By Uzoramachukwu
The Peoples’ Democratic Party (PDP) Governors’ Forum has decried the excruciating hardship and suffering being meted out to Nigerians by the ruling All Progressives Congress (APC).
At its regular meeting on Wednesday, March 23, 2022, in Aba, Abia State, the Forum which comprises all elected Governors of the PDP “reviewed the excruciating hardship and suffering being meted out to Nigerians by a failed APC-led Federal Government, the near collapse of the APC as a viable political party, the readiness of the PDP to take over and offer qualitative leadership options to rescue the nation.”
The PDP Governors’ Forum issued a Communique that stated, inter alia: “We lament the terrible pain and hardship facing Nigerians in virtually all aspects of life.”
The meeting noted that life was much better in 2015 under the PDP than currently under the APC, as exemplified in some Comparative Indicators obtained mainly from the National Bureau of Statistics, notably: Diesel which is critical for running of SMEs was N131.47 in 2015, now costs above N700. Fuel at Official and Black-Market was N87/155 in 2015, but now costs N167/350. Aviation Fuel/Air Ticket Rate on Domestic Flights was N110 per Litre/N18,000 in 2015, but now hovers around N700 per Litre/N70,000, where available.
The Forum stressed that “the scarcity of fuel which has resulted in loss of several man hours is a disgrace to Nigeria.”
According to the Communique, “The collapse of the National Grid has occurred 126 times in seven years – (June 2015 to March 2022) – and its consequences for non-availability of power is most unfortunate.”
Kerosene (NHK) used by the ordinary Nigerian for cooking and power was N180 in 2015, now sells at ₦450. Liquefied Petroleum Gas (LPG) 12.5kg Cylinder that sold for N2,400 in 2015 is now sold at between N8,750 and N10, 000.
Prices of basic foodstuff are now three times higher than what they used to be in 2015. Staple foods such as rice, beans, cassava flakes are now slipping out of the hands of average Nigerians. Indeed, a bag of rice sold for N8500 in 2015 is now N39,000.
Electricity was N14.23 per kilowatt in 2015, but is now N38.530, and not even available.
Unemployment rate that was 11.4% in 2015 is now over 33%, one of the highest in the world. The poverty rate in 2015 was 11.3% but now stands at about 42.8%. Accumulated Inflation in 2015 was about 4% but it is now 15.50%. Inflation Rate was 9.01% in 2015 and now 15.7%.
The PDP Governors’ Forum stated: “Perhaps the Exchange Rate has been one of the most disastrous. N150 to a dollar was the parallel market rate (patronized by most businessmen and Nigerians) in 2015 is now about N580 to $1 in the parallel market and still rising.
On the issues of Debt and Debt-Servicing, the Communique averred: “Domestic Debt of N8.4T and External Debt of USD 7.3b were incurred between 1999 and 2015 while Domestic Debt of N7.63T (June 2015-Dec 2020) and USD28.57b as at Dec 2020 were incurred. External debt of USD21.27b was incurred between June 2015 and 2021. National Debt to GDP Ratio was 23.41% (2016) it is now 36.88% (2022).”
The Corruption Index has risen from 136 in 2015 to 150 now. Nigeria’s Misery Index, an indicator used in determining how economically well off the citizens of a country are, which is usually calculated by adding the seasonally adjusted unemployment rate to the annual inflation rate, has moved from 14.75 percent in 2015 to 50.48 in 2021.
The Communique noted: “The major threat to the agricultural sector and food security in Nigeria is insecurity. In the Northeast of Nigeria, it is estimated that no fewer than 70,000 hectares of arable farmland had been abandoned in the affected States and Local Government areas. The trend is the same all over the country. This further contributes to food inflation. The APC-led Federal Government must take steps to cooperate with States to bring security down to the grassroots.”
The PDP Governors’ Forum is surprised that in the face of these statistics of complete failure in all ramifications and areas, the APC still wants to be on the ballot in 2023, stressing: “This shows how uncaring and insensitive the APC is. It has become a menace to Nigeria.”
