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Nigeria - President Buhari’s Cabinet africapractice Nigeria - President Buhari’s Cabinet On Wednesday 11 th November 2015, President Muhammadu Buhari inaugurated the Federal Executive Council and announced the portfolios of the 36 Ministers that had recently been vetted by the Senate. With the announcement, the number of federal ministries has effectively been reduced to 25 following the merging of several ministries, with several new Ministers deputising as Ministers of State rather than running their own portfolios. The President also appointed 18 new permanent secretaries to replace those who had been retired the previous day. It has taken Buhari more than five months to put his first cabinet in place, prompting accusations of policy drift and ineffectual leadership. However, Buhari has defended his actions by asserting both that state ministries were being well managed by permanent secretaries in the interim, and that he needed time to ensure he found the right candidates to realize his reform ambitions. Foreign investors have welcomed the cabinet’s unveiling, hoping that it will serve to clarify the federal government’s policy on key issues, and drive development across the economy. Key takeaways • The cabinet represents a genuine drive to improve public sector governance, reflecting a core ambition of Buhari’s presidency. By streamlining portfolios and appointing competent technocrats to strategic ministries, the President has sought to introduce a government apparatus that is efficient and manageable. The less high-profile appointments are generally made up either of trusted loyalists or prominent figures who provide the right balance of ethno-regional representation. Performance among this group of individuals is likely to be more variable. • Although Buhari is likely to delegate considerable powers across the ministries, the president’s office will remain central to strategic decision-making. Decisions to date have been fairly centralized, and Buhari will continue to work through a network of close advisers to oversee key government portfolios. His decision to retain strategic oversight of the petroleum ministry is a clear indication of his intention to personally oversee reforms in the most important areas of the economy. These dynamics could generate personal and institutional rifts, not just with ministers but with other key bodies such as state governments and the legislature. • The government’s anti-corruption drive will continue unabated in the short term. This was a key tenet of Buhari’s electoral victory and will continue to resonate across political and business circles. Despite accusations of politicization, the high-level commitment to tackling graft and reducing the losses and leakages in Nigeria’s political system is a positive development. Following the dismissal of the head of the country’s main anti-corruption body, a heavy-hitting appointment is now expected. The anti-corruption drive will continue to create turbulence in the business landscape, underlining the need for strong understanding of local partners and implementation of effective anti-bribery and -corruption policies. • Despite the positive governance trajectory, Buhari’s reform agenda will be diluted by three key factors. Firstly, political infighting within the APC and across party lines will generate dysfunction and unhealthy competition that undermines policy-making, particularly in the legislature. Secondly, vested interests within the political and business landscape will continue to block or disrupt reform efforts, posing a persistent barrier to progress. Lastly, the enormous economic and security challenges that Nigeria faces in the coming months will shackle the government’s ability to bring about real change, while broader capacity constraints across public administration will also hinder prospects for radical progress. The economic downturn provides a unique opportunity to reform public structures and improve governance, but it also starves the government of much-needed funding, and external financing may well be sought to plug the gap. africapractice R&B Ltd, 13B Bishop Oluwole Street, Victoria Island, Lagos, Nigeria, www.africapractice.com 02
Nigeria - President Buhari’s Cabinet africapractice Key figures We believe that the following appointments are particularly interesting and will shape the outlook for the new Buhari government: Kemi Adeosun Minister of Finance Adeosun had a background in the private sector, holding management positions at PWC (2000-02) and Chapel Hill Denham Management (2002-10) before serving as Commissioner of Finance for Ogun State (2011-15). She is a respected economist and was praised for her performance in office in Ogun state. However, as one of the youngest members of the cabinet who is untested at this level, she faces an enormous challenge in spearheading fiscal reforms and overcoming vested or competing interests in the system to boost flagging growth. Her early statements regarding the economy and need for reform strike a positive note but her lack of experience at this level – and the sheer scale of Nigeria’s economic travails – present significant challenges. Alhaji Mahmoud Isa Dutse was recently appointed Permanent Secretary of the Ministry. Ibe Kachikwu Minister of State for Petroleum Although Buhari will retain strategic control of the petroleum ministry, Kachikwu has been appointed Minister of State for the day-to-day running of the sector. In August 2015, he was appointed as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC). Prior to this, he was the Executive Vice Chairman and General Counsel of ExxonMobil Africa, where he is credited with influencing over US$10 billion worth of investment into Nigeria and other African countries. He earned a Doctorate Degree from Harvard University, specializing in Petroleum and Investment Law Strategy. Since taking over at the NNPC, Kachikwu has overhauled the state-owned firm’s management and overseen a number of reforms to procedures and accounting structures. He has also announced a comprehensive review of contractual arrangements in the sector. Kachikwu and Buhari appear closely aligned on strategy and will both be committed to radically overhauling the oil sector in the coming months to maximize local benefit and improve governance. This bodes well for long-term governance in a sector in desperate need of reform, though investors can anticipate considerable turbulence and challenging conversations around contractual arrangements in the coming months. Dr. Jamila Shu’ara was recently appointed Permanent Secretary of the Ministry. Babatunde Raji Fashola Minister of Power/Works & Housing A Senior Advocate of Nigeria (SAN), Fashola was Chief of Staff (1999-2007) to former Lagos State Governor Bola Ahmed Tinubu before being himself elected Governor. As Governor of Lagos State (2007- 15) he was responsible for key reforms in the areas of taxation, education and infrastructure, adopting a results-driven approach and running a competent administration. He was subsequently appointed Director of the Fundraising Committee for Buhari’s Presidential Election Campaign. Fashola’s appointment is a reflection of what is widely considered an impressive performance in Lagos state. As the Minister of Power, Works and Housing, he oversees a super-ministry and is undoubtedly one of the most important Ministers in this new cabinet. His ministry will oversee a large portion of the national budget, and includes oversight over the all-important power sector which has been undergoing major reforms in recent years. He’ll be expected to aggressively drive the administration’s plans to leverage infrastructure in its economic diversification plans. Mr. Louis Edozien (Power) and Engr. A.G. Magaji (Works & Housing) were recently appointed Permanent Secretaries of both Ministries, respectively. africapractice R&B Ltd, 13B Bishop Oluwole Street, Victoria Island, Lagos, Nigeria, www.africapractice.com 03
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