Anti-graft war: Grant two-year moratorium to looters- Olisa Agbakoba
Olisa Agbakoba (SAN) is a former President of the Nigerian Bar Association (NBA). He speaks about the 2019 general elections, development of law as a tool for economic development and sundry other issues: Excerpts:
What anti-corruption strategy and framework should Nigeria develop?
Controlling endemic corruption in Nigeria will not be easy without an effective strategy. This is easy to develop. Many human rights groups have strategies but nobody has asked them. In addition to the strategy of prosecution, it is suggested to consider a two-year moratorium from criminal prosecution.
So, legislation may be considered on immunity from criminal prosecution (Moratorium) Act. The Abacha case is now going 20-years with little result. So, trying a new strategy might help. This has been very successful elsewhere.
Strong independent institutions tied to political devolution is the notion of strengthening institutions. The Nigerian government is weak because it is made up of weak institutions. All that is needed is to adopt Chapter 9 of the South African Constitution, so independent institutions like INEC, police, EFCC, Judiciary, Accountant General etc. are assured to work free of interference. This will limit impunity and improve independent action. Democracy grows under strong institutions.
The 4th branch of government was developed in the 1930’s and that is why the US came out of the recession rapidly. The 4th branch are regulators who implement decisions of the Executive branch, that is the first branch. They are called the 4th branch because they exercise executive, legislative and quasijudicial powers. A strong 4th branch will give government bite. A new legal framework can create the 4th branch.
What new legal framework is needed for the financial service sector?
The financial services sector is the oxygen and life blood of a strong economy and must be supported by good fiscal and monetary policy and strong institutions. Success of the US Economy under FDR and Obama was strong fiscal policy and regulations. The CBN is too weak and does far too many things – monetary policy, banking supervision and banking. New policy and legislation should unbundle the CBN and create a new agency to regulate banks - in England Prudential Regulatory Authority. In the US the Glass – Steagall Act and Frank Dodd Act focused banks on proper role to lend to consumers at low interest rates.
Government should develop fiscal policy to compel lending, particularly of public funds at low rates, e.g. TSA. Very strong action is needed here to cool inflation, lower interests, stabilise exchange rates – this is referred to as Quantitative Easing. So strong policy and strong legislation will entirely shift the economic performance of Nigeria. The national trade legal framework for growth is crucial. The present trade legislation lacks a concept. New laws will use trade tariffs, duties to control and regulate and stimulate local industry and grow export. There’s need to create a strong National Office of Trade Policy. This office has to be at ministerial level.
Trade laws have import substitution as the main goal. This means reduce imports and create local industries. Example, Erisco makes tomato paste in Nigeria and has unsold stock of 6 billion naira. Erisco can’t sell because China is under selling him. There is no trade law to protect Erisco. So, jobs are lost, not created. At least 10 million jobs are affected by weak trade laws. So, we need to review trade laws and infuse it with local content and grow our industries. Many legislations will be needed. Fly Nigeria Act, will grow Nigeria Airlines. Cabotage Act will grow shipping lines, oil and gas, legal, banking, insurance, shipping etc. sectors benefit from a good trade policy. If trade legislations are favourable, trillions of naira will flow with job creation in the millions.
And do you agree that justice sector has failed?
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This sector is dead and legal failure has had massive impact on economic development. The legal and justice sector has suffered institutional failure over the last three decades. Comprehensive and radical reform of the legal and justice sectors is overdue. The Rule of Law is vital to economic development. But lip service is paid to this vital process. Investors, whether local or international will not invest in a lawless country. We must give urgency to this sector and reverse legal failure. A speed of justice strategy will reduce delays.
Also, new methods of dispute resolution will be considered such as Alternative Dispute Resolution, small claims courts, traditional and customary arbitration. A major centre for investment disputes resolution will help. Finally, quasi-judicial administrative tribunals will be established by sector, following the UK example.
How can we use law for social engineering?
Development law is that branch of law applied to theories of economic development. The broad theory that law is a catalyst of development was pioneered by the leading scholar in this field of enquiry, the late Professor Mansur. He said that classic theories of economic development are no longer enough in framing development agenda. Law is a major tool.
In England, there exists many administrative courts to cover telecommunications, taxation, transportation, insurance, education, financial services, trade, investments, etc. The impact on Nigeria will be enormous as consideration may be given to devolving judicial power from federal to state level.
People say there is no vacancy at the Aso Rock Villa, do you share this opinion?
CUPP feels that if the elections are free, fair and credible there will be a land slide defeat. The battle grounds are the South West and the North West. If the votes count, CUPP joint ticket will win.
I requested and made a plea to President Muhammadu Buhari on Thursday to please sign the new 2018 Electoral Act amendment into law. The last Electoral Act is fraught with many difficulties - card readers and electronic voting, but the new 2018 Electoral Act amendment is free from many of these problems.