Up to around 2006, it was possible to travel from Lokoja to Abuja in about 90 minutes because the road was smooth. By 2006 and just about one year left of his eight year rule, President Olusegun Obasanjo announced the contract award to turn the Abuja-Lokoja Road into a four lane track. It would appear that the policy of government is for major roads leading in and out of Abuja should at least be double lane. Incidentally, that project would be one of the dozen contracts verbally awarded by Obasanjo without backing them up with funding. In the following years, condition of the road deteriorated and instead of the average 90 minutes travel time on the road, commuters spent an average of three hours and at up to five hours on the same stretch. Before his death, President Umar Yar’Adua awarded the contact but still, paucity of funds prevented any serious work from being done on it.

And then on January 1, 2012, the Federal Government effected a partial removal of subsidy on premium motor spirit (pms). To pacify angry Nigerians who spend days marching on the streets of major towns against the step, government announced the establishment of an interventionist programme tagged Subsidy Reinvestment Programme (SURE-P). This was to convince citizens that funds generated from the subsidy removal would be spent on projects that will both be visible and beneficial to Nigerians.

 

This happened before under during the administration of late Gen. Sani Abacha. Abacha had introduced the Petroleum Development Fund (PTF) to manage extra funds generated from a similar hike in fuel prices and the scheme achieved some success.

 

In February 2012, President Goodluck Jonathan inaugurated the SURE-P committee with journalist, industrialist and diplomat, Dr. Christopher Kolade as chairman. As in the case of PTF, which got its credibility mainly from Gen. Muhammadu Buhari as its chair, Jonathan also appointed Kolade for credibility. Among others, the mandate given to Kolade, along with members of his team was to either initiate or carry out the execution and completion of existing projects, with emphasis on works, roads, rail, mass transit, maternal and child healthcare delivery.

Within the first six months, SURE-P had spent over N70billion to executed projects specified by the programme’s mandate in sectors such as works, roads, rail, mass transit, maternal and child healthcare.

Part of the projects taken over by the SURE-P was the Abuja-Lokoja Road. Between that 2012 and now, considerable work has been done on that road such that some drivers now spend less than 90 minutes between the Federal Capital Territory and capital of Kogi State. It is one of the success stories of SURE-P and a key highlight of the achievements of President Goodluck Jonathan.

Under the SURE-P arrangement, N32 is deducted from the proceeds of every litre of petrol dispensed with the Federal Government taking 41 per cent and the 54 per cent is shared among states and local government. He remaining five per cent is devoted to ecological matters. Thus, before the reduction in the pump price of premium motor spirit to N87 per litre, the Federal Government got over N180 billion as its share of the subsidy funds on an annual basis.

Through the programme, Gombe – Kafanchan – Port Harcourt and the Gombe – Kafanchan – Kaduna Inter – City Train Services are already functional as they were inaugurated in 2014. Some N73b have been spent on rail transportation for both rehabilitation and modernisation works on the Western, Eastern and Idu – Kaduna lines.

By June 2014, the programme had spent more than N280 billion on various intervention projects in addition to rolling over about N88 billion for more projects. “In 2013, we had over N88 billion which we rolled over into 2014” SURE-P Chairman, Gen. Martin Agwai said at the time.

SURE-P embarked on the construction of 1,970 metre long Loko-Oweto Bridge linking Nasarawa  and Benue states on River Benue. Also, the managing Director of Nigeria Railway Corporation (NRC), Mr. Adeseyi Sijuade explained that the fortunes of the corporation had changed for the better within that short period because thanks to SURE-P, “we now have a safe and functional railway.” Many other sectors and projects also benefitted from the intervention.

As at June 2014 when he was given a scorecard for the first two years, Agwai, who took over from Kolade said “if you go to the area of maternal health, we have also been able to upgrade 500 health centres and we are currently working on another set of 700 health centres. We have sunk over 620 boreholes across the country to expand the people’s access to potable water and we are also providing medications and `Mama Kits’ for expectant mothers. In a nutshell, we have been able to reduce maternal deaths by almost 60 per cent. Now, we have over half a million women giving birth under the care of trained midwives, which was not the case in the past.”

