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18 — Vanguard, MONDAY, SEPTEMBER 19, 2022 Watchers of Nigeria’s political history would be somewhat amused at the recent call by the 19 Northern governors for the “immediate” establishment of state police. They made this call at their recent meeting with traditional rulers in Abuja. Over the past 50 years or so, leaders, politicians and activists from the Southern parts of the country have shouted themselves hoarse about the need to do away with the centralising factors that make nonsense of our 200 million people is policed by 371,800 federalism and keep power beyond the personnel, with up to a third of them reach of the people to whom it truly attached to VIPs. belongs. At a time when crime is getting ever The agitators have argued that more sophisticated, with terrorism, maintaining the military command banditry, kidnapping for ransom, structure in our federal system is cultism, ritual killings, drug abuse, cyber undemocratic, anti-people and does not crimes, human trafficking and others are promote good and accountable choking the nation, even the Northern governance. leaders have seen the foolhardiness in A major such centralising factor is our the continued objection to the single, federal-controlled police force in a establishment of state police. diverse, complicated federation with an The North had strenuously kicked exploding population. A country of over against state police, even at the National North’s call for state police Conference of 2014 convened by former President Goodluck Jonathan. Fears were, and still rife that the establishment of state police would water down the establishment ’s monopolistic power to control law and order for selfish political interests. Some have even argued that agitations for state police is a ploy for secession! This myopic and self-serving argument has now given way to reason because of the insecurity that has overwhelmed the region and other parts of the country. Insecurity and poverty have led to the daily exodus of thousands of Northerners to the South because terrorists, jihadists, bandits, kidnappers and armed herdsmen have taken over the North’s huge ungoverned spaces. Even the “almighty” Federal Government, which Nigeria’s supremacists depend upon to maintain law and order, is no longer able to do so effectively. It has finally dawned on them that unless the people are allowed to play a part in their own security, total anarchy is unavoidable. What we need is not just “state police”. We must totally decentralise policing such that, not just the states, but also the indigenous communities should be allowed to have their own security outfits and correctional arrangements, as may be constitutionally defined. The traditional institutions should have a role in security, intelligence and law enforcement. Every community should be able to police not just their towns but also their forests and farms to keep off criminals and intruders. Now is the time. OPINION A nation possessed by spirit of forced eviction BY JEROME-MARIO UTOMI If there is any occurrence that further supports the belief that in Nigeria’s public leadership corridors, once a direction is chosen, instead of examining the process meticulously and setting the right course; one that will allow us to overcome a storm and reach safety before we can progress and achieve our goals, many of our leaders obstinately persist with the execution of such plans regardless of the need for a minor or major shift in circumstance. A case in point is the recent insistence by officials of the Federal Capital Territory Administration, FCTA, that the ongoing demolition of illegal structures in Kuje Area Council was designed to curb insecurity. The explanation was given when they appeared before the House of Representatives Committee on Area Councils, in respond to a petition by victims of the demolition. Abuja Metropolitan Management Council, AMMC, Coordinator Umar Shaibu, said the exercise was undertaken by the administration to quickly respond to identified threats to national security, peace and order. While the declaration by the FCTA looks good in principle, it more than anything else shows a bunch that is not ready to study history, study the actions of their predecessors, to see how they conducted themselves in order to discover that the eviction option is not the solution to insecurity but can only aggravate the situation as it renders victims homeless, destitute and vulnerable to violence, theft and rape. There is glaring evidence that supports the above assertion. It will be recalled that demolition/forced eviction gained entrance into the nation's leadership lexicon in July 1990 when then Colonel Raji Rasaki in his capacity as the Military Governor of Lagos State for yet-to-be identified reasons destroyed Maroko. Over 300,000 people that inhabited Maroko then were reportedly affected. About nine years after the Maroko experience, democracy came on board. But contrary to that expectation, even the dawn of democracy in May 1999, did not bring a shift in paradigm as successive democratically-elected governors, beginning with Senator Ahmed Bola Tinubu (May 1999 to 2007), Babatunde Raji Fashola (2007 to 2015), Akinwunmi Ambode (2015 to 2019) and presently Mr. Babajide Sanwo-Olu, stuck to the practice. But the more government forcefully evicts residents, the more it leads to further proliferation of more slum and blighted communities in the state. Another instance, Former Minister of the Federal Capital Territory, Mallam Nasir el- Rufai, in the name of restoration of the Abuja Master plan demolished no fewer than 200 buildings in the FCT and thousands in the satellite towns, which left many families stranded and unable to regain their balance till date. Sounding impenitent over his tenure, the former minister said in his 627-page book tiled, Accidental Civil Servant: “For me, restoring order in the chaos that we found in many aspect of living in Abuja at the time, was simply consistent with my personal philosophy in life, a preference for