Warnings of climate emergency after surface temperatures 1.35C warmer than average temperature for the month
Monthly global surface temperatures (land and ocean) from NASA for the period 1880 to February 2016, expressed in departures from the 1951-1980 average. The red line shows the 12-month running average. Image credit: Stephan Okhuijsen, datagraver.com
Global temperatures in February smashed previous monthly records by an unprecedented amount, according to Nasa data, sparking warnings of a climate emergency.
The result was “a true shocker, and yet another reminder of the incessant long-term rise in global temperature resulting from human-produced greenhouse gases”, wrote Jeff Masters and Bob Henson in a blog on the Weather Underground, which analysed the data released on Saturday.
It confirms preliminary analysis from earlier in March, indicating the record-breaking temperatures.
The global surface temperatures across land and ocean in February were 1.35C warmer than the average temperature for the month, from the baseline period of 1951-1980.
The global record was set just one month earlier, with January already beating the average for that month by 1.15C above the average for the baseline period.
Although the temperatures have been spurred on by a very large El Niño in the Pacific Ocean, the temperature smashed records set during the last large El Niño from 1998, which was at least as strong as the current one.
The month did not break the record for hottest month, since that is only likely to happen during a northern hemisphere summer, when most of the world’s land mass heats up.
“We are in a kind of climate emergency now,” Stefan Rahmstorf, from Germany’s Potsdam Institute of Climate Impact Research and a visiting professorial fellow at the University of New South Wales, told Fairfax Media.
“This is really quite stunning … it’s completely unprecedented,” he said.
Towards ensuring that women in rural areas are empowered particularly in the area of agriculture, an international organisation committed to the eradication of poverty, Oxfam, has said that it will engage Nigerian government and businesses to provide secured access to land for smallholder female farmers.
Left to right: Coordinator, Research, Policy and Advocacy, Oxfam, Mr AbdulAzeez Musa; Project Manager, Public Financing for Agriculture, ActionAid International, Ms. Constance Okeke; Female Food Hero, Oxfam, Mrs. Dorcas Azenda; and National President, Small Scale Women Farmers Organisation, Mrs. Serah Yapwa, during the 2016 International Women’s Day and launching of Kilimanjaro Initiative in Abuja, on Thursday, March 10, 2016.
Oxfam lamented that such women often do most of the work on the land but face the “biggest battle to call the land their own.”
Speaking in Abuja recently at an event organised by Oxfam Nigeria and ActionAid to mark this year’s International Women’s Day and the launching of Kilimanjaro Initiative, Head of Programme, Oxfam Nigeria, Constant Tchona, called for the reform of the Land Use Act to make communities take ownership of their land.
He also advocated against all cultural barriers to women’s rights to land and inheritance in Nigeria.
“Oxfam Nigeria will continue to support the Nigerian women small scale farmers in line with our vision of a secure and prosperous Nigeria, where the benefits from economic growth are shared so that the basic needs of all people are met; where rights of women are respected; where all people, especially the youth, can participate in decision making and influence the policies that impact on their lives and where public and private sector institutions are accountable and transparent,” he said.
Tchona further said that women in Nigeria and other West Africa countries still face three major challenges which, according to him, are equity in and secure access to land, safety of operating and investment by women, and protection and preservation of women’s land rights.
Women, he explained, are the first victims of land and related natural resources grabbing, noting that these and other issues threaten the capacity of communities to meet the challenges of sustainable agricultural and food systems today and in the future.
“Women do not only play major roles in cash crops, staple food production, processing or marketing; but as holders of local and traditional knowledge in farm seed conservation and natural resources management, they also play a critical role in the transmission of traditional knowledge to future generations.
“That is why we in Oxfam are advocating that women should be leaders in the transition to sustainable agricultural and food systems,” he said.
Norway’s $830 billion Sovereign Wealth Fund pulled out of 27 firms with links to coal last year as part of a policy to combat climate change, prompting campaigners to urge other big investors to follow suit.
Martin Norman, director of Greenpeace’s Nordic Finance Campaign
The fund, the world’s biggest, also said it sold holdings in 11 companies because of concerns about the destruction of tropical forests to make way for palm oil plantations or fast-growing trees used for paper and pulp.
