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Inwalomhe Donald

Issues/Policies: The Sukuk Funds, Projects And Critics

by Bioreports July 27, 2020

written by Bioreports

By Inwalomhe Donald

One of the landmark initiatives of Ogbeni Rauf Aregbesola as (former) governor of the State of Osun and President Muhammadu Buhari is the introduction of Osun Sukuk fund and Sovereign Sukuk in the domestic financial markets in 2013 and 2017 to raise N11 billion and N100 billion to finance 11 Model Schools and 25 road projects across the six geo-political zones in Nigeria respectively. Based on the success of the debut of Osun Sukuk in 2013, Sovereign Sukuk in 2017, another Sukuk of N100 billion was issued in December 2018 for the same purpose; but this time for twenty-eight road projects also across the six geo-political zones in June 2020. The deployment of the proceeds of Osun Sukuk fund, the first and second sovereign Sukuk in the sum of N200 billion to visible and verifiable road projects across the six geo-political zones of the country is symbolic and remarkable.

The Federal Government of Nigeria has launched a seven-year N100 billion ijara (lease) Sukuk due 2025 at an annual rental rate of 15.743%. The proceeds of the Sukuk will be used for the construction and rehabilitation of key economic roads across the 6 geo-political zones of the country. Since the fall in price of crude oil, the revenue of the Federal Government has been affected significantly, given that oil was a major source of government funds. As a result of the decline in revenue, the government has been contending with the challenge of financing its budget deficit. And the onus for the efficient management of government’s debt and sourcing for funds to finance budget deficits rests on the Debt Management Office (DMO).

Recently, Mr. Babatunde Fashola, Minister of Works and Housing, received a sovereign Sukuk Symbolic Cheque of N162.557bn for the construction of roads across the country. Mr. Fashola was presented the cheque on Monday in Abuja by the Minister of Finance, Budget and National Planning, Zainab Ahmed. She said one of the key pillars of the Economic Recovery and Growth Plan was the development of critical infrastructure projects with a view to removing the impediments to growth and development in the economy. As a result, Mr. President has prioritised capital expenditure on the development of roads, rails, power and agriculture projects.

The Debt Management Office (DMO) has raised the sum of N162.557 billion from investors in June 2020. This is strictly dedicated to the financing of road projects in the Revised 2020 Appropriation Act. It also means that with the release of N162.557 billion to the Federal Ministry of Works and Housing, the amount appropriated for Road Projects in 2020 Budget has been fully released. She said with the deployment of Sukuk funds coupled with other capital releases and various interventions by government, the economy would soon be on the path to economic development.

Mr. Fashola, in his presentation, said the people who put money in the Sukuk were fund managers and the owners of the funds, adding that it was a matter of trust which they had for the administration that made them release their hard-earned money. He said: “I assure you that we value that trust from the evidence of what has happened in Sukuk One, and Sukuk Two, your trust is not misplaced and it will not be misplaced in the 44 road projects that will benefit from this Sukuk. For the benefit of the members of the public, the 44 roads that will benefit from this Sukuk has every geo-political zone taken care of. For the North-Central eight roads, North-East eight roads, North-West seven roads, South-East five roads, South-South 10 roads, and South-West six roads.”

According to Patience Oniha, Director-General, Debt Management Office (DMO), this is the third Sukuk issued by the office on behalf of the Federal Government in June 2020.

“The first sovereign Sukuk for N100 bn was issued in September 2017 and was followed by another in December 2018, also for N100 bn. With the issuance of the third Sukuk, the federal government has raised a total of N362, 577,000,000 bn, all of which are for the rehabilitation and reconstruction of road projects across the six geo-political zones of Nigeria. Therefore, the DMO plans to continue to use Sukuk and Green Bonds to support the development of infrastructure and other capital products; depending on how much is allocated to projects in the annual budgets”, Oniha stated.

