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By David Nwachukwu and Faith Adeniyi | Transparency and accountability are crucial for reducing opportunities for corruption in the public sector. This fact is not lost on various administrations in Nigeria, which have established various measures over the time to mitigate corruption and promote accountability and transparency. There has been a surge in the adoption and implementation of these sunshine measures since Nigeria returned to civil rule in 1999. But the result has been mixed. While some of these measures have been very successful, most have not made the expected impact. This forms the backdrop of the fourth policy report by Agora Policy, titled: ‘Imperative of Strengthening Nigeria’s Transparency and Accountability Measures’.
The report assessed 16 distinct transparency and accountability measures in the country within four clusters: Norms & Values, Public Financial Management, Open Disclosure, and Sanctions/Enforcement. It looks at the rationales, histories, challenges and records of these measures and makes recommendations for strengthening them. As the country gets ready for transition to a new administration, the report submits that “Nigeria needs more transparency and accountability, not less.”
Below are some of the key messages from the report:
Assets declared by public officials should be made public
The report contends that asset declaration by public officials is criticalto checkmating corruption in the public sector, if implemented effectively. The report claims that the potential of this measure is yet to be fully optimised largely due to lack of publication and verification of assets declared and limited capacity and resourcing of the Code of Conduct Bureau (CCB), the government agency charged with the implementation of the law. First, the calls for the amendment of Paragraph 3(c) of the Third Schedule of the 1999 Constitution of the Federal Republic of Nigeria. This provision empowers the CCB to make assets declared by public officials available to any citizen of Nigeria “only on terms and conditions as the National Assembly may prescribe”. According to the report, the refusal of the National Assembly to stipulate the condition for public disclosure has undermined the transparency and accountability utility of asset declaration, hence the recommendation for constitutional amendment.
The report also advocates for the verification of assets disclosed to CCB. It is believed that the disclosure and verification of the assets would prevent false declarations, deepen transparency and also increase trust in the government. However, at present, the CCB is undermined by limited budgetary allocations compared to other anticorruption agencies. This hampers the capacity of CCB and the Code of Conduct Tribunal (its sister agency) to adequately discharge their weighty responsibility of verifying assets declared by public servants across the three tiers of government and successfully prosecute those who err.
President Buhari should sign the new audit bill
The routine audit and legislative oversight of public accounts is a policy believed to regulate Government MDA’s expenditure and accounting to minimise incidences of corruption through internal and external audit processes overseen by the Office of the Auditor-General of the Federation (OAuGF). Despite the potential of this mechanism in promoting accountability and mitigating corruption in public service, many Ministries Departments and Agencies (MDAs) default in compliance, with the expected annual submission of their financial statements to the OAuGF and their counterparts in the states. The report states that without the power to sanction the Auditor-General is a ‘toothless bulldog’ and that Nigeria’s subsisting audit law is outmoded. Hence, the report recommends that President Muhammadu Buhari should sign the Federal Audit Service Bill into law before leaving office. It states: “the bill, which was passed by the National Assembly on 29 March 2023, repeals the Audit Ordinance of 1956. The bill strengthens the operations and independence of the Office of the Auditor General of the Federation (AuGF).”
Integrity checks needed on heads and staff of agencies with anticorruption mandates
Beyond corrupt practices found in various public offices, the report spotlights how the abuse of power by anticorruption agencies and public accounts committees have allowed corruption to thrive. In addition to bribe collection, “some civil servants have been reported to award multiple bids to contractors for some negotiated returns, while some even award contracts to their personal companies in violation of regulations against conflicts of interest.” All these acts are not in line with stipulated processes and should attract sanctions.
To address this gap, the report recommends integrity checks on the boards, leadership and staff of institutions with anti-corruption mandates and institute adequate safeguards on the exercise of oversight powers. The report states that, “these measures are needed to ensure that there is a symmetry between the mandates of these critical institutions and the values of those who work in and lead them, that there are measures for ‘watching the watchdogs’, and that the anti-corruption institutions are not undermined by the same ills that they were set up to tackle.”
Many MDAs don’t comply with government policies and without consequences
The report highlights how non-compliance across various MDAs has affected the successful implementation of anti-corruption measures. For instance, many MDAs default in compliance with the Freedom of Information (FOI) Act. Some MDAs also default in compliance with the expected annual submission of their audited financial statements to the OauGF. In 2020, the OAuGF reported that “65 MDAs had not submitted their financial statements for audit since January 12, 2017.” Similarly, not all public officials faithfully fill their assets declaration forms as required by law: on assumption of office, every four years, and when they exit. The report recommends strict enforcement of existing policies and adequate consequence management.
Need for a robust value/attitude re-orientation campaign
The report observes that most of the anticorruption measures are not delivering the desired impact because of a distorted and dysfunctional value system not just in the public service but also in the larger populace. To address this gap, the report advocatesfor a national re-orientation programme to instill anti-corruption values. The report advises the Federal Government to “launch a comprehensive and well-thought-out national value reorientation programme that creatively seeks to change the dysfunctional values, attitudes, and narratives that wittingly and unwittingly enable public corruption. The impact of the current emphasis on systems and sanctions will be limited without changes in societal values.”