The programme invested over N6.3 billion on polio eradication and another N450 million on the construction of a stroke centre in Abuja this year and also projected to spend about N13 billion on infrastructural projects in the satellite towns of the Federal Capital Territory (FCT) in 2014 on road, electricity and water supply projects. It would also to over N10 billion being invested on the construction of the second Niger Bridge.

Besides, Agwai said that no fewer than 3,000 graduates across the country had been engaged by SURE-P under its Graduate Internship Scheme. The graduates were recruited from more than 150,000 graduates who applied for placements under the scheme from 2013 to date. The graduates were undergoing internship in different public and private organisations where they were posted to acquire on-the-job experience.

According to him, the scheme is to help Nigerian graduates to acquire skills that would make them more suitable for full employment in any sector of the economy. Each intern received a stipend of N30,000 per month meant to encourage the graduates to be committed to the training.

SURE-P had inaugurated a specific scheme on technical and vocational training, adding that 5,075 persons were undergoing training under the scheme across the country. Eight government institutions, which were renovated by SURE-P in some parts of the country, were currently being used for the scheme.

In the area of public transportation, the SURE-P had also distributed about 874 buses to about 22 transport companies in Abuja under a revolving loan arrangement, its chairman said.

Modus Operandi

According to the rule book, nothing can go wrong with operations of SURE-P as it has been insulated from the scourge of corruption based on the checks and balances embedded in its processes and procedures.

Project Implementation

The responsibility for the day-to-day management of projects located within the respective Ministries, Departments and Agencies (MDAs) rest with the PIUs’, consultants and active supervision of the SURE-P Committee. The PIU staff are from the host Ministries, but may include consultants and other capable hands brought in from the private sector.

Project Monitoring and Evaluation

The Subcommittees, supported by a team of experts from the secretariat, among other functions, are charged with the responsibility of monitoring and evaluation of SURE-P projects. The Subcommittees also make recommendations to the main Committee for approval. The teams also conduct visits to project sites and examine the extent of work done.

Procedures

Programme Management

All programmes of SURE-P are managed through the programme management information system (PMIS) with clear protocols to facilitate tracking of all projects and programmes.

Process

FUNDS MANAGEMENT

After the Committee has approved payments for projects, the Chairman signs the approval, the DG Budget Office, as Accounting Officer to SURE-P, processes the approvals. He then authorizes the Central Bank of Nigeria (CBN) to make payments directly to the bank accounts of beneficiaries. The Director-General, Budget Office of the Federation (DG Budget Office) is designated Accounting officer for all SURE-P activities as a means of providing the check-and-balance arrangement that guarantees the probity of the SURE-P process. It also insulates the officials of SURE-P and the PIUs from direct contact with contractors on financial matters.

PROGRAMME STRUCTURE

In the SURE-P operational structure, individual projects are managed by Project Implementation Units (PIUs) that are located within Ministries, Departments and Agencies (MDAs). To perform its oversight responsibility, the Committee has divided itself into sub-committees, each made up of 3 to 4 members. The subcommittees act on behalf of the main committee to provide direct supervision to the projects. Sub-committees carry out site inspection, and are required to sign certificates that assure the main committee that the work that is claimed is fully verified.

The Committee also has a Secretariat for technical and administrative support, and for providing information to stakeholders and the general public.

Doubts Linger

Despite these laudable intentions and achievements however, there are Nigerians close to the workings of Sure-P who believe that much more could have been achieved with the over N450 billion share of the Federal Government with better prudence, openness and monitoring. For the purpose of this write-up, Sure-P for the Primary Health Care Development Agency (NPHCDA) and Ministry of Finance will serve as examples.

At the commencement of Sure-P, a National Consultant was appointed for NPHCDA Sure-P. Supervisory Consultants were also appointed. The very process of engaging these consultants was shrouded in secrecy.  It was completely an arbitrary process that was followed.

Supervisory consultants were then asked to proceed to their states of jurisdiction to access primary health care facilities to determine required renovations. These ones submitted their evaluations based on needs assessment. It was after the submissions that NPHCDA determined that not more than N10 million would be spent on each project. Together with the National Consultant, NPHCDA arbitrarily cut the figures submitted by the project consultants without sitting with them to determine how best this should be done and without visiting the sites. For instance, a project to cost N18 million was cut down to N10 million when another project which a consultant projected for N6 million was jerked up to N8 million.

