Federal Government’s reported staggering N4 trillion contract debt incurred by 28 federal ministries under the erstwhile President Goodluck Jonathan administration has joined the long list of nightmares trailing the President Muhammadu Buhari government. Just last February, irate senators tongue-lashed former Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo– Iweala, over poor implementation of the 2014 budget. When ministries, departments and agencies (MDAs) were defending their 2015 budget, the Senate Committee on Power, Steel Development and Metallurgy accused Okonjo-Iweala of ‘killing’ the Nigerian economy through yearly poor funding of MDAs’ capital budgets. A member of the committee, Senator Victor Lar, for example, lamented “… a situation where… ministers and heads of various agencies that had awarded contracts could not pay, but somebody would sit in the comfort of her office and declare a surplus”.
We recall that the Speaker Aminu Tambuwal-led 7th House of Representatives, much earlier in 2012, also had a running battle with the former Finance Minister; the then Accountant-General of the Federation, Mr. Jonah Otunla; and Director- General of the Budget Office, Dr. Bright Okogwu, over ridiculously poor implementation of the 2012 budget. Roughly 80 per cent of the nation’s annual budget is guzzled by recurrent expenditure, leaving a paltry 20 per cent for capital expenditure. Still, not up to 40 per cent of the percentage set aside for capital expenditure is released at the end of each fiscal year.
How come, then, that the Jonathan government accumulated a whopping N4 trillion as contractual debt, most probably to local contractors? Who awarded the contracts, through what procurement process and for what purpose? The Transition Committee headed by Alhaji Ahmed Joda reportedly made a strong recommendation to President Buhari on the need to raise a ministerial task force to probe how the gargantuan debt came about. The committee was, in addition, credited as saying it could not rely on the handover note it received from the Jonathan administration because the specific dates when the contracts were awarded were not indicated. This, indeed, raises doubt on the genuineness or otherwise of the said contracts. A breakdown of some of the contracts made available says the Ministry of Education topped the list with N1.2 trillion; Ministries of Finance N467.7 billion; Niger Delta N389.2 billion; Power N370 billion; Works N296 billion; Transport N289 billion; FCT N194 billion; Land and Housing N151 billion; Aviation N138 billion; Water Resources N111 billion; National Sports Commission N104 billion; Environment N51 billion; Police Affairs N36 billion; and Health N36 billion, among others.
In a country where dumbfounding corrupt practices are dogging the nation’s political class and bureaucracy, Buhari government’s blanket acceptance of liability for the N4 trillion contractual debt, which is in the neighbourhood of the nation’s one year budget, is objectionable. This is especially so considering the outrageous number of abandoned federal and state projects littering the entire nation. About three years ago, an FG probe confirmed the existence of over 20,000 abandoned federal projects. Because of poor project performance and monitoring, contractors collect mobilization funds, share same with dubious public servants and vanish. Head of Service of the federation, Mr. Danladi Kifasi, suggested that much not too long ago when he spoke of government’s resolve to set up a project performance and monitoring taskforce to punish erring contractors. The 36 states of the federation reportedly owe commercial banks over N685 billion presently. When the N685 billion debt profile of states is added to FG’s purported N4 trillion contract debt; and funds wasted or siphoned by crooks through yet-tobe- computed abandoned projects in the nation’s 36 states and 774 LGAs, a better insight would emerge on how a combination of corrupt and inept political leadership and public service ruined the nation in the past couple of years.
President Muhammadu Buhari has, however, moved to cut recurrent expenditure in next year’s budget in order to be able to prioritise development projects, according to latest reports. This is against the backdrop that capital expenditure performance of the 2015 budget may not exceed 12 per cent at a projected oil price of $53 per barrel. The President’s initiative is obviously premised on the urgent need to cut the cost of running government and free funds for the development of critical infrastructure and related projects. But even President Buhari’s interventionist step would yield little or no result in the end if contract awards and public procurement processes remain chaotic or personalised; when project performance and monitoring are compromised; and criminallyminded contractors alongside their accomplices in the public service collect and share money for jobs not done and go unpunished.
Okonjo-Iweala has an impeccable record in building the economy; she is well known for her economic reforms all over the world. Things would not have been alright given the challenges of oil price crunch that Nigeria has been facing and other challenges, if not for the competent astute economic management of Okonjo-Iweala.
