Subsidy Can’t Finance Sustainable Consumption – Obi

Governor Peter Obi of Anambra State believes that federal government’s recent removal of the 25-year old fuel subsidy regime will benefit Nigeria in the long run. In this interview with LEADERSHIP SUNDAY’s LOUIS ACHI, he marshals his reasons and further shares insights into his conception of governance, Ikemba’s succession, developments under his watch and more

In a milieu of glaring deficits in governance, you come across as something of a philosopher king, given your governance style, developmental priorities and diplomatic footing in a heated political theatre. What’s really your conceptualization of governance?
Governance is central and a crucial theme in politics. In clarifying my conception of governance, I will prefer to focus on good governance instead of governance as a general term. Good governance is participatory, consensus-oriented, accountable, transparent, responsive, effective and efficient; equitable and inclusive and follows the rule of law. It assures that corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society.

Deficits in these areas give rise to conflict and set back human development. Much of the conflicts we are experiencing in Nigeria have linkages to gaps in genuine governance.

The issue of governance at this period in our history is very critical. Good governance is epitomized by predictable, open and enlightened policy-making, a bureaucracy imbued with professional ethos acting in furtherance of the public good, the rule of law, transparent processes, and a strong civil society participating in public affairs. Poor governance (on the other hand) is characterized by arbitrary policy making, unaccountable bureaucracies, unenforced or unjust legal systems, the abuse of executive power, a civil society unengaged in public life, and widespread corruption. Let me add that these principles have guided my politics.

President Goodluck Jonathan effectively ended the 25-year long subsidy regime on premium motor spirit (PMS) in the beginning of the year. As an economist, what is your position on this controversial policy move?
I have always supported the idea. It will cause temporary hardship but on the long run, the benefits will be seen. It was only a few that enjoyed subsidy in the past. With its removal, prices may initially skyrocket, but intimately, it will come down. Remember when GSM was newly introduced, people paid through their noses to acquire it, but with time, when competition became stiffer, the prices came down. The same thing will happen.

I understand the anxiety of Nigeria. I mean the justifiable belief that the money may not be used properly as was the case in the past. But this is where I tell Nigerians to insist that the money be used properly which is Mr. President’s commitment. If the money is used to fix our power problem and rebuild our collapsed infrastructure, it will be better for Nigeria.

We cannot retain subsidy in an economy when we borrow to finance our budget and where domestic debt is high. We cannot retain subsidy where we borrow essentially to finance consumption. I support its removal. It may appear unpopular but we need unpopular decisions to put things right.

This move will also help to end the waivers enjoyed by powerful cabals at the expense of the Nigerian people. In addition, the vast majority of Nigerians will also gain as the proceeds will be redirected into safety nets, other identifiable social interventions as well as provision of sorely needed infrastructure projects nationwide.

You are a key voice in the Igbo political intelligentsia. Following the Ikemba’s demise, attention is now shifting to his successor. What are the options before Ndigbo?
Talks of succession for now are premature. The core issue now is to organise a befitting burial for Dim Emeka Odumegwu-Ojukwu. To indulge now in the kind of speculation you are alluding to is for me disrespectful of our fallen hero. We will like to use this major milestone in Igboland to reunite our people. In grief new meanings can arise, new imperatives, new dreams, new hope and a deepened sense of unity and common destiny. I want to use this occasion to urge everybody that we should love each other more. To do him the best honour is to emulate the depth, scope and strength of his vision. We should also emulate his sheer courage. There is a time for everything.

Looking back, how did Anambra State under your watch fare in 2011 and what are your expectations this new year?
I like looking at the big picture. I prefer to look at the developmental progression of Anambra State beyond a given year; otherwise what I will say may lack connection. If you recall, I became a governor in March 2006. In 2006, I was illegally impeached; I came back through the courts. Before I could complete my tenure, I was again removed until the courts intervened. I say this to refresh our minds on how turbulent the state was. Even before I became the governor, the entire state was practically razed by reactionary forces.

Today, as we consider what the state used to be and what it is now, we cannot but give glory to God for His mercies upon the state. I can therefore tell you that all in all, we have achieved peace and stability for the state. And you know as well as I do that with peace and stability, nothing stands on our way to achieving greatness.

More specifically, can you share your developmental strides for the benefit of our audience?
I feel ill at ease judging myself because that will be putting objectivity on the line. I prefer the people to evaluate my tenure and not myself doing that. You are an experienced journalist. Feel free go into the towns and find out what I have done and report back to the people. I think it is more credible that way. I can tell you that in the 177 communities of Anambra State, we have done one thing or the other in all of them.

Quickly, could you clarify that you were the first person to build a secretariat in the state?
This still boils down to what I was saying. I can easily tell you ‘yes,’ which, in any case is true. When I became governor, the state was yet to build its own secretariat. The unfortunate sequel was that we had our ministries and offices scattered all over the state. Under my government, we started and completed the first and second phases of the secretariat. As part of investigative journalism, you can visit the place and see things for yourself. That is not all. I built the first library. I am building the first teaching hospital. I built the first mini stadium, the first business park, among many others.

There is a perception that you slowed the pace your administration’s development works in the second term. How true is this?
That’s not true. If there was anything, I realised that it was because of what I might have done in the first tenure that I was re-elected – the first time Anambra people has re-elected any governor. I am determined more than ever, to even improve on my performance. Of course, when our people said one had slowed down, they looked at it from the angle of road construction.? When the rains were heavy, we slowed down in that area as universally obtainable. Now that the rains were over, construction has resumed on all sites. Contractors went on Christmas holidays and this week, they will all be back.

