On Wednesday the 29th of May 2019, the Federal Republic of Nigeria again swore in President Muhammadu Buhari for a second term in office. For many Nigerians, the administration’s return to power presents an opportunity for it to consolidate many of its reform agenda.
Muhammadu Buhari GCFR is a Nigerian politician currently serving as the President of Nigeria, in office since 2015. He is a retired major general in the Nigerian Army and previously served as the nation's head of state from 31 December 1983 to 27 August 1985, after taking power in a military coup d'état.
This piece argues that given the multifarious challenges that the new Nigerian Federal Competition and Consumer Protection Commission (FCCPC) already faces, i.e, from Nigeria’s status as a developing country, the commission can take advantage of the institutional openings presented by the new Nigerian regime, to advance its objectives.
Importantly, beyond the technical issues of the necessity of a competition culture, and resources, for the efficacy of the new Nigerian competition law, the broader administrative law context of Nigeria is also relevant. Here, the newly re-inaugurated Nigerian administration presents some key opportunities, the Nigerian agency can utilize.
Specifically, the generally accepted denominators of a successful competition law are the relevant social norms of competition; the requisite resources to sustain or galvanise the framework, when it is introduced, and the appropriate legal structures to interface with the enacted law to actualise the law’s objectives.
For example, concerning the social norms, the relevant social practices that priorities the acceptability of ‘competition’, as a market value, and necessitates its inclusion in the relevant markets, contribute highly to the success of a competition law. In the key jurisdictions where the law has flourished, the broad-based social acceptance of ‘competition’, as a desirable social value, and the norm by which the market ought to be regulated, greatly advances the purposes of the jurisdictions.
In the US, for example, the country’s anti-trust law was originally inaugurated on, and continues to be sustained by, a social acceptance of competition over the grip of ‘cartels’. Similarly, in other jurisdictions, the success of the regimes draws from the broad-based social acceptance of ‘competition’, i.e., over other forms of monopolistic tendencies, especially, by the relevant societal actors.
Concerning resources, the availability of the requisite human and financial resources, for the enforcement of a competition law, forms the bedrock of the efficacy of the law. Similarly, the appropriate legal framework refers to the complimentary ancillary rules and procedures that will assist the enforcer of a country’s competition law achieve its aim. A good example is the existence of plea bargaining in the US. However, beyond the above ‘technical’ requirements, for a competition law, other societal components are also relevant. They include the overall, broader, societal ‘space’ within which the adopted law of a country will operate, and the absence of corruption to ensure that the introduced law will be free of hijack and distortion.
The relevant broader social space or ‘culture’ refers to the broader social perceptions that guide the general attitudes of citizens towards the laws of a state (or how the citizens perceive the overall legitimacy of a state’s laws to be), and the absence of corruption refers to the bedrock or institutional ‘normalcy’, of a state, that guarantees the long-term success of its laws or frameworks.
In Nigeria, the condition of the above parameters, before the ascension of the current government, is documented. Especially, within previous regimes, a pervasive and institutionalised dissatisfaction, with the government, and the process of governing, existed in Nigeria.
A 2012 report submitted to the United States Congress by the Secretary of State John Kerry has alleged massive corruption at all levels of the Nigerian government.
Also, a concretised and largely unchallenged, grand, form of corruption was also the norm. The first (disaffection) flowed from the absence of genuine and targeted pro-poor programs, in the previous administrations (or the failures of the same where they existed), and the latter (corruption) arose from the complicity of the governments, in the vice of corruption, coupled with the manifest lack of punishment for corrupt figures where they were discovered.
However, with the current administration (while by no means perfect), a huge chunk of the regime’s popularity has arisen from its demonstrated willingness to interrogate the above status quo. Specifically, two areas where the government has been successful, include its pro-poor social agenda and the regime’s war on corruption.
In the first case, for example, following the regime’s inauguration, in 2015, the administration introduced various social measures to combat the almost institutionalised sense of inequality in Nigeria. Examples of measures introduced by the regime include the Nigerian Social Investment Program (N-SIP), consisting of the N-Power program; the Home-Grown School Feeding program, and the Conditional Cash Transfer scheme meant to assist petty traders, university graduates, NCE holders and less-privileged Nigerians.