It is on record that the first set of Sukuk projects emerged from the State of Osun, hence, the Sukuk projects in Nigeria will ever remain the bequeathed legacy of former governor, Rauf Aregbesola, who was the first Nigerian to introduce it. In Osun Sukuk funds were used to finance construction of education projects, among other development initiatives with which Aregbesola laid a solid foundation for the future of the state which helped to convince the President. President Buhari described the newly completed Sukuk steel structure of Osogbo Government High School as an educational legacy that should be emulated by other states of the federation, thanking Aregbesola for exposing Nigeria to the Sukuk market which has drawn increasing interest from sovereigns, multilateral institutions, multinational and national corporations both from developed and emerging economies to finance investments in a wide range of economic activities and development projects.

When former Governor Aregbesola took Sukuk bond, a section of the media said that Aregbesola wanted to Islamize the State of Osun. Now that Sukuk projects are being commissioned all over Nigeria the media is silent. The overall direction and potential of the market are certainly well recognized, particularly in its role in contributing towards greater economic development of Osun. There is significant potential for the Sukuk, with this calibre of governments following suit to obtain Sukuk, it is now crystal clear that Aregbesola is not just a leader, but a leader that sets positive pace globally.

History will remember Aregbesola for four major developments in Nigeria, school feeding programme, Sukuk bond for national development, first governor to embrace 4th industrial revolution and Nigerian chocolate. Aregbesola has encouraged the issuance of Sukuk in Nigeria because we needed to diversify the instrument in the bond market. Aregbesola worked hard to introduce Sukuk fund for education in Nigeria. Osun took the initiative and helped in introducing it to Nigeria. The greatest lesson is that when Aregbesola adopted Sukuk, an Islamic bond to help the state execute educational projects, his critics were calling for his head. Many said it was part of his ploy to islamize Osun.

July 27, 2020 0 comment

Democracy Day Inwalomhe Donald June 12 Democracy day Magazine POLITICS Uncategorized

MAGAZINE: Democracy In Nigeria: Post-Civic Engagement

by admin2 admin2 June 12, 2020

written by admin2 admin2

In this commemorative piece, put together to capture Nigerians’ true mood on the nation’s Democracy Day, INWALOMHE DONALD x-rays the antecedents and significance of June 12; applauding the patriotic zeal of its heroes: living or dead.

Now that 12th of June has been officially signed into law as the country’s Democracy Day and a public holiday, I am of the opinion that it will be pertinent to do a thorough review of its nitty-gritty for clarity and better understanding; because there is more to `that date` in the history of our existence than meets the eye. The history of this feat cannot be completed without accordance of appropriate accolades to some important events that preceded it. The June 12 Democracy Day is not about Abiola or June 12; it is essentially about President Buhari and his political enemies – Obasanjo and Babangida. President Buhari did what Obasanjo refused to do. He partially righted the wrong done to Abiola by Babangida.

25 years after the military nullified the outcome of Nigeria’s democratic elections of June 12, 1993, the country, led by another soldier from the past, marches into the future with its gaze firmly fixed backwards. Now as then, the country needs a committed civic coalition to show up and reclaim a space increasingly constrained by a regime that shows casual disregard for both democracy and the citizens from whom it receives its mandate to rule. The two candidates in the presidential ballot on 12 June 1993 were Alhaji Bashir Tofa of the National Republic Convention, NRC, and Alhaji Moshood Abiola of the Social Democratic Party, SDP. They were both Muslims. Today, unprecedented levels of sectarian poison would make such a ticket unthinkable. 10 days after the vote took place, the National Electoral Commission, NEC, was yet to officially declare the outcome.

Tinubu said June 12 should serve as a continual reminder to Nigerians on the imperative of pursuing the cause of justice in all spheres of life as a necessary condition for peace, prosperity and progress. The party leader noted that May 29 does not carry the weight of significance that June 12 carries in the country’s democratic sojourn. Asiwaju Ahmed Bola Tinubu, National Leader of ruling All Progressives Congress (APC), is excited over plans to celebrate June 12 as Democracy Day. Tinubu led some South-West states that first declared June 12 as Democracy Day.

The Federal Government had announced that President Muhammadu Buhari’s inauguration for a second term on May 29 will be low-key and that a number of events slated for the inauguration will be held on June 12.

