Yar Adua's health or absence should not be a big issue, but in Nigeria it is

How has the absence of a President on medical treatment become a big issue in Nigeria? In other countries medical treatment by a president does not generate much controversy. It became a big issue because president Yar Adua refused to do what he was supposed to do before leaving the country. What would it have cost the President to properly handover to Vice President Goodluck Jonathan before the travel?

This omission by President Yar Adua and his silence over his health status almost plunged Nigeria into chaos by creating opportunity for mischief makers to take advantage of the situation. It took a phony media report that the President is dead for him to break the silence.

The whole episode shows the kind of relationship between Mr. President and Mr. Vice President. If the President had trust and respect for his Vice, he would have handed over properly to him. This is what happens in an "arrangee" presidential ticket, where two people are forced to work together whether they like it or not. This also goes to show that President Yar Adua feels insecure and is no different from his predecessor Obasanjo.

STEERING NIGERIA TOWARDS ECONOMIC GROWTH 2

Resource control and Federalism

One mistake the military made was the creation of more states. States were created without any consideration of the ability of the state to survive independently. This also led to a stronger central government and undermined Nigeria’s healthy federal system in the process.

Nigeria at independence was based on a federal structure. The states were independent and controlled the resources within their territories and remitted part of the proceeds from the resources to the federal government. The military changed that, they moved the responsibility of managing resources from the state to the central government. This meant that revenue accruing from the nation’s wealth are put into a common pool and then shared between the central, state and local governments using a formula determined by the central government.

The takeover of the management of resources and sharing of generated revenue by the central government created a lot of problems some of which we are still facing today. One problem was that the states discontinued investment in development of resources within their territories.

This was reasonable since they were no longer in control of the resources in their territories and revenue was shared with a formula that had no relationship with productivity. With the responsibility of developing all resources in Nigeria abandoned to the central government it was obvious that she could not cope.

In response to this daunting responsibility the central government focused on only resources that she considered to be viable while abandoning the rest. In no time oil became by far the most viable resource in Nigeria and the central government decided to concentrate on it. This is the story of how Nigeria became a one product economy.

A lot of Nigerians have wondered how Nigeria a country blessed with abundant human and natural resources have ended up a one product economy. Some Nigerians are looking for the groundnut pyramids, the palm and rubber plantation, the coal and tin mines and all the other legacy of our past.

The fact is that once the central government took over the management of resources it became unattractive for states to develop resources that they cannot control. In addition a socialist (with no link to productivity) revenue sharing formula went a long way in discouraging Nigerian state governments.

Today Nigeria is seen as an oil producing state. Nigeria generates between 20 and 50 billion dollars from oil and gas each year. For a country of over 150 million people this is a very small figure and explains why Nigeria remains poor.

To grow the Nigerian economy it is obvious that more resources need to be developed. Nigerian governments have identified this and have for so many years been talking about developing the non oil sector. This however is yet to be backed with effective action.

The problem is that the central government wants to maintain the status quo (ie control resources from the centre) and at the same time develop the non oil sector. It seems to me that this two cannot go together.

The Nigerian government should consider handing over the management of resources to state governments. Every state should also be given a reasonable share (at least 50%) of the revenue accruing to the state as a result of developing revenues within their territory. This will only serve as motivation for states to develop resources within their territory and restore Nigeria as a multi product economy.

Whenever resource control is suggested in Nigeria the federal government and some states (especially northern states) view it as a threat. To them resource control means less revenue for them, this is bad. To me their disposition is selfish and do not consider the interest of Nigeria.

The question is will resource control lead to more revenue for Nigeria? My answer is yes. Once a state knows that her survival is in her hands she will devise ways of improving her revenue base, necessity is the mother of invention they say. This will result ultimately to an increase in the revenue base of Nigeria. To me what is important is whether resource control can increase the revenue base of Nigeria not whether it can increase the revenue base of a state.

Today states and local governments in Nigeria fold their hands and wait for money coming from the federation accounts, most of which is derived from a region of the country (the Niger delta). There are some state and local governments in Nigeria that rely 99.9% on the proceeds from oil wealth. Some time ago a local council chairman in Abuja claimed that the internally generated revenue from his local council (equivalent to a local government) for the whole of 2007 was just 2,000 naira (about $16). What this means is that this local government depends entirely on oil wealth produced hundreds of kilometers away and this is typical.

