Drastic cut in cost of governance needed to improve economy,

By Agatha Emeadi

The extremely high cost of governance continues to drain funds that should be channelled into areas that will grow the economy and enhance development.

In this interview, Chief Executive of Coleson Group of Companies, Asiwaju (Dr) Michael Olawale-Cole, proffers solutions to major challenges confronting the country.

Asiwaju Cole who was a member of the Tripartite Committee on National Minimum Wage as former president of Lagos Chamber of Commerce and Industry (LCCI), former president, Nigeria Institute of Management (NIM) in addition to other public service positions held previously, also speaks on the way forward to resolve the issue of the national minimum wage.

The two major Labour unions (Nigeria Labour Congress, NLC and Trade Union Congress, TUC) are still negotiating with the Federal Government over the new national minimum wage. As a member of the Tripartite Committee, what can you tell Nigerians regarding this issue?

In fairness, we, the members of the Tripartite Committee for Minimum Wage have done our very best and submitted our reports to President Bola Tinubu. He mandated us to submit within seven days. The Organised Private Sector (OPS) came up with their position, while the NLC also came up with one. The truth is that I have always not supported the positions of NLC even at meetings. I used to quarrel with their president a lot during meetings because we must look at the whole nation. Therefore, I appealed for sincerity, integrity and patriotism. I said let us use the exercise and move the nation forward. We should not do anything that will endanger the existence of this nation. Labour leaders told the press that they would ask for N1m minimum wage in Nigeria. Despite the inauguration of that committee by the Vice President, I picked Ajaero up at the meeting and it was a big battle. If the least paid Nigerian earns N1 million per month, then, there would not be currency in Nigeria again. So, what would directors earn? It got to a point, OPS came up with N54,000 minimum wage, the government offered N48 while Labour asked for N550,000. When it came to negotiation, the government agreed to move to N54,000 while Labour said over N450,000 We moved the argument until the government offered N60,000. The president said the federal government will pay more than N60,000 and the sum of N62,000 came into the discussion. Meanwhile, both state and local governments said they cannot pay N60,000. It is Labour that needs to be realistic and patriotic. What they should be after is to insist that the government should make the cost of living cheaper for the people. It is not about the cost but value for money.

Insecurity and removal of subsidy on petrol have been attributed as the causes of the hardship in the land. What is your view?

Insecurity in the land is a major challenge to the government. Not only this administration, even the past administrations. It is also a major concern to the citizens of the whole country, even to other nations. We must get it right that insecurity is virtually everywhere in the world. There is a level of insecurity in every country and city; therefore, one must be very careful. I recollect some years back when we were going to Washington, DC, for a programme and a friend of mine warned me not to go to certain streets in Washington DC because there was a guy who was known as a serial killer. He goes round on Washington streets and asks for people’s birthdays. Once the date falls within a specific time in his mind, he will shoot the person. That is insecurity. A lot of people were scared of going to Washington at that time. He was killing from place to place. Look at what is happening in foreign countries around the world. Life and time have changed because of insecurity. So, the world is being challenged. That of Nigeria is peculiar because of the level of insecurity that we have. It is Boko Haram which has been going on for decades. It is a big battle that I thought would have been won by the Muhammadu Buhari administration, a retired General of the Nigerian Army; he could not achieve that. The issue of insecurity in the land has affected everything, particularly the economy. Government is aware of that and is doing its very best to see that the issue is addressed.

Still on insecurity, there is a major issue that I think the government should address: the structural causes of insecurity. You have a lot of people out on the street without education. This is prevalent in the north. That is part of the reason the level of insecurity is higher in that area. A lot of people were made to feel that they should serve those who are privileged, now one can see a fightback from that class. It is a shame that a large portion of the elite from the north hardly go home because a lot of people there are ready to attack them; instead they go to other states. I remember with nostalgia when I was the President of Nigeria Institute of Management (NIM) between 2011 and 2013, I went round the whole country visiting all the chapters. One of the days I was travelling from Kano to Katsina by road and off course I saw what I saw. Anywhere I stopped to buy fuel, a lot of these young people would come in 10s and 20s asking for alms. At a time, I wept because I could foresee that there was danger to the future of this land. And that is exactly what we are seeing now. To me, that is a structural problem that needs to be addressed. Mr. President must ensure that just as education is a priority in Lagos State, and other states in the West and East; let it also be there too. The north is still far from there. We should carry the whole nation along to ensure everyone who wants to study is given opportunity to study. So, I learnt there is this fund which they have started for education. But I think it should cover more for those who are at a lower level. Go to the foundation of this nation.

