Saturday, December 31, 2016

A BIGGER PROBLEM THAN ISIS?........The Mosul Dam is failing. A breach would cause a colossal wave that could kill as many as a million and a half people.


By Dexter Filkins

According to a U.S. Army Corps of Engineers assessment, “Mosul Dam is the most dangerous dam in the world.

On the morning of August 7, 2014, a team of fighters from the Islamic State, riding in pickup trucks and purloined American Humvees, swept out of the Iraqi village of Wana and headed for the Mosul Dam. Two months earlier, isis had captured Mosul, a city of nearly two million people, as part of a ruthless campaign to build a new caliphate in the Middle East. 

For an occupying force, the dam, twenty-five miles north of Mosul, was an appealing target: it regulates the flow of water to the city, and to millions of Iraqis who live along the Tigris. As the isis invaders approached, they could make out the dam’s four towers, standing over a wide, squat structure that looks like a brutalist mausoleum. Getting closer, they saw a retaining wall that spans the Tigris, rising three hundred and seventy feet from the riverbed and extending nearly two miles from embankment to embankment. Behind it, a reservoir eight miles long holds eleven billion cubic metres of water.

A group of Kurdish soldiers was stationed at the dam, and the isis fighters bombarded them from a distance and then moved in. When the battle was over, the area was nearly empty; most of the Iraqis who worked at the dam, a crew of nearly fifteen hundred, had fled. The fighters began to loot and destroy equipment. An isis propaganda video posted online shows a fighter carrying a flag across, and a man’s voice says, “The banner of unification flutters above the dam.”

The next day, Vice-President Joe Biden telephoned Masoud Barzani, the President of the Kurdish region, and urged him to retake the dam as quickly as possible. American officials feared that isis might try to blow it up, engulfing Mosul and a string of cities all the way to Baghdad in a colossal wave. Ten days later, after an intense struggle, Kurdish forces pushed out the isis fighters and took control of the dam.

But, in the months that followed, American officials inspected the dam and became concerned that it was on the brink of collapse. The problem wasn’t structural: the dam had been built to survive an aerial bombardment. (In fact, during the Gulf War, American jets bombed its generator, but the dam remained intact.) The problem, according to Azzam Alwash, an Iraqi-American civil engineer who has served as an adviser on the dam, is that “it’s just in the wrong place.” Completed in 1984, the dam sits on a foundation of soluble rock. To keep it stable, hundreds of employees have to work around the clock, pumping a cement mixture into the earth below. Without continuous maintenance, the rock beneath would wash away, causing the dam to sink and then break apart. But Iraq’s recent history has not been conducive to that kind of vigilance.

In October, Iraqi forces, backed by the United States, launched a sprawling military operation to retake Mosul, the largest city under isis control. The battle has sometimes been ferocious, with Iraqi soldiers facing suicide bombers, bombardments of chlorine gas, and legions of entrenched fighters. Although some Iraqi leaders predicted a quick success, it appears that the campaign to expel isis will be grinding and slow. And yet the biggest threat facing the people of northern Iraq may have nothing to do with who controls the streets.

In February, the U.S. Embassy in Baghdad issued a warning of the consequences of a breach in the dam. For a statement written by diplomats, it is extraordinarily blunt. “Mosul Dam faces a serious and unprecedented risk of catastrophic failure with little warning,” it said. Soon afterward, the United Nations released its own warning, predicting that “hundreds of thousands of people could be killed” if the dam failed. Iraq’s leaders, apparently fearful of public reaction, have refused to acknowledge the extent of the danger. But Alwash told me that nearly everyone outside the Iraqi government who has examined the dam believes that time is running out: in the spring, snowmelt flows into the Tigris, putting immense pressure on the retaining wall.

If the dam ruptured, it would likely cause a catastrophe of Biblical proportions, loosing a wave as high as a hundred feet that would roll down the Tigris, swallowing everything in its path for more than a hundred miles. Large parts of Mosul would be submerged in less than three hours. Along the riverbanks, towns and cities containing the heart of Iraq’s population would be flooded; in four days, a wave as high as sixteen feet would crash into Baghdad, a city of six million people. “If there is a breach in the dam, there will be no warning,” Alwash said. “It’s a nuclear bomb with an unpredictable fuse.”

Since civilization dawned in the Middle East, five and a half thousand years ago, the region’s politics and economy have centered on its two great rivers, the Tigris and the Euphrates. The rivers, which enter Iraq from the north and converge two hundred and fifty miles south of Baghdad, form an extraordinarily fertile valley in an otherwise dry part of the world. 

For centuries, populations flourished by tilling the rich alluvial soil left behind each spring by floodwaters receding from the plains between Baghdad and the Persian Gulf. But the rivers also wreaked havoc, delivering too much water or not enough, and the settlements on their banks lurched between periods of drought and flood.

In the nineteen-fifties, governments in the region moved to assert greater control over the rivers with aggressive programs of dam construction. Dams regularize the flow of water, discourage floods, and, by storing water in reservoirs, minimize the impact of droughts. They also give whoever controls them power over the flow of water downstream, rendering other countries.

In 1975, when both Syria and Turkey were completing dams on the Euphrates, and the reservoirs behind them began to fill, the river downstream dried up, forcing tens of thousands of Iraqi farmers to abandon their land. “You could walk across the Euphrates, it was so dry,” an Iraqi engineer who worked on the Mosul Dam told me. The same year, Turkey began surveying sites for another dam, just north of the border it shares with Iraq, on the Tigris River. Iraqi officials feared that, during the months or years when the new dam’s reservoir was being filled, many thousands of acres of farmland would have to be abandoned.

At the time, Saddam Hussein’s government was launching a hugely ambitious program of infrastructure development. The regime was awash in money; a previous government had nationalized the oil industry and renegotiated its relationships to the Western companies that had once controlled it. Saddam decided to build dams on both the Tigris and the Euphrates.

Western specialists began making surveys to find the most favorable site, but few places had the right topography for a reservoir: low-lying land, preferably surrounded by mountains. The geology presented even greater problems. Water in dam reservoirs creates tremendous pressure, and only solid rock can stop it from leaking underneath the dam. The surveys revealed a multilayer foundation of anhydrite, marl, and limestone, all interspersed with gypsum—which dissolves in contact with water. Dams built on this kind of rock are subject to a phenomenon called karstification, in which the foundation becomes shot through with voids and vacuums. According to former Iraqi officials who worked on the project, successive teams of geologists reached the same conclusion: no matter where they looked, the prevalence of gypsum would make maintaining a dam difficult.

The government settled on a site north of Mosul, which had the largest potential reservoir of any of the locations the geologists had scouted. “The engineers wanted to show Saddam that they could build something huge,” an Iraqi official who had worked on the dam told me. The location also offered the opportunity to open up tens of thousands of acres north of the dam to irrigation and agriculture, in a series of projects the government called al-Jazeera, or “the peninsula.”

In 1981, Saddam ordered the construction to begin—urged on, according to another former senior Iraqi official, by the military situation. (The official, who lives in Baghdad, spoke to me on condition of anonymity, fearing that he would lose his pension if he spoke out.) A year before, Saddam had launched a huge invasion of Iran, hoping to seize its oilfields and possibly to overthrow its government. But the Iranians pushed back, and the war became a bloody stalemate, with fighting concentrated along the border, near the southern city of Basra.

As the Iraqi soldiers dug in, they were vulnerable to the fluctuations of the Tigris. In 1954 and again in 1969, floods had swept through the south of Iraq, separating Basra from the rest of the country. “Historically, when there is above-average flooding on the Tigris, southern Iraq becomes one large lake,” the retired official told me. Iraq’s leaders feared that they were due for another flood, which would strand the Army. “It was of the utmost importance to begin construction of the dam as quickly as possible,” the official said.