Other schemes also include the Nigerian Industrial Revolution Plan—that established the Nigerian Industrial Policy and Competitiveness Advisory Council, constituted of the government and key private sector representatives at the highest levels of the country; agriculture sectoral initiatives—including the Nigerian Anchor Borrower’s program, operated by the Central Bank of Nigeria and kicked off to assist subsistent and industrial farmers improve their quality of living and reduce Nigeria’s dependency on imports, and the Special Presidential Committee on key commodities, set up to effectively strategise the Nigerian government’s efforts in the area. The government has also embarked on a wide range of infrastructural developments to foster a sense of inclusion amongst Nigerians and improve their lots.
In addition to the above, the current administration has also been aggressive against corruption; with the country’s anti-corruption agency recording at least nine hundred and forty-three anti-corruption cases between 2015- 2018. Particularly, during the period, erstwhile ‘powerful’ and ‘untouchable’ entities in Nigeria have been arrested, with some currently serving jail terms. The list includes serving senators of the federal republic of Nigeria; past governors of states and federal ministers; a serving chief justice of the federation; different judges; the chairman of the Nigerian Bar Association (NBA), and the heads of various governmental parastatals.
Other measures that have been also put in place by the administration to combat the menace of corruption in Nigeria include, the implementation of a Treasury Single Account (TSA); a whistleblowing policy; an Efficiency Unit of the government, and an Integrated Payroll Personnel System (IPPIS), implemented across the various governmental MDAs, to enhance the efficiency of the government and remove unjustified payroll entries from the government’s fiscal registers.
Admittedly, the above measures by the current Nigerian administration hardly touch directly on the technical prerequisites for the success of a competition law. But they open up significant opportunities which the new Nigerian competition law commission can utilise to advance its objectives.
Especially, the success of a competition law is informed by the political, social, cultural and institutional fertility of the forum into which the law is introduced. Furthermore, in Nigeria, owing from the nation’s ostentatious status as a developing country, the country already faces significant drawbacks, in its ability to operationalise a competition law. Therefore, both facts make the above ‘successes’ of the current Nigerian administration relevant.
The Nigerian agency can adopt the following measures to advance its objectives.
First, the agency can take advantage of the current good will of many Nigerians, to advance the formative message of the importance of a competition law for Nigeria. Particularly, the current Nigeran administration’s social programs have reduced (not eliminated) the previous, characteristic, suspicion of many Nigerians towards the government. This reality presents a distinct opportunity for the competition agency to position itself as a socially inclusive organisation, working in line with the Nigerian Federal Government, to better the welfare of Nigerians. A successful utilisation of the strategy, by the commission, will reduce its resource burdens.
For example, in the face of the current widespread social acceptance by Nigerians, more Nigerians will be willing to voluntarily obey the competition law, as espoused by the agency, and Nigerians will also be willing to distribute the information of the commission, thereby reducing its overall costs. Here, the agency can achieve the objective by recruiting popular Nigerian (entertainment) figures and community leaders to share the message of social and economic inclusion, through competition, and the commission can also take advantage of the prime role religion plays in the Nigerian society.
Second, the Nigerian competition commission can also utilise the current federal government’s ‘war’ on corruption to advances its mission. Specifically, the commission can couch anti-competitive practices as a form of corruption that disadvantages Nigerians.
Further still, the commission can also carefully select cases to prosecute, relying on the currently reduced chances of ‘hijack’ by corrupt judges on appeal, in Nigeria, to get its message out. (A similar strategy has been successfully adopted by the Nigerian EFCC, a comparable law enforcement agency). The competition commission can also take advantage of the anti-corruption policies of the current federal government and lobby for the extension of the same to anti-competitive practices. One such key policy is the Nigerian whistleblowers’ policy, set up by the Nigerian Federal Ministry of Finance (FMF), in December 2016. A key component of the whistleblowers’ policy is the Nigerian federal government’s attempt to undermine the secrecy that ordinarily advantages corruption in Nigeria, including by providing financial rewards (parts of the recovered booty) to informants.
Therefore, by relying on the already functioning Federal Government of Nigeria’s policy on whistleblowing, and especially its provision for financial rewards to whistleblowers, the Nigerian competition commission can integrate an otherwise problematically developed competition law tool, and leapfrog certain advanced jurisdictions (including the United States of America).
