Unending demand for state creation

By YEMI OLAKITAN 

 

 01 March 2015

Many interests have mobilised to campaign for creation of more states in Nigeria. These agitations have been persistent and seemingly endless. Nearly every ethnic group has at one time or the other demanded its own state even though most of the 36 states remain economically unviable and rely on monthly allocations from the Federal Government to survive. Ag. Head of Investigations, Yemi Olakitan looks at the politics.

There seems to be no end in sight to the demands for state creation in Nigeria. Ethnic jingoists and politicians keep agitating for state creation in order to address perceived marginalisation of their people in the scheme of things. The campaign for state creation has always been present throughout the history of Nigeria and has continued to this day.

Each ethnic group has continuously come to think of itself as a distinct entity with interests and demands. They want states created whether or not the states have the capacity to survive economically or not. At a time the late sage Chief Obafemi Awolowo mocked some of the proponents of states creation when he said that such agitations will stop when his home town, Ikenne, becomes a state.

According to vocal preacher and activist, Pastor Tunde Bakare of Latter Rain Assembly, only about four of the states in Nigeria are viable. According to him, the agitations for state creation are usually to satisfy ethnic nationalism to the detriment of Nigerian nationalism. Most of the states are wholly dependent on the federal purse for survival.

Olufemi Gbolahan, a politician and native of Ado-Odo Ota local Government in Ogun State observed that “the call for state creation is ever present among us and it is usually as a result of marginalisation and lack of development of certain ethnic groups or areas in the country. Nigeria is a nation of diverse tribes, languages, cultures and religions and each group wants to have a share of the nation’s resources. Nobody wants to be left behind in terms of development”.

Speaking further, Gbolahan said, “The issue of marginalisation is also real. Take the Yewa community in Ogun State for example, where I come from. We have always been marginalised. Ado Odo-Ota is the richest local government and the most industrialised in Ogun State. It is also the second largest and yet the least developed. Ado-Odo-Ota has never produced a governor in Ogun since the state was created and all the past governors have concentrated development efforts on Abeokuta, the capital city. Take Ado-Odo for example, development in Ado-Odo is zero, the roads are bad, there is no university, no college of education, no polytechnic and the town is nearly the size of Abeokuta, Tell me, why we won’t support the agitation for state creation? These are the factors that lead to the campaign for state creation in Nigeria.”

Speaking further, he said, “State creation is good for a nation like Nigeria because of our diversity. No matter what the skeptics say. The states will develop with time and will become strong. Rome was not built in a day. We need states because it creates a sense of belonging.” he said.

Investigations by Sunday Mirror reveal that the agitation for states creation can be traced to the British Colonial Administration with the indirect rule system which was created to suit the purposes of colonial ideology and ease of administration. The indirect rule system encouraged ethnicity since Nigerians of Northern and Southern regions did not interact as one people. The colonial master was more interested in the easy administration of the large entity called Nigeria,

Thus, the phenomenon of regional ethnicity found its way into Nigerian politics. The earliest political parties in Nigeria; the National Council of Nigerians and Cameroon, NCNC, founded in 1944, the Northern People’s Congress, NPC, and Action Group, AG, both established in 1951, were defined along tribal and ethnic bases.

Ethnicity and regionalism became Nigeria’s way of life. It was this development that led to minorities’ agitation for self-determination in virtually all the regions during the colonial rule. Ethnicity has been a re-occurring factor in Nigerian politics since then. This has continued to influence the agitation for state creation. Successive governments also use state creation either as a tool for political self-enhancement, or as a means to gain stronger hold on power.

Nigeria was initially a Federal State with three regions – Northern, Western and Eastern regions, during the First Republic; the Mid-Western Region was created out of the Western Region. These regions were virtually self sufficient depending on mainly agricultural produce and exports to keep their respective economies going.

Historians suggest the creation of that region was aimed at the excision of the non-Yoruba from the Western region. It did not arise from genuine concern by the nation’s leaders for the predicament of the minorities. The reorganisation was part of vindictive campaign by the ruling Federal coalition parties – the NPC and the NCNC to destroy the opposition party, the AG, while resisting the statehood ambitions of minorities in their home regions.

The creation on 27th May, 1967 of 12 states from the existing four regions by the Gowon regime was an attempt to nip the secession of the Eastern Region bid in the bud.

It was as a result of a desire to cut the influence of the then Governor of Eastern Region, the late Chief Chukwuemeka Odimegbu-Ojukwu at the height of hostilities between the Region and the Federal Government. It was also aimed at solving the perceived political problem threatening the continued existence of Nigeria as a single entity.

However, the politics of state creation has not taken into account the ability of these states to sustain their existence.

Also, another set of problems started with some ethnic groups claiming that the new states were highly unequal. For example, the North-Eastern State alone accounted for about one third of the total land area of Nigeria, while the 11 other accounted for the balance. In view of these, Gowon promised that he would review the whole issue of state creation after the war.

This promise heightened the tempo of demands for new states, but no effort was taken to re-assess the exercise until Gowon was overthrown in 1975.

When the late General Murtala Mohammed overthrew General Gowon, he quickly set up the Justice Ayo Irikefe Panel to look into the issue of state creation. The panel received about 32 demands for new states. It was based on the memoranda submitted to the government by the panel that the number of states was raised to 19, on 3rd February, 1976. The 19 states were Lagos, Ogun, Ondo, Oyo, Bendel, Cross-River, Anambra, Imo, Rivers, Kwara, Benue, Plateau, Borno, Bauchi, Gongola, Sokoto, Niger, Kano and Kaduna. The 1976 exercise was implemented in the wake of a phenomenal growth in Federal petroleum exports revenue. Thus, in addition to being a vehicle for extending political and economic self-governance to distinct ethnic communities, states creation became an administrative strategy for the devolution of Federal generosity to an unstructured array of territorial communities and coalitions.

This gave rise to a phenomenal increase in the demand for even more states as various ethnic groups and elites struggled to maximise their share of the national cake. Consequently, the Igbo people argued later that a situation where they had only two states (Anambra and Imo) from the 1976 exercise while the Yoruba and Hausa/Fulani, the other two majority groups, had about five each, was unjust and unacceptable. Invariably, the agitation for states creation in the country became a contest among majority ethnic groups, struggling to square up, more than the struggle of the minorities for self-determination. The agitation for more states went unabated during the Second Republic (1979-1983) and the demands for new states were so volatile that none was eventually created till the collapse of the Republic.

When General Ibrahim Babangida took over power in his 1985 coup, the clamour for states creation reached new heights and he set up the Political Bureau, headed by Dr. S.J. Cookey to look into the fresh demands.

It was based on the recommendations of the Bureau that the Federal Government in September 1987 created two more states – Akwa-Ibom and Katsina – thus, increasing the number of States in the country to 21. The Bureau had actually recommended the creation of six new states – Akwa-Ibom, Delta, Katsina, Kogi, Sarduana and Wawa.

In creating the two states, Babangida announced that the demands for new states will no longer be tolerated. However, in August, 1991, the regime reversed itself and created nine new states to bring the number of states to 30. The nine states were Abia, Enugu, Delta, Jigawa, Kebbi, Osun, Kogi, Taraba and Yobe. The regime justified the creation of more states as the need for balanced federation, bringing government nearer to the people, even development among others. However, critics insisted that “the 1991 exercise was largely intended to galvanise support for the regime, whose strength was ebbing and to compensate close allies.”

The agitations for states creation seemed to redouble when General Sani Abacha came to power in 1993. Thus, following the recommendations of the National Constitutional Conference on the need to create more states, Abacha set up a Committee for States Creation, Local Government and Boundary Adjustment, headed by Arthur Mbanefo. The Committee received a total of 85 requests for new states and on the occasion of the country’s 36th Independence Anniversary on 1st October, 1996; late Abacha announced the creation of six new states. This last exercise brought the number of states in the Nigerian Federation to 36 States and the Federal Capital Territory, and 774 Local Government Areas.

The question remains whether the continuous division of Nigeria into smaller, weaker units has actually brought government, power and development closer to the people.