The decision to build the dam started a decades-long argument over who is responsible for the looming disaster. Nasrat Adamo, a former senior official at the Iraqi Ministry of Irrigation, told me that a consortium of Swiss firms hired to oversee the process assured government officials that the gypsum problem could be managed. “We listened to the top experts,” he said. “Everybody agreed that this would not be too serious.” Adamo remains bitter. “The Iraqi government—in a way, I think they were cheated,” he told me. But other people who were involved in building the dam argued that the Iraqis should have been more cautious: the Swiss explained clearly that the site was problematic, and geologists working in the area had raised concerns for decades. They also noted that Soviet and French companies bidding on the project had asked for further surveys and been told that there wasn’t time. Iraqi officials were terrified of disappointing Saddam. Adamo told me that the Minister of Irrigation feared for his life: “If the dam failed, he would be hanged.”

The dam was built in three years, largely by workers from China. Today, a stone memorial on top of the dam commemorates nineteen Chinese nationals who died during its construction; the memorial, inscribed in English and Chinese but not in Arabic, does not give the cause of their deaths. Alwash, the Iraqi-American hydrological engineer, told me that, in Iraq, when laborers fell into wet cement during large infrastructure projects, it was common for the work to carry on. “When you’re laying that much cement on a dam, you can’t stop,” Alwash said. In 1985, the reservoir filled up, and the structure—named the Saddam Dam—began holding back the Tigris.

Shortly after the dam went into use, Nadhir al-Ansari, a consulting engineer, made an inspection for the Ministry of Water Resources. “I was shocked,” he told me. Sinkholes were forming around the dam, and pools of water had begun bubbling up on the banks downstream. “You could see the cracks, you could see the fractures underground,” Ansari said. The water travelling around the dam, known as “seepage,” is normal in limited amounts, but the gypsum makes it potentially catastrophic. “When I took my report back to Baghdad, the chief engineer was furious—he was more than furious. But it was too late. The dam was already finished.”

To control the erosion, the government began a crash program of filling the voids with cement, a process called “grouting.” Meanwhile, Iraqi officials rushed to build a second dam, near a town called Badush, which could help prevent flooding in case the Mosul Dam collapsed. By 1990, just six years later, the new dam was forty per cent complete. 

Then Saddam sent his Army into Kuwait, sparking the Gulf War, and he ordered all the earthmoving equipment stripped from the Badush site and sent to the front lines. When the United States and its allies arrived to expel the Iraqis from Kuwait, they bombed all the equipment. After the war, inspectors from the International Atomic Energy Association discovered stockpiles of nuclear materials near Badush, apparently part of Saddam’s secret weapons program. The U.N. imposed economic sanctions on Iraq, impoverishing the country for a decade. Work on Badush never resumed. “Nobody wanted to go anywhere near the place,” Adamo told me. “This is the story of Iraq.”

When the Americans invaded in 2003, they discovered a country shattered by sanctions. Power plants flickered, irrigation canals were clogged, bridges and roads were crumbling; much of the infrastructure, it seemed, had been improvised. The U.S. government poured billions of dollars into rebuilding it, and in 2006 the U.S. Army Corps of Engineers began several assessments of the Mosul Dam. The first report was dire, predicting “mass civilian fatalities” if it failed. “In terms of internal erosion potential of the foundation, Mosul Dam is the most dangerous dam in the world,” it said.

Farhad Shekhamen, a peshmerga fighter, stands before the Mosul Dam as members of his unit go for a swim. Peshmerga forces pushed out ISIS from the dam two and a half years ago.
Farhad Shekhamen, a peshmerga fighter, stands before the Mosul Dam as members of his unit go for a swim. Peshmerga forces pushed out isis from the dam two and a half years ago.
Photograph by Victor J. Blue for The New Yorker
Iraqi officials were publicly skeptical, but, under pressure from the Americans, they agreed to lower the maximum depth of the reservoir by about thirty feet, to take pressure off the dam wall. At the same time, American officials also began urging Iraq to modernize the equipment used to reënforce the foundation. In 2011, the Iraqi government chose an Italian engineering company, Trevi S.p.A., to begin a restoration, but the discussions broke down. A spokesman for Trevi told me he didn’t know why. A senior American official who has spent years working in Iraq confided that the deal may have stalled after Trevi refused an Iraqi demand for a kickback. “It was too big for the Italians to make,” the official told me.

In November, 2015, Mohsen al-Shammari, then the Minister for Water Resources, told reporters that there was no chance that the dam would collapse: “Whoever is saying it’s about to collapse is only talking.” Shammari is a follower of Moqtada al-Sadr, the fiery cleric whose soldiers fought the United States during the occupation. Sadr’s followers refuse to meet with American officials, and so, until a new water minister, Hassan al-Janabi, took office earlier this year, no Iraqi minister responsible for the Mosul Dam had spoken to an American official in five years. Even Janabi, who American officials say is fully aware of the problems at the dam, dodged the issue when I asked about it this summer. “I have not inspected the dam personally, so I cannot say for sure if there are any problems there,” he said. “Call me after I have gone there and inspected it.”

In private, some Iraqis pose conspiracy theories. “I know a lot of Iraqis who think this is just a big psyops operation by the U.S. government—senior officials, not just Iraqis on the street,” a former American official told me. 

Part of the problem, he argued, is a tradition of inertia, begun during Saddam’s dictatorship, in which officials live in fear of being penalized for taking initiative. “Iraqis will ignore the problem until the day the dam collapses,” he told me. “I’ve seen it over and over and over again. If the boss says there’s no problem, then there is no problem. And the day there is a problem, it’s, like, ‘Help!’ ”

Riyadh al-Naemi, the dam’s director, looks like a holdover from the Baathist era. He wears a stout mustache, talks like a technocrat, and starts answering a visitor’s questions before he’s finished asking. 

Naemi has spent his career at the Mosul Dam; he was a young engineering graduate when it opened, and he remembers the day Saddam paid a visit, shortly after the Iran-Iraq War ended. Naemi has heard all the predictions of the dam’s imminent demise. “Sure, we have problems,” he says. “But the Americans are exaggerating. This dam is not going to collapse. Everything is going to be fine.”

Naemi told me that some American officials had come to him earlier this year to warn that the dam was going to break, and confronted him with satellite photos that showed water from the reservoir seeping through the sides of the dam. “I told them it was not important,” he said. “I explained to them that there was no problem—and they agreed with me.” The senior American official, frustrated at the years of inaction, told me that the Americans were not persuaded by Naemi: “He is not going to tell us the sky is falling. We shared the data that showed the risks of the dam, and it’s terrifying.”

The potential disaster has presented American officials with a public-relations quandary: the people they are trying to help won’t publicly concede that there’s a problem. In response, U.S. officials have gone silent. It took me more than a hundred phone calls, e-mails, and visits before a single American official was granted permission to speak to me on the record; even then, three other State Department officials listened in on the conversation. “We don’t want to publicly embarrass the Iraqis,” the senior American official told me.

A walk around the Mosul Dam gives you a sense of its scale and its problems. Four massive towers, part of the hydroelectric system, mark the western end. To the north is the reservoir, a deep-blue pool reaching to the gorge’s walls, miles away; to the south, the Tigris continues its long meander to the Persian Gulf. Along the edges of the dam, little springs spurt from the ground. Here and there are gauges and cameras, part of a system that collects real-time information—water pressure, temperature, chemistry—that the U.S. Army Corps of Engineers monitors around the clock.