Competition law reform is a complicated form of legal engineering and the analyses typically focus on the existence of technical prerequisites for the success of regimes. However, in developing countries, issues beyond the above technical analyses are also relevant. In the contexts, interrogating broader questions of the overall societal and institutional ‘space’ of a competition law is crucial. This piece has highlighted specific opportunities that currently exist under the present Nigerian administration. The opportunities are non-traditional, but they are significant, and the Nigerian agency will be better off if it utilises them.
The writer Dr Bob Enofe is an international researcher in International and Comparative Competition Law
Corruption can have a crippling effect on a country’s economy. This is why African businesses have described ending corruption as “priority number one”.
Take Nigeria, where the basic infrastructure deficit is huge but funds to improve its infrastructure always seem to end up missing or misallocated. In addition, projects are started and never finished. As a result the country’s roads, rail and ports are in a deplorable state.
Nigerians also suffer from persistent electricity shortages. They lack pipe-borne water and proper sanitation facilities. Housing provision is a problem too.
The country has spent billions of US dollars to resuscitate its power and transport sectors. But it has very little to show for it. Nigeria is not alone. Researchers often report that infrastructure spending is regularly used by public officers and government officials across the continent to misappropriate funds.
Tackling corruption is notoriously difficult. Once it’s embedded in a country’s systems it’s difficult to weed out. But a fresh approach is being pursued in Nigeria – with some startling results. Ordinary citizens are mobilising the use of technology and social media to produce evidence that’s used to hold officials to account.
Our research set out to discover whether the use of technology and social media by ordinary citizens to monitor infrastructure projects could result in more infrastructure projects being completed – and could also lessen corruption.
Our research found, for example, that the camera feed showing the construction of the second river Niger bridge, and similar schemes by Tracka gave citizens the power to monitor infrastructure projects. It also increased transparency and could be used to hold the government and engineering firms that build infrastructure to account.
But we also found that there were challenges. For example, citizens needed data and power to monitor infrastructure projects. Neither was always available.
Monitoring projects has been used by firms and the government as a way to provide more transparency.
For example, research from Uganda shows that corrupt government officials were less able to siphon money for their own enrichment when citizens knew where money was supposed to go and could therefore monitor spending; the diversion of funds fell by 12% over six years.
Research from Kenya also showed that public monitoring of government projects reduced corruption by 20%.
In Nigeria, we investigated infrastructure projects that were monitored by citizens and compared these to infrastructure projects that weren’t monitored. We found that there was a positive link between citizens using technology and social media to monitor infrastructure projects and better completion rates and standards for the infrastructure projects.
Generally, when government officials and infrastructure building engineering firms knew that they were being monitored, they didn’t want to get caught out. In certain cases, citizens were able to engage with the ministry of works and their state governor and use social media to engage in discussions about the project.
By taking pictures of the proposed infrastructure sites and tagging their state governors or representatives in regular posts about the infrastructure projects, civic participation was encouraged. Although there was no often response in the first instance, the high visibility generated by social media and the threat of losing forthcoming elections often resulted in the infrastructure projects being completed. But this was only for projects that citizens could monitor – and there are too few of these. Even we struggled to find many.
Our investigations also revealed that frequent offline and online discussions created awareness about the infrastructure projects and helped citizens to suggest projects that would be useful for their communities.
Challenges to this approach
This approach is not without its challenges.
For example, citizens needed key information to monitor infrastructure projects properly. This included the type, cost, key stages and duration of the projects. Only then would they be able to compare what was actually happening before their eyes to what had been budgeted for so they could alert the relevant authorities as soon as there were discrepancies.
Mobile network technology and access to social media platforms are also needed to make this work.
There were also social and cultural issues. Some citizens didn’t want to engage with social media and technology for personal reasons. In addition, when evidence of corruption was reported by citizens, some saw this as a politically motivated attack. The result was that they lashed out instead of trying to solve the corruption being exposed.
Other challenges included:
a lack of clear penalties for individuals involved with monitored infrastructure projects that not completed, or not completed to a decent standard;
a lack of follow up by the relevant anti-corruption authorities; and
not enough being done when there were clear cases of standards not being met.
Technology and social media can be used as effective tools by citizens to monitor infrastructure projects. But this isn’t enough on its own. It can only be effective if budgets are also made fully visible.
