From Galaxy Backbone Plc - “… you’re “facts”…wrong…” – Gerald C. Ilukwe, MD/CEO.

By

Abubakar Atiku Nuhu-Koko

Thursday, 18 October 2007

aanuhukoko@yahoo.com

I received an email response to my write-up on the controversial Galaxy Backbone Plc (GalaxyBB Plc) from Gerald C. Ilukwe, Managing Director/Chief Executive Officer (MD/CEO) of the controversial company today (Tuesday, 16 October 2007: 6:57:32 AM). The write-up referred to was titled: “Galaxy Backbone Plc – Nigeria’s paradox of privatization policy?” It was published by some highly regarded and esteemed internet Web Sites such as: www.saharareporters,com; www.nigerianmuse.com; www.nigeriavillagesquare.com and www.kebbistate.com.

From the onset, I wish to inform Gerald C. Iluke, MD/CEO, the Board and Management of the GalaxyBB Plc respectively, that, as a concerned and patriotic Nigerian citizen, my only interest in the affairs of GalaxyBB Plc is to make a positive contribution in the development of robust and sustainable Telecoms and Information Communication Technologies (ICT) sector and capacities in Nigeria. Hence my spending time to do some public policy analyses of the existing state of affairs of Nigeria’s Telecoms and ICT policies, growth and development of the sector. Therefore, with due respect to the views of Gerald as expressed in the response to the fundamental public policy issues I raised and the very serious transparency concerns regarding the affairs of the company expressed in my write-up, I wish to once again, make the following points regarding the affairs of the company and the trivial matters raised in Gerald’s email response to my write-up.

I would first reiterate my position on the issues under discussion before taking up the fresh challenges raised by Gerald in his email response to what I raised earlier regarding the affairs of the GalaxyBB Plc, which he heads. There are no doubts that I am very passionate about the importance of ICT and the strategic importance ICT occupy in the development of our retarded national spatial economy in general and attaining the Millennium Development Goals (MDGs) in particular. For the records, I wish to state that I was a party to the introduction of the internet technology to the management of NITEL Ltd way back in the early 1990s when Mr. Matankari was the Sole Administrator of NITEL Ltd. Furthermore, in 1999, I discussed and presented a memo to the then Hon. Minister of Communications, Alhaji Arzika Tambuwal on the need for the federal ministry of communications to formulate an ICT policy and establish a national information superhighway backbone for Nigeria.

My current serious concerns regarding the development of ICT in Nigeria hinge on the wrong approach of implementing Nigeria’s ICT policy; full-cycle business as usual style and pregnant with inconsistencies, lacking in honesty and transparency, etc. For example, as I mentioned earlier in my previous write-ups on this matter and below in this reply to Gerald, there are existing new laws and public policies in Nigeria, which specifically discourage government from establishing commercial companies and engaging and running commercial businesses. We have the Act establishing the Bureau for Public Enterprises (BPE) and the National Economic Empowerment and Development Strategy (NEEDS), for example. These extant laws and policies do not have places for the existence of GalaxyBB Plc and NIGCOMSAT Ltd as presently constituted and owned by the federal government as parastatals under the federal ministry of science and technology. My position is that these two companies should not have been incorporated in the first place and now that they have been established by the government, they should be merged and privatised outright because as presently constituted, their existence is inconsistence with the approved existing Telecoms and ICT policies and the National Economic Policy (i.e. NEEDS). They are also inconsistent with the provisions of the BPE Act, among others.

Furthermore, these companies were fraudulently established and incorporated as the Obasanjo’s administration did not follow the due process and rule of law in the process of creating them. For example, the monies used to establish them were not appropriated by the National Assembly and no Executive Bills were presented to the National Assembly for their establishment.

Last but by no means the least, there is still the unexplained newly consummated what I would term “marriage of convenience” between the Jigawa State Government’s owned pioneer Galaxy internet backbone (i.e. Galaxy Information Technology and Telecommunications Limited – GalaxyITT Ltd/ www.galaxyitt.com) and the federal government-owned GalaxyBB Plc incorporated in 2006; using funds diverted from the accounts of the Petroleum Technology Development Fund (PTDF). These very companies now occupy the same corporate head office at Adetokumbo Ademola Crescent, Wuse, Abuja, FCT. In addition, their management teams seem to have been integrated and merged into one. All these issues are further discussed and elaborated below.

