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Probe Missing $2.1bn, N3.1trn Of Subsidy Payments Or Face Legal Action, SERAP Tells Tinubu

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Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to “set up a presidential panel of enquiry to promptly probe the grim allegations that US$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019, as documented by the Auditor-General of the Federation.”

SERAP urged him to “name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy, and to ensure their effective prosecution as well as the full recovery of any proceeds of crime.”

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SERAP also urged him “to promptly, thoroughly, independently, transparently and effectively probe all fuel subsidy paid by successive governments since the return of democracy in 1999, and to use any recovered proceeds of crime as palliatives to address the impact of any subsidy removal on poor Nigerians.”

In the letter dated 3 June 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “There is a legitimate public interest in ensuring justice and accountability for these serious allegations. There will be no economic growth or sustainability without accountability for these human rights crimes.”

SERAP said: “Your government should urgently act to follow due process of law in any policy to remove fuel subsidy, ensure that suspected perpetrators of these crimes against Nigerians are brought to justice and full recovery of any missing public funds.”

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SERAP also said, “Arbitrarily removing fuel subsidy without addressing outstanding accountability issues in the alleged mismanagement of oil revenues and fuel subsidy payments would amount to punishing poverty and further impoverishing the poor while letting high-profile officials and non-state actors get away with their crimes.”

READ ALSO: Failed Abuja CCTV Project: SERAP Triumph As Court Orders Buhari Govt To Account For $460m Chinese Loan

The letter, read in part: “Any removal of fuel subsidy should not be used as a ploy to keep the poor in poverty while those who allegedly stole oil revenues and fuel subsidy payments keep their ill-gotten wealth.”

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Allegations of corruption in oil revenues and fuel subsidy payments suggest that the poor have rarely benefited from the use and management of the revenues and payments.”

Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds.”

We would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.”

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“The proposed panel should be headed by a retired justice of the Supreme Court or Court of Appeal, and its members should include people with proven professional record, and of the highest integrity that can act impartially, independently, and transparently.”

“A comprehensive approach that prioritises accountability and full recovery of missing crude oil and public funds is required to address the problems of the implementation of fuel subsidy since 1999.”

“According to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit N663,896,567,227.58 into the Federation Account. The Auditor-General fears that the money may be missing.”

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READ ALSO: Fuel Subsidy: ‘Suspend Disbursement Of $800m Loan To FG’, SERAP Tells World Bank

“The NNPC also reportedly failed to account for the allocation of crude oil to refineries in 2019. 107,239,436.00 barrels of crude oil were lifted as domestic crude without any document. The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted.”

“The NNPC in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162(1) of the Nigerian Constitution 1999 [as amended]. The Auditor-General fears that the money may have been diverted.”

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“The NNPC also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account.’ The Auditor-General wants the money remitted.”

“The NNPC also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00. The Auditor-General fears that the PMS may have been diverted.”

“The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’ The Auditor-General fears that the crude oil may have been diverted.”

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“The Department of Petroleum Resources (DPR) in 2019 also reportedly failed to remit US$1,278,364,595.49 in revenue to the Federation Account. The money was deducted by the NNPC from the Oil and Gas Royalty assessed by the DPR.”

READ ALSO: Probe Missing 149m Barrels Of Crude Oil In 2019 Or Face Legal Action, SERAP Tells Buhari

“The DPR in 2019 also deducted N19,840,081.29 as ‘stamp duty’ payments from contractors and consultants but the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.”

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“The DPR in 2019 also paid N137,225,973.35 to contractors and consultants for various contracts and consultancies but failed to deduct stamp duty. The Auditor-General wants the money recovered.”

“The DPR also paid N11,856,088,271.92 as salaries for 2019 but failed to deduct N118,560,882.72 as contribution of 1% Industrial Training Fund (ITF). The DPR in 2019 also failed to transfer US$35,738,342.95 year balance. The Auditor-General wants the money recovered and remitted.”

“The DPR in 2018 also withdrew without any explanation US$759,387,755.10 from DPR Signature Bonus Account rather than paid the money into the Federation Account.”

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“Subsidy records show that N443,940,559,974.80 was paid as total subsidy for 2016 but the money was not budgeted for.  The payments were for outstanding Petroleum Support Fund (PSF) commitments for year 2015.”

“However, there was no payment in 2016. Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.”

“The Auditor-General fears that the oil marketers that received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund as the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any document on the payments.’”