This would enable citizens to know what they are monitoring and what to look for. Citizens would be wise to demand such transparency: honest governments will have nothing to fear.
This points to the need for a comprehensive approach to tackling corruption. This would need to include transparency and offline and online citizen engagement. In this context, technology and social media could be used as complementary tools.
If African governments and infrastructure building engineering firms on the continent are really concerned about corruption and want to show that they have nothing to hide, they can use this approach to gain more trust from the citizenry.
Egypt has been ranked top of 10 leading countries in Africa where hotel development has seen an upsurge, with Nigeria, Morocco and Ethiopia trailing. This is according to the 11th annual survey by W Hospitality Group, which over the years has earned global acclaim for its expertise in hospitality business.
The four countries lead the pack by numbers of rooms in the internationally-branded hotel development pipeline, with Egypt showing 15,158 rooms in 51 new hotels. A total of 75,155 branded rooms in 401 hotels are in development across the continent, a net increase (ignoring recent openings and taking in to account deals that have not come to fruition) of almost 11,000 rooms in the pipeline, 17% up on 2018.
W Hospitality Group’s Hotel Chain Development Pipelines in Africa survey had a record 43 international and regional hotel contributors this year, covering 54 countries in north and sub-Saharan Africa, and the Indian Ocean islands.
The top-line figures show that in North Africa the rooms’ pipeline is up 2.3% on 2018, and down 3.8% in sub-Saharan Africa, largely due to several of the chains ‘cleaning’ their pipelines, deleting deals that they believe are not going to happen. These cleaning adjustments amount to more than 12,000 rooms in 74 hotels.
Nevertheless, despite this significant adjustment, there has been growth of 51% in the total pipeline rooms since 2015 – North Africa up by 58%, and sub-Saharan Africa up by 47%.
According to survey, the top 10 countries account for 69% of the total hotels in the survey, and 74% of the rooms. Details of the survey report is expected to be presented for discussion at the forthcoming Africa Hotel Investment Forum (AHIF) in Addis Ababa, billed for September 23 and 25. The annual forum is organised by Bench Events.
The Managing Director of W Hospitality Group, Trevor Ward, said: “Egypt has by far the largest number of rooms in the pipeline this year, almost double the number in Nigeria, which is in second place. There has been huge activity by the chains in Egypt, with over 2,000 new rooms signed there in 2017, and a further 4,500 in 2018, of which 1,850 were signed by Radisson. Accor has no fewer than 16 deals with 6,363 hotels in Egypt, boosted by new brands from its acquisitions, including Mövenpick and Fairmont.”
Ward described this as an interesting development: “It’s interesting that there has also been a lot of activity in some of Africa’s countries, such as Niger and Zambia. In Niamey (Niger), where there is currently no branded hotel supply, there are no fewer than five hotels in the pipeline, and in Lusaka (Zambia), the chains signed 11 deals in 2018 and early 2019, taking the total pipeline there to 15 hotels with almost 1,900 rooms.’’
Looking at the top 10 cities, Cairo, with over 8,000 rooms in development and Addis Ababa, with over 5,000, have a clear lead. They are followed by Lagos (the leader for several previous years) and then Nairobi, Algiers, Abuja, Dakar, Abijan, Lusaka and Marrakech, the last two in the top 10 for the first time.
Egypt is not only the country with the most internationally-branded hotels in development, it also has the most internationally-branded properties already operated by the contributors, 108 hotels with 35,711 rooms between them. The countries which rank next, in terms of branded hotel rooms already operating are South Africa with 24,048, Morocco with 12,498 and then Tunisia, Nigeria and Algeria, all with just over 5,000. Kenya has over 4,000 branded rooms and it is followed by Ghana, Tanzania and Cape Verde, each with just over 2,000. At the other end of the list, there are four countries with no internationally-branded hotels and none in the development pipeline; they are Central African Republic, Eritrea, The Gambia and Somalia.
In the battle of the brands, Accor is the strongest pipeline player in Africa with more than 27,000 rooms spread across 162 hotels. It is followed by Marriott with over 23,000 rooms in 135 hotels. However, if both complete their current development pipelines with no further additions, they will stand neck and neck with just over 40,000 rooms each operating in Africa. Hilton is in third place, Radisson fourth and IHG fifth, after which, there is a substantial gap between the big five and other international chains.