Postponements of state creation have argued that the creation of states brings the government closer to the people because of the population and land mass of Nigeria. It has also been argued that state creation reduces marginalisation.

As result, The National Conference under President Goodluck Jonathan approved 18 requests, in principle, for state creation across the country as a way of meeting the yearnings and aspirations of the people.

The approved requests, included Apa State from the present Benue, Kainji from Niger State, Katagum from Bauchi State, Savannah State from Borno, Amana from Adamawa, Ghari from Kano, Gurara from Kaduna, Etiti State from the South-East zone, Aba from Abia, Adada from Enugu, Njaba/Anim from both Anambra and Imo States, Ogoja from Cross River, Anioma from Delta, Ijebu from Ogun, New Oyo from the present Oyo State and others. The conference said apart from the 18 new states proposed, a separate state-yet-to-be named should be carved out of the South-East to bring the number of the states in the zone to six. The conference said the creation would correct the imbalance of the zone having the least number of states. In the existing 36 states arrangement, each zone has six states with only the North-West having seven states. It was agreed by the delegates that the 18 new states would be shared among the six zones in a manner that no zone would have more states than the other. It was also agreed that states were free to have their own constitutions. The delegates rejected a motion that the number of states in Nigeria should not be more than 55. This gives the impression that in the future more states could still be created.

A delegate, Mr. Femi Falana, SAN, condemned the decision to create more states. He said the action was at variance with the decisions and resolutions earlier taken by the conference on the need by government to cut costs. “Having regard to the several resolutions of the National Conference on the need to reduce the cost of governance, I found the recommendation for the creation of additional 18 states rather contradictory,” Falana said.

Another delegate, a SAN, Chief Mike Ozekhome said, “I stand by the recommendations; we have recommended that 18 more states and an additional state should be created for the Igbo, they are the only one with five states. With 54 states I believe that government would be brought closer to the people.”

According to Mrs. Funke Adekoya, SAN, the creation of more states will not solve the problem of underdevelopment. “I don’t think that it will solve the problem of bureaucracy in the society. What I think we should focus on is the delivery of dividends of democracy to Nigerians. I don’t support creation of more states.”

In another chat with Barister Jesica Ikechuwu, she was convinced that the prospects for national development depend on the emergence of a courageous, visionary and national leadership stressing that Nigeria needs a true Federal system. Ikechukwu said, “The center is too strong and the states rely too much on resources from the center.”

According to her, ‘‘the endless demands for state creation will not end unless there is real development in the grassroots such as good roads, electricity, access to education and affordable health care. “Unemployment must be reduced to the barest minimum. As long as these problems are rampant, we will continue to have agitations for state creation in the next two or three decades,” she said.

Pa Ayodeji Ogunjobi, the president and founder of Hope for the Youth initiative, a non-governmental organisation focusing on the problems of youth unemployment in Nigeria, said “the creation of more states will multiply the existing problems – ethnic minority issues, lack of development, corruption, unemployment.’’

He said states must begin to look inwards and generate income by themselves in such a way that they can become economically strong.

“A situation where all the states created continue to look up to the Federal Government for monthly allocation for survival will continue to inspire fresh agitations for state creation in the country. If the states created already become economically strong and prosperous, the incessant agitations will die,’’ he said.

According to Senate President, David Mark, states creation will bring development closer to the doorsteps of many Nigerians. The scope of political development will be widened to accommodate more governors, more legislators, more state high courts, more police officers. More states will also see to the presence of more federal agencies in the states including higher institution of education as well as other modern developmental structures like airports, banks etc. The agitators for states creation maintain that such an exercise will create an opportunity for the marginalised people or ethnic groups to have access to power. They also maintain that by creating new bureaucracies, it will give mass employment to youths and other qualified graduates.

However, current realities indicate that more states could create more problems than they were meant to solve.

According to the former Governor of the Central Bank of Nigeria, CBN, now Emir of Kano, Muhammad Sunusi II, most of the present 36 States in Nigeria are economically unviable.

Analysing the precarious finances of the states last year, he had said, “Most of the states are spending about 96 per cent of their revenue in paying civil servants’ wage bills. We have created states and other structures that are economically unviable and the result is that we do not have funding for infrastructure, education, health and so on. The unviable status of the existing states has therefore vitiated the argument for more states. Almost all states depend on the Federation Account to survive, and this dependent nature of states makes them subordinate to the Federal centre and negates the Federal principle of local autonomy”.

He had noted that because of the large number of sharing units and the lack of independent sources of revenue, the dependence of these units on the Federal government has virtually impinged on their autonomy and hindered their capacity to carry out independent development.

Other analysts also point to the fact that reduction in land space that comes with carving out new state from existing ones, implies a drastic reduction in the economic power and activities of the states.

Addressing the effect of incessant state creation on the autonomy of the state and true fiscal Federalism in Nigeria, former Vice President Alex Ekwueme observed that, “the increase in the number of states has tended to reduce the states to a level where they have virtually ceased to function as component, autonomous and cognate units in a Federal polity.”

Investigations reveal that there are many federations with higher populations, larger land mass, ethnic and other diversities, higher GDP and higher internally generated revenue by the federating units, yet, have less states than Nigeria.

Indeed, if Nigeria were a federating unit in the United States of America, she would have been the 25th state, in the ranking of the US States by their GDP after Louisiana. Nigeria’s GDP is less than five per cent of the US national GDP.

According to Elder Theophilus Ajibola, an educationist, “State creation if not controlled will not move the country forward. States creation is not, in the least, an answer to the myriad problems the country is facing. Previous exercises have never been done from the perspective of bringing government and development closer to the people. Rather, it has been to score some political goals and satisfy particular interests. A constitutional adjustment that will ensure true federalism, rather than creating unviable and dependent states will help develop the nation economically.”

Speaking further, Ajibola said, the states should be allowed to control up to 50 per cent of their resources. “This will reduce the number of agitations for new states because many of the proposed new states have no economic basis to sustain themselves, except their dependence on federal revenue. It will also encourage states to look inward for internally generated revenue thereby diversifying the economy”, he said.

Sunday Mirror investigations reveal that to actually get the government and development to the people, there is need to reposition the local governments, which is the closest tier of government to the grassroots. The local governments are operating under the strangulating control of state governors. They are centers of corruption and mediocrity. The powers and functions of the local government system should be enshrined in the Constitution and their finances ensured.

Some other commentators point to the fact that new state will only end up as additional cost centres, which Nigeria cannot afford.

In a nation where electricity remains epileptic and industries are relocating to neighboring countries for a more efficient operational base, creation of more states will further raise the already high cost of governance in the country.

Each of the states to be created will become a new cost centre to the federation account. The newly created states will need fresh civil service of their own, a legislature, governor, aides to the governor, commissioners, local governments etc. All these are new cost centers to the federation.

At the moment, both the federal and state governments spend close to 70 per cent of their annual budgets on salaries and cost of running the government. There is little or nothing left for infrastructure and other social services. The result is the high level of under-development in the country.

State governments cannot even pay the N18,000 minimum wage approved for civil servants by the Federal Government. As more states are created, the share of the states from the federation account diminishes.

The consensus however is that creation of new states in Nigeria has had both negative and positive effects on the wheels of governance in Nigeria at different periods.

However, despite the present situation, the creation of states in Nigeria has gone a long way in fostering unity, minimising conflicts, and bringing government closer to the people, avoiding domination of the country by one section of the state by another and ensuring a reasonable level of economic development of all parts.

Another impact of state creation in the business of governance in Nigeria is the fact that the practice has enhanced greater political participation by local governments.

As more states were created in Nigeria, grassroots participation in government and development has increased. The people at the local level benefit directly from the creation of states as they feel less dominated within the existing structure.

If the rationale behind the creation of new states is sincere and effectively applied, there would be healthier economic development and effective collaborations among the various tiers of government in Nigeria, as some have argued.

Apparently, the report of the National Conference indicates that Nigerians are not done yet and state creation will likely remain a key feature of political dialogue for some time to come.