In fact there are local governments in Nigeria were the chairman comes once in a month to his office to share revenue. Once this is done he or she (but he most of the time) goes back to his private business until the next month.

This practice is the reason why Nigeria is not growing at the rate that the ordinary Nigerian will feel the impact. If the economy of Nigeria must grow then we must stop rewarding laziness and mediocrity.

Nigeria must get rid of this socialist heritage from her military days and embrace the capitalist ideology were income is a reward for productivity. Reward for productivity will lead to even more productivity and at the end of the day Nigeria and Nigerians will be the better for it.

To me resource control is the most fundamental reform needed in this country today, even more important than electoral reform. The question is why is their so much fight for leadership position in Nigeria? The answer is that being a leader in Nigeria gives easy access to revenue coming from resources that you no nothing of how it was developed.

Today all an average state or local government leader does is to wait for revenue accruing from the federation account and spending same in inflated contracts. To me this is not a hard job at all. What could be simpler than spending money? Anyone can do it.

Adopting resource control will create a challenge for Nigerian leaders and make the job of being a state or local government executive more challenging. The challenge will no doubt improve the quality of people who seek public office and reduce the fight for leadership position. With time the electorates will learn that only by voting for capable leaders will their territory grow. Vote rigging will die a natural death.

It is a fact that some states will not be able to survive on their own (at least for the interim). The central government will share part of the proceeds accruing from the rich states to states identified as poor. However states that are found to be unsustainable in the long term should be merged with other states. The revenue sharing formula used must be different from what is in use today.

In the next issue of this series titled “Steering Nigeria towards economic growth” I will suggest a revenue sharing formula that will propel those states to economic prosperity.

The formula can also be used even without resource control. The only difference in the formula and the present formula is that it uses variables that link revenue sharing with productivity. However, resource control is the ultimate solution.

STEERING NIGERIA TOWARDS ECONOMIC GROWTH

Introduction

Nigeria a country blessed with abundant human and natural resources has since her independence in 1960 been suffering from chronic impoverishment and underdevelopment. The country at independence had leaders who where selfless and patriotic. Then Nigeria was healthy and functioning properly and the structure was right for economic growth and the country then was described as the shining star of Africa.

All that is history now, since the military made their first incursion in 1966 Nigeria have lost her way. Nigeria, the shining star of Africa which should show the way to the rest of the continent, is now in search of direction. Nigeria is now an embarrassment to the African continent.

The military dismantled the rule of law and the constitution making Nigeria a lawless society in the process. They also dismantled the structure of Nigeria creating states that were not economically viable and by so doing created a stronger central government. Nigeria as a result moved from a federal system of government to a unitary system even though she had retained the “Federal” adjective in her name.

Once the Federation was dismantled the military had all the control to finally destroy Nigeria. They introduced politics in the education system. This they did by starving states that were considered then to be better-off education wise of funding in the education sector while investing heavily in states that were said to be “educationally disadvantaged”.

The aim of this was to centralize education and to put every part of Nigeria at par education wise. However the military forgot that the world is not static. As expected in no time the rest of the world left us behind education wise. Universities like UI and UNN at their prime were comparable to any university in the world, today they glorified high schools.

However, despite the heavy investment in the “Educationally disadvantaged states” project all the states have remained disadvantaged. In fact today all Nigerian states are educationally disadvantaged by any objective standard. Later in this series I will link most of the problems in Nigeria to our poor education.

The centralization of Nigeria created insecurity and mistrust among the tribes as every tribe wanted to control the almighty centre. Soon there was a brutal civil war and many lost their lives. The war may have ended but the battle for the centre is still on. Since the end of the war thousands of Nigerians have died in religious, ethnic and tribal related violence and many more may still die.

The military institutionalized corruption in the country. Corruption is today identified as the most daunting challenge facing Nigeria. Today corruption is on the driver’s seat.

The military however is not entirely to blame the civilians that took over from them did not do better either. These civilians made corruption official in government. Today some Nigerians do not see anything wrong in giving or accepting bribe. Corruption makes Nigeria go round. It seems to me that this country will ground to a halt without corruption.

This is the story of Nigeria a country in search of direction. One thing is certain, Nigeria is not sustainable as it is presently constituted. There is need for a drastic change in the state of affairs in this country.

In this series titled “Steering Nigeria towards economic growth” I will share my own views on how to salvage this country. In the next two issues on this series I will show that revenue sharing is at the core of our problems in Nigeria. I will start by showing that resource control is the most fundamental reform needed in Nigeria today, even more important than electoral reform.