At the bottom of the wall, where the Tigris gushes out, are two control gates, which allow water to be drained from the reservoir quickly, in case heavy rainfall or snowmelt builds up pressure on the dam wall. When I visited, in September, one of the gates was broken: stuck shut. The controllers have resorted to the working gate at least four times since isis was driven away from the dam. The final safety valve is a spillway—three hundred feet wide, half a mile long—that the dam’s controllers can throw open to prevent an imminent breach.

The work of maintaining the dam is performed in the “gallery,” a tunnel that runs inside the base, four hundred feet below the top. To get there, you enter through a portal near the river’s edge and walk down a sloping corridor into the center of the dam. The interior is cool and wet and dark. It feels like a mine shaft, deep under the earth. You can sense the water from the reservoir pressing against the walls.

Using antiquated pumps as large as truck engines, they drive enormous quantities of liquid cement into the earth. Since the dam opened, in 1984, engineers working in the gallery have pumped close to a hundred thousand tons of grout—an average of ten tons a day—into the voids below.

To keep the ground beneath the dam stable, workers in the gallery pump a cement mixture into the earth. Without continuous maintenance, soluble rock in the foundation would wash away, causing the dam to sink and then break apart.

To keep the ground beneath the dam stable, workers in the gallery pump a cement mixture into the earth. Without continuous maintenance, soluble rock in the foundation would wash away, causing the dam to sink and then break apart.

Up close, the work is wet, improvisatory, and deeply inexact. Gauges line the walls of the gallery, programmed to detect changes in pressure; water seeps through cracks in the floor. 

Ordinarily, the pressure is much higher on the upstream side—because the water is pressing against the dam wall. If the pressure readings on the two sides of the gallery begin to converge, water is probably passing underneath. “That means there’s a leak,” Hussein al-Jabouri, the deputy director of the dam, said, waving at a gauge.

Like his boss, Jabouri has worked at the dam since he was a young engineering graduate. Now, he told me, he is as sensitive to the dam’s changes as the electronic gear buzzing around him. Jabouri gave a signal—“Come”—and a crew of engineers wheeled one of the giant pumps into position. At his feet, all along the gallery floor, were holes that serve as guides for the industrial drills the engineers use to probe the voids.

At Jabouri’s command, the engineers began pushing a long, narrow pipe, tipped with a drill bit, into the earth. The void they were hunting for was deep below—perhaps three hundred feet down from where we were standing. After several minutes of drilling, a few feet at a time, the bit pushed into the void, letting loose a geyser that sprayed the gallery walls and doused the crew. 

The men, wrestling the pipe, connected it to the pump. Jabouri flicked a switch, and, with the high-pitched whine of a motorcycle engine, the machine reversed the pressure and the grout began to flow, displacing the water in the void. “It’s been like this for thirty years,” Jabouri said with a shrug. “Every day, nonstop.”

When I visited, only four grouting machines, instead of the usual eleven, were in use. The engineers operating them can’t see the voids they are filling and have no way of discerning their size or shape. A given void might be as big as a closet, or a car, or a house. 

It could be a single spacious cavity, requiring mounds of grout, or it could be an octopus-like tangle, with winding sub-caverns, or a hairline fracture. “We feel our way through,” Jabouri said, standing by the pump. Generally, smaller cavities require thinner grout, so Jabouri started with a milky solution and increased its thickness as the void took more. Finally, after several hours, he stopped; his intuition, aided by the pressure gauges, told him that the cavity was full. “It’s a crapshoot,” Alwash told me. “There’s no X-ray vision. You stop grouting when you can’t put any more grout in a hole. It doesn’t mean the hole is gone.”

The dam’s reservoir is eight miles long and contains eleven billion cubic metres* of water.

Theoretically, it’s possible that all the voids underneath the Mosul Dam could be filled—that all the gypsum could be replaced with grout. “Not in our lifetimes,” an Army Corps of Engineers specialist told me. In the meantime, he said, “there are just enormous quantities of gypsum that are washing away.”

When isis fighters took the dam, in 2014, they drove away the overwhelming majority of the dam’s workers, and also captured the main grout-manufacturing plant in Mosul. Much of the dam’s equipment was destroyed, some by isis and some by American air strikes. The grouting came to a standstill—but the passage of water underneath the dam did not.

Iraqi and American officials are reluctant to discuss how long the grouting was suspended. Naemi, the dam’s director, maintained that it stopped for less than three weeks, while the battle for the dam was raging. American officials said they weren’t sure. Jabouri, the deputy director, told me that work had ceased entirely for about four months. Adamo, who said that he’d been in regular contact with the engineers at the dam, told me, “The grouting work stopped for eighteen months.”

It’s one of the ironies of Iraq’s political situation that the dam’s turbines still provide electricity to Mosul, which is now under isis control; intelligence reports indicate that isis has earned millions of dollars by taxing the electricity. After the peshmerga captured the dam two years ago, Kurdish officials intended to shut down the turbines, but American officials told them that this would add more water to the reservoir, making the dam more likely to burst. So isis continued to profit from the dam. “We wanted to strangle them, but we weren’t allowed,” a Kurdish official told me.

When the dam was recaptured, American engineers and scientists worried that the lapse in grouting had hastened the erosion of the dam’s foundation. Using satellite photos and data from gauges around the dam, they tried to assess its condition. According to a U.S. Army Corps of Engineers report, numerous voids had opened up below the dam—as much as twenty-three thousand cubic metres’ worth. “The consensus was that the dam could break at any moment,” John Schnittker, an economist who has been working on water issues in Iraq for more than a decade, said.

In the language of hydraulic engineering, the process eroding the foundation is known as “solutioning.” If that problem is not addressed, what happens next is “piping”: water begins to travel between the voids, moving horizontally beneath the dam. To illustrate, American engineers have devised a triangular chart. The process begins, at the apex, with solutioning, advances through cavity formation and piping, and ends with core collapse and, finally, dam breach—like a Florida sinkhole opening up, unannounced, beneath a shopping center. Engineers jokingly refer to the chart as the “triangle of death.” Schnittker told me, “Once piping begins, there is no going back. In twelve hours, the dam is gone.”

In 2010, an Iraqi graduate student commissioned a bathymetric survey of the reservoir floor, which is more than a hundred and sixty feet underwater. The survey showed a surface pockmarked with sinkholes, some of them sixty-five feet wide. “The danger is that the cavities underneath the dam will become much, much larger,” Adamo, the former deputy director of dams, told me.

In January, a team of American scientists reported that a thirty-metre-wide block on the western side of the dam had tilted, with one end sinking into the earth a tenth of an inch. (The State Department has refused to make the report public.) It was the fourth time the dam had moved since November, 2015. To engineers, uneven movement of a dam means that the ground underneath may be falling away; the uneven pressure could ultimately cause a breach.

Naemi, the dam’s overseer, said that the dam was merely “settling” into the earth. But most dams stop settling within a few months after they are built. Outside experts, including Ansari, told me that for the dam to move that much was highly irregular. “That’s more than it’s moved in thirty years,” he said. Alwash, the Iraqi civil engineer, told me, “Something has changed. The underlying soil is readjusting itself because of the voids.”

A second report, also kept from the public, was equally alarming. Like the first, it concluded that sections of the dam were moving unevenly, that water was passing through the foundation rapidly, and that water downstream contained high concentrations of dissolved gypsum—evidence of large voids. A chart compared the relative chances of collapse of a number of dams worldwide, and the likely death toll. A small number of dams were grouped toward the middle of the chart, indicating a moderate level of risk; the Mosul Dam stood by itself, nearly off the chart. “No dam in the world has all the conditions for imminent failure, except the dam in Mosul,” Adamo said.