Source: New Telegraph Nigeria
The Nigerian government has accused former President Goodluck Jonathan and his then oil minister of accepting bribes and breaking the country's laws to broker a $1.3 billion oil deal eight years ago, a London court filing shows.
The deal, in which Anglo-Dutch company Royal Dutch Shell and Italian peer Eni jointly acquired the rights to the OPL 245 offshore oilfield, has spawned legal cases spanning several countries.
In papers advancing a London commercial court suit against Shell and Eni, lawyers for the Nigerian government said Jonathan and former oil minister Diezani Alison-Madueke conspired to "receive bribes and make a secret profit", keeping the government from getting what it was owed from the deal.
"Bribes were paid," the filing, reviewed by Reuters, states. It says "the receipt of those bribes and the participation in the scheme of said officials was in breach of their fiduciary duties and Nigerian criminal law."
A spokesman for Jonathan declined to comment and said the former president was in South Africa as part of an election monitoring team. A London-based lawyer for Madueke did not immediately respond to a request for comment.
Nigerian attorney general Abubakar Malami did not immediately respond to a request for comment.
The 2011 deal is also the subject of a corruption trial in Milan in which two middlemen have been convicted and former and current Shell and Eni officials are also on trial.
An Eni spokesman said the Italian firm was assessing whether UK courts had jurisdiction on a case of "such duplication" to the Milan proceedings and repeated its view on "the correctness and compliance of every aspect of the transaction."
Shell did not immediately comment, but has repeatedly denied any wrongdoing in relation to OPL 245.
The London lawsuit relates to payments that Shell and Eni made to acquire the license.
The companies transferred more than $1 billion to the Nigerian government, according to the filing. Milan prosecutors have argued in their case that the bulk of that money was sent on to Malabu Oil and Gas, which was controlled by another former oil minister, Dan Etete.
Eni and Shell retain the rights to develop the field, which has yet to enter production but is one of the biggest untapped oil resources in Africa, with reserves estimated at 9 billion barrels.
In the London court filing, the Nigerian government said it only received a $209 million signature bonus in relation to the deal, and that it estimates the value of the oilfield to have been "at least $3.5 billion". It said it would seek to calculate damages on that basis.
The Nigerian government has also filed a London case against U.S. bank JPMorgan for its role in transferring over $800 million of government funds to Etete, who has been convicted of money laundering. JPMorgan has denied any wrongdoing.
Dutch prosecutors are also preparing criminal charges against Shell.
Despite the international cases, only Nigerian officials can rescind the rights to the block. Oil minister Emmanuel Ibe Kachikwu has said the case should not hinder development of the field. His office did not immediately reply to a further request for comment. [reut.rs/2HcyAnu]
Nigeria's Economic and Financial Crimes Commission is pursuing a criminal case against other former officials in relation to OPL 245.
President Muhammadu Buhari was re-elected in February, campaigning on the same anti-corruption message that helped him defeat Jonathan in 2015. But opinions within the cabinet differ over how to handle OPL 245.
Some have cited what they view as a lack of evidence, while others point to concerns that taking away the rights could hinder the field's development in a nation where oil accounts for around 90 percent of foreign exchange earnings.
The Minister of Transportation, Mr Rotimi Amaechi, said the federal government has approved the construction for Warri seaport at the cost of about 3.9 billion dollars and also awarded the contract for Abuja-Warri rail line.
Amaechi on Tuesday in Abuja that government also approved the linking of Abuja to Itakpe, Itakpe-Warri, then from Warri rail to the seaport.
“The President awarded the contract for Abuja to Warri, Abuja to Itakpe, then to Warri. From Warri rail to the seaport. We are building a new seaport in Warri, the cabinet approved it last week, that is about 3.9 billion dollars,” he said.
He, however, said that about 45 billion dollars was needed to complete rail development in the country.
He said that once Lagos-Kano, Port Harcourt-Maiduguri, Lagos-Calabar and Abuja-Warri rail lines were constructed, the rail would have covered the country.
According to him, the government has not spent over 3 billion dollars so far on all the ongoing projects.
“The Lagos-Ibadan will cost about 1.6 billion dollars, that doesn’t include the extra cost of things we didn’t prepare for or see in the evaluation; Abuja-Kaduna was constructed with about a billion dollars.