Throughout his tenure as governor, Tinubu, who said May 29 is not the original Democracy Day declared June 12 as a public holiday in Lagos State. With his party, the All Progressives Congress (APC) in charge, President Muhammadu Buhari last year conferred the highest national honour on the late MKO Abiola. He officially assented to the Bill making June 12 Democracy Day and also renamed the National Stadium Abuja after Abiola.

Before now, Asiwaju Bola Tinubu, former governor of Lagos State and National Leader of the ruling All Progressives Congress (APC ) had always been regarded as one of the true heroes of the June 12 struggle. To many, Tinubu is a consummate politician, consistent democrat, tested and trusted leader and a staunch believer in the June 12 struggle.

Tinubu suffered in consequence and was in exile abroad. Pa Adesanya insisted that one of them who suffered should be governor so that he could rehabilitate others”.

I must set the records straight on Tinubu’s involvement and contributions in good conscience. Like MKO had commended Senator Bola Ahmed Tinubu’s role in support of June 12 cause, apart from Prof. Wole Soyinka, who contributed through his leadership of NALICON and gave us a link to the leaders of Norway, Canada, followed by Gen. Alani Akinrinade and, of course, the leader of all of us, Chief Anthony Enahoro, no one else had more contributions than Asiwaju. Tinubu sold some property to get funds for the pro-democracy project in the United Kingdom and sponsored many activities that shook the military regime of Gen. Sani Abacha.

Bola Ahmed Tinubu sold his London property for the struggle. In fact, the last one he sold was the one which his uncle, Wale Tinubu’s father and former Police Commissioner, gave him to manage while he was on exile.

“The property in London, Tinubu sold it. What was left for Tinubu was his own flat in London where we used to visit. The real operative activities against Sani Abacha were numerous. From Western Europe and North America, Tinubu was involved. Tinubu organised and funded the training of our men, ‘SAS’ agents.

“Tinubu was reliable during the pro-democracy action against Gen. Sani Abacha’s dictatorial rule. That reliability is unchallengeable. If you doubt me, you can ask the present governor of Ekiti. Most of the funding for Radio Kudirat came from Tinubu through Ola Soyinka, son of Prof. Wole Soyinka. And I can say that Tinubu’s other son can also bear witness to that.

“The internationally eminent professor, Segun Gbadegesin, can testify to Tinubu’s support for those operations in the United States of America.” Apart from Gen. Alani Akinrinade, Tinubu made so much sacrifice. So was Beko Ransom-Kuti. So was Governor Kayode Fayemi. He was a young man then; younger than all of us. He did so much.

“So were Commodore Dan Suleiman; Ambassador Ralph Nwachie; Chief John Odigie-Oyegun; Hon. Wale Oshun; Prof. Bolaji Akinyemi; and Dr. Amos Akingba, whose posh-like majestic two-storey mansion, off Opebi Street, Ikeja, was an operational base; Solicitor Dele Ogun; Dr. Ola Soyinka; Makin Soyinka; Bolu Atijosan; Taiwo Akinola; and the veteran journalists: Nosa Igiebor, Chuks Illugbunam, Doyin Iyiola, Mr. Johnson and George Noah, Dr. Femi Folurunsho and Dele Momodu, who joined us later.

Post-Civic

Ultimately, most of the politicians who have enjoyed this democracy with little to show for it in terms of outcomes for the people, must be called upon or compelled, if necessary, to defend it. Now as in 1993, the inspiration for the political actors came from the resilience of civic actors, provided then by the Campaign for Democracy, CD. 19 years after the return to civil rule, such civic voices are once again needed to inspire another generation of political actors and citizens in joint enterprise. New digital capabilities may enhance their reach but this new civic coalition for democracy is urgently needed to help Nigeria complete the transition from militarized civil rule to a democracy. Today, it is a thing of joy that the date has been made our `Democracy Day` and a public holiday; but, the pertinent question that needs urgent answer is: are we truly making conscious, genuine, and deliberate efforts towards replicating the numerous attributes that the `real June 12, 1993` encompassed?