START WITH WHAT YOU HAVE WHERE YOU ARE, DO WHAT YOU CAN

STARTING WITH WHAT YOU HAVE

A couple weeks ago I went to Powell’s and heard J.D. Roth talk about taking personal responsibility over your financial life. “No one will ever care about your money as much as you do,” he said.

Very true. And you can say the same about your career, your dreams, your goals, and pretty much anything else that is personal and important. When we stop waiting for someone else to come along and make something happen for us, everything moves a lot quicker.

The reasons we fail to begin are frequently cited as: time, money, or something elseexternal. The reasons we actually fail to begin are often: fear, inertia, or something elseinternal.

It’s socially acceptable to blame our indecisiveness on a lack of resources. Everyone understands when you say you’re waiting for a change in situation before beginning. But in fact, it’s relatively easy to deal with the lack of resources. What’s harder is taking the first, critical steps toward overcoming the internal obstacles.

The act of beginning something is powerful. Putting words to page, setting an unbreakable date on the calendar, making a firm commitment.

Therefore the important question is: How can you start something today?

For a long time I wanted to be a writer. Then I finally realized the obvious: if you want to be a writer, start writing! Writing is free, and no one needs to bestow a title of WRITER upon you to begin writing. The same is true with art, business, travel, and plenty of other things.

If you want to start a business, all you need is one idea. The idea doesn’t need to be big; sometimes small ideas make great small businesses. Think about one thing you know how to do that other people would also like to know how to do. Set up shop as a “very small consultant” offering help with that one thing. Make it easy to get paid. Put a PayPal button on your site and say “I do this thing. Hire me if I can help you.”

Have you ever visited another country, even just one? Chances are, someone out there wants to know how it works: what they need to do before they go, what they should do when they get there, and so on. I certainly don’t have that market covered—go ahead, do that. Become the “untourist” expert on wherever you’ve been. Alternatively, if you have a hometown, you can do the same thing in reverse. Become the world’s leading expert on Minot, North Dakota and find a way to do something with it.

If you want to display your art, start on your street. Almost every one of the coffee shops where I live, including the big chains like Starbucks, hangs art by local artists on their walls. If I were a visual artist, I’d take a day and invest $30 on buying coffee at at least 10 different shops. At every one I’d ask how the artist got her art on display. You’ll probably hear about some manager you need to talk to, so I’d get a card and politely follow-up. I’d set a goal of being in at least one shop every month for the next twelve months. If you live somewhere that doesn’t have coffee shops, go to every restaurant. Or go somewhere. The point is that it’s either free or cheap ($3 coffee) to do this. You can start today.

If you want to see the world, find a way to go on some kind of trip. Here in Portland I see that Alaska Airlines is offering 25,000 miles for any round-trip flight that includes PDX on the itinerary. So if you live here, you take a quick $89 trip to Seattle or elsewhere nearby, and then you have a free ticket to Washington, D.C., Chicago, Orlando, Vancouver, or wherever. Done.

I know that most of you don’t live in Portland, but hopefully you get the idea. These are examples, so as always, if they don’t fit your situation, think about where you are and what you’re trying to accomplish. Don’t look at what you think you lack; look at what you have and find a way to make it work.

And just like with J.D.’s book about money, no one will ever care about your goals as much as you do. Don’t wait for someone to get you started. Start yourself.

What are you trying to do? How can you get closer to it… today?

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Nigeria’s troubled textile industry

BY YEMI OLAKITAN 

The nation’s textile industry has been brought to its knees by a combination of huge infrastructural deficits and cheap imports from Asia. Attempts at reviving the sector through fiscal policy and monetary intervention seem to go nowhere.  Ag, Head of Investigations, Yemi Olakitan examines the issues behind the parlous state of the Nigerian textile sector and the way forward.

The textile industry was one of the booming sub-sectors of the economy in the post independence years. Fed by locally grown cotton and with huge demand for clothing by a fast growing population, it provided direct and indirect employment to hundreds of Nigerians for several decades.

In the golden era of Nigeria’s textile industry between 1985 and 1991, the sector recorded an annual growth of 67 per cent and as at 1991; it employed about 25 per cent workers in the nation’s manufacturing sector.

Some of the textiles companies that enjoyed the boom then include Kaduna Textile Ltd (KTL), Arewa Textiles Plc, United Nigerian Textile Plc, Supertex, Nortex Nigerian Ltd and Finetex Nigerian Ltd.  Others were Gaskiya Textiles Mill, Kano Textile Ltd, Aba Textiles, Zamfara Textiles Ltd, Asaba Textiles Ltd, African Textile Mill Plc, Tofa Textiles and several others.

In that period the functional textile companies numbered around 180, employing about a million people, it accounted for over 60 per cent of the textile industry capacity in West Africa, empowering millions of households across all the geopolitical zones of Nigeria.

The story however changed in the early nineties and the sector took a massive dive into an industrial abyss. At a point during the crisis in the sector, from about 180 thriving textile companies, the number came down to almost zero, with textile giants such as United Nigerian Textile Company bowing to the pressure imposed by a hostile operating environment.

The Federal Government in 2009 set up the N100bn intervention fund for the textile industry. The Textile and Garment (CTG) Intervention Fund is managed and disbursed by the Bank of Industry (BOI). However, the fund is yet to bring the textile industry back to his former glory.  According to the Coalition of Closed Unpaid Textiles Workers in Kaduna an estimated 600, 000 people are still rendered jobless in the industry.

These companies began to close down one after the other. Some of the Textile firms that have closed down most recently include the International Textile Industry (ITI) with factories in Isolo and Ikorodu, both in Lagos, with 800 people losing their jobs. First Spinners Limited, Ikorodu, Lagos, with about 500 employees; Bhojr Textile Industry with about 700 people and Reliance Textile, Ikeja, Lagos, with about 500 employees have also folded.

The list also includes Fahibdayekh in Kano, with more that 1,000 people sent into the labour market and Atlantic Textile Mill also in Lagos, which finally closed in 2008 with about 800 people losing their jobs.

Sunday Mirror investigations reveal that the loss of jobs in the sector hit about 100,000 when the largest textile company in the country, the United Textile Mill in Kaduna State closed down with about 5,000 people forced into the labour market. The collapse of the industry was driven largely by smuggling at the borders, failed government policies, high cost of doing business arising from high-priced raw materials, energy costs, and a plethora of challenges, which plagues the investment climate in Nigeria.

In 1995, World Trade Organisation, WTO, adopted certain agreements on Textiles and Clothing, chief of them was that that all allocations on textile and clothing will be removed among WTO member countries. The main beneficiary of the policy was China. The global textile market is said to worth more than $400bn at present. According to China Customs, the export value of China’s textile and garment alone amounted to $206.5bn.  The Nigerian textile industry was one of those that suffered, because of the cheap exports from China. Nigeria used to be the major supplier of (Ankara) good quality wax-resist textile. However, in the early 2000s, cheap imitations of these products were produced and exported from China to West Africa. Some would be slapped with Made-in-Nigeria labels and then sold in Nigeria.

Investigations reveal that Nigeria imports about N300bn worth of textiles and garments annually according to the National Union of Textile Garment and Tailoring Workers of Nigeria. Most of the textiles and garments were imported without paying the required duties and taxes. Smuggled textiles have taken over 90 per cent of the Nigerian market.

A garment and clothing trader based in Lagos Island, who spoke with Sunday Mirror on the subject confirmed that most of the textile been sold in the Nigeria market come from China.

According to her, some are imported from Pakistan and Dubai. She was quick to point out that buyers also prefer foreign materials because of superior quality. “If the buyers demands foreign products we cannot deny them the right to have them because we are in the market to make money. The global textile and garments industry is very competitive and Nigeria cannot live in isolation. Nigerians travel and they see what they like. There is always a demand for foreign materials. Nigerians are fashionable people.  Though, I also sell Nigerian textile; it depends on what the customer wants, it is not all about high cost of production alone. Demand and supply contribute to the market situation,” she said.

Investigations have shown that most of the substandard textile goods in the country, which are mostly from China, are smuggled into the country from neighbouring countries like Benin Republic and Niger Republic.  Most worrisome is the fact that some of the imported products are of inferior quality.  Reports say, some of the people behind the smuggling of textile products are employees and operators of the textile firms that have closed shop in Nigeria. Some of them have found an abode for the trade in the North, using Kaduna and Kano as bases.