In the nineteen-seventies, the U.S. government built a dam on the Snake River in Idaho, atop a foundation of deeply fractured layers of basalt and rhyolite. As in Mosul, experts expressed concerns but decided that aggressive grouting would allow the dam to function normally.

The Teton Dam opened in the fall of 1975; the following June, cracks appeared in the main wall, and water from the reservoir began to leak through. Within hours, the cracks spread, the dam disintegrated, and a wall of water poured forth. The wave swept aside everything in its path, including two towns, at least eleven people, and thousands of cattle. The water knocked loose a large clutch of felled trees from a nearby forest, which washed downstream and crashed into a gasoline storage tank. The leaking gas burst into flames, and the fire, as it spread, destroyed several hundred homes that had been spared by the flood.

The U.S. Embassy’s report on the Mosul Dam envisions a similar scenario, magnified by the dam’s greater size and the densely populated areas downstream. A “tsunami-like wave” would rush through Mosul, carrying away everything in its path, including bodies, buildings, cars, unexploded bombs, hazardous chemicals, and human waste. The wave would almost certainly catch most of the people trying to outrun it.
 
Residents of Mosul, scrambling on foot and by car through a citywide traffic jam, would need to travel at least three and a half miles to survive. In less than an hour, those who remained would be under as much as sixty feet of water.

A boy takes an inner tube to go fishing on the Tigris River near Wanke, a farming village three miles downstream of the dam. If the dam fails, Wanke could be under sixty feet of water in minutes. Previously under the control of the Islamic State, Wanke was liberated by peshmerga fighters, but ISIS positions are still visible from the riverbank.

A boy takes an inner tube to go fishing on the Tigris River near Wanke, a farming village three miles downstream of the dam. If the dam fails, Wanke could be under sixty feet of water in minutes. Previously under the control of the Islamic State, Wanke was liberated by peshmerga fighters, but isis positions are still visible from the riverbank.

With Mosul and other nearby villages occupied by isis, an orderly evacuation would be unlikely; the prospect of large numbers of people fleeing cities under isis control would pose its own security challenges.
“Some evacuees may not have freedom of movement sufficient to escape,” the report said. An inland tidal wave could displace the 1.2 million refugees now living in tents and temporary quarters in northern Iraq, adding to the chaos.

The wave, the Embassy’s report predicted, would move rapidly through the cities of Bayji, Tikrit, and Samarra, wiping out roads, power stations, and oil refineries; damage to the electrical grid would probably leave the entire country without power. At least two-thirds of Iraq’s wheat fields would be flooded.

South of Samarra, residents would likely have to get farther away to avoid flooding, since the land begins to flatten out, making the floodplain wider. Shallow floods, the State Department said, could not be ignored. “Less than six inches of moving water is strong enough to knock a person off his feet,” the statement said.

Within four days, the wave would reach Baghdad, depositing as much as sixteen feet of water in many areas of the city, probably including the airport and the Green Zone, the site of government buildings and most of the embassies. The report said the majority of the city’s six million residents would face Hurricane Katrina-like conditions: people forced from their homes, with limited or no mobility and no essential services.

The Iraqi government—embattled, paralyzed, ineffectual—seems highly unlikely to carry out meaningful evacuations or large-scale relief efforts in the event of a breach. “The sheer scale of a catastrophic outburst of the dam would overwhelm in-country capacities to respond,” the U.N. report said. Adamo, the former official, scoffed at the idea that the government could save anyone. “They have no plan,” he said. American officials, emphasizing the practical option of “self-evacuation,” have urged the Iraqis to place early-warning sirens along the Tigris. Thus far, two have been installed. “They’re really, really loud,” the senior American official told me; they can be heard for miles. Still, as people flee, the sick, disabled, and elderly would likely be left behind. With the Baghdad International Airport flooded, meaningful relief from outside the country might be days away. The U.N. predicted that most of the population affected by the flood would not receive any assistance for at least two weeks, and probably much longer. About four million Iraqis—an eighth of the country’s population—would be left homeless.

By the time the flood wave rolled past Baghdad and exhausted itself, as many as one and a half million people could be dead. But, some experts told me, the aftermath would prove even more harrowing. “I am not really worried about the dead—because they’re dead,” Alwash said. “What worries me is everyone else. How do you feed six million people in Baghdad when it’s flooded? How do you give them electricity? Where do they go?”

Nadhir al-Ansari, the engineer who made the first inspection of the Mosul Dam, now lives in Luleå, Sweden. Adamo, the former chief engineer, lives in Norrköping, about six hundred and fifty miles to the south. The two remain obsessed with the dam, haunted by decisions made more than thirty years ago. 

They confer on the phone daily and get together to discuss the situation; they sometimes reach out to engineers who work at the dam. Adamo keeps an up-to-date maintenance log in his office in Norrköping. Neither he nor Ansari is optimistic that the Iraqi government will be able to solve the problem in time. “I am convinced the dam could fail tomorrow,” Adamo said.

Perhaps the simplest solution is to scrap the dam entirely and make a deal to lease Turkish dams north of the border. But the political instability in the region makes such an accord practically impossible. Another option is to re-start construction of the half-completed dam at Badush, but the smaller reservoir would likely require tens of thousands of acres of land to be removed from cultivation. 

A third option, which has lately gained currency, is to erect a “permanent” seal of the existing dam wall—a mile-long concrete curtain dropped eight hundred feet into the earth. This would cost an estimated three billion dollars. The Iraqi government—nearly paralyzed by internal conflicts—seems unlikely to impose a solution anytime soon.

Early in 2016, under American prodding, the Iraqis reopened negotiations with Trevi S.p.A., the Italian firm. In September, a team of engineers, hired at a cost of three hundred million dollars, arrived at the dam to perform a crash repair job. Their main task is to install updated equipment, designed to fill the voids beneath the dam more precisely, and to repair the broken control gate. 

Under the contract, the Italians will do the grouting for a year, and then leave the equipment with their Iraqi counterparts. The engineers say that they are confident they can prevent the dam’s foundation from washing away. But Pierluigi Miconi, Trevi’s project manager, told me that some of the voids may require tens of thousands of gallons of grout. In some cases, he said, it may take days to fill a single void. “This is an urgent project,” he said.

Last year, Alwash, the Iraqi-American civil engineer, was told by an official of the European Union that the dam is most susceptible to failure in the spring, when the snow melts and the Tigris is at its highest. 

The officials who first argued for the construction of the Mosul Dam, back in the eighties, were motivated by similar concerns about snowmelt—and they were proved right. In 1988, there was a huge melt, which would almost certainly have flooded the southern marshes if the dam had not contained the worst of it. 

Last spring, the Iraqi government prepared by lowering the maximum water level in the reservoir, to ease severe pressure on the dam wall. This year, such a precaution could dramatically lessen the number of people at risk—to about three hundred and sixty-four thousand.

The Trevi engineers, scrambling to keep the dam functioning, are operating in a militarized environment. Hundreds of Italian and Kurdish soldiers patrol the area, on alert for an attack by isis. In September, the Italian media reported that isis fighters were preparing an operation to recapture the dam. The following month, Kurdish forces fired a missile at a team of isis commandos who were approaching with a load of explosives.

For local residents, the threat of imminent violence has outweighed the threat from the dam. In Wanke, a small farming community about three miles downstream of the dam, isis positions are visible from the riverbank. When I visited, I found Mohammed Nazir, a Kurdish farmer, irrigating his field. For years, he told me, Wanke was a mixed Arab-Kurdish community. But when isis fighters swept in, during the summer of 2014, many of his Arabic neighbors stepped forward to help the invaders. “They told us, ‘This is not a Kurdish town anymore,’ ” Nazir said. “It was humiliating. They started ordering us around. I knew their children. I went to their weddings. They betrayed everything in life.”