The Forum therefore urges “Nigerians to reject the APC, a party run undemocratically by a Committee contrary to the Constitution (S.228) with Mr. President regularly issuing instructions and dictates. It is impossible for a party so disorganized to offer good governance to the people of Nigeria.”
The meeting expressed concern and alarm over various reports and claims of incidents of stealing of crude oil ranging from 80% to 95% of production made by industry practitioners and called on the Federal Government to set up an appropriate mechanism to reverse this trend and bring perpetrators to account.
The PDP Governors once again decried the inability of the NNPC to make its statutory contributions to the Federation Account, in spite of Oil selling at above $110. It is patently unconstitutional for NNPC to determine at its whim and discretion when and what to pay to the Federation Account, as it is a mere trustee of the funds for the three tiers of Government: Federal, States and Local Governments. We once again, call for investigations and audit of the quantity of consumption of fuel ascribed to Nigerians and for deployment of technology at the filling stations to determine in a transparent manner the volume of consumption.
The Governors insisted that they would resist any further attempt by NNPC to ascribe unsubstantiated subsidy claims to other tiers of government.
According to the Forum, furthermore, S.162 (1) of the 1999 Constitution of the Federal Republic of Nigeria as amended stipulates that “The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation…”
Also, S.162 (10) states that “For the purpose of subsection (1) of this section, “revenue” means any income or return accruing to or derived by the Government of the Federation from any source and includes – (a) any receipt, however described, arising from the operation of any law; (b) any return, however described, arising from or in respect of any property held by the Government of the Federation; (c) any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body.”
The Forum averred that as of today, 18 (Eighteen) Federation Revenue Agencies are not paying/remitting any revenue to the FAAC Account. These include: Central Bank of Nigeria; Nigeria Maritime Administration and Safety Agency (NIMASA); Nigeria Liquefied National Gas (NLNG); Nigeria Communication Commission (NCC); Economic and Financial Crimes Commission (EFCC); Nigeria Ports Authority (NPA); Security and Exchange Commission etc.
Additionally, FIRS and DPR take cost of collection of 4% of Revenue collected while Customs collects 7%. In March 2022, for instance, FIRS took N15.4Billion as cost of collection and Customs took N8.4b. If these are annualized, FIRS and Customs collect about N1.84Billion and Customs N100B per annum. Obviously, some states of the Federation’s capital budget do not come close to these.
The Forum revealed that Nigeria Federation has 49% shareholding in NLNG. According to the Minister of Finance during the 2020 budget performance briefing at the National Assembly, the federation received the dividend of N144billion (One Hundred and Forty Four Billion) from NLNG. According to the Forum, “This figure, to the best of our knowledge, was never paid into the Federation Account.”
NNPC deducts N8.33Billion monthly for the rehabilitation of the Refineries in Nigeria even as till date no refinery is working. On priority projects of the nation’s oil industry, NNPC deducted N788.78Billion for various investments between 2018 and 2021 without recourse to FAAC.
NNPC in 2021 alone claimed to have paid over One Trillion Naira as petroleum subsidy. Indeed, the month of March 2022, N220Billion was deducted as oil subsidy with a promise that N328Billion will be deducted in April 2022. For the Forum, “This is unacceptable.”
NNPC and FIRS as well as other remitting Agencies continue to apply an exchange rate of N389/$1 as against the Import and Export window of N416/$1. The extent of this leakage can be better felt, if this rate is compared to the current N570/$1.
From available records, about N7.6T has been withheld between 2012 and 2021 by NNPC from the Federation Account, and all these are said to be payments for oil subsidy.
Conclusively, the Forum believes that all these leakages in NNPC have been made possible because the President is also the Minister of Petroleum. The urgent separation of these two portfolios have become necessary
Finally, the Communique noted the approval by the PDP NEC of the Timetable and Timelines for Congresses and the Convention of the Party, and urged all party members and party leadership to remain focused and united to win power in 2023 to tackle the myriads of problems facing the country.