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READ ALSO: Missing N4b: SERAP Drags Lawan, Gbajabiamila To Court Over Failure To Institute Probe

“N39,141,210,181.74 was also paid from the Federation Account in 2016 to different Oil Marketers in 26 transactions, being Payments of Interest and Foreign Exchange Differential on Subsidy but without any document.”

“The NNPC also made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016. This is contrary to expectations that profits should be made from the joint ventures.’”

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“The Ministry of Petroleum Resources, Abuja in 2016 paid N14,490,000.00 for the supply of 3 Nissan Almera Saloon vehicles 1.5 to the Ministry without proper documentation. The purchase of ‘the vehicles were made through direct procurement without competitive bidding by at least three companies, as required by Financial Regulations. There was no advertisement and bidding for this contract.’”

“Although ‘N12,442,500.00 was approved by the Bureau of Public Procurement for the vehicles, the Ministry made an overpayment of N2,047,500.00 to the car company.’”

“SERAP urges your government to prioritise getting to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.”

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“Promptly investigating and naming and shaming suspected perpetrators and recovering any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”

“Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power.’”

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’”

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“The UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party obligate your government to effectively prevent and investigate the plundering of the country’s wealth and natural resources and hold public officials and non-state actors to account for any violations.”

“Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.”

“Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”

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OPINION: For Tinubu And Sanwo-Olu [Monday Lines 1]

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By Lasisi Olagunju

“When lions battle, jackals flee.” Isaac Newton wrote that to his bitter rival, Gottfried Leibniz. It was a barbed remark on their feud over who between them invented calculus. The more you read of the mutual respect those two had for each other, the more you wonder why they ended their respective careers in very bitter, reckless animosity; the more you also ponder over the cost of that fight and whether it was worth the troubles.

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President Bola Ahmed Tinubu and Governor Babajide Sanwo-Olu of Lagos are two big men who are not equals. One is the boss, the other the boss’s boy. They are not equals, so, there cannot be a rivalry between them over feats and achievements. But they fight; and it is right here in the open. I’ve heard people demanding to know what they are fighting over. We do not know. Let no one talk about Lagos speakership. The sack of Mudasiru Obasa, which was as abortive as Dimka’s coup of 1976, was just what it was – a symptom; it was a reaction to something; there was an underline cause. What was it?
Sanwo-Olu and his boss are no Isaac Newton and Gottfried Leibniz and so their fight couldn’t be over who takes the priority on a matter designed to help humanity. If there is a delectable Queen Cleopatria somewhere, I would have drawn a parallel between what is unfolding in Lagos and what unfolded between Rome’s Octavian (Augustus Caesar) and Mark Anthony. But there is no seductress in the mix, I will, therefore, not deliver to age what it is no longer capable of tweaking.

So, what did Sanwo-Olu do? Or what did he not do? Both sides are not talking. All we’ve seen was an ungracious rejection of a friendly gesture; the snub of a handshake by the more powerful potentate. We’ve also seen a convenient skip of the junior power where he ought to speak.

Politics is a fast-paced game. You slept yesterday at the war camp and woke up today to news of a ceasefire. But the wise knows that political feuds inflict invisible wounds. They use that to explain why political wounds never heal and wars never end even when you read texts of forgiveness consequent upon atonement for unknown sins and apologies for unstated crimes.

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MORE FROM THE AUTHOR: OPINION: Ijebu And Their Six Tubers Of Yam [Monday Lines 2]

Some people are happy, clinking glasses over the power buffetings in Lagos. They drink to the health of the feud; they wish it greater vigour; they wish its fire is unquenchable. These are people who do not like Lagos and its politics at all and who have been their victims. They see the fight as the elixir that would cleanse the land of all its sins and cure it of its sicknesses. They talk of power and its excesses. They point at Akinwumi Ambode, the man who was brought low so that Sanwo-Olu could ride high. They remember Babatunde Fashola who escaped breathlessly simply because he was like Coca-Cola, more popular and successful than the parent company. They point at a Governor Bola Tinubu of Lagos who serially used three deputy governors in a tenure of eight years. If I were the president, I would also look at this unedifying statistics and repack my big and small intestines.