According to the Secretary General, National Union of Textile Garments and Tailoring Workers of Nigeria, NUTGWN, Comrade Isa Aremu, “Smugglers have disregarded the government’s orders banning importation of finished textile products by sneaking them through the borders into Nigeria”.

Aremu said that in order to reposition the sector, the issue of funding needed to be given more priority.  He said the current N100bn textile intervention fund should be increased to about N500bn and made available to the operators in the sector at zero per cent interest rate, which should be repaid within 20 years.

He pointed out that no fewer than five textile companies in Lagos State have stopped production in the last five months. One of such, Bhajaraj (with an estimated staff strength of over 1000), closed operations. The four firms that have joined the long list of moribund textile manufacturing firms in Nigeria are Four Spinners located in Ikorodu area, ITI factories in Isolo and Ikorodu and Reliance Textiles.

The five companies were all based in Lagos and employed about 9,000 people. The sad news, however, is that some of the textile firms that are closing shops in Nigeria are shifting operations to neighboring West African countries. Some of the countries that are benefiting from the fall of Nigeria’s textile industry are Sierra Leone, Ghana, and Guinea among others.

The President of the National Union Textile, Garments and Tailoring Workers (NUTGTWN), Comrade Oladele Hunsu, said the textile industry in the 1980s used to be the second largest employer of labour after the federal government. “However, over the years, there was a steady decline in operations of the textiles firms and then an eventual collapse of the industry, which has led to loss of jobs, dearth of skilled manpower, low capacity utilization and drop in government revenue due to lack of excise duties”, he noted.

He called on the government to engage Asian government on best trade practices and chart a new course for reviving the textile industry.

Speaking further he said the Federal Government was losing about N75bn annually on customs duty and Value Added Tax as a result of smuggling of textile materials into the country stressing that the performance of the textile industry remained at low ebb in 2014 due to lack of enabling environment and inconsistency in government policy.

According to the union leader, the capacity utilisation in the industry remained below 50 per cent and the growth had been stagnant. Cost of manufacturing textiles in Nigeria is high and this gives room for cheap foreign goods. The price of gas was increased by 15 per cent from January 2014; adding that the price of black oil remained high due to scarcity. It stated that textile industry deserved concessional pricing like other industries such as cement, saying that government’s response, however, has been inadequate.

While commending the Federal Government for the intervention fund set up for the textile industry, but noted that financing was just one out of the numerous challenges facing the textile industry. He pointed out that the key problems of the sector remained infrastructural inadequacy, raw materials shortage, unreliable electricity supply, and smuggling, counterfeiting, faking, among others.  There is also lack of patronage of made in Nigeria textiles due to lack of effective policy enforcement. Indeed, most government ministries and agencies such as police, customs, immigration and army still prefer to use imported fabrics for uniforms rather than sourcing them locally.

Other African countries have been highly supportive of their textile industry to improve their competitiveness. Ethiopia, for example, had attracted foreign direct investment in the textile and garment industry in recent years creating 28,000 new jobs as a result.  Ivory Coast had one large textile mill; its government however had taken effective steps to check imported counterfeit textiles to protect local industry. Ghana on its own part had three large textile mills and only allowed import of all raw materials, dyes and chemicals and spare parts at zero per cent duty. The union called on the Federal Government to take necessary measures and put in place similar policies that would support and protect the nation’s textiles industry.

Speaking with Sunday Mirror on the subject, President, Nigeria Textile Manufacturers Association, Olarenwaju Jaiyeola, attributed the problems of the textile industry in Nigeria predominantly to infrastructure.

“If we address the problems of infrastructure, half of the problems plaguing the sector would have been solved. The problems of electricity, high costs of production are very basic problems facing the industry.’’

According to him, the smuggling of cheap textiles from abroad, which the local industry is unable to compete against, higher costs of production, high interest rate, and dumping of cheap Chinese wax and African prints, power failure and high cost of fuel are the problems have been identified time and time again.

“The rising cost of Automotive Gas Oil, AGO, popularly called diesel has teamed up with failing infrastructure to put the final mix to make operation difficult for the surviving textile industries in Nigeria even the current epileptic supply of electricity leaves manufacturer with no options than running a generating plant. Take, for instance, a textile company consuming one million litres of diesel in a month and three million litres of fuel oil a month, the increase in the prices of the fuel will definitely reflect on the price of their products. How then can local companies compete with the cheap materials coming from China? The deterioration in the sector can also be blamed on the weak linkages in the value chain,” he said.

On the Intervention Fund, he admitted that the Fund has stabilised the situation.  He said, “The fund has not established new factories though, but it has brought some life into the industry. The problems of smuggling and counterfeiting are still robbing us of the expansion we would have enjoyed and cheap imported products still continue to litter the country. These problems are so damaging such that those who have taken the loans could not pay back. Foreign companies have dominated the scene. The cost of electricity is very high. Costs of production are generally very high.”

The Bank of Industry has said about N60bn has been disbursed to various beneficiaries under the intervention scheme and had resulted in the re-opening of United Nigeria Textiles Limited in Kaduna.

According to the bank, “Over 8,070 jobs had been saved through the intervention, adding that capacity utilisation for most beneficiaries has increased from below 40 per cent to about 61 per cent at the time while over 50 per cent of those making losses has started reporting profits.”

On the issue of local patronage, he noted that a bill has been sent to the National Assembly on the matter and the bill is there since 2003.

“As you know we are in a democracy, the bill is following the process, it has gone through second reading. It is because the problem of local patronage has not been backed by law that is why all the agencies of government are still doing whatever they like otherwise we would have seen a remarkable improvement in the industry. The central point of the bill is that all the agencies of government should patronise the textile sector for their clothing and textile needs. The bill says before you look outside look inward first. There is a ray of hope that when the bill is passed the textile industry will further improve to an extent,” he said.

Speaking further, he emphasised the gains of the intervention of the Federal Government through the Textile Fund, which he said had significantly assisted in reviving some of the dead textile companies. He however urged the government to give additional incentives to the textile manufacturers to enable them increase their productivity and create more jobs for Nigerians.

According to him, the production of cotton for domestic utilisation and exports should be strengthened, adding that existing players in the sub-sector should be supported to expand their current operations in order to attract strong brands as well as enable operators to set up local manufacturing plants in the country.

Speaking with Sunday Mirror, Director-General, Lagos Chamber of Commerce and industry, Mr. Muda Yusuf, said, “The problems with the Nigerian textile industry is high cost of production, smuggling, technology, and logistics. All these factors have led to the collapse of the industry. The fact is that the global textile industry has moved on from where it used to be years ago and we can no longer compete with bigger brands. We cannot continue to use obsolete technology and expect to compete effectively with the rest of the world. It has now become survival of the fittest.  There is also no enforcement of fiscal policy to ensure protection of the industry. The whole country is flooded with substandard and even contraband textile materials. The exchange rate and even the interest rate are not helping matters. What the Federal Government has done is throw money into the industry. The intervention fund alone cannot help matters because it is not a money problem alone. As long as the problems remain and if the cost of production is as it is, we cannot compete globally in the industry. If the enforcement of fiscal policies put in place for the protection of the industry is effective then there would be satisfactory changes.

The Federal Government itself needs to patronise the industry. Look at all the police uniforms, military and paramilitary uniforms that government procures from abroad. If there is a policy that says that they must patronise Nigerian textile companies, it will keep the industry busy and then this will in turn create employment for thousands of Nigerians. It is not a question of throwing money at them; some of the companies are already facing receivership. When you collect money from a bank and you cannot pay back, they are going to come after you. They will collect all the assets of your company and this will further weaken an industry that is already on its knees.”

According to the Yusuf, the Chamber of Commerce had met with government agencies on these issues but nobody is implementing these policies. “This has further contributed to the situation we found ourselves,’’ he said.

