President Muhammadu Buhari is set to seek emergency powers from the National Assembly to push his planned stimulus for the economy. The decision will be based based on a proposal from an economic team headed by Vice President Yemi Osinbajo, is aimed at pushing much needed stimulus into the Nigerian economy. After reviewing the effects of various policies introduced thus far, the economic team decided that unless emergency action is taken in the state, “the recession may be longer than expected and Nigerians will not get the desired respite.”

There is a certain eeriness surrounding the thought of an ex-military ruler seeking emergency powers in a democratic regime. Just over a year into his four-year tenure, the president has already flouted several court orders at his discretion, overseen genocide and, true to his military roots, failed to denounce the man-handling and killing of peaceful protesters in the Southeast of Nigeria. As a result, people are thus understandably wary that the president may be leveraging the crisis to consolidate power and reverse the democratic advancement of the nation. The last elections were generally deemed free and fair and historically, it marked the first time that an incumbent president was defeated in the polls.

While the emotive term ‘emergency powers’ may ring alarm bells, the presidency maintains that the move is strictly with the aim of creating more jobs, boosting of foreign reserves, reviving the manufacturing sector and improving power supply.

An executive bill titled: “Emergency Economic Stabilisation Bill 2016” is to be presented to the National Assembly when the Senate and the House of Representatives resume from vacation on the 12th of September. In the bill, the executive will be asking for the President to be given sweeping powers to set aside some extant laws and use executive orders to roll out an economic recovery package within the next one year.

As reported by The Nation, the president will be seeking powers to do the following:

• Abridge the procurement process to support stimulus spending on critical sectors of the economy;
• Make orders to favour local contractors/suppliers in contract awards;
• Abridge the process of sale or lease of government assets to generate revenue;
• Allow virement of budgetary allocation to projects that are urgent, without going back to the National Assembly.
• Amend certain laws, such as the Universal Basic Education Commission (UBEC) Act, so that states that cannot access their cash trapped in the accounts of the commission because they cannot meet the counterpart funding, can do so; and
• To embark on radical reforms in visa issuance at Nigeria’s consular offices and on arrival in the country and to compel some agencies of government like the Corporate Affairs Commission (CAC), the National Agency for Foods Administration and Control (NAFDAC) and others to improve on their turn around operation time for the benefit of business.

In effect, the president is seeking to bypass red tape and due process in order to inject urgent stimuli into the economy. For example, the procurement law which does not allow contract awards earlier than six months after decision, can be bypassed with ’emergency powers’ in order to fast track projects. The government is seeking to amend laws so that education spending earmarked for states is quickly disbursed. About N58 billion is trapped in the UBEC (Universal Basic Education Commission) coffers because states cannot access it as a result of the key condition, which is the payment of 50 percent counterpart funding. Also, the government is seeking an amendment to the law so that states will pay only 10 percent as counterpart funding. Additionally, the government wants power to mobilise contractors faster and hasten visa procedures to grant foreign investors easier access into the country.

Susceptible to capture

There is no doubt that the economy needs to quicken stimulus packages, but the actions of the president thus far raise doubts about his ability to use these powers -that are susceptible to abuse- responsibly. Earlier this year, the government’s exchange rate peg of N197 to the dollar, meant to cushion the effect of sharp drop in oil prices, only prolonged the inevitable and in the process created round-tripping and arbitrage opportunities, selectively benefiting an elite few. Similar to the aforementioned policy, ‘emergency powers’ can be susceptible to capture. Awarding contracts immediately after the decision gives potential bidders little time to contest for the contract and those close to the presidency are likely to have an unfair advantage over others. So effectively, the president will not only have the authority to expedite the process, but have greater influence over who is awarded government contracts. President Buhari, who ran on an anti-corruption platform, has been strongly accused of nepotism in recent times and Nigerians may not be ecstatic about widening his discretionary powers. Stipulations that allow for the amendment of certain laws and discretion in transferring items from one financial account to another, can be potent in driving economic expediency but just as damaging if used to advance personal agendas that are contradictory to that of the nation.

Possible alternative

Rather than grant the presidency future discretionary powers, the government could, instead, make a list of all concession it plans to initiate in order to accelerate recovery and have this ratified by the House as a stand alone effort. Furthermore, it could expand emergency powers beyond the seat of the president, such that the president would have the right to call a decision from the congress that had to be made within a short period of time, perhaps a week. As such, the presidency will be given the powers to expedite processes and cut through red tape, but the decision still ultimately rests with the people (in proxy).

The economy is in need of urgent action to buck the worrying trend. But, while this policy creates an avenue for that to happen, it will leave Nigerians at the mercy of a ‘benevolent dictator’ in more ways than one.

For more insight, listen to the podcast below: