When Nika Gilauri, the premier of Georgia, tells you that the prosperity of his country has been achieved because it has become one of the “least corrupt” countries in the world, painfully, at the same period OBJ, GEJ and PDP were busy retrogressing Nigeria, with corruption.
But it wasn’t always like that. After the demise of the USSR, Georgia was not only one of the most corrupt of the former-Soviet Republics, it was one of the most corrupt countries in the world. Bribe-to-drive was the norm; police stopped cars at least twice an hour to extort a non-trivial sum of money, this was more than the normal twenty naira, Nigerian police collect in Nigeria. The then interior minister infamously quipped: “Give me petrol only. My people will take care of their own salaries.”
Being a traffic cop was so lucrative that you had to pay a bribe of between $2,000 and $20,000 to get the job in the first place. Graft was endemic. Georgians passed more envelopes to bent officials than the post office does letters. Meanwhile the economy crumbled and the state was left bankrupt and powerless.
The election of Mikhail Saakashvili changed everything. A bold reformer, he was swept to power in the “Rose Revolution” at the end of 2003 by the overwhelming desire for radical change. His closely-knit team is unified by a common vision and supported by a compliant parliament and judiciary.
The new government wasn’t just radical - it shocked and awed. Ministers, oligarchs and officials were sacked or arrested. Those who resisted were dealt with decisively, sometimes brutally. The state confiscated $1bn worth of property. Custom officials bore collective responsibility; an entire shift would be punished if one officer was caught accepting bribes. Corrupt professors were kicked out with a lifetime ban from academia.
But the piece de la resistance was Saakashvili’s order to sack the entire 16,000-strong police force on a single day, to replace them with some of the best and brightest university graduates. Today, Georgia ranks alongside Finland as having the least corrupt police force in the world and their standout uniforms are rumoured to have been designed by Armani.
The campaign expanded irresistibly. Tax offices were equipped with CCTV; university exam papers were printed in the UK and held in bank vaults until needed; and officials were constantly tested in sting operations. The proactive assault on graft was accompanied by a PR campaign to undermine respect for criminal groups and introduce respect for the law.
The campaign then turned to the sectors. First up was the power sector that was widely used as a cash cow for well-connected oligarchs. In less than a year, Georgia went from net importer to exporter of electricity and the sector became the target of long-term foreign investment.
Tax collection followed. Georgia’s tax base consisted of just 80,000 companies in 2003 and tax collection was a mere 12% of GDP. Saakashvili slashed red tape and introduced flat personal and corporate taxes. Eight years later over 250,000 companies are on the register, and pay the equivalent of 25% of GDP. Georgia now boasts one of the most liberal tax regimes in the world, on par with the Gulf states and Hong Kong.
Lastly came deregulation, with many rules and agencies simply abolished, removing channels of corruption in the process. Among other things, car registration became so easy that used cars became the largest export item in 2011. Georgia moved swiftly from the bottom of the World Bank’s Doing Business ranking (112) into the top 20 (16) by 2012. Foreign investment followed and fuelled a multi-year surge.
But perhaps, the most lucrative Georgian export would be the fight against corruption itself – from which many states mired in graft could benefit. The Georgians patented a process whose steps are replicable: establish early reform credibility by radical action, launch a frontal assault excluding no sacred cows, attract new blood, limit the role of the state via privatisation and deregulation, use technology and communication to maximum effect, and above all, be bold and purposeful.
Georgia’s close and distant neighbours should take heed. Their prime ministers and presidents have got their job cut out for them. this is a clear lesson for Nigerian leaders to learn from the Georgian reform.
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Nigerians and businesses, particularly in the North, are in for tougher times following recent coordinated attacks by Boko Haram that damaged several telecoms infrastructure in the North
Nothing would gladden the heart of Uthman Garba, director general, DG, Kaduna Chamber of Commerce, Industry, Mines and Agriculture, more than an urgent intervention by the federal government to stop the Boko Haram insurgence in the northern part of the country. “Businesses are suffering in the North and we desperately need government to restore peace to the region. My colleagues in the North-east and the North-west are telling unpalatable stories about the collapse of their businesses. The destruction of communication infrastructure would further worsen it,” he lamented.
Garba, who was reacting to last week’s coordinated attacks on telecoms installations in some states in the North by the violent religious sect, told the magazine that the attack which damaged about 30 Transceiver Base Stations, BTS, belonging to several telecoms operators has taken a heavy toll on subscribers and businesses. “The unfortunate development has adversely affected businesses in the North because business is about communication; communication reduces man-hour and makes business less stressful,” he said, adding that “it would also affect the labour market because many people in the telecom business would be thrown out of jobs.”