The State Of Osun

In the State of Osun, former Governor Rauf Aregbesola has said that June 12 is significant in Nigeria’s political history as the day true democracy was born in the country. The former Governor noted that his administration had taken June 12 seriously by acknowledging it as ‘Democracy Day’ for eight years and also observed the day as public holiday in Osun. Aregbesola at Osun June 12 Democracy Day Celebration in Osogbo tagged “June 12 Silver Jubilee: The Essence Of Peaceful Co-existence In The Period Of Transitional Democracy” stated that It is gratifying and commendable that President Muhammadu Buhari-led Federal Government has recognized June 12 as ‘Democracy Day’.

He also lauded President Buhari for honouring Basorun Abiola, his running mate, Ambassador Babagana Kingibe, and foremost human rights lawyer, Chief Gani Fawehinmi. Aregbesola stressed that June 12 had been described as a watershed in Nigeria’s political trajectory, saying Nigeria had been under military rule since the January 15, 1966 military coup with a short break of civilian rule between October 1, 1979 and December 31, 1983.

The former Governor admonished President Buhari to de-annul the June 12, 1993 Presidential Election and declare Abiola president in order to properly address the injustice done to Nigerians 25 years ago. “We view what he has done as a very good first step in a new beginning which has to be built upon.

“To properly address the injustice of June 12, we demand that the election result be fully declared and Basorun Abiola declared president posthumous.

“He should be recognized as a past Nigerian president and accorded the honour and full privileges attached to that position.

“The greatest honour President Buhari would do to the memory of Basorun Abiola is to ensure that the incident of democratic abortion, like the annulment of June 12 election never happens again in Nigeria.

“This will be done through the development of our constitution to deepen federalism, strict observance of the Rule of Law and strengthening of democratic institutions”.

June 12, 2020 0 comment

Featured Inwalomhe Donald Op-Ed Osun 2014 POLITICS Uncategorized

{OPINION} Bandits: Osun 2014 Security Architecture Is A Lesson For Northern Governors

by admin2 admin2 June 8, 2020

written by admin2 admin2

By Inwalomhe Donald

There are terrorists in the North East, bandits in North West and Central.

Nigeria has, in recent years, witnessed a rise in banditry across the country, including in the north-western states of Sokotom Zamfara and Katsina. The criminalities by armed bandits and kidnappers are carried out mostly under the cover of the contiguous forests reserves and areas stretching from Katsina, Zamfara, Kaduna and Niger States.

The 19 states governors in the north should learn a lesson from Osun 2014 security architecture that was introduced by the former governor of Osun State, With the Osun security architecture, Rauf Aregbesola purchased Helicopter for Aerial Security Surveillance and presentation of more sophisticated 25 Armoured Personnel Carriers (APC) to the Nigerian Police Force, a feat that has never been achieved by any government in the 36 states. The procurement of the helicopter and the APC’s was the security architecture that particularly drove away many undesirable elements from the state. I challenge any state governor to prove me wrong. The present Governor Oyetola is maintaining and expanding this security architecture.

It was during the presentation of the 25 APC in 2014 that the then Inspector-General of Police, Mohammed Abubakar, who was represented by the Assistant Inspector General of Police in charge of zone X1, Mr. David Omojola saluted the courage of the Governor in fighting crime in the state, saying, the Aregbesola administration has demonstrated high sense of responsibility in keeping the state safe in line with the dictate of his office. Also, the then Commissioner of Police in the state, Mr. Ibrahim Maishanu described the gesture from the Governor as the first in the history of the state, assuring that the equipments would be properly put to use and Osun state would be one of the most peaceful states in the country henceforth.

However, in order to make communication easier for security purposes, the state government as part of its commitment procured Modern Communication Gadget for security agencies in the state and ensured installation of various communication equipments at various security commands for easy communication. Also, the government established Osun Emergency and Citizens’ Inquiry/Contact Centre in Oke-Fia, Osogbo, which has since been serving as the easiest way of reporting any emergency situation to the security agencies.