Nazir and his family escaped to a nearby village, where they lived with relatives for a year and a half before isis was expelled from Wanke. When the family moved back, Nazir found that his Arab neighbors had fled with the retreating invaders. “They are not welcome back here,” he said.

Nazir knows that, if the dam fails, Wanke could be under sixty feet of water in a matter of minutes. But, he told me, neither he nor anyone else in the village thinks much about it. People in his part of the world are accustomed to having their lives upended. “We survived Saddam, we survived isis, and we will survive the Mosul Dam,” he said. 


source: The New Yorker

Monday, December 26, 2016

WIFE STABS HUSBAND TO DEATH ON XMAS

A woman has allegedly  stabbed her husband to death over the inability of the man to provide money for preparations for the festive seasons.

The woman, identified as Iya Bose, committed the crime in Majidun Awori area of Lagos state on Christmas Day.

The state's police spokesperson Dolapo Badmos confirmed the incident, saying the woman who has since been arrested will be charged to court as soon as investigation is completed.

Meanwhile, a policeman went berserk in Kaduna on Friday, December 23 and shot dead three people in Zaria, including a colleague of his.

He was subdued by a shot to the leg from other police officers before the crowd pounced on him.





source:naija.com/Dailyy Post

Sunday, December 25, 2016

Pope delivers sombre Christmas mass urging ‘more humility


Pope Francis said yesterday (Saturday) that Christmas had been "taken hostage" by dazzling materialism that puts God in the shadows and blinds many to the needs of the hungry, the migrants and the war weary.

Francis, leading the world's 1.2 billion Roman Catholics into Christmas for the fourth time since his election in 2013, said in his Christmas Eve homily that a world often obsessed with gifts, feasting and self-centeredness needed more humility.

"If we want to celebrate Christmas authentically, we need to contemplate this sign: the fragile simplicity of a small newborn, the meekness of where he lies, the tender affection of the swaddling clothes. God is there," the Pope said at St. Peter's Basilica.

At the solemn but joyous service, attended by some 10,000 people as well as dozens of cardinals and bishops, Pope Francis said the many in the wealthy world had to be reminded that the message of Christmas was humility, simplicity and mystery.

"Jesus was born rejected by some and regarded by many others with indifference," he said.

"Today also the same indifference can exist, when Christmas becomes a feast where the protagonists are ourselves, rather than Jesus; when the lights of commerce cast the light of God into the shadows; when we are concerned for gifts, but cold toward those who are marginalized."

He then added in unscripted remarks: "This worldliness has taken Christmas hostage. It needs to be freed."

Security was heightened for the Christmas weekend in Italy and at the Vatican after Italian police killed the man believed to be responsible for the Berlin market truck attack while other European cities kept forces on high alert.

St. Peter's Square was cleared out six hours before the mass started at the basilica so that security procedures could be put in place for those entering the church later.

Francis, who has made defence of the poor a trademark of his papacy, said the infant Jesus should remind everyone of those suffering today, particularly children.

"Let us also allow ourselves to be challenged by the children of today's world, who are not lying in a cot caressed with the affection of a mother and father, but rather suffer the squalid mangers that devour dignity: hiding underground to escape bombardment, on the pavements of a large city, at the bottom of a boat over-laden with immigrants," he said.

Outside the basilica, thousands of people who could not get into the largest church in Christendom watched on large screens in the chilly night.

"Let us allow ourselves to be challenged by the children who are not allowed to be born, by those who cry because no one satiates their hunger, by those who do have not toys in their hands, but rather weapons," he said.

On Christmas Day, Francis will deliver his twice-yearly "Urbi et Orbi" ("To the City and to the World") blessing and message from the central balcony of St. Peter's Basilica.



(REUTERS)
 

Nigerian Breweries premises on fire on Chrismas Day

As Lagosians prepare to go out with friends and families to celebrate Christmas, the Nigerian Breweries company in Lagos is being gutted by fire.

According to report, the fire started in the early hours of the morning at the company’s building in the Orile Iganmu area of Lagos.

The Nigerian police and men of the fire service are on round battling the raging fire



source:naija.com

Saturday, December 17, 2016

President Buhari, Obasanjo for South-East Economic & Security Summit 2016

Nigeria’s President, Muhammadu Buhari, and former President, Olusegun Obasnajo, will be leading other eminent personalities and delegates to attend the maiden South-East Economic & Security Summit - SEESS 2016 – holding at the Enugu State Government House, Independence Layout, Enugu on Thursday, 22nd December 2016.
 
The summit, which is an initiative of the South-East Economic & Security Summit (SEESS) Group - a non-governmental organization made up of top business, military, political, religious and community leaders from Nigeria’s southeast region - is aimed at addressing real issues affecting the peace and development of the southeast, proffering practical solutions and initiating a definitive course of action with pragmatic delineation of roles towards fast-paced economic and secure advancement of the region.
 
According to Professor Barth Nnaji, a former Minister of the Federal Republic and Chairman of SEESS Group, “In demonstration of his interest in maintaining peace in Nigeria’s Southeast as well as other regions, and fostering economic growth and development, His Excellency, President Muhammadu Buhari, has confirmed his participation at the maiden South-East Economic & Security Summit scheduled to hold in Enugu on December 22, 2016.”
 
“We are also pleased to announce that former President, Olusegun Obasanjo, who has been a strong advocate for the convocation of a summit not pivoted on politics but rather on the economic and developmental premise for the region and other regions, has also committed to attend.
 
“All five Governors from the southeastern states will be participating at the Summit, and they will lead other eminent personalities and delegates to discuss issues of common interest, including security, agriculture, infrastructure, health tourism, as well as financing the region’s economic program.”
 
In an earlier statement, Professor Nnaji had noted: “The summit will be a meeting where specific problems are defined, projects to address the problems are adopted, and what the various stakeholders roles - including that of the Federal Government - in solving the problems are also presented.”
 
SEESS 2016 is an invitation-only event with delegates drawn from the leaders of the Southeast, Presidency, National Assembly, State Governments, the diplomatic community, top local and international business leaders and investors, multinational corporations, bankers and financiers, the academia, security experts, civil society groups, religious bodies and other non-governmental organisations.
 
 

Wednesday, December 14, 2016

2017 budget presentation: Full text of President Buhari’s speech


President Muhammadu Buhari yesterday (Wednesday) presented the 2017 Appropriation Bill before a joint session of the National Assembly.

Buhari, during the presentation said his administration will pay more attention to infrastructures with roads and rail projects taking centre in the incoming year.

See full text below:

1. It is my pleasure to present the 2017 Budget Proposals to this distinguished Joint Assembly: the Budget of Recovery and Growth.

2. We propose that the implementation of the Budget will be based on our Economic Recovery and Growth Strategy. The Plan, which builds on our 2016 Budget, provides a clear road map of policy actions and steps designed to bring the economy out of recession and to a path of steady growth and prosperity.

3. We continue to face the most challenging economic situation in the history of our Nation. Nearly every home and nearly every business in Nigeria is affected one way or the other.


4. Yet I remain convinced that this is also a time of great opportunity.We have reached a stage when the creativity, talents and resilience of the Nigerian people is being rewarded. Those courageous and patriotic men and women who believed in Nigeria are now seeing the benefits gradually come to fruition. I am talking about the farmers who today are experiencing bumper harvests, the manufacturers who substituted imported goods for local materials and the car assembly companies who today are expanding to meet higher demand.

5. Distinguished members of National Assembly, for the record:For many years we depended on oil for foreign exchange revenues. In the days of high oil prices,we did not save.We squandered.

