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AMCON: Of its legal teeths, living up to expectations of Nigeria to better economy

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By Abubakar Yusuf

Unlike in the 90s or before then, the Central Bank Of Nigeria CBN held a big stick of instilling sanity in the financial sector that consists of Banks and other financial institutions.

But since the inception of the Asset Management Corporation of Nigeria, AMCON in the 2000, the Apex Bank redirects the mandate of loan recovery, financial controls, avoided profligacy, due diligence as the primacy of a new regulatory body and a new Sherrif in town, charged with overseeing the financial transactions of individual Nigerians interms of availement, advances from Banks and other financial institutions.

The positive developement of the conception of the new body brought a huge relief to the financial institutions that battled with unserviceable loans, recovery, concealed advances, suppressed availement and many other round trippings, abuses from button to the top echelons of Banks and financial institutions.

The situation was taking a dangerous dimensions that led to the intervention of the new body, AMCON annexed all forms of borrowings hitherto known as ‘Bad Loans’ but being recircled from time to time as a recurring decimals between Banks and financial institutions and its borrowers.

The coming of AMCON no doubt exposed the unbreakable jinx of Banks and financial institutions that had brought transparency and sanity in recent times to the sector.

Since the activities of the sector has multiplier effects on the economy and social sectors in Nigeria, aside enriched the players in the sector, the growing need to regulate the sector to avoid economic crises, inflationary trend in Nigeria, ease of doing business and restored confidence of Nigerians, investors both local and foreign, AMCON became a great saviour that nipped in the bud the unpalatable trend.

Even at that, more efforts was desiring to give a simultaneous actions and reactions to the new body, needed not to only to keeping the records of insolvency, but recovery, management and redirection of such recalcitrant individuals as well as conglomerates with financial committments with financial institutions and Banks.

Hence, it sought for an amendment of its act to include not only annexing or outright taking over business and transactions of individuals and conglomerates with commitements, but powers under the law to permanently seize and dispose properties of borrowers from the financial sector.

The amendment of its act known as AMCON amendment act came as big and huge breakthrough not only for the agency, but had contributed to the improvement of Nigeria economic indices, Gross Domestic Product (GDP) as well as permanent solution and stability to the money Institutions.

The interception and intervention of AMCON into various businesses and conglomerates argued as beyond its mandate is now within the confines of its activities, from the legal teeth granted through the amendment of its acts by the National Assembly.

Since then, the fear of AMCON is now the beginning of wisdom for Bank borrowers and perpetual defaulters as the Ahmed Kuru led AMCON had recovered billions and from available records in the coming years determined to recover trillions that will in turn be injected into the economy amidst COVID and its Delta variant stage the world over, with Nigeria not an exception.

Aside taking over many businesses of individual Nigerians and their foreign partners and its conglomerates, AMCON had gone a step ahead under its new legal boundary to confiscate assets in line with the new acts, revitalise and repositioned of assets for optimum performance hitherto hidden under the COVID situation world over, to shortchange as well as service their commitements.

This is in addition to studying favourable environment in the aviation, oil and gas, hospitality, insurance and others to attract direct huge investments and management to create sanity and stability in the sectors.

A case that readily came to mind is the running of some airlines like, Arik Aero, Afrijet and two others as well as plans to establish NG Eagle, a sister company from the same sector, an indication that reports of downturn in the sector does not represent the true reflection of its performances.

The recent seizure of assets and companies of obligors to Banks and financial institutions and plans to go ahead with more seizures is an indicator that Nigeria in no distant future will bounce back its ailing economy orchestrated by lack of due diligence, borrowings from Banks and financial institutions.

A case that readily came to mind is the taking over of the Management of NICON Luxury Hotels and NICON insurance with its exposure to Banks borrowings span for decades without ressolution and servicing of the loans.

The precarious situations that had bedevilled hospitality and insurance business overtime in Nigeria had being brought under control by AMCON’s decisions and intervention, as the companies are back on its fit with new interim managements.

This is applicable to private businesses, schools, Institutions, oil and gas, industries and others that had defied its regulatory framework risk being taking over by AMCON in few years ahead.

The timely decision by the federal lawmakers/National Assembly and the willingness of Management of AMCON under Ahmed Kuru that swung into action, will no doubt be another patriotic moves to salvage Nigeria from economic scavengers and saboteurs.

The positive developement will further guarantee sanity, due diligence, play down on unethical tendencies/practices that had retarded the economy of Nigeria from consumption to productive strides.

AMCON with a consistent and focussed management will move further to inculcate its culture of diversification both to the Banks, financial institutions in Nigeria and other sectors.

It will no longer be buisness as usual where Banks and financial institutions availement will be seen as free launch to many Nigerians and their foreign collaborators whose genuine intentions is laced with sharp practices and fraudulent tendencies, that arose negative performances of the economy.

What is required is all hands must be on deck to support the laudable objectives of the current AMCON to achieve its people oriented objectives, geared towards reliving Nigeria economy in the shortest possible time.

ABUBAKAR YUSUF writes from Abuja. Can be reached on yus.abubakar3@ gmail.com

Guest Columnist

Tinubu and the rhythm of restructuring

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President Ahmed Bola Tinubu

By Abiodun Komolafe

President Bola Tinubu’s recent announcement to unbundle the Nigerian College of Aviation Technology (NCAT), Zaria, Kaduna State, into six geo-political zones is an important landmark in Nigeria’s journey towards true federalism and regionalism, which lies not in the constitutional or institutional structure, but in the society itself. This move will go a long way in addressing the historical imbalance in the distribution of national institutions as well as fostering a sense of belonging and inclusivity among Nigeria’s diverse populations.

Ultimately, this development is a step towards addressing Nigeria’s deep-seated structural issues, which have been perpetuated by a centralized system. One can only pray that the president would also muster sufficient courage to extend this hand of fellowship to institutions like the Nigerian Defence Academy (NDA), Police University and Nigerian Army University as this will not only promote regional balance, equity and fairness but also help reduce the concentration of military power in one area as well as promoting national security. The unbundling of the Law School, previously exclusive to the Southwest, serves as a precedent for this bold move.

It is obvious that, even with the valiant efforts of the Federal Government, economic reforms can only carry the country so far. There will always be a limit to structural dysfunction! In our own opinion, the current Tax Reform Bills, which every patriot should support, is a savvy move towards restructuring through the backdoor. Tinubu is to be commended for this! But, again, there will always be a limit!

Nigeria, in our opinion, was set back – by about 70 years or more – by the ill-advised, to put it politely, ‘suspension’ of the 1963 Republican Constitution. Thankfully, they did not go so far as to claim that it had been completely abolished or abrogated!

The Tax Reform Bills are to be commended for, in the spirit of the 1963 Constitution, they seek to move the country back to a federation, based on production. The Bills are a very mild exposition of the famous description of federalism by the 13th Prime Minister of Canada, John Diefenbaker, who told a group of school children that “Federalism means that you eat what you kill.” For us, this is still the best description of federalism as was reflected in the 1963 Constitution, and the constitutions which had preceded it, which was the spirit upon which Nigeria’s independence was negotiated, and given.

Nigeria until the suspension of the 1963 Constitution was one of the most balanced and productive in the world. It’s even an often-stated fact that the Eastern Region of Nigeria, under Chief Michael Okpara, was the fastest growing subnational of any country in the British Commonwealth. Tinubu, apart from his antecedents in the struggle for democracy, has already given us a glimpse through the Tax Reform Bills, that he is a federalist. Even for this singular effort, the Jagaban of Borgu already has a place in Nigeria’s economic history.