A leader should be very careful on the way he treats his people, particularly, the companions who look up to him. There was an Orangun of Ila who bulldozed his way to power with charms, and then elevated the humiliation of his principal chiefs to an art. An Ila historian wrote that the king’s “humiliating treatment (of the chiefs) reached intolerable proportions when he frowned at seeing the Iwarefa (the kingmakers) in decent attires. When a chief made a new garment, he was obliged to excise the breast and patch it with a rag.” But every reign, no matter how glorious or inglorious, must come to an end. How did it end for that oba? He didn’t die on the throne. His character gave him a fate which made him farmer outside power. Ó fi’gbá ìtóòrò mu’mi nínú oko (he drank water with ìtóòrò melon calabash on the farm). I suggest you read ‘The Orangun Dynasty’, a very rich 1996 book on the history of the Igbomina stock of the Yoruba, authored by Ila Orangun’s very first university graduate, Prince Isaac Adebayo; check pages 40 and 41.

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A leader is a masquerade; he must not tear his own veil. When a leader makes and unmakes subordinates, he rends his own cover. “Ènìyàn l’aso mi” is a Yoruba expression which, in English means “people are my clothes; they are my covering.” As a Yoruba proverb, it emphasizes the importance of people in people’s lives. Whatever cloth the masquerade wears is that ‘thing’ that makes the wearer an Egungun. He must protect it because it is his store of power. But my people say power is like medicine; it intoxicates. A researcher adds that “ultimately, the accumulation of power becomes dangerous even to its owners.” Is that why someone saw “a link between mask and menace”?

MORE FROM THE AUTHOR: OPINION: Nigerian Beggars In Ghana

So, when we interrogate the use of power by the one we have come to call Lagos, we should always remind him that the costume is the sacred adornment which people see, respect and venerate in the masquerade. For a leader, his principal boys and girls are his costume, they are his cover. He needs them when harmattan comes with its fury. And harmattan will come whenever the masquerade repairs back to the grove when the festival is over, and it will be over.

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Even lions, kings of the jungle, place great value on strong bonds within their prides for survival and well-being. There is an old Irving King song on this: “The more we get together/The merrier we’ll be.” That song emphasizes human interconnectedness; the support embedded in community.

Jackals are opportunists, and they are many in this Lagos fight. Newton’s feuding-lion imagery is an evocation of the themes of strength, of hierarchy, and of consequence. It defines the strained relationship of one big expert with the other big man. The other part of his proverb ‘bombs’ the miserable jackals, minions who lurk around the battlefield, who thrive in chaos and on scraps from the feuding powers.

American novelist, Herman Melville, says a thousand fibers connect us with our fellow men. We should not live our lives as if we exist only for ourselves. Public ‘spanking’ of a governor for unknown and unsaid sins is petty. A president should have snubbed rebuff as his option of engagement. If I were him, If a ‘boy’ offended me, I would just ‘face front’ and concentrate on delivering the Chinaware I carry unbroken. If your load is a pot of palm oil, avoid stone throwers.

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MORE FROM THE AUTHOR: OPINION: Ibadan-Oyo War Of Supremacy Over Obas Council

But the president is not pacifist me. He enjoys fighting wars after wars. He is like Sango who desperately desired a fight but found no one to fight. Sango looked round and pounced on the wall and wrestled with it. There was also an Aare Ona Kakanfo who itched for a battle and could get none. He stoked a rebellion at home against himself and by himself violently put it down. Because of this and many more like it, the man was nicknamed Aburúmáku (the wicked one who refuses to die).

Are there no elders again where the feuding feudal lords come from? I read texts calling for propitiation. Why not? Appeasement without reason may look stupid but Napoleon Bonaparte settled it long ago when he said that “in politics stupidity is not a handicap.” Borrowing lines from Ulli Beier, I would say that now that men appear to have failed to stop this war with reason, women should be called upon to come and kill the fire. Our mothers are like Osun, “the wisdom of the forest; the wisdom of the river. Where the doctor failed, she cures with fresh water. Where medicine is impotent, she cures with cool water.”

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The first lady should therefore step out, open her Bible (KJV) to Mark 4:39 and read to her husband: “And he arose, and rebuked the wind, and said unto the sea, Peace, be still. And the wind ceased, and there was a great calm.”

If she does that, I will be encouraged to give the president two lines from William Shakespeare: “Come, wife, let’s in, and learn to govern better;/ For yet may England curse my wretched reign” (2 Henry VI, IV, ix, 4).

If our president’s reign won’t be cursed for wretchedness, he should prioritise the people’s welfare over serial petty fights with his boys. Nigerians are panting at home and reeling in pains at work; on the road, they groan. They are not entertained at all by presidential beer parlour brawls like Musician Ayinla Omowura’s last fight. You don’t become king and still keep trysts with crickets. No.