The Lagos Zonal chairman of Nigerian Textile Workers Union, Godspower Irobo, said the folding up of textile industries in the country poses a major threat to government’s efforts to reduce unemployment among Nigerians.

He disclosed that over a huge percentage of commercial motorcycle riders are textile workers that were disengaged by the moribund firms.

“It is difficult for a textile worker, especially those in production line, to adapt to other fields. It is also difficult for them to begin their own businesses because they do not have enough resources to do so. So, most of them end up as commercial motorcyclists,” Irobo said.

Adebola Fayemi, CEO of Fayemz Fashions Label, said the major challenge that we face in the industry concerns the lack of basic infrastructure particularly inadequate power supply.

He said, “What affects me the most as a designer is power. I donate half of my income to power generation. We are on diesel all the time. If the government must help the textile industry which is directly linked to the fashion industry, they must improve power supply.  This is what will benefit every entrepreneur and have a multiplier effects on the economy because there will be jobs. If entrepreneurs do not spend their money on power generation, the cost of production will be greatly minimised. This is the major obstacle that most Nigerians face. If government can take effective charge of power and provide adequate power supply, then we can concentrate our creative efforts on other areas, which will contribute immensely to the growth of our national economy.   The way I see Nigeria and this includes everybody, I see a malnourish child who has tremendous potential but is not flourishing. Nigerians are very resourceful even with the situation Nigerians have shown that they can perform wonders; given a conducive environment. Look at our Ankara textile materials, which for many years were a favorite of designers in runways all over the world in the fashion industry.

Our textile factories started manufacturing it in the 80s but it has been highjacked by Asian companies. Some have even claimed that it did not originate from Nigeria and that it was somehow imported from Asia to Nigeria and that we copied it from them. This is because of the stagnancy in the Nigerian textile sector. If the industry had continued to grow at the rate it was growing in that period. No one could say that.   The solution is clear infrastructure, infrastructure, and infrastructure.” he said.

Mrs. Fadekemi Ahmed, a textile and clothing trader on Lagos Island, also pointed out that the problems of the textile industry are that there are too many Chinese materials in the market and they are often cheaper than Nigerian made textile materials. “We don’t know how those Chinese manage to produce them at such cheaper prices. It is not true that the imported clothes are inferior quality. I can tell you that many of them are of very good quality. When you have a good quality product at a cheaper price imported massively into the country, who wants to buy another product with a lower or equal quality but higher prices even if it is produced in Nigeria by Nigerians.”

On how she gets her goods, she said, ‘I don’t travel out to import them myself; they come here to supply me. I have heard that some people travel out to bring their goods. I don’t, I have people who supply me. The business is good.”  She explained that government should do what it should do to help the industry as “we will take goods from whoever is profitable since this is where we get our daily bread.

“I have been in this business for the past 10 years and this is what I use to send my children to school”, she said.

All hope may not be lost for the industry as falling oil prices have again underlined the need for economic diversification. The issue has also featured in ongoing election campaigns.
President Goodluck Jonathan during his campaigns efforts for 2015 elections has made a pledge to revive the textile industry one of his cardinal focus.

According to him, he hopes to generate employment and boost the economy through that sector. At the PDP presidential election rally held in Kaduna, the President had said, ‘With improvement in power supply, we will work closely with farmers and manufacturers to ensure that the textile industry is back to life, thereby reclaiming his lost glory.”

The governorship candidate of All Progressive Congress, APC, in Kaduna state, Mallam Nasir El-Rufai also assured that if elected, his administration will revive the moribund Kaduna Textile Limited and other collapsed factories in the state.  Analysts say, these comments show that government is fully aware of the problems in the sector and that one can only hope that the campaign promises would be fulfilled.

The growing industry of street begging

By Yemi Olakitan 

The issue of street begging in major cities of Nigeria is a worrisome subject to many, particularly in Lagos, Onit

sha, Kaduna and other major cities of the Northern states. It has become a common phenomenon for beggars to eke out a living on account of one physical disability or the other. Some use babies to attract sympathy while others pretend to be stranded and in need of help. Ag Head of investigations, Yemi Olakitan examines what is apparently a multimillion naira “industry”.

The issue of begging in Nigeria is a long standing social phenomenon, which in certain places especially in the North, cuts across generations. It is usually tolerated based on religious or cultural beliefs that often dedicate an obligation to help the poor.

However, it has been established that begging has a negative implications for the economies of the cities, the environment and the beggars themselves.

The growing population of beggars in Nigeria constitutes a blemish or environmental nuisance and a health hazard, particularly those carrying infectious and contagious diseases. Some scholars argue that begging has serious implications for Nigerians and the economy as beggars are not productive and contribute nothing to the economy.

Beggars portray a bad image to visitors, tourists and foreign investors and unless government develops a practical policy that will cater for the welfare of the poor and remove beggars from the streets, they will continue to pose a problem to the society. The situation is also dangerous because criminals disguise as beggars to perpetuate evil deeds. The story is still fresh in mind of the notorious cannibal, Clifford Orji, who pretended to be mad, waylaid and murdered many people right in the middle of Lagos and ate their body parts or sold them for ritual purposes.

He was reported to have died in prison while awaiting trial.

However, beggars continue to be part of the Nigerian society. Lagos, the commercial capital of the country has a large share of the nation’s beggars. In Lagos, beggars can be seen in very corner of the state. At most strategic roads, many with some form of diseases are carried and put at the center of the road with men and women with sacks in their hands soliciting for money.

Religious places of worship are one of the favourite places for beggars in Lagos.

According to Deaconess Shola Abimbola of the Global Church of the Living God, “In Lagos, it is not uncommon to see beggars in various religious centers particularly churches. There are people who come to church, well dressed and looking well and what they do every Sunday is to beg for money.

“I think Lagos is a preferred destination for beggars in this country and many of the beggars you see on the streets are not even Nigerians. They are from neighboring countries such as Niger, Chad, and Cameroun.”

Friday prayers at the thousands of mosques scattered across the country are also targeted by beggars, who capitalise on Islamic injunctions concerning alms to beg from Muslims.

However, the authorities are not happy with the situation.

In 2013, the Lagos state Government launched a war against begging in the state Governor Babatunde Fashola vowed to eradicate all forms of begging.

The governor stated that the law against begging must be enforced to ensure that beggars were stamped out of the streets of Lagos, as their activities constituted nuisance to the public and the government. Fashola, said there was no reason why people should beg for alms on the streets of Lagos when they could easily learn some vocational skills.

“When we say people shouldn’t beg on our street, we mean it. The reason is that begging is not an option here.

Everyone must contribute to this economy and those who have drug problem or illness have the choice to visit our remand homes where we feed them, rehabilitate and treat them.

“So, we have provided a choice and there is a law against street begging and we will enforce it,” he stated.

The governor added that several people had been trained at the vocational centers and had become very useful to the society, stressing that those begging for alms could also make themselves available for training in order to become useful to the society.

He explained that the Lagos State Remand Home and Skill Acquisition Centre, Isheri, was developed over the last years essentially out of nothing.

The governor said the wood work section at the centre was where a lot of the state’s school furniture was being made adding that the boots worn by officials of the Lagos State Traffic Management Authority and Neighborhood Watch were being made at the footwear centre.

“We have been to the refrigeration unit of the centre where they teach them basic refrigeration, maintenance, operational and management skills. The young ladies make foot mats, dresses and all of that.

Other state governors such as Enugu State Governor, Sullivan Chime had vowed to get beggars off the road in his state, saying street begging was an offence under the law.  Governor Abdul Fatah Ahmed of Kwara State also thought it wise to put in place certain measures aimed at discouraging people from street begging.

Reports say more women have turned beggars in Kwara State. These women reports daily in public offices to beg for alms, claiming that they had contributed to the electoral victories of public officers.

According to the law, any person who hawks or wanders about to beg for alms is guilty of the offence while any person who encourages or facilitates any act of street begging is equally guilty.

Besides, any person who contravenes the provisions of the law would be guilty of an offence and would be liable on conviction to a fine not exceeding N5,000 or imprisonment not exceeding three months or both.