We must go back to the giant strides made between the 1914 amalgamation of the protectorates and the unfortunate events of January 15, 1966. Any cost-benefit analysis would show, without a doubt, that a political economy based on competitive federalism delivers the goods. By jettisoning this path, Nigeria squandered an opportunity which should have made it incontestably among the world’s top 10 economies, such as India and Brazil. By abandoning federalism based on production, Nigeria earned, starting from the first ‘oil shock’ of 1974, hundreds of billions of petrol dollars which did not translate into the basic industries which form the bedrock of a modern industrial economy.

Matter-of-factly, no country has achieved modern industrial development without a strong foundation in industries like machine tools, iron and steel, and petrochemicals. This is why, despite being laudable, Dangote Refinery will still rely on imported vital parts for replacement and servicing. Take, for instance, a thriving machine tools industry in Ijebu-Jesa, Osun State. If such an industry existed, it’s likely that at least 90% of the parts needed for Dangote and other industries would be sourced locally, leading to significant growth in Ijebu-Jesa’s size and economy. This, in turn, would have a profound impact on employment, revenue generation and overall well-being in the region.

It is worthy of note that the Constitutions of Australia, Brazil, Canada, USA, amongst others, mirror the 1963 Republican Constitution and they have not suffered for it. Clearly, either piecemeal, as part of the Tax Reform Bills, or Local Government Reform, or the establishment of Development Commissions, or the ‘inchoate’ Local Council Development Authorities (LCDAs), or wholesale, Nigeria’s journey towards true federalism requires a fundamental shift in its political culture, necessitating a return to the ethos and spirit of this Constitution.

By using guile and tactical astuteness, Tinubu’s historical role must be to go back to the modus operandi of the 1963 Constitution. In his own heart, he knows that there is no alternative to this! This is the only perfect storm that will stand the test of time. It is the only way to cure the Nigerian malaise which is based on lack of revenue. Without a brutally competitive federalism, the country cannot unleash the revenue streams so vitally needed for sustainable development.

A good example of our current quagmire is the sharing of FAAC for December 2024, which was approximately $2.7 billion. This figure is still a far cry from what a country of Nigeria’s size should be generating. Under a proper, productive base, Nigeria’s sharing of FAAC should conceivably be at least $3 billion a month, even in the worst-case scenario. This is underscored by the fact that Gauteng in South Africa has a bigger budget than Nigeria – while Nigeria’s budget for the Year 2025 is roughly $28 billion, Gauteng’s is about $43 billion. It is simply like Lagos State having a bigger budget than Ghana which is a sovereign state.

The critical issue here is for the Tinubu government, which we wish all the best, to accept the incontrovertible fact that economic reforms must be interwoven, going hand-in-gloves with the structural reforms needed in the political economy to make economic reforms sustainable. Otherwise, any future government can reverse the striking gains that will definitely come out of the present reforms, as we are now witnessing in Donald Trump’s America.

Yes, the president’s economic reforms are on the right path with quiet compassion. However, to ensure longevity and sustainability, structural reforms are crucial. For instance, Nigeria’s federal budget, which stands at around $28-30 billion annually for a population of 200 million, is alarmingly inadequate and heading towards social stagnation.

Well, that’s not to say that Nigeria’s restructuring efforts are not facing complex obstacles, including a lack of clear definition and consensus. To be honest, different interpretations of the concept lead to confusion, mistrust and resistance. Entrenched interests, power dynamics and insecurity also hinder restructuring. The political elite may resist changes that threaten their privileges, while the North’s dominance in politics and economy poses another challenge. To overcome these, establishing a clear and inclusive definition involving various stakeholders is essential.

Let me by way of conclusion state that Nigeria’s journey towards true federalism requires a fundamental shift in its political culture, and Tinubu’s thoughtful gestures are a significant step in addressing its deep-seated issues. This shift involves recognizing that power isn’t “a zero-sum game, where one group’s gain must come at the expense of another.” Instead, it is about ensuring that every Nigerian has a stake in the country’s future! It is about weaving the threads of a new life together!

May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!