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OPINION: Ijebu And Their Six Tubers Of Yam [Monday Lines 2]

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By Lasisi Olagunju

One of the first jokes I picked when I moved to Ibadan 30 years ago is that failure of patronage is the only reason a drummer would go to Oke Ado. The Ibadan surmised that the Ijebu who lived almost exclusively at Oke Ado part of Ibadan never ever got moved to spend a dime on bards.

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Those who minted that joke should come back from the dead and see what we see now with the Ijebu. When the day breaks tomorrow, I will go to Oja’ba in Ibadan and ask folks there why their ancestors with relish said that the Ijebu did not appreciate good music and would not put their money on it. The Ijebu I see today do what the Ibadan said they would not do. In a magnificent way, they mass in their capital annually and stage a spectacular festival of culture and splendour. They call it Ojude Oba (the King’s Forecourt). It is an annual festival of sumptuous songs and dance, a parade of success and cultural opulence. They held another edition yesterday, and it is already contagious. Other Yoruba towns appear to be getting bitten by the Ijebu bug. We watch as they evolve.

The Ijebu are a very scrupulous people. It is in their oríkì that their fathers had six tubers of yam: they ate two, sold two and offered two to their gods. You can ponder that again: with moderate six survival items, they did justice to their present; justice to their future through trade and investment; justice to the divine who held the rope of life. Anyone who approaches life methodically like this is not likely to fail in any enterprise. In nuanced ways, the oríkì suggests that those who managed the six tubers did not eat with ten fingers. Their descendants still do not do it today: they party hard but they also work hard and trade intelligently; they worship God with utmost devotion.

MORE FROM THE AUTHOR: OPINION: Nigerian Beggars In Ghana

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I watched a short video clip of the Ojude Oba event at 8am Sunday (yesterday). I grinned seeing everywhere in immaculate lush green, meticulous. Sponsors of the event, Mike Adenuga’s Globacom, has done it for a record twenty years. And both company and owner say they won’t stop doing so forever. Patriotism is love of country. So, what is love of home? “In love of home”, says Charles Dickens, “the love of country has its rise.” That is what Adenuga and his Globacom commit themselves to with Ojude Oba till eternity. With Globacom’s heavy lifting, Ojude Oba has become the biggest cultural festival in Nigeria today. They say they are taking it even further than where it is. Something there to copy by every big, rich man and woman from other towns. The ones who feel too big to lift their homestead to glow will likely live ‘homeless.’ We all should know, as William J. Bennett did, that “home is a shelter from storms – all sorts of storms.”

I did not read history, but I am a lover of history and a believer in what it teaches. I keep seeing in the past the road that led to today, and a possible pathway to the future. T. O. Ogunkoya, author of ‘The Early History of Ijebu’ published in December 1956 offers some glimpses into the elements that make up the Ijebu gene:
“Nobody knows the date of the first migration to Ijebu or the course that it took. Tradition states that it was led by a man named Olu-Iwa accompanied by two warrior companions, Ajebu and Olode. Olu-Iwa settled at Iwade, for Ijebu-Ode itself did not, as yet, exist. Ajebu was instructed to mark out with fire the boundary of the new land. He went westward to the lagoon and marked out the boundaries to the North, South and East as well. To Olode was given the task of marking out and planning the future city, a task which took him more than three years. So well did Ajebu and Olode do their work that the new town was named after them as ‘Ajebu-Olode’, now corrupted and called Ijebu-Ode.”

MORE FROM THE AUTHOR: OPINION: NNPC’s Ojúl’arí Ọ̀rẹ́ Ò Dé ‘nú

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The writer of that history said “there was ample evidence in favour of this tradition. He wrote that “In Ijebu-Ode today there stands in a prominent place in Olode Street a tomb dedicated to him and bearing the inscription ‘The resting place of Olode.’ In Imepe Street there can be seen a tomb dedicated to the memory of Ajebu. It may be taken for granted that these two men are historical figures whose names have been perpetuated in the name of the city.

Ogunkoya wrote that there is another theory of the origin of the name. He said “Portuguese maps of the sixteenth and seventeenth centuries showed cuidade de Jabu or ‘the city of Ijebu.’ Now it is argued that the Ijebu, in common with people of similar ancestry, used the word Ode as a generic name for a town. So the Itschekri people had Ode Itschekri (Warri). The Ondo had Ode Ondo and the Ilaje Ode Ilaje. In Wadai (Sudan) there was an Ode Ijebu, suggesting the transference of the name of the ancient home to the new. In support of this view it is to be noted that until very recently all the village people in the province referred to the city simply as Ode. As they themselves are Ijebus they merely point to their capital town without associating their name with it.”