The law has defined alms to mean money, food, clothes or other material things. At one of his monthly media chats, Governor Ahmed described as unfortunate, the myriad social problems confronting the country, resulting to a few people going into street begging as a profession.

He said his administration has created a rehabilitation programme under the ministry of social welfare to ensure that a lot of skill acquisition centers across the state are put into use, wondering why many people particularly the beggars have refused to take advantage of this.

The governor noted that the increasing presence of beggars in the state was largely as a result of the evacuation done in other states where they just bundled them into vehicles and dropped them indiscriminately in different locations of the country.

While those states have their own laws to contend with, he said, his state also has its own and would not bend the rules simply because they want to take care of the less-privileged.

He called on beggars to take advantage of the systematic programme government put in place for their rehabilitation; he warned that to take to street begging was to contravene the law as government’s door is wide open to support beggars who seek rehabilitation.

Investigations by Sunday Mirror shows that begging still continues despite the government efforts aimed at curbing it and the laws put in place to arrest offenders. It was found that some of them are controlled by “godfathers” who are entitled to a ‘cut’ of the money they get on a daily basis in return for ‘protection’.

Ezekiel Keith, a Lagosian and social commentator, says begging in Lagos is worrisome. “It is something the Lagos State Government has not succeeded in curbing despite the megacity status of the state, the law and the rehabilitation centers. It is not uncommon to see beggars wherever you turn to in Lagos begging for food or money. You would think that it is because they are disabled but some are able-bodied men and women with no apparent disability except laziness and poverty. You will find them on the streets, bus stops and garages, even children are not excluded. Sometimes, one will see women with children begging for alms, at other times; you may find children running after you, pulling on your clothes asking you for money. These things still go on.”

Some people believe that the Almajiri system practiced in the North has ensured that a high number of children are perpetually on the streets begging for alms. Nigeria’s Almajiris are the worst of beggars. These street urchins are a product of that system and impoverished homes. They are deserted or are turned out from their homes as early in life as age five or six, and sent to  live with Quran teachers in local madrassa also called “makaranta alo” (Arabic schools), which are mostly dilapidated “dormitories” constructed from rotten corrugated roofing sheets or inferior bricks.

The pupils’ learning materials are torn fragments of papers with portions of the Qur’an or small wooden slates known in the Hausa dialect as “alo”. “Alo” is used to write down verses of the Qur’an to be memorized.

The Senate President, David Mark had recently charged Northern governors to ban the ‘Almajiri’ system. He had argued that the Almajiri system is counterproductive and is a breeding ground for miscreants.

According to Elder Theophilus Ajibola, an educationist, Almajiris system is the worst thing that has even happened to the Nigerian child. “This is where children are indoctrinated into another form of Islam by perverted and paranoid Islamic teachers to become violent. These children often grow up to have a negative view of life, it is from such ones that terrorist find willing recruits,’’ he said.

Mr. Babatunde Adisa, a Lagos state businessman, who spoke on the subject, said, “poverty and desperation create the right environment and fertile ground for religious extremism. The only reason why terrorism thrives in the Northern part of the country is because the environment there is conducive for it. Why is it that there is no terrorism in Saudi Arabia or in Qatar, where Islam is the major religion? If you get to these countries, you will think that you are in heaven. The poverty level there is low. Nobody wants to blow themselves up with a bomb there. Beggars should be rehabilitated. Those who can work should be positively engaged in our farms. The Lagos State Government alone cannot handle it. It is a national problem that must be handled from the federal government to the state governments and the local communities”, he said

However, Mohamed Teid, a Muslim activist, said that the religion obliges Muslim to cater for beggars.

“Islam has obliged us to cater for the needy in our midst so that they will have no cause to beg on the streets. If we are truly believers in the teachings of Islam, We will see that the religion has made a number of provisions to cater for beggars. There would be no beggars on the streets if we practice the provision of the Islam. There is Zakat, the compulsory charity that should be taken from the rich and distributed among, or expended for, the needy, to establish its importance, Zakat is not given by the rich but taken from their wealth annually. Sharia would have solved the problems of begging in the North but it was restricted to chasing away prostitutes and banning alcohol”.

Reverend Andrew Akinsuyi, a Nigerian-Canadian, who is also the president of a Christian charity organisation, named Salvation of God Mission, said some beg out of poverty while others are simply lazy.

He said, “In Canada there are beggars. It is a worldwide phenomenon. There are people who are genuinely poor and there are people who are lazy and do not wish to work but prefer to beg. There is nothing you can do to these kinds of people, they will always beg. They may not be physically challenged, begging is in their mentality. It is a disease of the mind.

“Many of these people need professional counseling to leave the streets even if you give them work or a house, they will still go back to the streets. It is a disease of the mind. There is something they do in Canada which I will love to introduce in Nigeria if I have sponsorship for it. They establish food bank for the poor. Individuals and corporate entities donate food items to certain centers and the poor can go there and collect food. It is a very laudable programme and I wish that we can emulate the system in Nigeria. The federal and state government must work together if we must eradicate begging in our nation. They must establish rehabilitation centers, vocational training centers and ensure that every Nigerian, no matter how physically challenged, can be productively engaged. The society itself must not live the work in the hands of the government because the poor will always remain among us. We must all join hands together in tackling the menace by providing training. Rehabilitation, opportunities for beggars and every Nigerian so that they can be removed from the streets”.

However, the Dean of Post-Graduate School, Nigerian Defence Academy Professor Adam Okene, called for synergy among state governors in the northern parts of the country to eradicate the problem of Alamajiri and street begging.

According to him, 30 per cent of children in the North are street beggars, while recent research showed that the North-west geo-political zone of the country accounts for 70 per cent of the beggars in the country.

Perhaps it was in recognition of the disturbing trend that President Goodluck Jonathan initiated about 124 Almajiri Models Schools across the country, especially in the North. He personally commissioned the first set of 35 Almajiri Model Schools constructed by Tertiary Education Trust Fund, TETFund. The symbolic commissioning exercise was done in Sokoto.

These 64 schools that are on stream are those built on behalf of the administration by UBEC. The 64 schools are located at: Adamawa, Borno, Gombe, Bauchi, Yobe, Jigawa, Kaduna, Sokoto, Zamfara, Kebbi, Oyo, Osun, Lagos, Ondo, Ekiti, Edo, Rivers, Kogi, Niger, Katsina, Taraba and Nasarawa States.
This was part of a drive to completely tackle the out-of-school children challenge that is negatively affecting the nation’s overall development.

The consequences of the ubiquitous presence of the Almajiris across the North and in other parts of the country are felt by all Nigerians.

Beyond the construction and furnishing of these schools, the Jonathan administration developed specialised curricula in 11 subjects that are taught in these schools to enhance quick assimilation for the boys. The curricula, which flow with the mainstream basic education curriculum were based on the culture and needs of the Almajiris.
Many have raised fears about the sustainability of this programme.

However, the Supervising Minister of Education Barr.  Ezenwo Nyesom Wike said the directive of the President on continued engagement with stakeholders at all levels will be carried out.
Another important step towards sustaining and expanding the gains of this programme was a memorandum of understanding (MOU) signed between the Federal Government and State Governments on the running of these schools.

It covers the running of the schools, maintenance of infrastructure, enrolment drive, employment of qualified teaching and non teaching staff, provision of uniforms and writing materials and the provision of day-to-day running expenses of the schools.

The MOU also provides for the protection of facilities at the schools, impact assessment after pre-determined periods of operation and submission of quarterly reports by State Universal Basic Education Boards, SUBEBS, to UBEC. The last major component of the MOU is ensuring that sustainable provision for the feeding of the Almajiris in the schools is always on ground.
Also, the Jonathan administration developed and produced a National Framework for the Development and Integration of the Almajiri Education into basic education.

This framework is to serve as a guide to states, local governments and nongovernmental organisations to key into this project aimed at providing quality education to these less privileged Nigerians.

It is however no clear how this programme is being implemented now especially with the raging insurgency situation in the North, which has led to over two million people being displaced from their homes and communities with many already destitute, a factor that is bound increase the population of beggars across the nation.

