is it the form of campaign nobody will know when it started or ended?! The type of campaigns they did with SIM Card registration and gulped over N12 billion? All we would later hear is that the monies have been paid to the "Consultants" and the crumbs passed to OC and Stanley Igwe! Hmm, this duo has been reticent on SR for quite some time. Haba! Kini nko?
Nigeria is a wasteland, not a country! (1)
You will continue to have ghost workers as long as the country does not have functional National Identification Database System (NIDS). By the way, Nigeria is the only such a country in the world. We will NEVER have a functional NIDS because population issue is politicized. The North will FOREVER, till we break up, continue to maintain it has larger population than the South when it is obvious the claim is balderdash.
But who was collecting the salaries and emoluments of the 71,000 plus ghost workers? The Perm Secs? Can Auditors not follow the money trail to recover the loot and punish the guilty? Of course, they can, but the challenge is that EVERYONE is corrupt from the HEAD of the country to the cleaner in the MDAs. Thus, they can only talk but would not take any action.
Sanusi n co.
The Author has done a great job, I hope Sanusi, Ngozi. Allison, Sambo, Mark n Jonathan knows dat Nigerians are well informed. ALLAH-YA isa, (God is indeed sufficient as a Judge between Nigerian masses n her leaders).
A very refreshing
A very refreshing perspective!