It did not name the companies it dropped.
Norway’s parliament agreed last year to make the fund sell out of companies that get more than 30 percent of their business from coal. The fund is also limiting investments in firms with high greenhouse gas emissions.
“Big money is now starting to move away from fossil fuels,” Martin Norman, director of Greenpeace’s Nordic Finance Campaign, said in a statement, adding that “others should follow”.
Norway’s fund, built up from the country’s oil and gas production revenues, said it sold stakes in 11 companies involved in mining coal for power production and 16 power generators using coal.
Riding on the success of its maiden edition, Connect Marketing Services has unveiled plans for the 2016 edition of Nigeria’s biggest tech event – TechPlus.
TechPlus conference session in 2015
According to the organisers, the 2016 TechPlus event is billed to hold from 21st to 23rd July at the Eko Hotels Conference Centre, Victoria Island, Lagos, Nigeria. The theme for this year is “A Connected World”.
In its second year, Techplus is a gathering of everything technology, providing a robust tripartite tech experience through its conference, exhibition and gaming structures whilst serving as a platform for knowledge sharing, networking and marketplace for consumers and businesses.
Convening over 6,000 techy and non-techy participants with 30 other speakers and panelists at its 2015 edition, TechPlus, said its promoters, has positioned itself as the premier and most authoritative tech gathering in Nigeria. The maiden edition of the event also saw the display of hi-tech innovations and gaming solutions, recording over 1,096 gamers.
In a statement published on the event website – www.techplus.ng – the 2016 edition of the event will provide an avenue to advance technological discourse, ideas, displays and networks in and around Nigeria.
“Techplus Conference and Expo is a place where new technology comes to life, new products are launched and innovations converge, providing manufacturers, concept generators, software and hardware companies, content developers a platform to bring their products and services to life.”
The event is primed as the “main platform for innovations and new products to be introduced to consumers and businesses.”
Relating the plans for Techplus 2016, Executive Director, Connect Marketing, Kazeem Abimbola, noted that the event would capture emerging realities of global technological revolutions and how Nigeria can benefit from such.
“We are excited to announce the 2016 edition of TechPlus Nigeria – the leading convergence of everything tech in Nigeria. This year, we will showcase more of Africa’s technological innovations that will advance both the human and social development of the country. Ultimately, this will yield value for both customers and businesses. This year, the event will include a Hackathon and a Pitch Event.”
Despite stiff opposition from a coalition of civil society operatives, the Green Climate Fund (GCF) has resolved to channel its money through HSBC Holdings Plc and Crédit Agricole Corporate & Investment Bank. This formed part of decisions reached as the GCF Board’s twelfth meeting (B.12) came to a close on Friday in Songdo, South Korea.
The group had on Monday alleged that both banks were funding the coal industry. “The GCF Board must reject HSBC and Crédit Agricole. Creating new business for big banks with large fossil fuel portfolios and poor records on human rights and financial scandal would undermine the very purpose of the Fund,” said Karen Orenstein of Friends of the Earth U.S.
GCF Co-Chairs, Zaheer Fakir from South Africa (right) and Ewen McDonald from Australia
“The accreditation of these banking giants would jeopardise the reputation of the GCF and expose it to unnecessarily high fiduciary risk. HSBC and Crédit Agricole provided US$7 billion and US$9.5 billion, respectively, to the coal industry between 2009 and 2014, and their coal financing does not show a clear downward trend. Moreover, HSBC is deeply embroiled in massive financial scandal,” said Yann Louvel of BankTrack.
But the GCF has given the financial institutions the nod, making them part of the 13 newly approved entities, which represent a diverse range of public, private, small, and large organisations. This includes four national public entities, one regional public entity applying under direct access, two private sector entities, and six international public entities.
A total of 33 entities are now authorised to partner with GCF and implement its projects and programmes.
Besides HSBC and Crédit Agricole, the other new entities are: Agency for Agricultural Development of Morocco (ADA), Ministry of Finance and Economic Cooperation of the Federal Republic of Ethiopia (MOFEC), National Environment Management Authority of Kenya (NEMA), Development Bank of Southern Africa (DBSA), African Development Bank (AfDB) and European Investment Bank (EIB).