Oil Theft in Nigeria: The Bleeding Continues

Recent pronouncements by the Federal Government indicate that the nation loses over $1bn monthly to activities of oil thieves in the Niger-Delta region.  The financial and environmental impacts of illegal, industrial scale oil bunkering in Nigeria pose a serious threat to the nation’s wellbeing and require urgent interventions by relevant stakeholders. Ag. Head of Investigations, Yemi Olakitan, examines the subject.

The recent sharp drop in global oil prices has only compounded an already bad situation. With an estimated 400,000 barrels of crude oil lost to oil theft daily, the price volatility in crude futures underlines the dangers confronting the nation’s finances, which is already feeling the shockwaves including devaluation of the naira, adjustments to the 2015 budgets and the looming spectre of a moratorium on new government projects.

The African Development Bank Group had in its African Economic Outlook 2014 listed oil theft as one of the factors responsible for the drop in oil revenue in Nigeria.  The report, which covers 54 African countries, presents the current state of economic and social development as well as prospects for countries in the continent. According to the report, Nigeria had been battling with serious disruptions in oil production and lifting operations occasioned by multiple leaks, pipeline vandalism and oil theft.  It said: “growth of the oil sector was hampered since 2013 by supply disruptions arising from oil theft and pipeline vandalism.”

It said, “Negative growth of the oil sector may also continue to drag down overall growth until a lasting solution is found to the challenges of oil theft.

According to reports, Nigeria is ranked worse than Mexico, Iraq, Russia and Indonesia among the top five countries most plagued by oil theft.  Nigeria’s losses to crude theft are also put at $1.7bn, about N312bn per month, representing 7.7 per cent of Nigeria’s Gross Domestic Product, GDP.

Illegal activities in the oil producing regions range from illegal bunkering, refining and sale of stolen crude and export of stolen crude to the international market. What many find difficult to understand is how vast amounts of crude oil are taken from pipelines and transported via large barges, loaded on ships which then “disappear”.

Only recently, it was reported that the Nigerian Navy destroyed 53 illegal refineries in Ashafama forest in Warri South-West Local Government Area of Delta.

The Commander of NNS Delta, Capt. Musa Gemu, told newsmen in Warri that 53 metric tonnes of crude was burnt during an operation against bunkering. Gemu said the command would continue to fight illegal oil bunkering until the illicit business was completely eradicated in the area.  He warned those engaging in illegal oil bunkering to desist from it or face the wrath of the law. Gemu appealed to the Chief of Naval Staff to dialogue with the management of the Nigerian National Petroleum Corporation to assist the command with smaller boats to navigate narrow creeks.

The naval commander also said his command had on September 18 impounded a large vessel in Dodo River, Delta, with about 540 metric tonnes of stolen crude on board. The 11 Nigerian crewmembers were arrested.  The list of such arrests is endless, but those caught represent just a minute fraction of those who get away with such activities.

Industry experts including oil firms have estimated the volume of oil theft at between 100,000 and 400,000 barrels per day. What is not in doubt is that those involved are largely beyond the reach of the law

Individuals benefitting from the sale of stolen oil do not re-invest in oil exploration or production. The bulk of earnings are diverted outside the country into international bank accounts.  Sabotage to pipelines and flow-stations and careless handling during the bunkering process cause environmental damage to the region.

According to environmental experts, vast areas of the Niger Delta have become polluted with oil as a result of the many spills associated with illegal bunkering and pipeline sabotage while the cost of remediation is mind-boggling.

Traditional livelihoods, such as fishing and farming, have become increasingly difficult if not impossible to pursue.  Alternative jobs, however, have not been created for the largely unskilled and poorly educated residents of the impacted areas.

The Nigerian National Petroleum Corporation, NNPC had repeatedly warned that the acts of illegal oil bunkering in the Niger Delta could expose the region to the worst environmental disaster ever faced in the history of the country. The corporation estimates that the country presently loses over 180,000 barrels of crude oil per day to oil thieves, warning that if unchecked, such criminal activities could cripple the nation’s oil and gas production.

The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Mrs. Zainab Ahmed, was among eminent Nigerians who had raised alarm over the high rate of oil theft in parts of the Niger Delta. She urged government to declare a national emergency to tackle the menace.

Ahmed noted that a recent facility tour of Shell oil exploration activities in the Niger Delta conducted by the NEITI management had revealed “mind-boggling theft of petroleum products”.

“The increasing rate of stealing of crude through illegal oil bunkering activities in the creeks is troubling”, she had said.

Shell, is reported to be the worst victim due to its vast oil and gas assets in the Niger Delta. The company recently came out with a statement lamenting the impact of illegal oil bunkering on its many pipelines.

The justification often given for the regrettable acts is that residents who have no opportunity to earn a legitimate living have more incentive to engage in pipeline sabotage and oil theft. To make matters worse, some of the oil producing communities have developed a new “business model” of demanding monetary compensation for environmental damage, which is usually caused by illegal oil bunkering. Villagers are keen to direct oil spills whether accidental or intentional to their communities for the short-term economic benefit of selling the oil on the local market or claiming damages from the international oil companies, IOCs.

According to reports communities rupture pipelines in order to claim compensation from resultant spills. Communities also form “service companies” which offer “protection” or “environmental clean-up” services.  Some village leaders allegedly charge IOCs for operating in their areas with the threat that if they do not get “settled” illegal bunkering or militant attacks could occur.  Not too long ago, the Niger Delta activist and Chairman of the Itsekiri Regional Development Council, Chief Ayirimi Emami, had slammed oil bearing communities in the region for “actively and passively”  aiding the illicit trade instolen oil.

He said, “The host communities cannot claim ignorance about those involved because those doing it are not ghosts; they are humans who live in the community. So, they are either actively involved or passively, through their acquiescence. Most members of the host communities benefit through handouts and other forms. So, they keep quiet and would not offer information or report the criminal acts.’’

“The security agencies are also involved, it is very simple: Delta State for instance has three exit/entry points. They are at Escravos, Forcados and Ogheye (in Warri South West, Burutu and Warri North local government areas). There is no way a vessel can enter or leave without the military seeing them. If they are not involved how do the illegal bunkering vessels pass?” he queried.

His position was supported by Governor Emmanuel Uduaghan of Delta State who said: “All boats are stopped at these checkpoints. I have been stopped every time I travel in the area. If I, a governor, can be stopped how do the criminals pass unhindered?”

Emami said the technical skills needed to carry out some of the illegal bunkering operation are beyond a layman. He advised the IOCs to look inward in the quest for answer to illegal bunkering.

In a special report in 2009 titled: ‘Blood Oil in the Niger Delta’, activist Judith Burdin Asuni, founder and executive director of Academic Associates Peace Works, had noted that between 30,000 and 300,000 barrels of oil per day is carted away by oil thieves who operate in Niger Delta.

The report, which was also based on information from local communities; members of the armed groups in the region, as well as interviews with U.S., British, Dutch, and UN officials, identified three types of illegal oil bunkering as small-scale pilfering for the local market, large-scale tapping of pipelines to fill large tankers for export, and excess lifting of crude oil beyond the licensed amount.

In 2010 alone, the JTF impounded vessels carrying 724MT of stolen crude. The JTF announced during one its operations that it destroyed about 6,000 illegal refineries across Niger Delta. More than 150 persons suspected allegedly involved in illegal bunkering were said to have been arrested. Also, the Nigerian National Petroleum Corporation (NNPC) also revealed that the task force arrested vessels carrying 1.3million barrels of stolen crude.

The oil workers pointed out that the volume of oil stolen in Nigeria, was more than double the total production of Ghana and could destabilise any government.

What could be a way out of this perennial problem that has defied solution? The Federal Government thinks that lifting the ban on oil bunkering could discourage small scale illegal activity for a start

According to social commentator, Pa ????? Ogunjobi, “The only solution to oil theft in Nigeria is what the President Goodluck Jonathan has done. Jonathan redefined the word bunkering, giving it the actual meaning. Bunkering is not oil theft but the legal business of supply petroleum products at sea. The president had also gone a step further by lifting the ban on bunkering, which is perfectly necessary to create jobs and give an opportunity for companies who desire to the business legally and with transparency in The Niger Delta area”.