The Nigerian Army, for example has be deployed in 32 of the 36 states in the country as at June 2019, battling terrorism, cattle rustling, kidnapping, communal clashes and other forms of insecurity. Rauf Aregbesola former governor of Osun State provided security for lives and properties with provision of 25 Armoured Personnel Carrier, over 100 security patrol vehicles and one helicopter for surveillance, state of the art police stations built. To enhance security of lives and properties, the State Government provided about 125 patrol vehicles to security agencies such as the Army, Police, FRSC, NDLEA and the Civil Defence. Armoured personnel carriers, the first in the history of the state were provided to fight incessant robbery attacks. It is also noteworthy that the state acquired one helicopter for area surveillance and ‘’quick emergency response’’ in the state. Since this noble initiative, crime, especially bank robberies were reduced significantly to the barest minimum in Osun.

The helicopter, a French Five-Plus-One passenger Eurocopter AS-355N, is a 2006 Model with twin engines. The latest security acquisition was to compliments the state’s earlier investments on adequate protection of lives and properties of the citizenry through the procurement of several Armoured Personnel Carriers (APCs), communication gadgets and Police Patrol Van. The helicopter was to ensure aerial surveillance. The helicopter was also to provide emergency services for the “Osun Emergency Management Agency And O-Ambulance” for medical emergencies and other forms of evacuation.

Through effective leadership and good governance Osun State was remedied from apparent slide into state fragility and failure. Osun is one of the states in the country known to be peaceful, owing to the security measures that have been put in place by the administration of former Governor Rauf Aregbesola to support security agencies to carry out their responsibilities effectively. The lesson from Osun security strategy is that former Governor Aregbesola Strengthened the effectiveness of the Nigeria Police Force which required improving trust with local communities and better responding to citizens’ security needs. Doing so requires systemic reforms in the governance and accountability. Tackling modern security threats in Osun, then, was directly tied with improving the governance and oversight of the security sector, especially the police in Osun State.

Former Governor Aregbesola took responsibility of security in Osun State. The lesson from Osun State is that it has developed comprehensive strategy and home-grown solutions to security challenges in the state. The government has developed a security plan to resolve challenges such as robbery, cultism, drug abuse and arms proliferation, among others.

Before the advent of Aregbesola’s administration in 2010, Osun was one of the volatile states in the country, as bank robbery cases, extra-judicial killings, political violence and such other crimes were rampant and to a large extent, the residents of the state, particularly in some major towns like Ilesa, Osogbo, Ile-Ife and so many others could not sleep with their two eyes closed because of fear. There has been a trend that is nobody takes responsibility when things go wrong. No doubt there are many instances of negligence and poor security where people should hold the failing institution liable for threat to life. But there must be some shared responsibility of security.

The story began to change shortly after the ‘power-shift’ to the hands of former Governor Aregbesola, who, as part of his security measures declared that none of his supporters should attack any member of the opposition, who attacked them when they were in power, What then followed was the procurement of five sophisticated Armoured Personnel Carriers and 125 Patrol vans and some other security equipment to combat crimes that already had an established ground in the state. The impact of this was the reduction in crime rate, particularly in the state capital and some other major towns in the state. This was a feat that had never been recorded by any government in the state. The vans were distributed among all the security agencies, including the Army, Police, Federal Road Safety Corps (FRSC), Nigeria Drug Law Enforcement Agency (NDLEA), Immigration and Nigeria Security and Civil Defence Corps (NSCDC) amongst others.

The state government also subsequently inaugurated a combined quick emergency response team, Swift Action Response Squad (SARS) which comprises security forces like the Army, Police, and NSCDC officials whose activities reduced crime rate significantly to the barest minimum in Osun.

When Rauf Aregbesola of Osun State, launched and handed over more than 20 armoured personnel carriers, APCs to the Osun Police command in Osogbo, he lamented that when government fails to guarantee safety of lives and property, such government had no business to be in power. Aregbesola said security, safety and the welfare of the people were the primary responsibilities of any government as enshrined in the Nation’s constitution, saying “security is the most essential responsibility of a responsible government. When a government fails to provide security, it has no business in power.

The former Governor had explained then that once the state is well-secured from the activities of criminals, the state would become attractive to investors, thereby catalyzing rapid growth of the economy. In Nigeria the Pf2 and Pf3 have been supplied to OSUN State Government for the use by the Police in combating Armed Robbery in the State. Osun APCs are rigorously tested and proven in the toughest environments and are certified and compliant with military norms and standards.

June 8, 2020 0 comment