rules and orderliness- a burden that I needed to discharge personally so I could sleep well at night. It was without question worth giving four years of my life pursuing. Therefore, I have no regrets for attempting to do what we did. We did what we believed was right at the time.” But the question that begs for an answer from El-Rufai is: since after that wanton demolition and thoughtless disruption of peoples’ means of livelihood, has the Abuja Master Plan truly been restored? If yes, why is the present administration still pushing for demolition and forced eviction? Is that not a sign that demolition/forced eviction is but a prescription that only addresses the effect of an ailment while leaving the root cause to thrive? Broadly speaking, the above sad account is a symbol of governments that are unmindful of, or consciously decided to flagrantly ignore global framework on physical planning of livable neighborhood, slum upgrade and urban The eviction option is not the solution to insecurity but can only aggravate the situation as it renders victims homeless, destitute and vulnerable to violence, theft and rape; the more government forcefully evicts residents, the more it leads to further proliferation of more slum and blighted communities regeneration. To buttress this claim, let’s cast a glance at how a similar slum challenge was creatively handled in Rio de Janeiro, Brazil, without displacement or eviction of the original occupants. Send Opinions & Letters to: opinions1234@yahoo.com Instead of removing the favelas- a people initially considered/described as illegal occupants- many of the government’s policies were made to focus more on improving the infrastructure of the people/the area. The Inter-American Development Bank, for example, funded a US$180 million “slum to neighborhood” project in 1995, which sought to integrate existing favelas into the fabric of the city through infrastructure upgrading and service development. The project involved 253,000 residents in 73 favela neighborhoods in Rio de Janeiro. When a favela was selected, a master plan for upgrades was drafted and community organisations were contacted and asked to provide their input. When the final plan was approved, incentive plans were implemented for hiring construction companies that employed local community workers. From Brazil to Spain and South Africa, the story and experience is the same. Comparatively, when one juxtaposes the above accounts as recorded in Brazil, with that of Abuja and the July 1990 Maroko’s experience, there exists a gully of difference. Essentially, aside from the imperative of drawing useful lessons from Brazil experience, why the above examples are important is that here in Nigeria, each time the government wants to achieve this heinous objective (forced eviction/demolition), they tag the targeted community as highly populated urban residential area consisting decrepit housing units in a situation of deteriorated or incomplete infrastructures. Continues online: www.vanguardngr.com •Utomi, Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy, SEJA, wrote from Lagos via: jeromeutomi@yahoo.com
Banking stocks drag equities to negative close …As investors lost N119bn By Nkiruka Nnorom earish sentiments continued Bto pervade activities in the Nigerian Exchange Limited (NGX) following sell-off in the shares of banking stocks, resulting in N119 billion losses to investors during the week. Specifically, sell-off in banking stocks including Access Corporation formerly Access Bank Plc, (-6.2%), United Bank for Africa (UBA) Plc (-6.0%), FBN Holdings Plc (-5.7%), Union Bank of Nigeria (UBN) Plc (-4.2) and Zenith Bank Plc (- 1.5%) dragged the market to a second consecutive week of losses. Consequently, the market capitalisation of all listed equities declined by N119 billion or 0.44 percent to close at N26.686 trillion from N26.805 trillion in the previous week. Similarly, the NGX All Share Index (ASI) slid by 0.44 percent to close 49,475.42 points. Activity levels were weak, as trading volume and value declined by 24.3 percent and 14.1 percent to close at 719.389 million units and N8.004 billion from 949.819 million units and N9.329 billion respectively. Vanguard, MONDAY, SEPTEMBER 19, 2022 — 19 Sectoral performance was negative as all the five sectors posted losses with the banking sector leading the pack with a 3.3 percent decline. This was followed by the insurance (-2.6%), consumer goods (-0.3%), industrial goods (-0.2%) and oil & gas sector (- 0.2%). In their comment, analysts at Cordros Capital said: “We expect alpha-seeking investors to rotate their portfolios towards cyclical stocks that delivered decent earnings during the Q2-22 earnings season amid the yield uptick in the fixed income market.” They, however, maintained that the absence of a near-term catalyst would likely skew overall market sentiments to the negative side, particularly as the political space gets heated. They reiterated the need for positioning in fundamentally sound stocks, saying that the unimpressive macro environment remains a significant headwind for corporate earnings. MONDAY, SEPTEMBER 19, 2022 Businesses heading for total collapse, NECA raises alarm •Says over 50 taxes weighing businesses down, warns against further borrowing •As FIRS calls for harmonised tax system•Economy facing many vulnerabilities — MUDA YUSUF By Emma Ujah, Abuja Bureau Chief, Peter Egwuatu and Victor Young The Nigeria Employers’ Con sultative Association, NECA, has hinted that most businesses in Nigeria are now on the brink of collapse under the pressures from the economic policy environment. In a statement in Abuja yesterday, NECA lamented that at the last count, organized businesses are presently faced with over fifty different taxes, levies and fees at all tiers of government, some of which are duplicated. The umbrella body for employers and the voice of businesses in the country, equally cautioned the Federal Government against further borrowing, contending that the nation is faced with acute and self-inflicted revenue challenges and a rising