6. We wasted our large foreign exchange reserves to import nearly everything we consume. Our food, Our clothing, Our manufacturing inputs, Our fuel and much more.In the past 18 months when we experienced low oil prices, we saw our foreign exchange earnings cut by about 60%, our reserves eroded and our consumption declined as we could not import to meet our needs.

7. By importing nearly everything, we provide jobs for young men and women in the countries that produce what we import, while our own young people wander around jobless. By preferring imported goods, we ensure steady jobs for the nationals of other countries, while our own farmers, manufacturers, engineers, and marketers, remain jobless.

8. I will stand my ground and maintain my position that under my watch, that old Nigeria is slowly but surely disappearing and a new era is rising in which we grow what we eat and consume what we make.
We will CHANGE our habits and we will CHANGE Nigeria.

9. By this simple principle, we will increasingly grow and process our own food, we will manufacture what we can and refine our own petroleum products. We will buy ‘Made in Nigeria’ goods. We will encourage garment manufacturing and Nigerian designers, tailors and fashion retailers. We will patronize local entrepreneurs. We will promote the manufacturing powerhouses in Aba, Calabar, Kaduna, Kano, Lagos, Nnewi, Onitsha, and Ota. From light manufacturing to cement production and petrochemicals, our objective is to make Nigeria a new manufacturing hub.

10. Today, the demand of the urban consumer has presented an opportunity for the rural producer. Across the country, our farmers, traders and transporters are seeing a shift in their fortunes. Nigerians who preferred imported products are now consuming made in Nigeria products. From Argungu in Kebbi to Abakalaki in Ebonyi, rice farmers and millers are seeing their products move. We must replicate such success in other staples like wheat, sugar, soya, tomato and dairy products. Already, the Ministry of Agriculture and Rural Development, the Central Bank of Nigeria, the Organised Private Sector and a handful of Nigerian commercial banks, have embarked on an ambitious private sector-led N600 billion program to push us towards self-sufficiency in three years for these products. I hereby make a special appeal to all State Governors to make available land to potential farmers for the purpose of this program.

11. To achieve self-sufficiency in food and other products, a lot of work needs to be done across the various value chains. For agriculture, inputs must be available and affordable. In the past, basic inputs, like the NPK fertilizer,were imported although key ingredients like urea and limestone are readily available locally. Our local blending plants have been abandoned. Jobs lost and families destroyed. I am pleased to announce today that on 2nd December 2016, Morocco and Nigeria signed an ambitious collaboration agreement to revive the abandoned Nigerian fertilizer blending plants. The agreement focuses on optimizing local materials while only importing items that are not available locally. This program has already commenced and we expect that in the first quarter of 2017, it will create thousands of jobs and save Nigeria US$200 million of foreign exchange and over N60 billion in subsidy.

12. We must take advantage of current opportunities to export processed agricultural products and manufactured goods. Let it not be lost on anyone that the true drivers of our economic future will be the farmers, small and medium sized manufacturers, agro-allied businesses, dressmakers, entertainers and technology start-ups. They are the engine of our imminent economic recovery. And their needs underpin the Economic Recovery and Growth Plan.

13. Let me, Mr. Senate President, Right Hon. Speaker, here acknowledge the concerns expressed by the National Assembly and, in particular, acknowledge your very helpful Resolutions on the State of the Economy, which were sent to me for my consideration. The Resolutions contained many useful suggestions, many of which are in line with my thinking and have already been reflected in our Plan. Let me emphasise that close cooperation between the Executive and the Legislature is vital to the success of our recovery and growth plans.

14. Permit me to briefly outline a few important features of the Plan. The underlying philosophy of our Economic Recovery and Growth Plan is optimizing the use of local content and empowering local businesses. The role of Government must be to facilitate, enable and support the economic activities of the Nigerian businesses as I earlier mentioned. Fiscal, monetary and trade policies will be fully aligned and underpinned by the use of policy instruments to promote import substitution. Government will however at all times ensure the protection of public interest.

15. First we clearly understand the paradox that to diversify from oil we need oil revenues. You may recall that oil itself was exploited by investment from agricultural surpluses. We will now use oil revenues to revive our agriculture and industries.

Though we cannot control the price of crude oil, we are determined to get our production back to at least 2.2 million barrels per day. Consistent with the views which have also been expressed by the National Assembly, we will continue our engagement with the communities in the Niger Delta to ensure that there is minimum disruption to oil production. 
The National Assembly, State and Local Governments, Traditional Rulers, Civil Society Organisations and Oil Companies must also do their part in this engagement. We must all come together to ensure peace reigns in the Niger Delta.

16. In addition, we will continue our ongoing reforms to enhance the efficiency of the management of our oil and gas resources. To this effect, from January 2017, the Federal Government will no longer make provision for Joint Venture cash-calls. Going forward, all Joint Venture operations shall be subjected to a new funding mechanism, which will allow for Cost Recovery. This new funding arrangement is expected to boost exploration and production activities, with resultant net positive impact on government revenues which can be allocated to infrastructure, agriculture, solid minerals and manufacturing sectors.

17. I earlier mentioned our ambitions for policy harmonisation. But we all know that one of the peculiar problems of our environment is execution. This phenomenon affects both government carrying out its own functions and the innumerable bureaucratic hurdles in doing business. To this end, I will be issuing some Executive Orders to ensure the facilitation and speeding up of government procurements and approvals. Facilitation of business and commerce must be the major objective of government agencies. Government must not be the bottle neck. Additionally, these Executive Orders will widen the scope of compliance with the Fiscal Responsibility Act by Federal Government owned entities and promote support for local content in Ministries, Department and Agencies.

18. The Executive will soon place before the National Assembly proposals for legislation to reduce statutorily mandated minimum times for administrative processes in order to speed up business transactions. In addition, I have established the Presidential Enabling Business Council, chaired by the Vice President with a mandate to make doing business in Nigeria easier and more attractive. Getting approvals for business and procurements will be simplified and made faster.

19. In 2017, we will focus on the rapid development of infrastructure, especially rail, roads and power. Efforts to fast-track the modernization of our railway system is a priority in the 2017 Budget. In 2016, we made a lot of progress getting the necessary studies updated and financing arrangements completed. We also addressed some of the legacy contractor liabilities inherited to enable us to move forward on a clean slate. Many of these tasks are not visible but are very necessary for sustainability of projects. Nigerians will soon begin to see the tangible benefits in 2017.

20. We also have an ambitious programme for growing our digital platforms in order to modernise the Nigerian economy, support innovation and improve productivity and competitiveness. We will do this through increased spending on critical information technology infrastructure and also by promoting policies that facilitate investments in this vital sector.

21. During 2016, we conducted a critical assessment of the power sector value chain, which is experiencing major funding issues. Although Government, through the CBN and other Development Finance Institutions has intervened, it is clear that more capital is needed. We must also resolve the problems of liquidity in the sector. On its part, Government has made provisions in its 2017 Budget to clear its outstanding electricity bills. This we hope, will provide the much needed liquidity injection to support the investors.

22. In the delivery of critical infrastructure, we have developed specific models to partner with private capital, which recognize the constraints of limited public finances and incorporate learnings from the past. These tailor-made public private partnerships are being customized, in collaboration with some global players, to suit various sectors, and we trust that, the benefits of this new approach will come to fruition in 2017.

23. Fellow Nigerians, although a lot of problems experienced by this Administration were not created by us, we are determined to deal with them. One of such issues that the Federal Government is committed to dealing with frontally, is the issue of its indebtedness to contractors and other third parties. We are at an advanced stage of collating and verifying these obligations, some of which go back ten years, which we estimate at about N2 trillion. We will continue to negotiate a realistic and viable payment plan to ensure legitimate claims are settled.