Speaking further, Ogunjobi noted bunkering is not really an illegal business what people confuse with bunkering can best be described as oil theft.

“If we combine that with adequate law enforcements and give the people who are willing to do the business correctly the necessary support they need oil theft will soon be a thing of the past. Don’t forget that criminality is a child of hopelessness particularly among the youth. Government must continue to find ways to engage the youth positively in the Niger Delta area in other to arrest criminal activities that are having negative impacts in the economy.

“The resumption of bunkering services in the country will save oil, gas and marine operators the stress of going to Senegal, Cape Verde and Cote D’Ivoire to fuel vessels operating in Nigerian territorial waters and also earn the country some foreign exchange and reduce illegal oil bunkering or oil theft” , he said.

Reports reveal that the business, if properly handled, has the potential to take more than 10,000 Nigerians off the unemployment market. Much of these opportunities are for jobs on Nigerian flagged bunker vessels and licensed firms in a country, where over 5,000 ocean liners shuttle cargoes annually.

Analysts further defined bunkering as the lifting of petroleum products from one point to another with a license. In the absence of bunker stations in Nigerian waters, approved operators largely use boats to distribute fuel in the territorial waters and riverine areas. Bunkering provides fuels such as marine diesel, low fuel oil, lubricants and others to sea craft. Bunkering companies also provide fresh water to vessels at sea.
Unfortunately in Nigeria; oil bunkering has been tied to oil theft. This erroneous position was perpetuated by senior government officials in relevant agencies helped by the media and this has robbed the country of legitimate foreign exchange earnings in the legal business of bunkering.  It is not unusual to find reports in the media claiming that Nigeria loses billions of dollars annually to ‘oil bunkering,’ whereas the alleged loss was due to oil theft or illegal bunkering.

Navy Captain S. O. Ayeni, head of the Directorate of Marine Services, Nigerian Navy, however, warned that any ship that must bunker in the country’s territorial waters must fulfill the requirements of the Navy.

“The operator will be expected to present to the Nigerian Navy headquarters, an application for bunkering clearance, detailing the vessel involved, location of bunkering operation, or discharge point, quantity of bunker fuel and duration of the operation.”

Operators must obtain licenses and certifications from the DPR and the Nigerian Maritime Administration and Safety Agency on the quality of the products and the vessels.

It was in 2014 that the Director, Department of Petroleum Resources (DPR), Mr. George Osahon announced federal government’s decision to return oil bunkering business activities in Nigeria’s territorial waters as a legitimate business.

Historically, bunkering started in Nigerian waters as a legitimate business with licenses issued by the DPR in 1979. But by 1984, the business was stopped by the General Ibrahim Babangida administration due to abuse in the system. At that time, crude oil theft was beginning to rear its head in the country and it was believed to be perpetrated by firms engaged in bunkering.  General Babangida’s answer to the problem was to place a total ban on the supply of bunkers to vessels on the waters; an action experts say is tantamount to throwing away the baby with the bath water.  Chief Olusegun Obasanjo tried to resuscitate bunkering services in Niger Delta area where operation license was pegged at $60,000 (about N7.5m then). The then Information and Communication Minister, Frank Nweke Jnr, said that the revocation of the ban became pertinent due to the decision of government to strengthen the capacity of its appropriate institutions to manage and supervise that aspect of operations in the oil sector, which was expected to rake in about $1 billion yearly into its coffers.

However, somevessels that required bunkers were supplied through the black market, while those that could not patronise illegal supply channels due to issues of corporate governance guarding their operations resorted to neighbouring countries to fill up their tanks.

The lifting of the ban on bunkering is expected to have reasonable positive effect on the economy and oil theft. New companies will come up to render bunkering services and a lot of Nigerians will be engaged directly and indirectly by these companies.  Players in the endangered indigenous shipping may have to look the direction of bunkering as it is related to their original business.

The DPR Director, Mr George Osahon says the resumption of bunkering operations in the country will generate revenue for the government and create employment opportunities that will buoy the economy.

President of Nigeria Indigenous Shipowners Association, NISA, ????? says there are still a lot to be done to ensure that the business is not messed up again.  Operators involved in bunkering services and using Nigerian-flagged tankers are also required to show proof that appropriate duty was fully paid, while vessels leased from abroad must obtain temporary importation permit from the Customs. This is the position of the Nigeria Customs Service (NCS).
The Deputy Controller, Operations, Eastern Marine Command, NCS, Port Harcourt, Mr Edorhe Elton says, bunkering vessels must not leave the Nigerian territorial waters, whether they were home-used or leased.

Conveying President Goodluck Jonathan’s approval to stakeholders in Lagos the Director, Department of Petroleum Resources, Mr. George Osahon, described bunkering as a downstream business involving the fuelling of ships of all kinds on the high seas, inland waterways and within the ports. Usually, the fuels supplied include Automotive Gas Oil or diesel, Low Pour Fuel Oil and recently, Liquefied Natural Gas.

“Bunkering as a legitimate business line should not be confused with illegal trade in stolen crude for which the same term has been freely used in the Nigerian lexicon,” he said.

Potential beneficiaries from the resumption of bunkering operations, , include fishing trawlers, LNG tankers, Very Large Crude Carriers, Ultra Large Crude Carriers, coastal tankers, bulk cement cargo carriers and bulk wheat cargo carriers.  Others include General Cargo Carriers, container carriers, Floating Production Storage Offloading vessels, FSO, rigs supply vessels, tug boats and marine support vessels and other offshore oil facilities.

The Executive Director, Anyiam-Osigwe Group, the parent company of Nuel Energy Limited and PSTI Oil & Gas, which is involved in bunkering operations, Mr. Michael Anyiam-Osigwe, said, “The bunkering business was suspended for quite some time because there is a misconception about it in Nigeria. When we talk about bunkering, people think it is an illegal activity and this is not correct because when you steal crude, that is not bunkering, it is crude oil theft. If you are doing illegal bunkering, it means you are engaged in bunkering operations without a licence.”

In an attempt to explain what led to the widespread misconception about oil bunkering in the country, Anyiam-Osigwe, said, “What I suspect is that when people steal crude oil, they use vessels to sell it to other ships on the sea. So, that becomes illegal bunkering because you are not licensed. It is also oil theft because you have stolen the crude and you are selling to users as though you are bunkering. This is because once you are doing a ship-to-ship transfer, it is called bunkering. In other words, once a smaller ship is pumping petroleum product into a bigger ship, that is how bunkering operations work.”

According to the Chief Executive Officer, Ships and Ports, Mr. Bolaji Akinola, an average of 5,000 sea-going vessels tie up at various Nigerian ports every year. Bunkering will open up the business and help in curbing the menace of oil theft.

Some have argued that bunkering is another way of saying that oil stealing should go on, Lagos lawyer, Barrister Muniru Shittu said, ‘such critics do not understand the issues at stake. Bunkering will hopefully reduce or eradicate oil theft in its entirety. The added advantage is that it will create employment for the teeming population of Niger Delta youths some of whom, despite the amnesty has insisted on profiting illegally through oil theft. Bunkering gives them an opportunity to stop stealing and to do dome thing positive, legal with their lives which will give peace of mind to everyone involved and also bring progress to the nation.”

Speaking further, Shittu said, “We cannot say that since the ban on bunkering was lifted oil theft has stopped, No, it is not an overnight job but one thing that is sure is that there is hope that, as more and more people enter the business and since they can buy oil legitimately and sell at a reasonable profit, the problem of oil theft or illegal bunkering will soon be forgotten.

According to him, “The people of Niger Delta should respect the memory of environmental activist Ken Saro Wiwa and stop the menace. They should embrace the opportunity offered them by the administration of President Goodluck Jonathan. They should apply for the licenses and do clean business, this is what will bring meaningful progress to our nation, end oil theft and clean up our environment.”

However, with the huge profits reaped from oil thefts and failure to arrest and prosecute the big fish mired in the “business”. The likelihood is that it will be business as usual until the right political will to end the bleeding of the nation.