*KOMOLAFE wrote from Ijebu-Jesa, Osun State, Nigeria (ijebujesa@yahoo.co.uk)

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Guest Columnist

NFF holds match commissioners’ seminar in Asaba

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All is set for the Nigeria Football Federation’s match commissioners’ seminar (southern conference) for this year, which is billed to take place at the Stephen Keshi Stadium, Asaba, Delta State on Friday.

Chairman of the NFF Match Commissioners’ Appointment Committee, Alhaji Babagana Kalli, told thenff.com that the Chairman of the NFF Technical and Development Committee, Alhaji Sharif Rabiu Inuwa, will represent the NFF President, Alhaji Ibrahim Musa Gusau and declare the programme open on Friday morning.

Former Vice Chairman of the Imo State Football Association, Sir Emma Ochiagha and Secretary of the NFF Match Commissioners’ Appointment Committee, Mr. Danlami Alanana are the resource persons for the one-day event.

Alanana disclosed that the objective of the seminar is to re-acquaint the match commissioners in the Nigeria National League (NNL), the Nigeria Women Football League (NWFL) and the Nationwide League One (NLO) with both the rudiments and the fine points of match reporting, and to also emphasize the high importance of credible match reporting, as organizers always rely on their match reports to take decisions in case of crises or controversies.

Last year’s southern conference seminar (the first of its kind) was held in Abeokuta, Ogun State, while the northern conference seminar took place in the city of Kano.

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The nomenclature error of Babangida’s administration in Kogi State naming

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Guest Columnist By Alexius A. Maiyanga

One of the enduring legacies of the military juntas in Nigeria is the creation of States. First, the regions were replaced with 12 States in 1967 by General Yakubu Gowon and this was followed by another 12 States in 1976 by General Muritala Mohammed. Two States were created by General Ibrahim Babaginda in 1987 and nine more in 1991 and General Sani Abacha completed the exercise in 1996 with 6 States making the 36 States in the Federal Republic of Nigeria.

In the 1999 constitution and under the General Provisions Part 1(3) (1), all the names of States are therein stated, which means nothing can be done except through legislative re-engineering. That is why this writer submitted all pertinent papers concerning this discriminating decision of Babangida’s government on 8th March, 2024 to the National Assembly for the amendment of the constitution regarding Kogi state’s name.

Notwithstanding, it is imperative to inform the wider audience of the entire Nigerians of the sins former President Ibrahim Babangida committed against the so-insulted peoples around the confluence of the Niger and Benue rivers hence, this short write-up.

When William Shakespeare asked the question, ‘what is in a name? in Romeo and Juliet, he referred to the idea that names themselves are a convention to distinguish things or people, although names themselves do not have any worth or meaning. Contrary to Shakespeare’s thinking, Africans attribute great value to names. That is why we have naming ceremonies because of the denotative and connotative weight it carries.

Additionally, African names are meaningful which means they are pathologically attached to our psyche and sensibilities. Thus, our names are an incredibly important part of our identity. They carry very deep personal, cultural, emotional and historical connections. Names also give us a sense of who we are, the communities in which we belong and our place in the world.

With studied realization and confirmed by Hausa Dictionary, the word ‘Kogi’ means RIVER. The word Kogi is also Chibchan Language of the Colombians. The kogi people of Colombia are almost entirely monolingual and maintain the only unconquered Andean colonization.

The pertinent question that has arisen is: which of the Kogis was the State named after by President Ibrahim Babaginda’s administration? People of the present area called Kogi are not Hausa-speaking people, consequently, the word Kogi has no cultural, social linguistic, economic, geographical, political, demographic attributes to the people and the area and therefore not consistent with the prospective/new nomenclature rightly being suggested.

This is tasteful in flavour with what President Tinubu was quoted to have said in Thisday newspaper of 25th June, 2024 and I quote: “We can’t achieve security, peace without dealing with historical injustices.” Calling us Kogites is an insult to the collective sensibilities of an informed Ebiras, Igalas, Okuns, Oworos, etc.

From my studies, the names of the 36 states in Nigeria, and just the names of the 50 States of the United States of America, stem from historical, geographical, and cultural influences. Some States are however named after a town in those states.