2016 Budget Performance

24. In 2016, the budget was prepared on the principles of zero based budgeting to ensure our resources were prudently managed and utilized solely for the public good. This method was a clear departure from the previous incremental budgeting method. We have adopted the same principles in the 2017 Budget.

25. Distinguished members of the National Assembly may recall that the 2016 Budget was predicated on a benchmark oil price of US$38 per barrel, oil production of 2.2 million barrels per day and an exchange rate of N197 to the US dollar.

26. On the basis of these assumptions, aggregate revenue was projected at N3.86 trillion while the expenditure outlay was estimated at N6.06 trillion. The deficit of N2.2 trillion, which was about 2.14% of GDP was expected to be mainly financed through borrowing.

27. The implementation of the 2016 Budget was hampered by the combination of relatively low oil prices in the first quarter of 2016, and disruptions in crude oil production which led to significant shortfalls in projected revenue. This contributed to the economic slow-down that negatively affected revenue collections by the Federal Inland Revenue Service and the Nigerian Customs Service.

28. As at 30 September 2016, aggregate revenue inflow was N2.17 trillion or 25% less than prorated projections. Similarly, N3.58 trillion had been spent by the same date on both recurrent and capital expenditure. This is equivalent to 79% of the pro rated full year expenditure estimate of N4.54 trillion as at the end of September 2016.

29. In spite of these challenges, we met both our debt service obligations and personnel costs. Similarly, overhead costs have been largely covered.

30. Although capital expenditure suffered as a result of project formulation delays and revenue shortfalls, in the five months since the 2016 Budget was passed, the amount of N753.6 billion has been released for capital expenditure as at the end of October 2016. It is important to note that this is one of the highest capital releases recorded in the nation’s recent history. In fact, it exceeds the aggregate capital expenditure budget for 2015.

31.Consequently, work has resumed on a number of stalled infrastructure projects such as the construction of new terminals at the country’s four major airports; numerous major road projects; key power transmission projects; and the completion of the Kaduna – Abuja railway to mention a few.

32. We remain resolute in our commitment to the security of life and property nationwide. The courageous efforts and sacrifices of our heroes in the armed forces and para military units are clear for all to see. The gradual return to normality in the North East is a good example of the results. Our resolve to support them is unwavering. Our spending in the 2016 fiscal year focused on ensuring these gallant men and women are properly equipped and supported. We will continue to prioritise defence spending till all our enemies, within and outside, are subdued.

33. Stabilisation of sub-national government finances remains a key objective in our plans to stimulate the economy. In June 2016,a conditional Budget Support Programme was introduced, which offered State Governments N566 billion to address their funding shortfalls. To participate, State Governments were required to subscribe to certain fiscal reforms centered around transparency, accountability and efficiency. For example, States as part of this program were required to publish audited accounts and introduce biometric payroll systems with the goal of eliminating ghost workers.

34. Our efforts on cost containment have continued throughout the year. We have restricted travel costs,reduced board members’ sitting allowances, converted forfeited properties to Government offices to save on rent and eliminated thousands of Ghost workers. These, and many other cost reduction measures will lead to savings of close to N180 billion per annum to be applied to critical areas including health, security and education.

2017 Budget Priorities

35. Let me now turn to 2017 Budget.Government’s priorities in 2017 will be a continuation of our 2016 plans but adjusted to reflect new additions made in the Economic Recovery and Growth Plan. In order to restore growth, a key objective of the Federal Government will be to bring about stability and greater coherence between monetary, fiscal and trade policies while guaranteeing security for all.

36. The effort to diversify the economy and create jobs will continue with emphasis on agriculture, manufacturing, solid minerals and services. Mid- and Down-stream oil and gas sectors,are also key priority areas. We will prioritise investments in human capital development especially in education and health, as well as wider social inclusion through job creation, public works and social investments.

37. Our plans also recognise that success in building a dynamic, competitive economy depends on construction of high quality national infrastructure and an improved business environment leveraging locally available resources. To achieve this, we will continue our goal of improving governance by enhancing public service deliveryas well as securing life and property.

The 2017 Budget: Assumptions, Revenue Projections and Fiscal Deficit

38. Distinguished members of the National Assembly, the 2017 Budget is based on a benchmark crude oil price of US$42.5 per barrel; an oil production estimate of 2.2 million barrels per day; and an average exchange rate of N305 to the US dollar.

39. Based on these assumptions, aggregate revenue available to fund the federal budget is N4.94 trillion. This is 28% higher than 2016 full year projections. Oil is projected to contribute N1.985 trillion of this amount.

40. Non-oil revenues, largely comprising Companies Income Tax, Value Added Tax, Customs and Excise duties, and Federation Account levies are estimated to contribute N1.373 trillion. We have set a more realistic projection of N807.57 billion for Independent Revenues, while we have projected receipts of N565.1 billion from various Recoveries. Other revenue sources, including mining, amount to N210.9billion.

41. With regard to expenditure, we have proposed a budget size of N7.298trillion which is a nominal 20.4% increase over 2016 estimates. 30.7% of this expenditure will be capital in line with our determination to reflate and pull the economy out of recession as quickly as possible.

42. This fiscal plan will result in a deficit of N2.36 trillion for 2017 which is about 2.18% of GDP. The deficit will be financed mainly by borrowing which is projected to be about N2.32 trillion. Our intention is to source N1.067 trillion or about 46% of this borrowing from external sources while, N1.254 trillion will be borrowed from the domestic market.
Expenditure Estimates

43. The proposed aggregate expenditure of N7.298 trillion will comprise:
i. Statutory transfers of N419.02 billion;
ii. Debt service of N1.66 trillion;
iii. Sinking fund of N177.46 billion to retire certain maturing bonds;
iv. Non-debt recurrent expenditure of N2.98trillion; and
v. Capital expenditure of N2.24 trillion (including capital in Statutory Transfers).
Statutory Transfers

44. We have increased the budgetary allocation to the Judiciary from N70 billion to N100 billion. This increase in funding is further meant to enhance the independence of the judiciary and enable them to perform their functions effectively.
Recurrent Expenditure

45. A significant portion of recurrent expenditure has been provisioned for the payment of salaries and overheads in institutions that provide critical public services. The budgeted amounts for these items are:
· N482.37 billion for the Ministry of Interior;
· N398.01 billion for Ministry of Education;
· N325.87 billion for Ministry of Defence; and
· N252.87 billion for Ministry of Health.

46. We have maintained personnel costs at about N1.8 trillion.It is important that we complete the work that we have started of ensuring the elimination of all ghost workers from the payroll. Accordingly, adequate provision has been made in the 2017 Budget to ensure all personnel that are not enrolled on the Integrated Personnel Payroll Information System platform are captured.

47. We have tasked the Efficiency Unit of the Federal Ministry of Finance to cut certain overhead costs by 20%. We must eliminate all non-essential costs so as to free resources to fund our capital expenditure.
Capital Expenditure

48. The size of the 2017 capital budget of N2.24 trillion (inclusive of capital in Statutory Transfers), or 30.7% of the total budget, reflects our determination to spur economic growth. These capital provisions are targeted at priority sectors and projects.

49. Specifically, we have maintained substantially higher allocations for infrastructural projects which will have a multiplier effect on productivity, employment and also promote private sector investments into the country.