But even at the time under reference, we started and completed most projects that are structurally based such as the pathology laboratory, College of Medicine in the Teaching Hospital and others. Internal roads at the complex are being tarred now.? We have also completed or about to complete the projects at the permanent site of our university at Igbarian such as the Faculty of Agriculture, the Senate Building and the Faculty of Management Sciences.? The Second Business Park at Onitsha is nearly completed, while work has started at the Hotel and Conference Centre Complex at Onitsha. We are also rebuilding the Ekwulobia General Hospital. We are working on many small town water schemes some of which are functional now.

Even relating to road construction, we have completed the Otuku Bridge at Umueze Anam. We have completed the Ogbu Bridge at Okija road.? We completed the Okpuno Bridge. Bridges such as Ebenebe, Ogbunabo, among others are nearing completion.

Immediately the rains stopped in November, all the contractors went back to sites. The Christmas break made them to pull out again. Between now and the coming of rainy season, we shall construct roads in massive scale in the state. Am sure you’re now happy; having succeeded in getting me to talk, to do your assignment for you.

Tracking back to the previous years, what do you consider your greatest achievement in the state?
It is true I constructed more roads than even all the past governors in the state did; built the longest bridges and the most imposing edifices. But I do not consider them as my greatest achievements; rather I consider the gradual changing of the psyche of our people as my greatest achievement.

Please, could you clarify this?
I have already spoken on my conception of governance earlier. But in the past, our people had frightening conception about government. They often described it as an elephant’s meat which everybody can cut as they wished for their delight. But today, I am trying to let them know that governance goes with enormous responsibilities, one of them being the use of the resources of the state for what it is meant for. I am aware that I am referred to as aradite because of this, but I can tell you that gradually our people are beginning to realise what I tell them. It makes no sense when people say he who climbs the Iroko tree should do anything he wants atop it since it is not climbed every day – while referring to government. I tell them that we do not even have Iroko trees left; that what we should be doing is joining hands to plant new ones.

You were reported as saying that your government would focus on job creation this year. How are you going about it?
We are already creating jobs. What I said was that we would sustain job creation efforts and other positive programmes we are implanting. I have a different idea about creating and sustaining jobs. Recently, we employed many teachers and other civil servants. We are employing gradually in some other areas but there is a big limitation on how far we can go. What am I saying? I maintain that it is not the duty of government to create jobs, but to create enabling environment favourable to the growth of enterprises that will employ labour.

The other day, I visited INNOSON Auotomobile/Factory, Juhel Pharmaceutical Company, Chikason factory and the new facilities of the Orange Drugs. I discussed with their owners on how government will help through policies and projects to favour their growth and expansion. I do this because they employ labour. I spent the better part of the last two years wooing some big global companies of the world to site their facilities in Onitsha. Some are on it and others are still showing strong interests. Once they start production, it will change the face of Anambra State.

When are these companies starting production and what are their names?
I cannot name them here. Just wait and see. One will start production before the end of the year.

Can you tell us more about your administration’s 2012 budget?
On the 14th of December, 2011, I presented a fifth budget proposal of N82.5 billion for the year 2012. This is against N66.9 billion budgeted for 2011 and represents an increase of 23.24 per cent over that of 2011. It is tagged ‘Budget of Integrated Development.’

Why are you calling it your 5th budget? This is your seventh year as governor?
If you may recall, that budget was actually the fifth budget I presented. We called it the 5th Budget of Integrated Development because since the goal is to achieve the Millennium Development Goals (MDGs) which we adopted as our vision and since the goals encompass many sectors of development. We came up with the Anambra Integrated Development Strategy (ANIDS) which allows us to develop all sectors simultaneously through proper planning, proper budgeting, execution of the plans and ensuring feedback.

What are the 2012 budget highlights?
What else can I say about the budget? It is based principally on the philosophy and strategy of integrated development. It seeks to drive Anambra State to the desired destination – the achievement of the Millennium Development Goals (MDGs). The emphasis of the state government is on poverty reduction measures. Prioritisation of projects and programmes will form the guiding principle in allocation of funds.

The Nigeria Union of Teachers said they would make the state ungovernable for you unless you reversed your decision to return schools to missionaries. What actually informed your decision to hand over schools to their original owners?
In my New Year broadcast in 2009, I announced the return of some secondary schools to their owners. We were satisfied with the improvements in those schools, academically and morally. It is established that voluntary agencies do better in terms of management of institutions. They are more dedicated and often relate school jobs in terms of vocation. Thus they are more transformational while government officials are more transactional. Since we want the best for the society, why don’t we deal with those that are more committed? In any case, we did not give them government schools, which we retained. We merely returned their property that was earlier seized to them.

With the successful return of secondary schools, we again last year, returned all their primary schools to them.? The collapse of education in Anambra State is directly connected with the takeover of schools owned by missionaries, churches and voluntary organisations in 1970. That singular exercise signalled the disappearance of morality and the building of character from our school system. Their return is part of our efforts to rebuild the human infrastructure in the state.

By returning the schools, we are not abandoning them. Besides the six billion naira we shall make available to them to rebuild the schools, we shall keep paying their salaries and other entitlements. Having said all this, you will agree with me that there is no need for agitation of any sort.
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