For instance, Abia State is said to be an acronym from the four groups of people in the State as at the time of creation in 1991 i.e. Aba, Bende, Isuikwuato, and Afipko. Taraba State is derived from Taraba River which traverses the southern part of Taraba. Adamawa State is named after Modibo Adama, a Fulani warrior who founded the Adamawa Emirate. Sokoto is a town, and it is the name of a Sokoto State. Same is Bauchi, Gombe, Lagos, Enugu, Kano, Katsina.
One of the prominent geographical features of the present area wrongly called Kogi State is where two great rivers Niger and Benue meet. The convergence of these rivers has produced one of greatest confluences in the world and the hugest in Africa. This amazing, breath-taking confluence is a prodigious economic potential that should not be hidden under any guise of naming a State.

Globally, tourism has become a sustainable revenue spinner competing favorably with the manufacturing sector. In 2018, Meseka et al in their profound research paper on Tourism Potentials of Lokoja, tried to situate the fact that tourism development is predicated on the availability of natural setting that can be explored and developed to ensure patronage of people for economic viability.

Lokoja is historical town in Nigeria of national significance. The first Governor General of Nigeria, Lord Fredrick Lugard during the colonial period ruled Nigeria from Lokoja. The old residence of this first ruler which today is a tourist relic could as well be referred to as the Nigeria’s first State House.

When Gombe, Kaduna, Kano, Kastina, Lagos, Sokoto, Bauchi, Kebbi towns were being named as States names, Lokoja town also existed with the following historical significances. Lokoja, to say the least, is the host of the great confluence of Rivers Niger and Benue, Mount Patti, Lord Lugard’s Quarters, Club 1901, the spot where the flag of the Royal Niger Company was lowered in1890, the Trinity School as the 1st School in Northern Nigeria, Iron of Liberty (the spot where slaves were freed, the cenotaph, the first prison yard in Nigeria.

Is it not baffling to an un-mischievous mind that Kogi state was rather given an un-inspiring name as Kogi which does not portray the huge economic potentials of the city of Lokoja? What on earth informed the hiding this behemoth economic wealth for the confluence of rivers Niger and Benue in the promotion of tourism, agriculture even during the dry season?

Nigeria is not the only country where States are created named even further renamed. Even countries have had names changed. Burkina Faso used to be called Upper Volta; Ghana used to be called Gold Coast and not too long ago, the spelling of Turkey has been changed to Turkiye; Nigeria has just reverted to the old National Anthem. Nothing therefore is cast in granite.

America has about 50 states and virtually all of them were created along with natural phenomena within that geo-political area. A few examples need to be cited here to justify our assertion and the unassailable reason why the State Kogi should be renamed CONFLUENCE STATE or LOKOJA STATE.

The State of Alabama is a name from an Indian tribe of the creek confederacy originally called the Alabamas or Alibamons, who in turn gave the name to a river from which the State’s name was derived. Alaska (Alakshak) is an Eskimo word, meaning peninsula or great lands. Arizona means arid zone or desert. Massachusetts is the first State to have an Indian name. From the Algonquin word, Massadchu-es-et meaning great – hill-small-place was derived the name of the state of Massachusetts. This is possibly because of the hills around Boston as seen from the bay.

The Nigerian constitution in Chapter 5. Part 1. Section 55 says the business of the National Assembly shall be conducted in English and in Hausa, Ibo, and Yoruba when adequate arrangements are made. If Kogi’s name is done by military fiat, the National Assembly should not continue that aberrational trajectory.

Thus, the nomenclature of Kogi was and remains a linguistic and constitutional mistake which should urgently be redressed because at the dawn of constitutional democracy, all decrees were automatically recalibrated into Acts of Parliament.

Through this piece, we call on the National Assembly to undo the injustice of President Babangida’s administration. Our consolation is that in a democracy, critical thinking, robust analysis, and informed debates are deployed by a National Assembly before durable decisions are reached, and we are deeply in that era.

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