Others include: International Finance Corporation (IFC), Unidad Para el Cambio Rural from Argentina (Unit for Rural Change – UCAR), International Union for Conservation of Nature (IUCN), World Food Programme (WFP) and World Meteorological Organisation (WMO).
Apart from accrediting new entities, B.12 also adopted the Fund’s first Strategic Plan, as well as the 2016 Work Plan. The Board says the policy decisions reached are designed to strengthen its partnerships and grow its project pipeline in the year.
“The Board has reached agreement this week on key decisions that help us deliver against our target of approving US$ 2.5 billion in 2016,” said Ewen McDonald, Board Co-Chair from Australia.
“We have adopted the strategies and policies we urgently needed to evaluate existing funding proposals, which currently amount to US$ 1.5 billion, and further develop a pipeline of innovative projects,” said Zaheer Fakir, Co-Chair from South Africa. “The spirit of Board unity endured this week, and we will continue in this manner throughout the remaining three meetings this year,” he added.
GCF’s current pipeline includes 22 private and public projects with a total value of over US$ 5 billion. One of the key outcomes from B.12 is the Board’s adoption of the Fund’s first Strategic Plan, which sets out GCF’s vision, operational priorities, and an action plan to be implemented by 2018. The Strategic Plan strengthens the Fund’s ability to programme its resources at scale, in an ambitious and country-driven manner.
“This is a major achievement and evidence of a united Board that is working hard to find a common middle ground so that we can continue moving forward,” said Mr. Fakir.
During the meeting, the United States informed the Board that it completed its contribution arrangements, formalising its pledge of US$ billion to the GCF. The United States also completed arrangements to transfer US$ 500 million to the GCF as its first installment on the pledge.
A number of procedural decisions were also taken at B.12. The Secretariat’s staffing profile will receive a boost from its current 56 permanent staff to 100 by the end of 2016 and 140 by the end of 2017.
The Board approved US$ 1.5 million for Rwanda as the first grant under the Fund’s Project Preparation Facility (PPF), an innovative instrument to support AEs from developing countries to generate high-quality projects.
The Board also took steps to expedite the disbursement of US$ 11.2 million under grant agreements already signed with 13 countries under the Fund’s readiness and preparatory support programme.
Promoting transparency, an information disclosure policy was adopted, which includes providing live web streaming of future GCF Board meetings, with a review of its utility in 2017.
Regular GCF Regional Workshops were identified as important outreach and advocacy activities of the Fund to support developing countries in accomplishing their readiness and country ownership objectives.
The Board also launched the recruitment process for the new Executive Director by concluding terms of reference for the position and recruitment process.
GCF’s inaugural Executive Director, Héla Cheikhrouhou, had informed the Board that she would not seek a renewal of her three-year term, which ends in September this year. The GCF Board acknowledged the critical role Ms. Cheikhrouhou has played in establishing the Fund and in making it operational.
The 12th Board meeting was attended by more than 200 participants, including alternate Board members and advisers as well as 130 representatives from observer organisations.
The 13th meeting of the Board (B.13) will be held from 28 to 30 June 2016 at GCF Headquarters in Songdo. B.14 is scheduled to take place in October in Quito, Republic of Ecuador, followed by B.15 in December in Apia, Independent State of Samoa.
“I’m thrilled that there will be a Board meeting in the Pacific this year,” said Mr. McDonald. “This is an opportunity to present first-hand the challenges that Pacific island countries face due to climate change.”
The Federal Ministry of Environment (FMEnv) said on Thursday in Abuja that the Cross River State Government (CRSG) registered for Environmental Impact Assessment (EIA) of the proposed Super Highway project.
Bulldozers at work clearing the Super Highway’s route passing through parts of Boki
In a statement endorsed by the ministry’s Permanent Secretary, the FMEnv added that the CRSG is currently conducting the EIA studies which are at an advanced stage.
“The Federal Ministry of Environment is in communication with Cross River government on the EIA process. The Federal Ministry of Environment issued an Interim Environmental Impact Assessment Approval for the ground breaking, which enabled Mr. President to do the flag-off of the project.”
