Lack of Fund Management Hampers Nigeria’s Efforts, as the rainy season descends upon Nigeria once again, the country grapples with the devastating consequences of flooding and other ecological problems in various regions. While the states often find themselves overwhelmed by the extent of the damage, even the intervention of the Federal Government through the Ecological Fund fails to effectively address these issues. In this comprehensive report, we delve into the management of the fund, which has fallen short of expectations and has yet to deliver the desired results.
Established in 1985 under the Federation Account Act of 1981, the Ecological Fund operates under the office of the Secretary to the Federal Government of the Federation. The primary objective of this office is to have a dedicated pool of funds exclusively allocated to financing ecological projects aimed at mitigating serious ecological problems. It draws its resources from the one percent of the Federation Account known as the Derivation and Ecology Fund.
In July 2021, the Federal Executive Council (FEC) approved a substantial amount of N16.04 billion for projects targeting soil erosion/flood and pollution control in 12 states and the federal capital territory (FCT). Despite such initiatives, the utilization of the Ecological Fund has come under scrutiny. Last year, the House of Representatives Committee on Ecology initiated an investigation into the disbursement of funds to states and agencies through the Ecological Fund, prompted by its visit to flood-affected states.
During its inaugural investigative hearing held in Abuja, the committee raised concerns regarding the National Agricultural Land Development Authority (NALDA), citing improper utilization of the ecological funds it received. NALDA’s Director-General, Paul Ikonne, presented the committee with detailed information on the funds the organization had received since the previous year.
However, Chairman Ibrahim Isiaka expressed dissatisfaction with the presentation, indicating that the committee had numerous queries and questions. Furthermore, the committee summoned the management of the National Emergency Management Agency (NEMA) for further investigation. These incidents shed light on a much larger problem, as several agencies and state governments have been found wanting in their use of the Ecological Fund.
Chairman Isiaka emphasized that those who refused to appear before the committee or respond to their letters would face consequences. He lamented the prevalent lip service and frivolous approach adopted by individuals and states in their pursuit of devolution of powers, perpetuating a dependence on the central government.
Consequently, the House of Representatives instructed the Federal Ministry of Finance and the Office of Accountant-General of the Federation to suspend the allocation of funds from the Ecological Fund to specific agencies until ongoing investigations into past allocations are concluded. The agencies affected by this directive, apart from NEMA, include the National Agency for the Great Green Wall, the North-East Development Commission (NEDC), and the National Agricultural Land Development Authority. The House also mandated its Committee on Ecological Fund to probe the release and utilization of funds over the past three years.
Chairman Isiaka acknowledged that these four agencies had deviated from the mandate of the Ecological Fund. He disclosed that NEMA receives 20 percent from the fund, while the National Agency for the Great Green Wall and NEDC receive 15 percent and 18 percent, respectively. Isiaka expressed his disappointment with the lack of accountability among these agencies, despite efforts in previous years to hold them responsible. He assured that the committee would persist in its pursuit of justice until outstanding issues are resolved.
Renowned human rights activist, Femi Falana (SAN), called upon the Federal Government to investigate the management of the Ecological Fund. During a convocation event at Augustine University, Ilara, Epe, Lagos, Falana expressed concern over the devastating impact of recent flooding, asserting that it was unjust to expect citizens to hold state governments accountable for national disasters. He advocated for the submission of a petition to the Economic and Financial Crimes Commission (EFCC) to investigate the mismanagement of the Ecological Fund, which he considered a crime against humanity.
Falana argued that the mismanagement of the Ecological Fund had resulted in the loss of countless lives, the displacement of millions of people, and the destruction of properties worth trillions of Naira. He criticized the former Minister of Water Resources, Suleiman Adamu, for dismissing the floods as an “act of God” and urged the government to prioritize measures aimed at mitigating flooding. He called for the release of funds from the Ecological Fund to affected states to provide relief materials and compensation for the victims.
The issue of gully erosion featured prominently in discussions about ecological challenges. Anambra State, for instance, witnessed the destruction of over 70 percent of its land due to gully erosion and Lack of Fund Management Hampers Nigeria’s Efforts. Felix Odumegwu, the state’s former Commissioner for the Environment, expressed concern over the precarious situation during the Nigeria Erosion Watershed Management Project (NEWMAP)-Implementation Completion and Result Report Mission (ICRM) opening ceremony. The erosion menace threatened lives, properties, and over 70 percent of the state’s landmass. Odumegwu stressed the urgent need for preemptive erosion management to curb its devastating impact.
In Abia State, the President-General of the Ebem Ohafia Development Union in Ohafia Local Government Area, Emeka Mba, highlighted the severe threat posed by gully erosion to homes in the community. He lamented the encroachment of erosion upon their community and the consequent abandonment of ancestral homes by affected families. The erosion had also resulted in deaths and forced community members to live in makeshift apartments, paying rent for temporary shelters. Mba called for immediate action to protect the community and prevent further loss of property and lives.
Dr. Joseph Daniel Onoja, the Director-General of the Nigeria Conservation Foundation (NCF), emphasized the mismanagement of the Ecological Fund and its failure to address the nation’s environmental challenges adequately. He revealed that some governors misused the fund as part of their security vote, diverting it from its intended purpose. Onoja highlighted the urgent need for investment in environmental conservation and the dire consequences of neglecting ecological issues, such as the farmer-herder conflicts. He urged policymakers and political leaders to adopt measures that would improve resource management and prevent conflicts arising from competing interests.
The mismanagement of the Ecological Fund in Nigeria hampers the country’s ability to effectively tackle flooding and other environmental challenges. Despite the availability of substantial resources, the fund has been misused, diverted, and underutilized. It is essential to address this issue urgently by ensuring transparency, accountability, and responsible allocation of the fund. Only through proper management and a genuine commitment to addressing ecological issues can Nigeria protect its people, preserve the environment, and mitigate the devastating effects of natural disasters.
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