I now return to the challenges raised by Gerald in his email to me. Starting with the trivial matters first, I confess, I am not at war with Nigeria’s former president Chief Olusegun Obasanjo, GCFR. I don’t know what made Gerald to believe so. All I can say with regards to that unfounded and malicious allegation against my humble self is that, rather than me waging war against the elder statesman, it is the highly disappointed millions of Chief Obasanjo’s admirers within and outside the borders of Nigeria, that are highly disappointed with him over his very disappointing performance in governing the country (1999-2007).

On my part, I wish to inform Gerald that former president Obasanjo escaped being impeached by the House of Representatives in 2002 under the indefatigable leadership of Rt. Hon. House Speaker Alhaji Ghali Na Abba to the glory of God Almighty and my personal intervention. This was how it all happened: All the high level behind the scenes arrangements of establishing the “Gowon-Shehu Shagari Mediation  and Reconciliation Committee” that mediated the highly volatile and contentious impeachment saga were initiated and managed by my humble self. The intervention activities were effectively coordinated under the auspices of the Shehu Shagari World Institute for Leadership and Good Governance (SSWI), Sokoto, a non-governmental organisation (NGO), which I direct. The rest is now history.

Almost all those who participated in the mediation and reconciliation process are still alive today.  Some of them like Ambassador Aminu Wali, Mallam Adamu Ciroma, Mr. Steve Oransanye, Prof Jerry Gana, Arzika Tambuwal and even former president Shehu Shagari himself, who were very closely involved in the process can attest to this disclosure. I am making this public disclosure at this point now, though against my personal wish and desire. Therefore, it is out of place to accuse me of waging “war” against former president Obasanjo. In the Nigerian context, I am too small (i.e. not a heavy “political juggernaut”) to undertake such a gigantic “mother of all battles!” Nevertheless, former president Obasanjo needs no intermediary to tell him who’s who in the war against his ill-fated presidency. He knows better. Up till today, millions of Nigerians are angry and not happy that Obasanjo was not impeached then in 2002! Still, many Nigerians continue to heap blames, albeit, unfortunately, on the shoulders of former president Shehu Shagari, GCFR, the elder statesman, who led the successful mediation and reconciliation efforts. This should not have been the case, had it been Nigerians know much more about the fundamentals of the whole impeachment saga! 

Of course, I am very disappointed, but not surprised at the same time, with Chief Obasanjo’s lack of sincere statesmanship in the aftermath of the impeachment saga for many reasons that cannot be discussed here. Also, I am among the millions of his admirers whom, he equally disappointed by his many failed political and economic policies, especially during his second term of the presidency. These matters not withstanding, Gerald has no justification whatsoever, of concocting the allegation that I am continuing to wage war against former president Obasanjo. The only reason why Gerald sees Obasanjo’s enemy in any attempt by any person to make a fair criticism of president Obasanjo’s failed political and economic policies, programmes and or projects is because he, Gerald himself, is a direct benefactor of such failed and more often than not, scandalous policies, programmes and or projects. Of course, GalaxyBB Plc is a typical example of such controversial and scandalous Obasanjo’s bequeathed legacies. Therefore I am not all that surprise with Gerald’s unalloyed total submission to the failed presidency of Chief Obasanjo. Gerald, and indeed, Nigerians should remember that Obasanjo’s leadership is not the first failed leadership we witnessed in Nigeria and probably, may not be the last. However, what makes his own unique is that he had been there before; three times! 

Regarding the issue of playing politics also raised in Gerald’s email to me, I wish to simply state that, there is nothing that is done by any act of a human being on this planet Earth, that is not an outcome of politics and political process. As a matter of fact, politics is the driver of everything in the world and invariably, in our daily lives; survival and death. For example, the mere establishment of the GalaxyBB Plc came as a result of politics and it was done through the Nigerian political process. Furthermore, the appointments of the MD/CEO of GalaxyBB Plc and its Board, respectively, were all political and went through the Nigerian political process. Moreover, there is nothing in the write-up in question, which indicts me of partisanship in my approach to the issues raised therein to warrant even calling me a partisan politician and or analysts as the case may be. Therefore, resorting to cheap blackmail only compounds unresolved problems and critical issues needing answers from our elected public office holders and hired bureaucrats and technocrats. Nonetheless, let the truth be told to both the government and the public at large.

