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 Daily Independent Online.
* Monday, August 16, 2004.
Senate tackles CBN, pampers GSM operators
By
Adetutu Folasade-Koyi
National Assembly Correspondent, Abuja
The season for pretensions is
over. The delayed ‘war’ between the Senate and the Federal Government
over the new directive to banks to either capitalise to the tune of N25
billion or close shop will begin this week.
Hitherto,
the supremacy battle over who has the final say was being waged in the
media. The main combatants are the Central Bank of Nigeria (CBN) backed
by the Federal Government on the one hand and on the other, the Senate,
which seems to be at war with itself.
While the executive seems to have
got its act together and has consistently spoken with one voice on the
issue, divergent voices emanate from the Senate. President Olusegun
Obasanjo, with the might of the Federal Government at his behest, has
been in the vanguard, telling stakeholders that there is no going back.
The Senate has not been able to articulate its views on the matter.
While
the Senate Committee on Banking, Insurance and Financial Institutions has
consistently insisted that due process has not been followed; the Senate
leadership seems divided on the matter. Senate Chief Whip has left no one
in doubt on where he stands; that the new amount would not only help
sanitise the banking industry, it would also help counter the distress
syndrome prevalent in the industry. To buttress his point, he told the
story of a family close to him who lost N27 million when Savannah Bank
was closed by the NDIC. “Today, that family is looking for means of how
to survive while the owner of the bank is junketing all over the world,
enjoying other people’s money,” he said.
Call
it muscle flexing between the executive and the legislature if you like,
but the independence of the legislature is at stake here. Penultimate
week, the Minister of the Federal Capital Territory, Mallam Nasir Ahmed
el-Rufai, contemptuously told Nigerians that the pronouncement is not
subject to debate, having emanated from the executive. That statement
peeved not a few legislators. They have vowed to show the man from Kaduna
that the legislature will not be cowed, at least not now. Contents of the
new CBN and BOFIA Acts serve as points of reference.
An
amended Section 9 (1) stipulates that the appointment of the CBN Governor
and Deputy Governors shall be subject to confirmation of the National
Assembly. More than that, the Committee is recommending that the governor
and his deputies should “be persons of recognised financial experience
and shall be appointed by the President subject to confirmation by the
Senate by instrument under the public seal and on such terms and
conditions as may be set out in their respective letters of appointment,”
while Section 9 (3) is amended thus: In selecting the Governor and Deputy
Governors, the President shall have due regard to a fair representation
of the financial, agricultural, industrial, and commercial interests and
geographical spread of the country.”
What
is unknown for now is whether the amended law will take a retroactive
effect, and if it does, would Soludo’s appointment, who by the way is a
professor of economics and a long time adviser of the IMF to boot, be
voided by the Senate, going by their recommendation that the governor
should be a person who has financial experience?
The
debate on the amended laws will start this week, and certainly, some events will
unfold.
There
comes a time in the affairs of men when the truth should be told, no
matter whose ox is gored. When the legislature begins to hold forte for
the sector it is supposed to oversee to ensure effectiveness, then
something is fundamentally wrong somewhere.
At
an interactive session with journalists last week, Senate Communications
Committee Chairman, Senator Baba Tela had ready explanations to every
question that bordered on the gross rip-off by the operators of the
Global System for Mobile Communication (GSM) in Nigeria. For any
question, particularly as it pertains to performing oversight function on
the GSM operators and the rip-off of hapless Nigerians, Tela had a ready
answer.
According
to Tela, his committee held meetings with MTEL on its performance and how
it had allowed other networks to beat it in the game where it had a clear
advantage over them. The conclusion from the meeting was that marching
orders were given to MTEL to either perform or shape up.
“The
committee was not happy with the performance of MTEL. In 2001, when it
berthed in the country, Nigeria Telecommunications (NITEL) was the only
provider on ground. They provided backbone for other operators.
Unfortunately, it has not been able to play its role as a dominant
player. MTN has taken the lead by rolling out more than two million
lines, in less than three years of operations. In fact, Globacom, which
is less than a year old, has overtaken MTEL in the provision of services!
We queried them on why they allowed themselves to be overtaken by all
these private operators despite NITEL and the Federal Government
backing,” he said.
What
one may ask the distinguished Senator from Bauchi North is; why would MTN
not take the lead? The same government granted them generous waivers and
Nigerians helped them to milk the nation dry by exploiting the loopholes.
So, why blame MTN for taking advantage of a system that is so inept and
corrupt? Before now, Customs Department could not cry out that the waiver
granted MTN was akin to capital flight. It was when MTN ate too much that
they had to cry out.
The
Senate should be bold enough to tell the GSM operators the home truth:
that they are ripping off Nigerians. In a country of more than 120
people, definitely, no investor should be in a great hurry to recoup its
investment. When operators are sanctioned whenever they err, then
Nigerians would have a sense of relief that their representatives are
truly acting on their behalf. Some would argue that is the National
Assembly the Nigeria Communications Commission (NCC)? The answer is so
simple it needs not be belaboured. As promulgators of the law, they can
invite both the regulator and the operator and after painstaking
investigations, put appropriate sanctions in place. A situation where MTN
is so haughty as not to respond to an invitation by the Commerce
Committee during the scarcity of its recharge card episode does not augur
well for the polity. Instead, MTN directed the Commerce Committee to
liaise with Tela’s committee on any information it desires. Sheer
arrogance! And the penalty for ignoring the committee: it is a long wait.
Another
issue, which Senator Tela got wrong was on drop calls. Hear Senator
Tela’s explanations on that. “The network itself cannot carry the
traffic. The main backbone is being provided by the national carrier,
which is outdated and choked up. NITEL itself is overstretched. It does
not have the facility to help the operators.” Fine logic you would say.
But pray, why deregulate the sector if players are obviously not ready to
invest? When they were all picking up their licences in 2001, were they
unaware that the need for a backbone would become necessary? The simple
truth is that Nigeria; with more than 120 million people, is an
investor’s haven. Sadly, it is a country of anything goes. Grease some
palms somewhere and you might as well get away with murder. For more information
on that, you may consult Clifford Orji? His last destination, conduct a
check of Lagos prisons for details.
Seriously
now, whoever is looking up to this Senate to correct the wanton anomalies
perpetrated by these operators may wait a long while. Or how do you
explain a scenario where the institution vested with power and authority
to call them to order is the very one trying to rationalise their action
(inactions if you prefer)?
But Tela should not carry the
can for the inefficiency of the NCC. If the regulator had done its duty,
the legislature would really not come under pressure to interfere.
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