Recently, a series of premeditated bomb attacks, unprecedented in the telecoms industry, reduced several critical telecoms installations in the northern part of Nigeria to rubble. Operators whose facilities were affected by the attack carried out by the Boko Haram terrorist group include MTN, Airtel, Etisalat, Glo, Visafone, Helios Tower and IHS Nigeria. The facilities are located in Potiskum and Damaturu in Yobe State; Sharada in Kano State; Mainok Village in Borno State; Bauchi State; and Gombe State. The militant Islamic sect, in carrying out the attacks, made good their earlier threat to cause immense damage to telecoms operators’ facilities for allegedly providing information that had helped security agencies track its members. “We decided to launch attacks on masts of mobile telecom operators as a result of the assistance they offer security agents,” an email statement from Abu Qaqa, its spokesman, said. This information helps Nigerian security forces “in arresting our brethren,” he added.
According to Garba, even though the federal government has promised to provide security for telecom masts and other infrastructure, it should not stop at that; those behind the destruction should be talked to so that lasting solution can be found. However, while his call for a lasting solution for now appears to be a tall order, the latest attack has left sour taste in the mouths of operators, subscribers and the industry in general. For instance, subscribers, especially those in the North, are already feeling the impact of the attack as the quality of telecoms services in the affected states immediately took a downturn following severe limitation on the interconnection of telecoms infrastructure. It was also extremely difficult for most subscribers in the southern part of the country who have since been groaning over poor quality of services to call their friends, family members and business partners in the North on their mobile phones.
Gbenga Adebayo, president, Association of Licensed Telecommunications Operators of Nigeria, ATCON, had in the wake of the attack warned subscribers of the impending nationwide “consequential congestion” as a result of the bombings. Adebayo explained that some of the damaged base stations are hubs that provide services to other base stations in the region. “If anything happens to a hub, all the subscribers in the vicinity will be adversely affected.” Other experts also expressed fears that millions of subscribers in the northern states of Borno, Bauchi, Yobe, Gombe and Kano may have to contend with network outages or very poor services for the next six months as it could take months before the affected base stations could be fixed and reconnected to the networks because of the magnitude of the attack.
Subscribers are not the only ones counting their loses. Banking and financial services that run on the platform of the mobile network operators will also suffer. As Bankole Falade, regulatory affairs manager, MTN Nigeria, disclosed, the effect of the vandalisation of the base stations and fibre optic cables will also be felt by the banking industry as bank customers will find it difficult to make withdrawals at the automated teller machines, ATMs.
Telecoms subscribers, businessmen, banks and other service providers will have to cope without telecoms services for the next six months. According to Gbenga Onakomaiya, executive director, commercial and business development, IHS, one of the infrastructure providers whose base stations were affected by the bombings, explained that repairs could take six months as some of the equipment will have to be imported. “In our case we can commence restoration immediately as we have access to take equipment from our warehouse and restore between one and two months, depending on the nature of damage. However, security concerns and safety of our personnel is of utmost concern, as another attempt was made on another site on Saturday morning (September 9),” he said. According to him, his company has lost three base stations so far.
For the telecoms operators, the attack was also a blow below the belt, considering the fact that for long, they have been agonising over several infrastructure challenges that have made it almost impossible for them to perform optimally and provide quality services to Nigerians. Some of the challenges include inadequate power supply, vandalisation of telecoms infrastructure and closure of base stations by unauthorised government officials and agents, among others. MTN recently raised the alarm, claiming that it experiences more than 70 cuts on its fibre network nationwide monthly due to violent attacks on its facilities. Other operators such as Glo, Airtel, Etisalat, including CDMA operators, have also complained about similar wilful damage and theft at their installations across the country, a development which they argue has serious implications for the delivery of world-class telecoms services to Nigerians.
Apart from the vandalisation of telecoms installations, Nigeria’s wide telecoms infrastructure supply gap, experts say, is also largely responsible for the poor Quality of Service, QoS, currently offered to Nigerians by the networks. For instance, a recent survey pegged the total number of base stations in Nigeria at 17,000 serving an estimated 160 million Nigerians compared to 66,000 based stations that service about 62 million people in Britain. The same survey revealed that Nigeria will require about N1.29 trillion to address tower and base station shortage. While operators and consumers are still grappling with the challenges thrown up by the acute infrastructure gap in the sector, the attacks on base stations may have further widened the gap.
The attacks also have grave implications for the telecoms industry and the economy generally. For an industry acknowledged as Africa’s most vibrant, competitive and fastest-growing telecoms market, hitting over 100 million subscriber lines over a little more than a decade, the development is seen by many as a disincentive to further growth and investments. Adebayo fears that the attack poses a great setback for local and Foreign Direct Investment, FDI, inflows into the nation’s telecoms sector.
Recently, Eugene Juwah, executive vice chairman of the Nigerian Communications Commission, NCC, disclosed that the expansion of telecoms facilities in the country had increased the inflow of FDI into the sector from $18 billion in 2009 to $25 billion at the last count. The present concern is that telecoms operators may now be reluctant to invest more in extending services to places not yet covered by their networks, especially in the northern parts of the country, because of the rising insecurity in the area.
Whether or not operators do so, consumers, particularly those in the North, will in the coming months contend with service disruptions and businesses will also suffer on account of the attacks