Now, I return to the fundamental public policy issues regarding Nigeria’s insatiable quest for launching itself into the ICT world and the making of the GalaxyBB Plc respectively. There are no doubts that Nigeria’s ICT policies are in a mess at the moment; there is serious work to be done by President Yar Adua in order to clean it up and put it at par with our regional and global competitors. For example, how can anyone justify the existence of two independent federal government-owned ICT companies (i.e. GalaxyBB Plc and NigComSat Ltd); all incorporated to develop and market ICT products and services to the Nigerian consumers in direct competition with each other and other striving private ICT companies. Paradoxically however, the existing National Telecoms and ICT policies and the existing National Economic Policy Blue Print (i.e. National Economic Empowerment and Development Strategy - NEEDS) and the Bureau for Public Enterprises (BPE) Act, etc. – all made provisions for private sector-led development of the sector in particular and the national economy in general..

Furthermore, it was in furtherance of these statutory provisions contained in these economic policy and management documents cited above, which made the Nigerian government to privatise the Nigerian Telecommunication Limited (NITEL) and its subsidiary mobile phone company, M-Tel Ltd in 2006. I believe this is where the “many inaccuracies” can be found and not in the “facts” I disclosed and fair comments I made in my write-up in question. Therefore, the incorporation of GalaxyBB Plc and the yet to be explained relationship between GalaxyBB Plc and the Jigawa State government-owned Galaxy Information Technology and Telecommunication Limited (GalaxyITT Ltd/www.galaxyitt.com) needs urgent explanation from the bosses at the Adetokumbo Ademola Crescent office of the company to the Nigerian public. However, the bitter truth is that, President Yar Adua is being misled and hoodwinked by a clique of cabals feasting on the share “ignorance” of many people in government’s public policy circle regarding the rot left behind by Obasanjo’s administration in the ICT sector in particular and the national spatial economy in general.

Again, I reiterate my position that the incorporations of both GalaxyBB Plc and Nigcomsat Ltd as government-owned companies in the midst of the ongoing whole scale government privatization programme are misplaced noble initiatives, which are more often than not,  marred by corruption, deceit and what have you - the Nigerian factor. For example, why did former president Obasanjo allowed himself to be deceived and hoodwinked by the “fly-by night” so-called ICT gurus to divert substantial amount of money from the Petroleum Technology Development Fund (PTDF) to jump-start the GalaxyBB Plc without the necessary appropriation by the National Assembly? Again, I ask, how much was paid to the Jigawa State Government by GalaxyBB Plc for the takeover of its multi billion naira ICT investments through GalaxyITT Ltd? These pertinent questions need urgent answers from Gerald and his group. I am not the one playing politics here. Nigerians have the right to have convincing answers to the issues raised; with or without passing the Freedom (Right) of information (FOI) bill by the National Assembly and its accent by Mr. President!   

Again, if the federal government is in dire need and interested in integrating and bringing under one single roof, all its existing government consumed ICT services in the ministries, departments and agencies, it doesn't have to incorporate commercially oriented companies to do that. For example, the United States (US) White House, the US Congress and all the US Federal Departments, Agencies and the 50 States governments and their respective agencies are hooked to the internet without recourse to establishing commercial oriented companies for such purposes. The same can be found in all the other countries of the world with the exception of Nigeria, which has a unique character.

The correct thing to do regarding harmonizing and integrating government consumed ICT services is to create a government department (not commercial/business entity) to handle it. That is how it is done in other civilized societies. For instance, the Nigerian Information Technology Development Agency (NITDA), which is a federal government-owned agency established for nurturing ICT development in Nigeria (see for example: www.nitda.gov.ng)  or a special unit of the federal ministry of information and communication are the right government agencies to undertake such activities on behalf of the federal government and not a nebulous government-owned commercial companies. I ask the following additional questions: how will GalaxyBB Plc power its proposed 5000 VSAT equipments to be erected in all the 774 local government councils of the country? Will it be the Power Holding Company of Nigeria (PHCN) that will provide electricity to these installations or is it the Nigerian National Petroleum Corporation (NNPC) that will provide imported diesel to power the Standby generators that will be imported by GalaxyBB Plc as part of the imported VSAT installation packages for each of the 774 local government council?