Then I will also show how retaining the present structure but drastically amending the revenue sharing formula can turn Nigeria towards economic growth.

In addition I will also discuss how the poor quality of education in Nigeria is contributing to our woes corruption inclusive.

NIGERIA: ETTEH SHOULD GO.

The sessions in the Nigerian House of Representatives, this week had been very rowdy. This is because of the disagreement between members, on whether the speaker of the House of Representatives Mrs. Patricia Etteh should preside over deliberation on the panel report on the N628 million contract scam.

The report had stated that due process was not followed by Mrs. Etteh in the award of the contract for the renovation of her official residence and that of other principal members of the House of Representatives. The contract was also found to have been inflated.







Since this scandal became public knowledge their have been calls for Mrs. Etteh to step aside by some members of the House of Representatives. However, Mrs. Etteh seems to prefer to cling on to power despite the fact that her effectiveness if she continues to stay on as speaker of the House of Representatives is in doubt.

Mrs. Etteh is an average Nigerian politician, never knowing when to bow out. An average Nigerian politician wants to hold on to power at all cost ability to govern is not an important consideration. They just want to be there. One question I have for Mrs. Etteh is how does she think that she can still lead the Nigerian House of Representatives after all that has happened?

Leadership is about being able to inspire people. Mrs. Etteh have disappointed many people most especially those that supported her nomination as the speaker of the House of Representatives. In fact, some of Mrs. Etteh’s supporters are now vigorously opposed to her remaining speaker of the House of Representatives. Therefore, her ability to command the respect of other members of the House of Representatives has been highly compromised.

Mrs. Etteh should resign and further investigations should be conducted on the scam. For example, one of the reasons given by her supporters on why she should stay on, as the speaker of the House of Representatives is that they claim Mrs. Etteh did not benefit financially or in any other way in the contract scam. I am yet to be convinced. If the contract was inflated then who collected the surplus?

I will like to know for example who were the shareholders of the companies that handled the contract as at the time of the contract award and their relationship to Mrs. Etteh. If Mrs. Etteh did not benefit who did?

What Mrs. Etteh must understand is that resigning, as the speaker of the House of Representatives does not mean she has agreed that she benefited in the scam. It will only reduce the tension in the House of Representatives. It is a necessary sacrifice that Mrs. Etteh must make for peace to rain in the House of Representatives.

However, the rowdy sessions in the House of Representatives this week did not end without a major incident. A member of the House of Representatives Dr. Aminu Safana slumped and died during a rowdy session on Wednesday. Before his death, Dr. Aminu Safana was the chairman of the House on Health.

Perhaps if Mrs. Etteh had stepped down earlier we would have been saved this incident. However, all these are open to speculation now. May his soul rest in peace. I hope Mrs. Etteh and her colleagues have learnt their lessons.

The members of the House of Representatives should do the right thing when they reconvene next week. They must realize that their credibility is at stake. They need a new leadership. They need a fresh start. If Mrs. Etteh refuses to go, then she should be forced out.

NIGERIA: ADADA STATE

Ndi Igbo of Nigeria have for the past few years called for the creation of one more state in south east Nigeria to balance the power equation. South Eastern Nigeria (populated mostly by Ndi Igbo) is currently made up of five states (Abia, Anambra, Ebonyi, Enugu and Imo States). Adada State is one of the states currently being considered to complete the number of states in the south eastern Nigeria to six, which is the regional average of states in Nigeria.

However, what prompted this blog is the claim by the chairperson of the committee promoting the realization of Adada state that Adada is economically viable.







I will beg to disagree. As far as I am concerned, very few states in Nigeria are viable. Apart from the oil, producing states and may be Lagos state the rest of the states in Nigeria are only parasitic States. If Ndi Igbo will tell themselves the truth the main reason for the call for one more state in the south east is for Ndi Igbo to get more share of the nation’s oil wealth.

However, the question I will like to ask Ndi Igbo is were is the wealth coming from? Are we asking for a greater share of our wealth or the wealth of the Niger Delta? Asking for one more state in the south east by Ndi Igbo is like an endorsement of the injustice currently taking place in the Niger Delta.

He who asks for equity must go with clean hands. If Ndi Igbo are complaining of the injustices against them by the Nigerian state then they must not be seen as encouraging injustice against another group.