The Perm Sec. however noted that this approval does not convey project commencement of implementation, pointing out that, in response to the commencement of work at the proposed site, and in line with environmental regulations, notice was given for stoppage of work.
“The public should therefore note that concerns raised would be addressed in an open and transparent manner. The Ministry wishes to advise the Cross River State Government to abide by environmental regulations and EIA processes. The project’s host communities and other stakeholders are enjoined to continue peaceful dialogue as we resolve the outstanding issues,” the FMEnv stated.
There have of recent been concerns from members of the public, corporate organisations, non-governmental organisations and international organisations over the proposed Calabar-Okwotung/Obudu/Yara Dual Carriage Super Highway by the Cross Rivers State Government. The Ekuri people and other host communities affected by the project have vehemently kicked against the project, saying that the road would destroy their forest and dispossess them off the rightful ownership of their ancestral land.
The FMEnv listed some of the concerns to include:
That there are environmental and critical social issues raised by project’s host communities along the proposed corridor for the Super Highway.
The project would traverse the Cross River National Park (CRNP) which is a proposed United Nations Educational, Scientific and Cultural Organisation (UNESCO) Man and Biosphere tentatively designated World Heritage Site.
That the proposed project site which has also been recognised by World Wildlife Fund (WWF) as the richest plant and animal species (Fauna and Flora) ecosystem in Africa risk significant destruction if the super high way runs through it.
A foundation, Segun Adeleye Foundation for Good Leadership in Africa (SAFFGLIA), designed to encourage governments across Africa to embrace good governance in order to uplift the standard of living of the people, has been unveiled.
R-L: Dr Adeleke Ipaye, Senior Special Assistant to Osun State Governor, representing the Governor Rauf Aregbesola; Molara Wood, Head Corporate Communications, Resort International Ltd, representing Dr Wale Babalakin; Mr Segun Adeleye, President/CEO World Stage Ltd and founder Segun Adeleye Foundation for Good Leadership in Africa (SAFFGLIA); Mr Joe Bankole, Head of Lagos Operations, News Agency of Nigeria representing Minister of Information and Culture, Alhaji Lai Mohammed and Mrs Tosin Adeleye, Trustee of SAFFGLIA at the launch of the foundation and a book, So Long Too Long Nigeria by Segun Adeleye at the Afe Babalola Hall, University of Lagos on Thursday, March 10, 2016
The event, held at the Afe Babalola Hall of the University of Lagos on Thursday March 10, 2016, attracted the presence of the Minister of Information and Culture, Alhaji Lai Mohammed as guest speaker for the lecture, “Setting Agenda For Good Leadership in Africa”; the chairman of Bi-Courtney, Mr. Wale Babalakin, represented by Molara Wood, Head Corporate Communication, Resort International, chaired the event.
The three-in-one event also witnessed the launch of a book: So Long Too Long Nigeria, authored by Mr. Segun Adeleye, Founder of SAFFGLIA and President/CEO World Stage Limited.
The minister, who was represented by the Director, Lagos Operations, News Agency of Nigeria, Joe Bankole, described the birth of SAFFGLIA as the beginning of a new done for good leadership in Nigeria. According to him the present administration is a representation of the values that the Foundation stands for, adding that the government is proud to associate with the foundation.
The minister identified corruption as the biggest challenges facing African development. He noted that the administration of President Mohammed Buhari is committed to fighting the menace in order to secure the future of the unborn generations.
He said: “Leadership is about integrity and accountability and Nigerians has voted for President Buhari to change the face of leadership in Nigeria and transform the nation for the benefit of all, and Nigerians really need to give him time to enjoy the promised change,” Minister stated.
While reviewing the book, Managing Director, Freedom Online, Mr. Gabriel Akinadewo, cited the relevance Segun Adeleye’s articles written seven to eight years ago on infrastructural decadence, corruption, government policies, unemployment etc. to present situations in the country.
While recommending the book to those in authorities, government and corporate organizations he noted that, “The fact that majority of issues captured in the book are testimonies of present realities in the country today shows that Nigeria has not changed over the years”.