Award letters were then issued to contractors neither bided for particular projects nor had previously visited the site. After the contracts were awarded, Sure-P then invited the project consultants to inform them that the maximum to be spent on any project was N10 million and that their submissions had been altered. They were asked to return to the project sites and reassess the projects to conform with what have been awarded to contractors. According to a particular consultant who worked in one of the North Central States, “my most difficult task was how to increase the scope of work that I already generously evaluated for N8 million to N10 million. I had no option than to begin to add irrelevances just to meet up with expectation”. Another consultant who worked in Kano State explained that after a contractor saw the scope of work to be carried out on an health care centre, the contractor declared “these people are joking. I am not prepared to spend more than N1.5 million on this job.” That was despite the fact that the contract was awarded for N8 million. “When I asked him why”, the consultant continued “he told me that he bought the contract paper for N3 million cash. Now, I am going to pay interest on the N3 million which I borrowed, I will give you the consultant something and I am also expected to make gain from this job!”

Because of this, many of the projects were shoddily handled more especially because most of the contractors were said to be mere businessmen and not professionals who were given the job on the basis of political affiliation and closeness to directors in the agency.

Some Economic Confidential sources insisted that Directors in many of the agencies involved in Sure-P are now multi millionaires courtesy of Sure-P contracts, which they award to themselves or cronies and later sell to desperate contractors.

Around April 2014, advertisements were placed in the media inviting bids for contracts and consultancy to be accompanied with N10,000 non-refundable bid price. For many months, nothing was heard of it. By the end of the year however, all the bidders were advised to come and pick up their letters and N10,000 bank draft. Despite this development, contracts were awarded and consultants were appointed. How were they then picked?

A consultant simply told Economic Confidential “the system lacks credibility. The process of recruiting contractors and even consultants is faulty. What they do is selective awards and who are you to complain when the economy is as it is and you are likely to be blacklisted if you fail to comply?”

At the Ministry of Finance however, it is more difficult to get fine details of how things are done because of the close relationship between the Project Consultant who is a World Bank staff and Coordinating Minister of the Economy and Minister of Finance. The Sure-P components handled by the Ministry of Finance include YouWin and Project Act Nollywood.

Project Act Nollywood is in three phases: Capacity Building Fund for individuals and institution; Film Production Fund and the; Film Distribution Fund. In the Capacity Building Fund, Nollywood practitioners were given scholarship to study either locally or internationally. The institutional aspect involves Sure-P awarding grants to institutions to improve their training capacities. From the Film Production Fund of N1.5 billion, various amount of money is given as grants to individuals to produce films. The fund is presently exhausted. The Film Distribution Fund was yet to be disbursed as at the time of filing this report.

Laudable as these efforts are, some staff of the ministry think that some improvements needed to be made.

For instance in the ad-hoc department handling Sure-P in the ministry most of the staff are on contract earning fantastic salaries. “The least paid among the young chaps working there earns N650,000 per month and that is why they do not respect anybody.” And then Sure-P assessors earn N1 million per month.

“Why would government pay salaries much higher than that of a director to graduates of five years? To me, it is also a waste of resources to dish out money to Nollywood practitioners to run their private businesses and not pay back. Since it is free money, many of them will divert the funds to other personal uses aside the objective.” A Human Resources Consultant Ike Alumona also frowned at the practice and said it could explain why Nollywood practitioners were not making serious efforts to access the Nollywood Fund at the Nigerian Export Import Bank since they are aware that free funds are available at the Ministry of Finance.

According to star comedian Alibaba, “here are no more proceeds from crime that will be given to the entertainment industry as free funds. Anyone who gives money to the industry now will expect return on investment (ROI). This is why it’s hard for banks to give loans for movie productions. Because the bank will ask how you plan to pay it back. They know the Pirates are out there. They know there is no legislation protecting your work. So, you have to do more to convince them to fund you.

“Let’s just hope that Mr President is not advised again, to share the money again, instead of setting up a lasting structure that will protect intellectual property and help regenerate our entertainment industry, to a point where it can contribute 20% to the GDP. And it can!”