What Nigeria needs is resource control. Let every state control every aspect of the resources in their territory. That is the only way we will know which Nigerian states are economically viable. As long as the present regime were federal allocations are disbursed to states with no bearing on the productivity of the state continue Nigeria will remain a one commodity economy.

Ndi Igbo should ask for a fairer formula for resource allocation that is based on indices like internally generated revenue, contribution to GDP and other indices that encourage productivity rather than using indices like land mass and population that promotes laziness.
Adada state will create more burdens for Nigeria; new politicians will have to be elected to mismanage the resources of the state. Therefore, as you can see Adada state will create one more pipeline for the siphoning of the wealth of Nigeria by corrupt and ineffective politicians.

Ndi Igbo may finally get the state they want but they must be told that the problems of Nigeria or Ndi Igbo for that matter cannot and will not be solves by concentrating on resources sharing but by resources creation. I wish Adada state and Ndi Igbo all the best.

NIGERIA: THE FOREX TRADING SEASON

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A scan through any of the major Nigerian news dailies would reveal quite a number of ads inviting readers to attend an online forex trading seminar. According to these ads one can make between $5,000 and $10,000 in a month or between $100 and $500 in a day from online forex trading. The seminar fee ranges between N5, 000 and N120,000 and always promises to teach you all you need to know about forex trading. But how true are all these claims?






A few years ago these Nigerian dailies were awash with ads on all sorts seminars on different money making opportunities on the internet. The opportunities range from making hundreds of dollars daily reading emails to making thousands of dollars selling information on the internet. In fact some ads went as far as claiming that all Nigerians need to know to become internet millionaires is how to move the mouse. However, some of these ads are no more. It seems that this is the season for online forex trading.

The online forex trading opportunity is real, there is no doubt about it. So also is the reading email and selling information opportunities, they are all real. However, the problem is that in their bid to make money the organizers of these seminars do not paint the true online forex trading picture. They advertise these forex trading opportunities as if it is an all comers affair.

How true is it that one can make up to $300 a day from online forex trading? The first of many questions that Nigerians should ask is how much does one need to invest before making $300 in just a day from online forex trading. To the best of my knowledge return on investment is calculated percentage wise. So how much will a Nigerian have to invest in online forex trading in order to make $300? So as you can see some pieces are missing.

How many Nigerians can invest N10 million into online forex trading in order to make $300 some days?

Secondly, even if an average Nigerian can make up to $300 per day from online forex trading, is it possible to do this day after day, month after month in a year? I could imagine that the thoughts that come to the mind of some Nigerians when they read these ads is that if they could make $300 per day then by the end of the first month they would have made about $3,600 from forex trading. Any body that is conversant with business knows that it has its ups and downs; online forex trading is not an exception.






Thirdly, even if it is possible for an average Nigerian to make $300 day after day from online forex trading, is it as easy as one is made to believe? I have been to online opportunity seminars were almost half the attendees do not know how to use a computer. The big question is, how can some one who does not know how to use a computer make money trading forex online? So before attending any one of those seminars, first find out what you need to know so that you don’t waste your money on a wild goose chase.

Do not attend the seminar without researching about forex trading first on the internet. In fact the only reason to go for an online forex trading seminar is if after going through the tons of information online about forex trading, you still have some unanswered questions. In such a situation, write down the questions and take it with you to the seminar venue.

The only advantage that attending the seminar gives you, is the experience, contacts and the network you create. I must warn that some of your resource persons have not traded forex for one day. They just attended an online forex trading seminar for one or two days and off they go teaching others.

In the past couple of weeks I have been researching on this online forex trading subject and in the next couple of days and weeks I will be revealing the truth about online forex trading. However, the worst thing you will do to yourself, is to doubt that you can make money from forex trading.

The aim of this write up is not to deny the universal truth, that forex trading is a very lucrative and as a result very risky investment opportunity, but to separate the fact from the fiction.

NIGERIA: MYTHS ABOUT ONLINE FOREX TRADING

A lot of wrong impressions have been created about online forex trading in Nigeria by some overzealous promoters of online forex trading. These promoters make some outrageous claims about the reward of trading in forex online. A comparative analysis of promotions about online forex trading in Nigerian dailies shows that they claim that one can make between $100 and $600 daily from online forex trading. This is obviously more than the monthly take home pay of a lot of Nigerians.




It is easy to see why a lot of Nigerians are ready to do what ever is necessary to improve their livelihood. A number of unsuspecting Nigerians have lost their money in the online forex trading gold rush. Most often the loss is not because the online forex trading opportunity is false, but as a result of the outcome not meeting the often hyped expectations.