In his opening remarks titled, Africa: The Tragedy of Wrong History, Mr. Adeleye went memory lane from the first coup in January 15, 1966 trying to identify where things went wrong.
He pointed out how bad leadership had held Africa hostage for years preventing the young generations from attaining their full potential.
He highlighted the visions of the foundation to include, to draw attention to activities of governments from local to national levels and encourage/ compel them to do things in the best interest of the people; it will engage in leadership training programmes that will champion the spirit of development of their societies in Nigeria and Africa; it will promote research into good leadership in Africa, among others”.
Dr Adeleke Ipaye, Senior Special Assistant to Osun State Governor, who represented Governor Rauf Aregbesola at the event, commended the author, saying his crusade for positive leadership is in line with the agenda of the current leadership in Nigeria.
With science taking centre stage, the Next Einstein Forum’s Global Gathering, Africa’s premiere global science and technology forum, wrapped up on Thursday in Dakar, Senegal with a clear path forward on how best to drive development through science, technology and innovation across the continent. The event was convened by the Next Einstein Forum (NEF), an initiative of the African Institute for Mathematical Sciences (AIMS) in partnership with the Robert Bosch Stiftung.
Thierry Zomahoun, NEF Chairperson and President and CEO of the African Institute for Mathematical Sciences (AIMS)
The first-ever global science forum on African soil, the three-day STEM-focused summit (Science, Technology, Engineering and Mathematics) brought together more than 800 global scientific and industry thought-leaders, political leaders and young scientists uniting to chart a new course for science-led development in Africa.
“This is a transformational moment for Africa and we would like to thank the President, Prime Minister and people of Senegal for welcoming the international scientific community to Dakar,” said Thierry Zomahoun, NEF Chairperson and President and CEO of the African Institute for Mathematical Sciences (AIMS). “Over the past three days, our scientists have showed us and the world that given the opportunity, they are able to do extraordinary things. Taking our African scientists out of the shadows and giving them the exposure on a global level, we’re creating a youth-driven Pan-African scientific community that must be sustained and expanded starting with our NEF Fellows and Ambassadors.”
Featuring a series of scientific and solution-driven sessions and spotlights of the NEF’s remarkable 15 Fellows, the forum’s umbrella mission was to drive continent-wide collaboration and commitment to building a strong STEM ecosystem in Africa as well as to showcase an impressive pool of rising and established STEM talent. Further, participants discussed the need for regional collaboration and investment in basic and applied sciences.
Speaking at a panel on developing a national science strategy and taking concrete steps to move from policy to implementation, Mary Teuw Niane, Minister of Higher Education and Research, Senegal, commented: “We’ve set an important precedent here in Dakar that Africa can indeed become a global scientific hub but only if we create the sustainable funding and support infrastructure critical to building scientific capital. Where there are many challenges, science provides endless solutions, both now and in the future. We must seize the opportunity by leveraging buy in and best practice results from Africa and the world.”
Moses Bangura, founder of Rokel Delivery Services (RDS), an African led start-up that leverages advances in drone technology and network mapping to deliver urgent life-saving health care solutions, won the NEF Global Challenge of Invention to Innovation competition (Ci2i), which spotlighted an array of young scientist pitching their impact-driven solutions to a live audience and judging panel. Bangura commented: “With our business idea, we seek to raise money to develop an advanced prototype for testing and install a few ground stations, run pilot studies in at least two African countries and participate in the development of legal infrastructures in the use of drones for service delivery in Africa. This we believe will be the first of its kind in the world. In the end, RDS will ensure that health care products are able to reach people in emergencies and those who are in the furthest regions from connected roads.”
“This week, we’ve gotten a sneak preview of the future of an Africa that is young and rapidly transforming. Science is key to this evolution and NEF is a critical platform to realize this potential. We all agree that a strong scientific community on this continent will also revolutionise the global scientific community,” said Ingrid Wünning Tschol, Senior VP of Strategy, Robert Bosch Stiftung.
According to the organisers, the NEF is committed to a holistic, action-oriented roadmap aimed at enabling science-driven development by forging strategic partnerships, securing increased investment, developing research capacity, encouraging education, empowering young African scientists and promoting diversity and women in STEM.