50. Key capital spending provisions in the Budget include the following:
• Power, Works and Housing: N529billion;
• Transportation: N262 billion;
• Special Intervention Programmes: N150 billion.
• Defence: N140 billion;
• Water Resources: N85 billion;
• Industry, Trade and Investment: N81 billion;
• Interior: N63 billion;
• Education N50 billion
• Universal Basic Education Commission: N92 billion
• Health: N51 billion
• Federal Capital Territory: N37 billion;
• Niger Delta Ministry: N33 billion; and
• Niger Delta Development Commission: N61 billion;

51. N100 billion has been provided in the Special Intervention programme as seed money into the N1 trillion Family Homes Fund that will underpin a new social housing programme. This substantial expenditure is expected to stimulate construction activity throughout the country.

52. Efforts to fast-track the modernization of our railway system will receive further boost through the allocation of N213.14 billion as counterpart funding for the Lagos-Kano, Calabar-Lagos,Ajaokuta-Itakpe-Warri railway, and Kaduna-Abuja railway projects. As I mentioned earlier, in 2016, we invested a lot of time ensuring the paper work is done properly while negotiating the best deal for Nigeria. I must admit this took longer than expected but I am optimistic that these projects will commence in 2017 for all to see.

53. Given the emphasis placed on industrialization and supporting SMEs, a sum of N50 billion has been set aside as Federal Government’s contribution for the expansion of existing, as well as the development of new, Export Processing and Special Economic Zones. These will be developed in partnership with the private sector as we continue our efforts to promote and protect Nigerian businesses. Furthermore, as the benefits of agriculture and mining are starting to become visible, I have instructed that the Export Expansion Grant be revived in the form of tax credits to companies. This will further enhance the development of some agriculture and mining sector thereby bringing in more investments and creating more jobs. The sum of N20 billion has been voted for the revival of this program.

54. Our small- and medium-scale businesses continue to face difficulties in accessing longer term and more affordable credit. To address this situation, a sum of N15 billion has been provided for the recapitalization of the Bank of Industry and the Bank of Agriculture. In addition, the Development Bank of Nigeria will soon start operations with US$1.3 billion focused exclusively on Small and Medium-Sized Enterprises.

55. Agriculture remains at the heart of our efforts to diversify the economy and the proposed allocation to the sector this year is at a historic high of N92billion. This sum will complement the existing efforts by the Federal Ministry of Agriculture and CBN to boost agricultural productivity through increased intervention funding at single digit interest rate under the Anchor Borrowers Programme, commercial agricultural credit scheme and The Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending.Accordingly, our agricultural policy will focus on the integrated development of the agricultural sector by facilitating access to inputs, improving market access, providing equipment and storage as well as supporting the development of commodity exchanges.

56. Government realizes that achieving its goals with regard to job creation, also requires improving the skills of our labour force, especially young people. We have accordingly made provision, including working with the private sector and State Governments, to establish and operate model technical and vocational education institutes.

57. We propose with regard to healthcare to expand coverage through support to primary healthcare centres and expanding the National Health Insurance Scheme.

58. The 2017 Budget estimates retains the allocation of N500 billion to the Special Intervention programme consisting of the Home-grown School Feeding Programme, Government Economic Empowerment programme, N-Power Job Creation Programme to provide loans for traders and artisans, Conditional Cash Transfers to the poorest families and the new Family Homes Fund (social housing scheme). The N-Power Programme has recently taken off with the employment of 200,000 graduates across the country, while the School Feeding Programme has commenced in a few States, where the verification of caterers has been completed

59. As we pursue economic recovery, we must remain mindful of issues of sustainable and inclusive growth and development. The significant vote for the Federal Ministry of Water Resources reflects the importance attached to integrated water resource management. In this regard, many river-basin projects have been prioritized for completion in 2017. Similarly, the increased vote of N9.52 billion for the Federal Ministry of Environment (an increase of 92% over the 2016 allocation) underscores the greater attention to matters of the environment, including climate change and leveraging private sector funding for the clean-up of the Niger Delta.

60. Provision has also been made in these estimates for activities that will foster a safe and conducive atmosphere for the pursuit of economic and social activities. In this regard, the allocation for the Presidential Amnesty Programme has been increased to N65 billion in the 2017 Budget. Furthermore, N45 billion in funding has been provisioned for the rehabilitation of the North East to complement the funds domiciled at the Presidential Committee on the North East Initiative as well as commitments received from the multinational donors.

Conclusion

61. Mr. Senate President, Mr. Speaker, distinguished and honourable members of the National Assembly, I cannot end without commending the National Assembly for its support in steering our economy on a path of sustained and inclusive growth. 

This generation has an opportunity to move our country from an unsustainable growth model – one that is largely dependent on oil earnings and imports, to an economy that focuses on using local labour and local raw materials. We cannot afford to let this opportunity slip by. 

We must all put our differences aside and work together to make this country succeed. The people that voted us into these esteemed positions are looking to us to make a difference. To change the course of this nation. I have no doubt in my mind that by working together, we will put Nigeria back on the path that its founding fathers envisaged.

62. This Budget, therefore, represents a major step in delivering on our desired goals through a strong partnership across the arms of government and between the public and private sectors to create inclusive growth. Implementation will move to centre-stage as we proceed with the process of re-balancing our economy, exiting recession and insulating it from future external and domestic shocks.
63. I thank you all for your patience and patriotism.




 
















Sunday, December 11, 2016

South-East Economic & Security Summit to hold Dec. 22, 2016

As part of efforts to build peace and engender progress and development throughout Nigeria’s southeast   region, the maiden South-East Economic & Security Summit - SEESS 2016 - has been convened for 22nd December 2016 at the Enugu State Government House, Independence Layout, Enugu.
 
The summit, which is an initiative of the South-East Economic & Security Summit (SEESS) Group - a non-governmental organization made up of top business, military, political, religious and community leaders from Nigeria’s southeast region – has the full commitment and support of the Governors from the five southeastern states, and is endorsed by the Federal Government of Nigeria.
 
Speaking on behalf of the Group, Professor Barth Nnaji, a former Minister of the Federal Republic and Chairman of Geometric Power Limited, disclosed that SEESS 2016 is aimed at addressing real issues affecting the peace and development of the southeast, proffering practical solutions and initiating a definitive course of action with pragmatic delineation of roles towards fast-paced economic and secure advancement of the region.
 
According to him: “This summit will not be a mere talk-shop; it will be a meeting where specific problems are defined, projects to address the problems are adopted, and what the various stakeholders roles - including that of the Federal Government - in solving the problems are also presented. Key areas of focus will include security, agriculture, infrastructure, health tourism, as well as financing the region’s economic program.”
 
Professor Nnaji also revealed: “SEESS 2016 will be an invitation-only event with delegates drawn from the leaders of the Southeast, Presidency, National Assembly, State Governments, the diplomatic community, top local and international business leaders and investors, multinational corporations, bankers and financiers, the academia, security experts, civil society groups, religious bodies and other non-governmental organisations.”
Southeast Nigeria is one of the six geopolitical zones in the country. It is made up of five states including Abia, Anambra, Ebonyi, Enugu, Imo.
 

Saturday, December 10, 2016

OPC Heroes & Award Day At Century Hotel, Okota, Lagos.

Founder & President, Oodua People’s Congress, (OPC), Dr. Frederick Fasehun, (3rd left), others from left, His Royal Majesty, Oba Olusegun Abisoye Okikiola, Alagbara of Agbara, receiving an award of Excellence,Deputy President, OPC, Mr. Wasiu Afolabi and 1st Vice President OPC, Alhaji  Lateef Lawal(JP) at Century Hotel, Okota, Lagos.


Buhari presents 2021 Budget to National Assembly

President Muhammadu Buhari Thursday , 8,October, 2020, formally tabled the Executive’s proposed budget for the 2021 fiscal year to a joint s...