Note the meticulous mapping of the boundary and the planning of the city. Note that the exercise reportedly took whole three years! Note the communal appreciation of the pioneers who got the job done. Put all those side by side what other chapters of their history say of their survival as a people. They pay attention to details. They valourize themselves as masters of money. They say they’d been spending shillings before the white man arrived (Omo a n’áwó silè k’Óyìnbó tó dé/ Òyìnbó dé tán owó òún pò si). I plan to ask my Ijebu friends what that means. I will tell you whatever they tell me.

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Fourteen Years Of FOI: CTA Holds S’south Roundtable As Edo AG Seeks Open Governance

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By Joseph Ebi Kanjo, Benin

Edo State Attorney General and Commissioner for Justice, Dr. Samson Osagie, on Monday said that any state government that desires to achieve true accountability and citizen engagement
must throw open the windows of its public institutions.

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Osagie spoke at a South South Regional Roundtable on 14 years of Freedom of Information Act in Nigeria organized by the Centre for Transparency Advocacy (CTA) in collaboration with the Edo State Ministry of Justice.

Represented by Mr. Festus Usiobaifo, Principal Counsel, Edo State Ministry of Justice, the Attorney General, while noting that his ministry, has, over time, “supported disclosures through inter-agency cooperation, training of public officers on compliance, and advisory opinions that promote openness in governance,” stressed that there is room for improvement.

He added: “Our ministries, departments, and agencies must not wait to be asked before releasing public information.

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“Data on budgets, contracts, procurements, and public health, for instance, should be available by default.”

READ ALSO: Navy Foils Oil Theft In Ondo, Seizes 1,400 Litres Of Illegally Refined Products

Earlier, in her welcome address, Executive Director, CTA, Faith Nwadishi, noted that the regional roundtable was part of a broader effort under the “Strengthening Accountability and Governance in Nigeria Initiative (SAGNI)—a 12-month project we are implementing with support from the Rule of Law and Anti-Corruption Programme (RoLAC) and funding from the European Union through International IDEA.”

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The ED, representated by Mr. MacDonald Ekemezie, Programme/Communication Manager of CTA, added that the regional roundtable became necessary “because the challenges around access to public information in Nigeria have reached a critical stage,”

She further noted: “Even with efforts made by CSOs, some ministries and agencies, it is still difficult to obtain clear, timely, and complete information from most government agencies especially at the sub-national level and Local Government Areas.”

The ED lamented that fourteen years after the signing of the FOI, its implementation remains weak, and that many citizens are not aware of it or does not know its usage.

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“Fourteen years later, we must ask ourselves, ‘How far have we really come? Yes, there has been progress. But implementation remains weak. Many public institutions still operate in a culture of secrecy, while some are yet to establish the FOI unit.

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“Some websites are inactive even when the laws require proactive disclosures of information by MDAs. Some agencies both at the federal and sub-national levels outrightly refuse to respond to FOI requests,” she said

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On the level of usage amongst citizens, the ED said “from our work and recent baseline study in Anambra, Edo, and the FCT, we have seen the same patterns over and over again:
Over 70% of respondents have never used the FOI Act.

“Only 45.8% know how to apply for information.
Among those who have tried, over 75% received no response.
Youth, women, and persons with disabilities—some of our most critical voices—remain largely unaware or unsure of how to use this tool.”

In his goodwill message, Chairman, Nigeria Union of Journalists (NUJ), Edo State Council, Comrade Festus Alenkhe, lamented that despite ascension by President of Nigeria and recent judgement by the Supreme Court of Nigeria, many states are yet to fully implement or respond to FOI request.

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On his part, Dr. Jude Obasanmi, Chief Responsibility Officer, Jose Maria Escriva Foundation (JOSEF)., said based on the review at the roundtable, there was a need for continuous and sustained engagement because “people should not define the benefit of the law based on their comfort zone”.

Today, there is a governor and tomorrow another person will be governor. So, let us put a mechanism in place, such that if tomorrow that person is not there, such law they enacted would also be beneficial to them after leaving office.”

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He said though they have achieved a level of success, there is room for more engagement to carry more people along in FOI implementation.

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