Following the signing of a memorandum of understanding (MOU) between AIMS and Germany’s Federal Ministry of Education and Research (BMBF), both organisations announced the establishment of five research chairs to strengthen research and support scientific exchange. The first chair has already been set up at AIMS Senegal with NEF Fellow Moustapha Fall with others chairs in South Africa, Ghana, Cameroon and Tanzania to follow. In total, the programme is valued at nine million euros.
Alongside Neil Turok, AIMS Founder and Chairman and current Director of Perimeter Institute for Theoretical Physics, NEF President Thierry Zomahoun, signed a letter of intent with the government of the Federal Republic of Nigeria to open an AIMS center in Nigeria. The NEF also announced the launch of the AIMS Women in STEM Initiative (AIMSWIS), a collaborative industry effort to prioritise African women in STEM supported by the African Union Commission, the Government of Senegal, Human Sciences Research Council (HSRC), South Africa, Forum for African Women Educationalists, Johnson & Johnson, International Development Research Centre and others.
Also on Thursday, IBM Research and the NEF announced the launch of a visiting scientist programme, joining forces to promote the future of African scientific talent and advance the continent’s knowledge economy.
“The Next Einstein Forum is particularly pleased to partner with IBM Research on this program which demonstrates concretely what we are trying to do – bridge brilliant scientists from Africa to global opportunities for research and mentorship, both to receive and give mentorship,” said Arun Sharma, Managing Director, NEF. “The selected NEF Fellows are already accomplished scientists in their own right and the programme will allow them to further their research and global standing.”
Through the collaborative agreement, five NEF Fellows will become visiting IBM scientists at IBM’s global network of research labs in countries such as Kenya, US, Switzerland, China, India, Brazil, Israel, and Australia. The programme is designed to give a boost to Africa’s most promising young scientists and help set the pace and direction for the continent’s cutting edge scientific research.
“African economies have experienced tremendous growth in the last few decades. To sustain this growth into the future, it is imperative to support the development of Africa’s knowledge economy and drive science in Africa, for Africa and the world,” said Dr. Solomon Assefa, Director of IBM’s South Africa Research Lab. “This initiative from IBM Research and the Next Einstein Forum is designed to support some of Africa’s most promising young scientists and equip them with the skills and professional networks they need to make a difference in Africa and beyond.”
The next NEF Global Gathering will be held in Kigali, Rwanda in 2018, which is now home to the AIMS headquarters, Africa’s first quantum research centre Quantum Leap Africa and the NEF secretariat.
Economists have long found Nigeria to be something of a conundrum. The macro picture has always appeared compelling – large population, oil reserves, mineral reserves, endless tracts of arable land, land and sea borders for regional domination. Indeed, the absurdity of our underperformance is only surpassed by our ability to accurately quantify our losses and missed opportunities.
Kemi Adeosun
In the short period that I have been privileged to serve as Minister of Finance, I have observed that even the most basic systems and controls over the management of our resources are in dire need of strengthening. While we are regaled with and shocked by details of amounts stolen, diverted or wasted, we must face the cold reality that such acts are facilitated by weaknesses in our systems. Even if we successfully prosecute and jail every looter, ghost worker and other economic saboteur, there is every risk that those caught will only be replaced by persons who are just as bad, or worse – unless we radically strengthen our systems and institutions.
Our President’s brave and committed fight against corruption and waste is as much an economic crusade as it is a moral one. The objective is not just to stem the corruption and loss but to execute an economic plan to channel those monies into much needed areas that will support and reposition the economy. In short, the fight against corruption is not about “retribution” and meting out punishment, it is about releasing funds for our economy. I am humbled to be part of the ongoing work on recovery and can report that the urgency in the work, especially our interface with nations where our money has been stashed, is propelled by our need for funds to invest into our economy.
Our economic plans are not about austerity and frugality; if that were the case then we would not be attempting an expansionary budget. We could have pursued fiscal consolidation and maintained 2015 budget size, and then introduced severe public spending cuts to balance the books by laying off workers and cutting projects. Had we done so, we would by now be the darling of the IMF and other multi-laterals.