Investments in technology and capacity could be game-changers
The report considers technology the greatest enabler of transparency and accountability. It thus highlights the need for continuous investment in technology and training for anticorruption agencies. The report points out that, “technology can be leveraged to enhance transparency across the diverse Public Financial Management (PFM) and open disclosure clusters where e-payment and electronic collection and dissemination of information have become a huge issue of concern.” While advocating for the adoption of technology in other areas of the anticorruption work, the reports encourages government to stick to and improve existing technology platforms. The reports states: “Thus, rather than contemplate the idea of going back on technology-driven platforms such as GIFMIS, IPPIS and the rest, the focus should be on how to improve their deliveries and build capacity for more effective use to strengthen transparency and accountability.
In related vein, the report advocates for more investment in capacity building for the staff of anticorruption agencies. According to the report: “capacity building to bridge gaps in technical knowledge and skills will go a long way to enhance the effectiveness of the relevant personnel in these institutions and, ultimately, strengthen transparency and accountability.”
The Whistleblower and other policies need legal backing
Introduced in 2016, the whistleblowing policy is an accountability and transparency mechanism designed to encourage confidential and voluntary reporting of suspected corrupt practices. Since its introduction, the policy has recorded notable milestones. For instance, the Presidential Advisory Committee against Corruption (PACAC) reported that “N594.09 billion was recovered in three years between 2017 and 2020 through the implementation of the whistleblower policy.”
With notable results as such, the report recommends the need for legal backing in order to make the policy more effective and most importantly, ensure its sustainability beyond the current administration. Subsequently, the report also calls for the protection of whistleblowers and employees of the relevant investigative agencies given the accompanying risk arising from the absence of adequate protection.
Amidst the positives of the policy, the report also makes the case for some adjustments. According to the report, “.... whistleblowing must be reviewed in order to checkmate abuses, victimisation and false accusations.” This argument is not far-fetched given some of the perverse incentives that could come with whistleblowing, including the monetary reward for whistle-blowers.
The report also recommends legal backing for the Open Treasury Portal (OTP), an initiative which potential for checkmating corruption launched by this administration.
*Nwachukwu is communication officer while Adeniyi is programme officer at Agora Policy
Read more: Key Messages from Agora Policy’s Report on Transparency and Accountability
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Nigeria’s impressive array of transparency and accountability measures has not made the desired dent on governance and development in the country because of subsisting gaps in legislation, capacity, values and resourcing, says a new report by Agora Policy, an Abuja-based think tank.
Read more: Nigeria Needs More Transparency, not Less, says Agora Policy
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By Douglas Okonko | The second issue of The Agora Policy Report, titled Understanding and Tackling Insecurity in Nigeria, was released on Monday, 7th November 2022. The report dissects the types, manifestations and drivers of insecurity
Read more: Seven Takeaways from Agora Policy’s Report on Insecurity
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By Ifetayo Idowu | The emergence of one or more forms of insecurity in nearly every region of Nigeria has pushed those regions to the frontlines of conflicts. Terrorism, herder-farmer conflicts, and ethnoreligious conflicts are all present in the North-Central and North-West regions of the country. In the North-East, Boko Haram and its affiliates are a constant thorn in the side. Militancy and economic sabotage are still present in the South-South, while ritual killings, cultism, and herder-farmer conflicts are prevalent in the South-West. In the South-East, the Eastern Security Network (ESN), the armed wing of the Indigenous People of Biafra (IPOB), continues to cause death and mayhem.
Agora Policy has just released its second and most recent report, focusing on widespread insecurity on the country. Titled "Understanding and Tackling Insecurity in Nigeria,” the report examines the history, types drivers and manifestations of insecurity in Nigeria, and provides recommendations for a systemic and sustainable solution.
Impact of the Economy on Insecurity
Examining the background of the country's most prominent security issues, the report highlights how poverty and unemployment create an environment conducive to the growth of insecurity. The report states that “high incidence of poverty and unemployment expands the pool of possible recruits for criminal activities.”
In Nigeria, 39.1% of the population lives below the international poverty line of $1.90 per person per day, and an additional 31.9% have consumption levels between $1.90 and $3.20, making them susceptible to poverty in the event of even the smallest of shocks. An earlier report on the economy published by Agora Policy reported that poverty is more prevalent in rural areas, with 52% of the rural population living in poverty and with people employed in the agrarian sector more susceptible to poverty than those employed in any other sector of the economy. Based on population projections for 20211, this equates to 49,947,644 rural dwellers living in poverty.
Unemployment rate is 33.3%; while youth unemployment is 42.49%. This figure shows that almost half of Nigeria’s most productive group is economically inactive. Unemployment causes large drops in household income. In some cases, unemployment is transitory but, for many, it is a persistent risk to economic security. Unfortunately, Nigeria’s high population growth rate increases poverty and decreases employment opportunities, which in turn increases poverty. These high numbers make people more susceptible to engage in criminal activities.