These promotions have also painted online forex trading in bad light. Some Nigerians now see it as a get rich quick scheme. Others see it as an extension of the dreaded yahoo yahoo business. The fact is that forex trading is a real investment opportunity just like the stocks and commodities markets. Only the intelligent survive in these markets. To survive in the online forex market you need to be intelligent, persistent, and patient.

A successful online trader should also be aware of international politics and how it affects currency value. If all you watch is home movies don’t even think about forex trading. Online forex trading is for the well informed. Forex trading is neither for the poor nor the faint hearted.

Below are some myths currently flying around in Nigeria about online forex trading. In each case an attempt is made to counter such myths and to paint the true picture about the online forex opportunity.

YOU CAN MAKE UPTO $500 PER DAY IN ONLINE FOREX TRADING

This claim is bound to attract a lot of attention, especially in a country like Nigeria where poverty is king. The sponsors of these forex trading seminars know this that is why it is usually the headline. No doubt about it one can make $500 in a day from online forex trading, just like in the stock market or even in selling mobile phones.






What is however false, is that one can make this amount day after day all year round. Also any investor that knows his onions should be able to ask one simple question. How much do I need to invest in other to make $500 in a day? Investments are evaluated on the basis of the percentage return on investment. For example does it mean that no matter the amount of money I invest (even $250) I will still be able to make $500. If you invest $250 today and make $500 the next day you would have made a 100% return on your investment. If you do this consistently every day for a month (assuming 26 working days) you would have made $13,000 (1.6 million naira) from your initial $250 investment. This adds up to a 5100% return on investment. Staggering I hear you say.

These online forex trading promoters mix up information. Yes you can make $500 in a day from forex trading but you will have to invest a substantial amount of money.

One can make between 50% to up to 800% return on investment in a year from online forex trading. Your return on investment in the forex market depends on your guts, discipline, dedication (by always being up to date through reading) and foresight.

ONLINE FOREX TRADING IS A POVERTY ALLEVIATION SCHEME

Online forex trading is not for the poor. To really make money on the short term in the forex market you need to have some real money to throw around. Having a reasonable amount of money gives leverage. For example you can open an account with a minimum of a $100 on some online forex trading platforms, but what happens if the market goes against you and your account falls below the minimum to say $95. You stand a chance of loosing some or even all of your money.

Having enough money helps manage your risks. You can sit and wait until the right time to sell. You simply set your target and wait. It is recommended that an individual should not even think about online forex trading except he has about 250,000 naira to set aside full time for trading on forex online. In addition it is recommended by some online forex trading experts that you should not trade with more than 10% of your forex account.

For example if you want to bid 15,000 naira each on 2 different currency pairs, that gives a total of 30,000 naira. It is recommended that you have at least 300,000 naira. So as you can see you need a deep pocket to really break into online forex trading. Do not use your last card to attend a seminar hoping there is light at the end of the tunnel. Save money and study and one day you might be able to play in the online forex trading market.

ONLINE FOREX TRADING IS FOR EVERYBODY

Online forex trading is not for the poor neither is it for the faint hearted. It is important at this point to define who a poor man is so that you do not get me wrong. My definition of a poor man is a man with a savings of less than 400,000 naira. If you can also sell your assets worth more than 400,000 naira without considerably affecting your life style then you are not poor.

To make it in online forex trading market you must be disciplined, result oriented, self motivated, intelligent, persistent and patient. You must have a strong belief in your self and on your platform. You also need lots of guts and a reasonable amount of money.

ONLINE FOREX TRADING IS RISK FREE

Online forex trading is very rewarding. In fact it is one of the most rewarding investment opportunities in this planet. As a result online forex trading is very risky. It is one of the most risky ventures online.

Online forex trading like any other investment opportunity comes with its risks. It even comes with a higher amount of risk. So do not be deceived.

YOU CAN LEARN ALL YOU NEED TO KNOW ABOUT ONLINE FOREX TRADING IN A FEW DAYS SEMINAR

You cannot have a full grasp of online forex trading by simply attending a one to three day seminar. In fact you have no business attending one of those online forex trading seminars until you have exhausted all the information on the internet. The only good reason to attend an online forex trading seminar is the network that you build. You must study hard, open a demo account and test your understanding before even investing a dime.