Conversely, we are undertaking an ambitious counter cyclical strategy to stimulate our sluggish economy and expanding government spending with a focus on infrastructure, the true catalyst for economic growth. This will have contractors returning to site and re-engaging workers, it will see new projects commencing, arrears released and economic activity reinvigorated across the nation. We plan to take advantage of low global prices for commodities and contract prices. Existing contracts are being renegotiated downwards, with significant savings recorded and new projects priced to reflect current commercial realities. Our spending stimulus is private sector driven, supported by a robust procurement system that will see permanent local capacity built in a number of sectors including oil and gas, housing construction and agriculture. However, and this is the key differentiator, we plan to spend in a disciplined manner that will extract the maximum value for every naira spent.
The process of building the internal control framework to support this need for disciplined spending has begun in earnest. Our Efficiency Unit has reviewed four years of detailed expenditure data to identify trends and is already negotiating volume discounts that appropriately reflect the buying power of government. Personnel remains our largest cost. In addition to the BVN driven cleaning of our payrolls that has so far removed 23,000 fraudulent entries, we have initiated significantly stronger controls over our payroll. These efforts will exert a constant downward pressure on personnel costs until such a time as we have assurance that every payment is accurate and valid. A similar process is now commencing in Pensions. The N160 billion spent monthly on personnel and pensions related costs demands this as an absolute minimum.
The revenue focus is non oil. We are revisiting historical decisions that are no longer in the best interests of the national economy. The establishment of various Boards and Parastatals to undertake the operational and revenue generating business of government was a well-intentioned attempt to provide separation from policy makers. However, as the economy has grown, so too has the revenue earned in these agencies and their financial autonomy has grown in a manner that no longer fully serves the public interest. Port charges, maritime charges, airport landing fees, visa charges, passport charges, telecoms licence fees, among many others, must be tracked and accounted for. While the Fiscal Responsibility Act was designed to provide control, actual compliance has been poor. The result has been leakage on a staggering scale, as findings from our ongoing audits suggest. This is a serious issue. The upside is a significant revenue opportunity which the TSA implementation has given us sight of, and which we are supporting with a proactive drive for improved accountability.
At the same time, our traditional revenue sources are being supported to be more effective. In Customs, we are making the necessary investments in container scanners and other equipment required to improve collection efficiency. This is combined with the results of a compensation survey which will see the introduction of performance related pay, to reduce corruption and create an alignment of interest that will enhance revenue generation. With FIRS there is a well-defined plan to enhance compliance by widening the tax net. Using data to drive tax compliance, we will ensure that the tax regime is efficiently administered and that everyone pays their fair share.
There is a need for disciplined and effective system of managing our financial resources to ensure maximum value. We will no longer measure performance by the size of our budget or the amount disbursed; we must measure by the impact of that expenditure on the lives of Nigerians. To measure and manage this we have already made some key changes in the way funds are released. We have abandoned the old system of capital releases that funnelled a proportional share of available funds released to each Ministry, Department and Agency. We have a robust system in place where funds are tied to specific outcomes as documented by each agency. This is being supported by follow up reviews to ensure implementation.
As Benjamin Disraeli once said, “We are not creatures of circumstance; we are creators of circumstance.” I am firmly convinced that Nigeria is on the right path. The path of discipline will confront some age old destructive habits. It will challenge some unwritten rules, and I personally will step on some highly placed toes on this journey. All this I am fully prepared for, and so I do not expect nor do I particularly want to be popular.
However, I will act in the best interest of all Nigerians to ensure that we build the economy that we desire and richly deserve.
By Kemi Adeosun Minister of Finance, Federal Republic of Nigeria. This is the second of a series of three articles.
Nigerians voted for change and to attain that change there is a need to do things differently, in the recognition that doing what we have always done will only result in more of the same. That change has started with the vital offensive against corruption, which has had a huge and adverse effect on our economy. Much of the debilitating underinvestment in our infrastructure that has handicapped our economic growth, has arisen because funds were diverted to enrich a few at the expense of the wider populace. At the lower levels, the waste, inefficiency and culture of non-performance have, like a financial cancer, eaten away at our core institutions. We are already beginning to see change. The slide towards self-destruction has slowed down but we must now work collectively to ensure that we exploit the upside from our situation.