Furthermore, even though insecurity is one of the results of economic pressures among Nigerians, it has also become a threat to the well-being of the same citizens. In Nigeria, insecurity is both a cause and an effect of low economic development.
Impact of the Insecurity on the economy
On October 23rd, 2022 the United States issued a security alert citing “elevated risk of terror attacks’ in parts of the country, especially the FCT. Other western nations followed suit. This subsequently led to the precautionary and temporary closure of schools, recreation centers, restaurants and other businesses. This incident shows one of the direct connections between insecurity and economic activities. Insecurity reduces economic activity, reduces revenue and fuels poverty.
Food Inflation and Banditry
Food inflation in Nigeria keeps worsening as insecurity keeps farmers away from their farms. In September 2022, food inflation in the country rose to 23.34% on a year-on-year basis. The North-West and North-Central regions of the country are responsible for the bulk of Nigeria’s food production, and these places are heavily impacted by insecurity. The fear of being kidnapped stops farmers from going to their farms, distorting planting and harvesting cycles. In other areas, farmers are paying bandits to cultivate their farms, directly affecting the quantity of food they can produce. Others, after their labour have abandoned their harvests. In the same vein, terrorists and bandits are known to raid markets for food, animals and cash to feed themselves and finance their operations. According to the National President of the All Farmers’ Association of Nigeria, the country loses 50 per cent of its food production due to insecurity. A lot of Nigeria's food shortage is caused by insecurity, which in turn makes food inflation go up.
Food transportation from the North to the other parts of the country is also an issue as food transporters face the same security challenges. Travelling across the country by road is no longer a safe option and drivers and traders are in constant fear of being kidnapped. The challenges leave farmers and their families vulnerable to poverty and hunger but this also has implications for food prices and cost of living across the country.
Economic Sabotage in the South East and South South
In the South-East, August marked exactly one year since the Eastern Security Network declared every Monday a stay-at-home holiday. The eastern part of the country, renowned for commerce, is greatly affected as no economic activity takes place on Mondays in the zone. Businesses are crumbling under the weight of this order as even customers travel to safer areas to trade. Recently, Governor Chukwuma Soludo, an economics professor and former CBN governor, stated that his state, Anambra, loses N19.6 billion every Monday due to the sit-at-home order.
Militancy, manifested in oil-theft, pipeline vandalism, piracy, illegal bunkering, kidnapping of expatriates in the Niger-Delta region has a far-reaching impact on the national economy. The Agora Policy report states;
“ apart from being largely responsible for the insecurity in the region and Nigeria's current acute energy supply crisis, militancy discourages foreign investment in new power generation plants in the Niger Delta region”.
The Nigeria Extractive Industries Transparency Initiative (NEITI), also reported that about $42 billion was lost to oil theft and sabotage over a ten-year period. Nigeria is the only oil-producing country not reaping benefits from the current historically high oil prices. Nigeria cannot even meet its reduced OPEC quota partly because of high level of oil theft.
Rural areas across the country are now characterised by ungoverned spaces and economic activities are restricted. Insecurity affects every sector of the economy either directly or indirectly, it leads to forced migration, displacement, food insecurity, cattle rustling, destruction of poverty and health challenges. It affects people's access to resources, incomes and freedom. Insecurity has a negative impact on economic growth by drying up investments, increasing unemployment, and decreasing government revenue.
In 2020, the Global Terrorism Index reported that economic cost of terrorism to Nigeria was 2.4% of the country’s GDP. The report also states that Nigeria incurred the largest economic impact of terrorism in the world from 2007-2019 at $142 billion.2 In 2021, Town Talk Solutions reported that projects worth N12 trillion were abandoned across the country due to insecurity. These figures have implications for job creation, government allocations and investments, purchasing power and confidence of citizens, and the country’s fight against poverty.
Recommendations in addressing Nigeria’s Security Challenges
According to the Agora Policy report on insecurity, "to stand a fighting chance in overcoming widespread and growing insecurity within its borders, the country [Nigeria] needs to adopt a more holistic approach that effectively combines tackling security threats with addressing the root causes of conflicts and agitation." Economic pressures, which fuel insecurity in Nigeria and are a challenge in and of themselves, need attention from the government. If not addressed, unemployment, particularly high youth unemployment, could exacerbate societal and security issues. In a previous report titled ``Options for Revamping the Nigerian Economy" Agora Policy made the following recommendations for improving the welfare of Nigerian citizens to reduce the economic burdens they bear:
- Prioritizing and Fine-tuning job creation strategies
- Deepening investment in critical infrastructure
- Scaling-up investment in education
- Increasing coordination across tiers of government on poverty alleviation.
Due to the complexity of the problems confronting Nigeria, the government cannot afford to address the problems in isolation. The relationship between insecurity and economic pressures makes it difficult to effectively address one issue without addressing the other. The nature of both challenges is also such they cannot not be deferred. They have to be tackled quickly and simultaneously.
*Idowu is Data/Policy Analyst at Agora Policy
Footnotes
[1]https://data.worldbank.org/indicator/SP.RUR.TOTL?locations=NG
[2] https://visionofhumanity.org/wp-content/uploads/2020/11/GTI-2020-web-1.pdf