ONLINE FOREX TRADING IS A FRAUD

It is equally wrong to claim that the online forex trading opportunity is a fraud. This investment opportunity is real all you have to do is to do a detailed study of the online forex trading opportunity. Open a demo account and try to understand the platform before investing real cash. Good luck.

These are some of the myths about online forex trading, I will add more in the future. You can also include yours via the comment page.

NIGERIA: ONLINE FOREX TRADING STEPS

Online forex trading is a real investment opportunity for Nigerians. It is a very rewarding, but risky venture. However, to succeed in the online forex trading you must be patient, study and practice with a demo account before investing real money.






There 3 steps to success

1---------- Study at
baby pips

2-----------Practice with a demo account at
marketiva or/and
gft forex

3----------Open an online forex trading account when you are confident enough.

To succeed in online forex trading from Nigeria, you will require a PC, an internet connection and not less than 250,000 Naira. You may also need a means of identification like an international passport or driver’s license. This you will need to open a domiciliary account in one of the Nigerian banks.

Being a Nigerian you may be asked for a little bit more. Good luck.

BEFORE ATTENDING AN ONLINE FOREX TRADING SEMINAR

Do not waste your time and money attending online forex trading seminars. There are a lot of information online about the subject. Simply type “online forex trading” in your google search and you will be amazed at the number of results that come your way.






Do a thorough research about online forex trading, find out the meaning of key words like: ---pips, charts, e-gold, demo account, forex account, domiciliary account, trade signals, forex scams, trade, etc. As you search new keywords will come, search for those as well.

Go to babypips you are likely to find all you require as a beginner in online forex trading. You can also visit websites like

gft forex
marketiva

These two websites are online forex trading platforms. You can open a forex account; you can also learn about online forex trading in general or simply open a demo account and see how the platforms work and master it.

The only reason for attending an online forex trading seminar is if you are still confused or you still have a few questions to ask. Simply attend the seminar so that the experts will put you true. You may not even go to the seminar, simply dial the numbers and ask for consultation or a one on one meeting.

Ask vital questions to be sure that the person on the other line is conversant with the online forex trading only when you are satisfied should you attend any seminar.

To make it in online forex trading you must study continuously; never believe that attending a 2 day seminar will make you an online forex trading expert.

INDEPENDENCE DAY: AS WE MARK 47 YEARS OF NIGERIA

On October 1st this year Nigeria will be 47. Nigerians worldwide will be celebrating their 47th Independence Day anniversary. This is the time for Nigerians to remember the efforts of past heroes in the fight for Independence. This is a period for Nigerians to assess how far we have gone in achieving the goals of our founding fathers.

What did our founding fathers have in mind when they were struggling for independence? Did they anticipate that by now Nigeria a country blessed with abundant human and natural resources will be one of the poorest in the world? Did they anticipate that many years after power stations like the Kainji dam were built, Nigeria will still be deficient in power supply? Who will believe that Nigeria still has only 4 refineries decades after the first was built.

Our leaders at all levels should use this unique opportunity that this Independence season provides to reflect on the past 47 years with a view of facing the challenges of the future. They must not forget that they will still be in power in 2010 when Nigeria will mark her 50th anniversary. Then result will be expected from President Yar’adua’s 7 points agenda.

However, is there anything to celebrate after 47 years? With the long list of problems (challenges) presently facing Nigeria, it is tempting to answer no to the question.

Corruption remains one of the biggest problems in Nigeria. This corruption is fueled by poverty, greed, illiteracy and impatience. Corruption is at the root of most of the challenges we face in Nigeria today. Be it epileptic power supply, low human capital development and more.




President Yar’adua seems to have won the trust of a lot of Nigerians with his unique servant leadership style. Most of us who criticized his selection seem to have fallen for the humility we have seen in the man. It is hard to find ordinary Nigerians saying negative things about Mr. Yar’adua.

In addition the reversal of certain decisions made by the Obasanjo administration has gone a long way to make us have an afterthought about Yar’adua. For me, any decision that will hurts Obasanjo and his interest is good enough; at least he needs to pay for overseeing the worst elections in my history and for the many years of heart ache that he had caused Nigerians. It is obvious that Yar’adua is popular with Nigerians presently.

However, what is important is what Yar’adua does with his popularity. A look at history shows that most dictators starts well and ends in disaster. They win the trust of their people and then use their popularity to oppress the people.

President Yar’adua must use his popularity to promote good governance in Nigeria. He must use his popularity to push that his servant leadership philosophy be adopted in all the states in Nigeria.