Just imagine, Celtel, one out of the about five or so private GSM companies operating in Nigeria reported recently that it deploys about 6,000 units of electricity generating set in its various Cell Base stations nationwide, each costing N2.5m (the company estimates that it will spend about N4bn by 2008 on generator purchase alone!) The company also consumes over 12 million litres of imported diesel monthly for use by the generating sets. It deploys over 5,000 Security Guards to provide security to these installations. Inevitably, according to Celtel’s Chief Executive Officer (CEO), Mr. Bayo Ligali, his company, instead of running a single GSM network, which is its main business, they maintain three other networks in addition: security network, power network and transmission network in order to remain in business![1] I am wondering how GalaxyBB Plc will cope with this type of challenges, being a government-owned business entity – where will it be getting such huge amount of subvention to stay in business?

If honestly we believe in private sector-led economic growth and development, then we should stick to that principle. For instance, Obasanjo’ administration sold NITEL Ltd and M-Tel Ltd and other government-owned business entities (including houses, vehicles etc) for that reason. Why then are we turning the hands of the clock backwards and begin freshly creating new business entities? Under our existing “Washington Consensus” driven national economic policy doctrine, it is the job of the private sector/investors to build our ICT national backbone and telecoms as they are already doing now (but facing some difficulties of poor quality of service delivery). After all, it was not the federal government that linked up all the 774 local government councils (LGCs) and the 36 States of the Federation and the Federal Capital Territory (FCT) with GSM network. The private GSM companies such as MTN, Celtel, Globacom, etc did that and are still building additional facilities nationwide. Why then, now all of a sudden, should it be the mandate of GalaxyBB Plc to hook-up the nation’s 774 LGCs, 36 States and FCT to the internet? By the way, how many functional offices does the federal government have in the 774 local government councils that require internet connectivity? Moreover, majority of these places do not have electricity and all weather roads, etc?

Therefore, it would be a great betrayal and callousness if the government is going to turn around and crowd out the private ICT and telecoms investors and companies operating in Nigeria now. These private investors and companies have already sunk a lot of money in long term investments in the sector. Government should encourage them rather than allow rent-seekers in government to kill the entrepreneurial capital and capacities that the nation is in dire need. Government may only justify its crowding out of private investments by direct financing, ownership and management of “public capital”, the infrastructure and other public goods and services that are required to make the economy work efficiently, but which because of their public-good attributes are not sufficiently and efficiently supplied, by the private market or investors. Fortunately however, this is not the case here; the market exists and private investors are already in competition out there, in the telecoms and ICT markets of Nigeria.

Therefore, the sponsored noises the bosses of the GalaxyBB Plc are making on pages newspapers are deceitful; designed for the gullible Nigerians, including the un-informed and ill-informed top government officials that are daily been hoodwinked by the so-called Nigerian “Wiz kids” in government service! It is a pity that Nigeria is dragged behind by these narrow minded cabals in the corridors of power at all times.

Last but by no means the least, I wish to remind Gerald that it was the politics of public finance and development that made it possible for the huge amount of US citizens public money (i.e. Tax payers) put into the research and development (R&D) that crystallized into the internet and ICT technologies, products and services. Also, appropriation by the National Assembly is required to fund the activities of the equity holdings of the federal government in GalaxyBB Plc and Nigcomsat Ltd. Here again, politics has a role to play.

I conclude this piece by quoting one of the intellectuals I admire, Edwin Madunagu:

“If we adopt the political economy approach, we see the shares of social classes and groups in what is produced and why this could be so. We see the correlation between the interests of the social classes and groups in power, the political policies they put out and the economic processes they initiate and direct. We see the dialectical relationships between the abject poverty of the masses and the obscene affluence of a few. We see why high profile corruption, state robberies and scandalous appropriations could assume such proportions in Nigeria. We see why the marginalised and dispossessed appear simultaneously helpless and desperate.”[2]

Therefore, Gerald and his team at the GalaxyBB Plc should understand that politic is intrinsically intertwined in everything that exists and affects our daily lives; ignore it at your own peril.