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“Fashola and Amaechi: Mistakes Committed by Two Prominent Ministers”

  • Post category:Politics

“As Nigerians anticipate a strong performance from the newly inaugurated members of Bola Ahmed Tinubu’s cabinet, private sector operators have advised the ministers to learn from their predecessors to avoid the pitfalls that hindered their effectiveness.

During a recent meeting attended by well-informed operators from various sectors of the Nigerian economy, they outlined reasons why some governors who excelled in their states struggled as ministers in Abuja.

In an exclusive interview with BusinessDay, a former Attorney-General of a state, who possesses a deep understanding of government ministries and setups, stressed the importance of humility among the new ministers, particularly former governors, advising them to seek help from experienced advisers and consult the Ministry of Finance on funding their projects.

Specifically addressing the performance of Babatunde Fashola and Rotimi Amaechi, both former two-term governors of Lagos and Rivers State, the former commissioner for Justice explained that their inability to approach the Capital Market, their reluctance to embrace concessions, and their tendency to rely on loans for budget execution were key factors in their less-than-stellar performance.

He highlighted the opportunities within key sectors like power, works, and transportation, where these ministers could have made significant changes but fell short due to their inability to review and revive moribund policies. For example, in the power sector, the Electricity Power Sector Reform Act remained unchanged since 2001, leading to execution challenges during Fashola’s tenure as the Minister of Power, Works, and Housing. Similarly, in the Ministry of Works, Fashola’s reluctance to embrace concessions and his past experiences in Lagos negatively impacted his performance.

Overall, the advice to the new ministers is to learn from the mistakes of their predecessors, be open to guidance, and focus on effective policy review and implementation to achieve better results.”

“Fashola took his negative experiences in Lagos to Abuja and reacted unfavorably to the idea of funding roads through concessioning, despite his experience with public financing through bonds in Lagos. His tenure as Minister of Power, Works, and Housing saw few projects funded consistently, leading to incomplete projects over eight years.

Similarly, the assessment of Amaechi’s eight years as Transport Minister was less favorable. His tenure saw little progress in the transportation sector. While the Nigerian Ports Authority (NPA) continued to fund itself, the Nigerian Railway Corporation (NRC) deteriorated. The opportunity to turn around NRC through a concession with the GE Consortium was essentially sabotaged.

The lawyer criticized Amaechi’s handling of loans from the Chinese, questioning the value of the projects completed with the borrowed funds, such as the 194KM standard gauge rail between Lagos and Ibadan.

Both former governors, in the opinion of the private sector operator, did not perform creditably in their ministerial roles, lacking an understanding of how to leverage capital markets, finance, and procurement processes effectively.

Regarding the recent announcement by the Minister of Works, David Umahi, that the Federal Government had allocated N431 billion for contractors, the private sector operator suggested that instead of paying this entire amount upfront, the Ministry should explore leveraging tax credits to raise additional funds, with support from the Federal Ministry of Finance, CBN, and the DMO.”

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