At this 47th Independence anniversary in Nigeria, I will be celebrating Yar’adua the servant leader from Katsina state who emerged from the most widely criticized elections in my life time. You should do the same.

NIGERIA: PAYING FOR ENERGY BEFORE YOU USE IT.

A few weeks ago the Power Holding Company of Nigeria (PHCN) began the installation of prepayment Electronic Energy Meter in my Area. However, on the 21st August I came home only to find that the prepayment meter had been installed in my house. My old meter unit had been replaced with two impressive looking units by technicians of the PHCN.

The smaller unit called the monitor unit displays information about your credit level with the PHCN. The monitor unit is also used for loading credit into your meter. The other unit called the metering unit is the main meter unit.

Having used this new prepayment meter for about three weeks I have noticed a change in my attitude to using energy. I have also noticed similar changes in my neighbors and most other Nigerians who have had the privilege or nightmare of using the new PHCN prepayment meter.

I am now more conscious of my energy consumption. I switch off any appliance that is not in use. I now switch off the light in my bathroom and toilet which used to be on from night till morning. Switching off my security light is now in my to-do list every morning. I am not the only one who has changed, people living around my area have also been thought a lesson or two by this new prepayment energy meter from the PHCN.

These days the streets are dark at night, even when there is power, which is a pity. Most people do not turn on their security lights at night, which used to light up the city. These days the only light you see on at night is the light from the TV.

It is quite surprising to see how a pair of electronic gadget can cause tremendous behavioral change in a community. Because we now know that we will pay for every unit of energy we use, we are now more conscious of our energy consumption. In addition because we know that our power supply will automatically trip off if we run out of energy credit with the PHCN, we now manage our available energy credit with caution.




This behavioral change is positive. At least the demand on the PHCN is bound to reduce. The PHCN can now know what the real energy demand in Nigeria is.
However, some Nigerians have overreacted in their attempt to save energy. How else do you explain a situation where people shut off their security light at night, endangering their lives and the lives of others? Security lights are supposed to provide illumination for you to see the outside of your house without being seen. The security light can also deter opportunistic thieves, snakes and other harmful creatures from your house. Of what use is saving energy if your loved one is beaten by a snake because of poor illumination?

I would not be surprised if some parents, in their attempt to save energy are no longer allowing their kids to study at night. Nigerians will have to look for more innovative ways of saving energy. Shutting off the security light is definitely not the way.

The way forward is to buy energy efficient devices. Currently there are light bulbs that consume just 6 watts (10% as much energy as a 60 watts incandescent bulb). There are also television sets that use less than 25 watts. Investing in such energy efficient devices can reduce your energy consumption without necessarily reducing your quality of life.

Also available are systems that can automatically switch off light not currently being used. These systems can sense the presence of someone in a room and automatically switch on the light. Similarly such a system can sense someone leaving a room and automatically switch off the light. Such systems can considerably reduce ones power consumption.





However, it is not only the consumer that has changed. The PHCN has also changed. There has been a noticeable improvement in Electric energy supply in my area. Perhaps the PHCN officials now know that the only way for them to make money is to supply electric energy to its consumers. The days of estimated bills are over. The income of the PHCN will now be directly proportional to the amount of energy they supply to the consumers. It means that once again the Nigerian consumer is king.

But as we celebrate the new energy meter we must also ensure that the much talked about Nigerian factor does not creep its ugly head. The PHCN must ensure that they have enough capacity to manage an Electronic prepayment energy metering system.

The supply of energy meter should be open. I will like to see a situation were one will be able to buy an electronic energy prepayment meter off the shelf in say a supermarket. The present situation, were the PHCN has monopoly to supply the electronic energy prepayment meters is not ideal. Nigerians must be allowed to shop for these meters at the price they can afford. PHCN should in such a situation collaborate with the Standards Organization of Nigeria (SON) to ensure that all available meters are certified.

An open system like this will reduce corruption (political interference) and free PHCN to focus on its main responsibility of generating, transmitting and distributing energy. This will also allow for innovation, since people will come up with different designs that will meet the needs and pocket of the consumer.


This new Electronic Energy Pre-payment meter by PHCN is good for Nigeria. It will definitely make Nigerians more energy conscious. It will reduce corruption in the PHCN by forcing them to focus more on power generation and distribution. I urge all Nigerians to accept this new development, because at the end of the day we will be the winners.