Date Published: 09/27/11

Nigeria Lacks Strong Institutional Framework--Jonathan

President Goodluck Jonathan has blamed Nigeria’s woes on lack of strong institutional framework.

The President, who was speaking at the 51st Independence Anniversary Lecture with the theme, “Nigeria in Transformation”, at the Ministry of Foreign Affairs Auditorium in Abuja, noted that if the appropriate institutions were in place, the system would work well.

Besides, he said, his style of governance will not change – as he did on Sunday.

Even if the President is not available for months, the administration of the country would not suffer as ministers could continue to execute their briefs, he said.

“So, I normally say that ‘look, when we strengthen our institutions, the system will begin to roll properly. I used to tell people in my office that ministers don’t need to see me, if the system is working well. Even if I am sick for six months, ordinary Nigerians will not know the President is sick because the system is supposed to run.

“Ministers have budgets approved by the National Assembly for them to run their ministries, their recurrent and capital projects. So, even if a minister does not see Mr. President for four years, that minister is competent and can run the ministry in a way that Nigerians will know that we are moving,” he said.

Jonathan also argued that now, almost everything requires the President’s intervention because things are just beginning to be done differently. “Now, we are in the process of that transformation. By the time we finish setting up all these structures, surely Nigeria will get to where we are all hoping that we will get to. I have no fear about that,” he said.

The President cited the acclaimed success of the last general elections, attributing it to the strengthening of the Independent National Electoral Commission (INEC) and the security agencies.

He said: “I did not conduct the election. I participated in the election. So, I did not play a role, but because we strengthened INEC and we strengthened the security services, they were able to conduct an election that the whole world accepted.”

The President lamented that Nigeria’s oil resources have been a source of corruption. He said in the next 10 years, attention would shift away from the extractive industry and the government would be able to block leakages and run without depending on oil.

“If you look at the size of Nigeria, all the general import that come into Africa, about 20 per cent of them come into this country. If we have well managed ports alone, the income we receive as a government from the trading activities alone will be enough but we are still running a deficit budget because there are a lot of leakages. Things are not being done properly,” Jonathan said, adding:

“Some goods that are supposed to be cleared through Nigerian wharves are being cleared through other countries and smuggled into Nigeria. We consume all those goods here but we cannot clear them through our wharves. They have to be cleared through neighbouring countries and they will transfer them through all kinds of means to Nigerians for us to consume.

“If we fix a number of institutions that we must fix, it may be painful, but we have to do that. People will complain that politics is being used but it must be done. By the time these institutions are fixed, I believe in the next 10 years or so, we should be able to run our economy without oil.”

On the bad perception of the country outside, the President said it is the responsibility of all Nigerians to paint a good image of this country.

He also insisted that he would not wield the big stick as being pushed by some critics.

But he promised that his administration will ensure that institutional structures are put in place as part of the transformation, adding that he is trying to do things differently with the objective of developing the country.

Said the President: “As the current president of Nigeria, I said ‘yes, we are moving this country forward and we are trying to do things differently, not by Mr. President carrying a big stick and breaking the heads of all corrupt people; to be breaking the heads of all civil servants that report to work by 9am’.

“I was told that you rarely see people going to work by 8am, even though the period of service is between 8am – 4pm. How many directors come to work by 8am? I’m not sure 10 per cent of your directors come to work by 8a.m., not exactly.

“I’m not going to chase them by carrying a big stick, going into the ministries and breaking the heads of the people, but I believe that for us to get to where we want to go as a nation, we have to build strong institutions and when we build strong institutions, this institutions will drive the process.”

Guest speaker, Richard Dowden gave a frank assessment of the country and identified five key factors impeding Nigeria’s development.

The discovery of oil, he said, is a curse rather than a blessing, simply because Nigerian leaders have failed to invest for future generations.

He identified corruption, flight of human capital, the country’s reputation and politics as other factors that have held Nigeria down.

He, however, said if the lapses are addressed, this country would get to its potential.

Dowden, who is the Director of Africa Royal Society, spoke on Nigeria in Transformation.

He noted that Nigeria, at Independence, had a trade surplus with the United Kingdom and substantial reserve.

“In 1970, oil was only 60 per cent of export. By 1982, it was 99 per cent of export and almost the same proportion of fiscal revenue. Almost all other exports, like cocoa, rubber, cotton and groundnuts, had been wiped out,” Dowden said.

He said between 1970 and 2001, per capita income fell from $264 to $256 in constant dollar rate. By 2000, Nigeria became an oil-rich deeply indebted country and the vast majority of Nigerians became poorer. Dowden concluded that oil is a curse to this country.

Comparing Nigeria with other countries, such as Indonesia, which shared a similar socio economic and political experience, Dowden posited that it was unacceptable that Nigerian politicians are the highest paid in the world, with $1million as salary and $1million in expenses while the country accounts for over 10 percent of maternal and child mortality as well as 10 percent of the world’s ‘children who are out of school.

He also said between 1970 and 2008, illicit financial outflows from Africa were $854billion, with Nigeria accounting for $89.5billion.

On the role of politics, Dowden said. Nigeria and much of Africa have followed the wrong economic policies for political reasons, adding that “this has accounted for the over 100 million Nigerians living in poverty, which is a quarter of the total poverty in sub-Sahara Africa”.

After oil and corruption, which are closely linked, Dowden pinpointed the country’s bad reputation as another major problem inhibiting inflow of investors into this country.

“I would say that Nigeria’s reputation in the past still puts off investors and tourists,” Dowden said.

He also noted: “What I see here is that perceived or real unfairness in the system of resource allocation has led to fierce competition for success - or just survival. I would say that the competitive, creative spirit this creates is far more powerful than in any other country in the world.”

On the country’s reputation, he suggested that the issue is not about rebranding, but addressing the reality which, according to him, will change the reputation.

“Don’t try change the image. Change the reality; the image will follow. There is nothing worse than PR that goes wrong. You end up with the stereotype even more entrenched. So, the word is reputation-your record based on experience. Change the reality and the reputation will change itself. The brand will follow,” Dowden advised.

He warned that if the upcoming generation of Nigerians is unable to fulfill their potential, the country stands the risks of experiencing mass revolt.

Dowden urged the government to build strong institutions that will ensure consistency and continuity in governance, adding:

“Think of development as a project, not for next week, but for your great grand children. But start now.”