“We also paid 500 million dollars to buy locomotives and rolling stocks for Lagos-Ibadan, I can’t remember how much we spent buying rolling stocks for Kaduna-Abuja, that is what we have spent so far.
“So all the noise that you hear people saying we have spent 8 points something billion dollars is not true. I don’t think we have spent up to three billion dollars so far. Railway is capital intensive, a trillion naira is about 2.7 billion dollars.
“And that is for 200km of railway if you plan to do Lagos-Ibadan and you are looking at 8.7billion dollars that is between 3 and 4 trillion Naira. That is why I said we will need about 35 to 45 billion dollars.
“To be able to do Lagos-Kano, Port Harcourt-Maiduguri, Lagos-Calabar and Abuja-Warri, once we do this four tracks, we have covered the country and we have solved the problems of transportation to a great extent.”
Nigerian National Petroleum Corporation (NNPC) on Sunday announced a trade surplus of N15.04 billion ($42m) for January 2019.
In a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the NNPC disclosed that it recorded a 24 per cent increase over the N12.13 billion surplus posted by the corporation in December 2019.
Ughamadu attributed the positive financial position to the improved performance of NNPC’s upstream subsidiary, Nigerian Petroleum Development Company, NPDC, which recorded surplus numbers despite reduced operational activities in the month.
The NNPC’s January 2019 edition of its Monthly Financial and Operations Report revealed that the NPDC recorded a sustained revenue drive, evident from recent average weekly production of 332,000 barrels of crude oil per day, BPD, had made achieving 500,000bpd production by 2020 plausible.
The NPDC’s position, the NNPC noted, contrasted with the high expenditure levels posted by its two other entities, the Petroleum Products Marketing Company PPMC and Duke Oil, although both ended the month with profit.
In terms of sales and remittance of crude oil and gas proceeds, the NNPC announced total export receipts of $381.70 million in the month under review as against $345.68 million posted in December 2018.
Giving a breakdown of the numbers, the NNPC indicated that contributions from crude oil amounted to $269.43 million, while gas and miscellaneous receipts stood at $111.75 million and $0.52 million respectively.
It said, “Within the period under focus, NNPC transferred N153.01 billion into the Federation Account, while cumulatively, from January 2018 to January 2019, Federation and JV received N905.45 billion and N658.66 billion respectively, under the column of Naira Payments to the Federation Accounts.
“In the downstream operations, 1,998.61 million litres of petrol was supplied into the country through the Direct-Sale-Direct-Purchase (DSDP) crude-for-product arrangement in January 2019. The number is slightly higher than the 1,789.20million litres of petrol supplied in the month of December 2018.”
The NNPC stated that 230 hacked pipeline points were recorded, leaving only two ruptured, marking an 11 per cent improvement from the 264 vandalized points posted in December 2018.
“A breakdown indicated that Mosimi-Ibadan, Ibadan-Ilorin and Aba-Enugu pipelines accounted for 67, 62 and 30 points respectively, which translated to 29 per cent, 27 per cent and 13 per cent of the vandalized points, respectively.
“The Warri-River Niger axis accounted for 10 per cent and other locations accounted for the remaining 21 per cent of the pipeline breaks,” it added. In the gas sector, the NNPC declared that natural gas production increased by 2.22 per cent at 245.83 billion cubic feet compared to output in December 2018, translating to an average production of 8,194.34 million standard cubic feet of gas per day (mmscfd).
Out of the volume supplied in January 2019, it added that a total of 151.50 billion SCF of gas was commercialized, consisting of 38.03 billion SCF and 113.47 billion SCF for the domestic and export market respectively.
The figure, the NNPC said translated to a total supply of 1.226.83 billion SCF per day of gas to the domestic market and 3,780.24 mmscfd of gas supplied to the export market for the month.
“This implies that that 61.73 per cent of the average daily gas produced was commercialized, while the balance of 38.27 per cent was re-injected, used as upstream fuel gas or flared.
“Gas flare rate was 7.52 per cent for the month under review, translating to 610.07 mmscfd compared with average gas flare rate of 9.76 per cent, that is 770.31 mmscfd for the period January 2018 to January 2019,” the corporation disclosed.