Like it or hate it Okonjo-Iweala has laid the building blocks upon which the Buhari
administration can continue to build a strong economy. Never forget that under
her economic management, Nigeria became the strongest economy in Africa, the
debt to the Paris Club was wiped off, ghost workers scam was uncovered etc.
These are tangibles that we can point at
Okonjo-Iweala has served this nation faithfully. She has made economic reforms and left other lasting legacies. The new administration should pick up from where she left off.
Okonjo-Iweala is a competent economic manager; she has been strong for Nigeria. Things were quite challenging but she has done her bit, that is why the economy is not at a standstill despite the crude oil price crunch.
Okonjo-Iweala is an internationally acclaimed economist, she has been a resourceful manager. We owe the debt pardon and other major economic reforms to her. She should be lauded not publicly maligned.
With unfounded stories like this, it is not a surprise that many players in the Nigerian media space are not being taken seriously. How would you just cook up data and present them as if they were facts from a reputable source?
It’s amazing how far some people can go just to attack whoever they consider an enemy. This story is full of barefaced lies against the past administration. The medium’s aim to discredit the work and personality of the former minister of finance is an unfortunate travesty of truth.
The mischievous intent of this piece is obvious. All those figures are bloated. You cannot add up all the debts of previous administrations and ask one administration to take responsibility for it. Besides, the figures quoted in this article are simply not true.
It is not enough for Nigerian senators to come up with statements accusing Dr Okonjo-Iweala of complicity in the poor implementation of the 2014 budget. Nigerians are not fools and we know the motive behind all these attacks against the former coordinating minister of the economy.
How would a right thinking person say Dr Okonjo-Iweala killed the economy of Nigeria where she sacrificed even her life to ensure that the country’s finance is properly guarded. People should allow their conscience to guide them aright.
To say she sat at the comfort of her office to declare surplus is an insult to Dr Okonjo-Iweala. People should learn how to respect their leaders both present and past.
Why do we uninformed people accuse excellent performers so blindly like this? Someone just wakes up and cooks up figures that are not vetted and has the effrontery to publish it. This is sad. Journalism is not a license to discredit people unduly.
I dare say Dr. Ngozi Okonjo Iweala is one of the best hands Nigerians has produced in a long while. She has thrived in careers that are male-dominated with a track record of excellent performance and global recognition. No false accusation will succeed in tarnishing her reputation.
Regardless of your falsehood and denigration, Dr. Ngozi Okonjo Iweala remains a global icon any day. Little wonder, the good Book says ‘a prophet is not without honour save in his home’.
Dr. Ngozi Okonjo Iweala is too busy to be preoccupied with baseless and needless allegations as this. You guys never stop accusing and criticizing the innocent woman. No matter your antics, she is globally recognized and accorded due honour. None of your misgivings can take that away. It is not possible for her to have awarded contracts that cannot be accounted for.
The government of President Mohammadu Buhari should focus
more of its attention on governance instead of sending jobless group of people
to continue attacking and denting the good image of Dr Okonjo-Iweala.
Dr Okonjo-Iweala is a grossly competent financial expert who in spite of the many challenges the country had stood firm to ensure that the country’s treasury was no looted by those who are bent on taking over Nigeria at all cost.
These figures are outrageous, and it only goes to show how desperate Okonjo-Iweala’s enemies have become. Nigeria as a nation does not have 4trillion naira to dish out for contracts of such magnitude, so where and how did they arrive at this
summation. Dear Nigerians, this is pure deceit and a plot to frustrate and implicate our dear Okonjo-Iweala, we will not fall for these huge lies.
When we read lies like these, let’s consider the so called facts constructively. How can a country incur debts of this magnitude, knowing they don’t have any reserve to offset such bills? Some people’s hearts are darker than darkness, and they only like to destroy than build. This is another of the numerous lies we have been fed with in recent times, do not be deceived.
I look forward to seeing a Nigeria where there would be sincerity and love for fellow human being. These accusations are beyond fabrications; they pass strong messages to any undiscerning Nigerian. But we are not fooled it is one of the numerous tactics to bring down Okonjo-Iweala.
May God punish the people behind this publication, all they care about is their selfish interest. They are not considering the lives of the names mentioned in this fake story.