But their culture is not very strong on education?

The National Orientation Agency has a job to do. They need to give a lot of orientation to Nigerians in many areas. This is just one of them. It does not matter what happens. When I was also the president of Lagos Chamber of Commerce and Industry (LCCI), we addressed insecurity enough. It will become a matter of the whole nation being engulfed. The President needs to work on how to get education improved in Nigeria. If we limit it to what is happening now, the influx from the north will affect all of us. A lot of people are relocating to Lagos from the north because of what is happening there and one then imagines the pressure on Lagos facilities. That is structural, once that is addressed through education, such people cannot be easily lured into crime. People who are lured into crime are people who have nothing to lose.

In the same vein, another area I think the government should work on is the issue of employment. It is not enough to graduate without getting a job. There is need to empower the private sector to have a better environment for business. They can expand and give more employment opportunity to the people. I can recollect when I left University of Lagos in 1972, I had six jobs waiting for me already but took the offer from Total Oil as an accounts manager in training.

Given the present situation can life ever go back to state again?

It is possible. It depends on the economy, which also depends on good governance. If there is good governance with people who are giving us the sincerity, commitment and patriotism, we will get back to those days. Even though we were smaller in population then, but we were a very happy nation. Government needs to encourage the economy to get better. When the economy gets better and companies keep expanding, economy will be robust. Now, companies are shutting down in Nigeria.

Almost all the foreign companies in Lagos are closing and relocating to other African countries. What is your take on this?

That is a challenge to the government because that in itself can create further insecurity. What about the hands that were laid off from such companies? Where do they go? It might not just be the issue of insecurity on the streets, but insecurity at higher levels. Do not forget these are people who are very intelligent and therefore will get engaged one way or the other, legally or illegally. I want to appeal that government should do something about unemployment.

What you think about the level of hunger in town?

I will say again that we have gotten to where we are gradually. A nation’s economy which is not growing at the rate of its population might be in for hunger with time. We know our GDP rate which is far from population growth.

There is no commensurate growth that will challenge this economy. To me, it is already a problem that we have in our hands to manage. Mr. President has a job in his hand. The truth is that the way things are going, we have to be very careful because poverty might lead to other consequences in our nation. I am sure that Mr. President and his cabinet are aware of the possibilities.

Are you sure Mr. President and his cabinet are aware of these possibilities? Why not they start by cutting down cost of governance?

The issue of cost of governance has been on discussion for a long time. I will recollect again when I was LCCI president, we hammered on the fact that there is need to do a lot more of infrastructural development, and that can only happen if the funds are there. We are saying that government needs to cut down on the cost of governance. That has been said for over the years. I am also aware that Mr. President also mentioned that they are doing their best to cut down the cost of governance. That is the truth because money from running the governance should be diverted into infrastructural development. We are limited as a nation. One can see what happened to our oil. We thank God that it is getting better now. Under the previous administration, it was a lot worse. The stolen wealth of the nation was a lot more. This administration is doing their best with the armed forces to challenge those who are in charge. It is a highpower thing, and not the canoe boys from Niger Delta. it is rather a high level arrangement. It will also take high level government intervention to make it not happen. We are happy things are happening now and that is how we are able to get money from government. Before the bulk of the money was stolen. Not realizing that these money is meant to improve the whole nation and provide for all. At the end of the day, it is vanity upon vanity. Good riddance many people who are into this business have been arrested and cut off from that business and government is able to get a lot more. There is also reason to look into areas where there are wastages in governance, use such money for developmental infrastructure towards the economy.

With the level of hunger in the land, do you think that the removal of fuel subsidy came at the right time?

We were told there was a lot of fraud in the system. Definitely, it was right for government to contemplate and also remove fuel subsidy. Against the people’s interest, a few organizations and people were benefitting from fuel subsidy. When the immediate past president was going, before he left, he did not do it. All he did in the budget was to make sure that from June there was no more subsidy. When President Tinubu came, he announced to us that subsidy is gone. I am a strong believer in the removal of subsidy, but the only thing we appealed then from the Chamber of Commerce was for things to be done to ameliorate the suffering of the people. We advised that the cost of living should be brought down. This is a nation where there is no social system at all and that is why people in the system are not enjoying. Government would need to see what it can do to make the cost of living cheaper. I also want to say there is high hope from this government. But be mindful that this hunger was not caused by this government totally. In my opinion, President Tinubu means very well for this country.

What about the abandonment of the Eastern zone?

I have always campaigned for a long time that for peace to reign in Nigeria, there must be fairness to all areas of the country.