Kemi Adeosun
Globally the downturn has hit all nations, rich and poor alike. The manner in which governments have intervened to protect their economies have been diverse and innovative. What is abundantly clear is the fact that the previous consensus about what is best for the global economy is rapidly changing. There is a concerted move towards individualism rather than collectivism. The new normal for the global economy is that there is no normal, each nation must painstakingly work out the best path to follow.
For Nigeria, we believe that the best path to follow is to invest in infrastructure that will unlock the potential in the non oil sectors. We can transition from being a commodity economy to an industrialised, regionally dominant one. Oil is important but clearly, oil it not enough. Iran is a very recent and relevant example of living without oil. The sanctions that embargoed Iran’s oil led to the development of robust petrochemical and other export industries that enabled the country to survive. Iran survived without oil, made tough decisions and is now being feted by investors as the next growth story.
The focus of our economic policy is to redress the infrastructure deficit, unlock the rich diversity in the economy with a determined and focused turnaround programme. For us it would be a tragedy to have endured so much pain and not emerge better and stronger. The provision of a spending stimulus to the economy is critical to releasing the upside in the economy. Investing specifically in Power and Transportation will release the opportunities in solid minerals, manufacturing and agriculture.
However, government spending alone is insufficient to bridge the infrastructure gap and there is a need to embrace private capital to provide additional impact. We are at an advanced stage of reforming the process for Public Private Partnerships to provide a seamless pathway to attracting much needed private, financial and operational input to service delivery. Private capital brings more than financial resources; it also brings discipline and best practice, creating a benchmark against which the utilisation of public money can be measured.
It is important to link the fiscal housekeeping initiatives that we have started with the wider economic strategy. Specifically, questions around the focus on corruption and the elimination of ghost workers, controlling inefficient spending and preventing revenue leakages, need to be evaluated in the context of how it impacts our ability to stimulate the economy. We have been increasing our level of borrowing annually, and much of that is used to fund recurrent spending. Indeed, in 2015 just 10% of spending went to capital items. We spent more on travel, training and stationery than on roads. No nation has ever developed with such consistent underinvestment in capital.
Growing the economy at a rate that will address the employment needs of our huge population requires a fundamental change in how government collects its revenues and spends. The 2016 budget is deficit financed; and the fiscal housekeeping which is aggressively blocking revenue leakages and reducing costs is firmly aimed at ensuring that the borrowed funds are channelled into capital projects, rather than seeping through an inefficient financial management system. This is not only prudent economics but it is a moral necessity, since these borrowings will be repaid by future generations. Therefore, while we focus fully on the macroeconomic indicators; we must and will continue to focus on the micro factors which collectively shape and determine the larger picture.
The road map to attaining our objectives is a tough one, and we may endure the financial pain for longer than we would prefer, but the upside is that we have actually already endured the worst part of the adjustment cycle. The outlook for oil prices is looking more positive but we are fundamentally determined to ignore oil. One word that will resonate across all that we do in government is ‘Discipline’. Financial discipline is going to be a game changer in shaping the future of Nigeria’s economy.
Our focus will make sure that ‘every naira counts’ irrespective of its source. The government is ready and determined to lead this crusade of financial responsibility. The big questions are:
Is the populace ready to do the right thing in their respective areas of operations?
Are we willing to be frugal and conservative in expenditure?
Are we as custodians of the nation’s wealth willing to manage the resources entrusted to us with care, knowing that someday we will be called to account?
Are we willing to confront those who mismanage our collective wealth regardless of the consequences?
Dare we look at what worked successfully in the 50s and 60s, and then modernise and re-enact them?
Dare we look at global trends, and courageously invest in our forecasted choices?
Nigeria stands on the threshold, daring to move into previously uncharted territory through identifying and embracing novel economic and fiscal policy stratagems that will release our considerable upside. We are for innovation to create a new workable path, courage, and discipline to implement and build a resilient economy that is not controlled by the oil price.
By Kemi Adeosun, Minister of Finance, Federal Republic of Nigeria. This is the first of a series of three articles.