debt profile, among many other economic headwinds. They noted with dismay that even with the nation’s current level of indebtedness, the Government is still poised to borrow over N11 trillion to finance the 2023 national budget. NECA stated: “Organized businesses have witnessed varied challenges in recent months. From shortage of FOREX, stringent regulatory environment to non-alignment of fiscal and monetary policies, which when combined makes doing business difficult. “It is obvious to all discerning stakeholders that the nation is faced with acute and self-inflicted revenue challenges and a rising debt profile, among many others. Even with the nation’s current level of indebtedness, the Government is still poised to borrow over N11 trillion to finance the 2023 national budget. “Currently, the Government had made a cumulative expenditure proposal of over N19 trillion in the 2023 national budget, a 15.4 percent increase over the 2022 estimate. While it is necessary and critical to generate revenue to fund not only the 2023 national budget but also to liquidate the interests accruing on the debts, Government will do well not to further burden the Real sector with additional taxes and stringent regulatory environment” Articulating factors that were already crushing organized businesses, NECA’s Director-General, Mr Adewale-Smatt Oyerinde stated that “while debt and paucity of revenue are challenges that are acknowledged, organized businesses should not be made to suffer the lack of proper economic planning and political will that have pervaded successive administrations. Businesses face more than 50 taxes, levies, fees “At the last count, organized businesses are presently faced with over fifty different taxes, levies and fees at all tiers of Government, some of which are duplicated. “Currently, at the National Assembly, there are over five different Bills, which seek to impose various taxes and levies on Organized businesses in addition to the notable taxes and levies which are of general application, such as The National Information Technology Development Levy (NITDA Levy), Education Tax (or Tertiary Education Tax), National Social Insurance Trust Fund (NSITF), Company Income Tax (“CIT”), Television and Radio License Fee, Local Content Levy, Stamp duty, among others. While taxes are global phenomenon, Governments all over the world seek to protect their most productive sectors rather than tax them out of existence. “It is strange that at a time when Government should do all that is necessary to protect businesses from total collapse and reduce the increasing unemployment rate, there are proposals to further increase Excise tax on select products, including the Spirits, Alcoholic and non-alcoholic products. “This action will not only reduce the competitiveness of the industries but will also increase the cost of doing businesses and further reduce the potential sustainability”. While emphasizing the need for Government not to over-burden Enterprises and also making recommendations on ways out of the debt and revenue quagmire, Oyerinde stated that “it is in the best interest of Government to protect the Real sector rather than tax it out of existence. As the AfCFTA comes into full swing, Nigeria cannot afford to become a dumping ground for cheap imported products because we have refused to protect local businesses. Over the years, we have urged Government to expand the tax net, take a bold step towards stopping the oil-theft industry, take more than a cursory look at national assets that are laying waste and address the national embarrassment called the petrol subsidy regime. “There is no justification why the Nation’s four refineries are still moribund after many Turn- Around-Maintenances. It will be counter-productive for Government to continue tightening the noose on legitimate businesses that are contributing to national growth while there exist obvious wastages and inefficiency in Government yet unattended to. “As a panacea to the ever reducing Direct Foreign Investment, rising unemployment and multi-facet revenue challenges, Government and its Agencies must protect local businesses and make the operating environment more hospitable.” Economy facing many vulnerabilities – Muda Yusuf Speaking to Financial Vanguard on the current state of organised businesses Nigeria, the Chief Executive, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said: “Over the past one year, the Nigerian economic environment has been characterized by numerous vulnerabilities. These include: Unprecedented surge in energy prices which had a very huge adverse effect on economic players across all sectors, unprecedented level of currency depreciation and currency volatility; soaring inflation leading to depressed purchasing power; low industrial capacity utilization; increasingly weak fiscal space, characterized by dwindling revenue and growing expenditure and acute foreign exchange scarcity with profound effects on investors across all sectors.” Yusuf who was the immediate past Director General, Lagos Chamber of Commerce and Industry, LCCI, added, “All these headwinds have had devastating effects on businesses. However, the economy continues to demonstrate resilience amid these harsh investment environments”. Amongst the list of the solutions to these challenges, Yusuf said: “Government has to reduce the cost of governance and addressing the problem of leakages in government, with improvement in tax administration, the effective oversight on revenue generating MDAs to boost independent revenue. “Also they should focus on the use of debt to strengthen the capacity of the economy to be productive, especially greater emphasis on infrastructure spending and improve business environment to boost investment and ultimately boost government revenue. “They should tackle oil theft and deepen stakeholder engagement and fixing refineries to put an end to fuel subsidy and the associated Continues on page 21
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19092022

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