The Achievement of General Muhammadu Buhari At PTF
General Muhammadu Buhari To PTF Contractors ---- “Perform Well, You Get a Handshake. If You Perform Bad, You Get a Handcuff”
General Muhammadu Buhari was fond of telling contractors on visit to sites: If you perform well, you get a handshake. If you perform badly, you get a handcuff.
Obasanjo never hid his disgust for General Sani Abacha who had jailed him for a phantom coup. Released from jail and still wallowing in a fit of new found spirituality, he wrote a book and called it. The Animal Called Man. And he elected to wage a battle on this Animal Called Man. While taking his oath of office at the Eagle Square on 27th May, 1999, he had pledged to wrestle corruption out of our national psyche. In a fit of mediaeval triumphalism, he chanted: there will be no sacred cows!
But his first attack was a disaster. No sooner had he made that declaration than he dispatched Mallam Haroun Adamu to the headquarters of the Petroleum Trust Fund (PTF), an intervention agency run by General Muhammadu Buhari, to start the war on corruption. Haroun Adamu’s public brief was to wind down PTF but the hidden one was to disgrace General Buhari by exposing the shady deals in PTF.
Contractors working for PTF were used to picking their cheques across the counter without much ado. Under the new inquisitor, contractors discovered they now had to oil their cheques out, something alien to the PTF they knew. They cried foul. And there were several other fouls after the first foul. To say that Obasanjo was thoroughly embarrassed by his minions would be an understatement, so much so that till date he does not discuss PTF in public.
As a General, it would appear that Obasanjo read Sun Tzu’ s The Art of War upside down. Sun Tzu had counselled: Know thyself; know thy enemy. You will fight a thousand battles without defeat. The blitzkrieg he deployed only showed he did not know PTF. He might not have needed to fire a shot to win or wean PTF. To date, most Nigerians knew how PTF started, what it did but not how it ended. Not known as one who forgives, was it not surprising that General Buhari walked the streets with his head high throughout Obasanjo’s imperial majesty when the fear of EFCC was the beginning of political wisdom?
In October 1994, General Sani Abacha increased the pump price of petrol from N3.25k to N11.00 per litre. Nigerians assailed him with criticisms for this unpopular move and to assuage their feelings, he quickly established the Petroleum (Special) Trust Fund to use a portion of the proceeds of the increase to intervene in critical sectors of the economy. Nigerians never took Abacha seriously on this project until Gen Muhammadu Buhari was announced and inaugurated the chairman of the PTF in March 1995. That PTF awarded contracts worth billions of naira is not news. The news the PTF made within the four years it existed was and still is that contracts awarded were executed to their logical conclusion and for those not executed, the PTF got every kobo back. Before PTF, contractors were used to abandoning contracts and bolting away with their advance payments. It never happened in PTF. When Buhari visited the Onitsha end of the Enugu-Onitsha express way awarded to a local contractor and discovered the job was abandoned, he simply called on the bank that guaranteed the contractor to pay back. There and then, the contract was terminated and later awarded to another contractor. From that moment, banks and insurance companies that provided bonds to contractors learnt that the old order had changed and had to monitor projects it guaranteed.
For the years it existed, PTF published its annual reports and always addressed press conferences to respond to issues arising from the reports. And each time it did, it challenged anybody who could deliver on any of its projects at a price cheaper than what it cost the PTF to submit his proposal. Nobody ever did.
In one of the presentations of its annual report, the Executive Secretary of the Board of the PTF, Chief Tayo Akpata, maintained that the roads constructed by the PTF not only cost less than World Bank funded roads but were also better qualitatively. He challenged anyone to prove the contrary. Until the PTF was scrapped, nobody did.

While the PTF existed, contractors never needed to lobby and grease palms to get LPO’s. You only needed to belong to the appropriate group of the Manufacturers Association of Nigeria and other professional groups to qualify. Not a few contractors received requests to supply the PTF in the comfort of their offices. It was so unbelievably true that some had to travel to Abuja to reconfirm if the LPO’s they received were genuine. And genuine they were.
To be paid for a completed contract, all the contractor needed was to present a certificate of completion issued by the ubiquitous consultants engaged by the PTF and his cheque would be prepared. And with a proper letter of introduction, a contractor could send a third party to pick his cheque across a counter in the Finance Department without any ceremony. One cannot also forget in a hurry the PTF drug revolving scheme. Under this, the PTF set up offices in hospitals across the country and supplied them with drugs. The financial consultants employed by the Fund ensured that receipts from the sales of the drugs were used to replenish the stocks in an unending cycle that banished out-of-stock anthem the Nigerian publics were forced to listen to before then. And it was not easy to divert PTF drugs to the parallel market. The smallest tablet supplied had PTF logo engraved on it. Somebody attempted diverting the drugs and was caught. General Buhari took up the case personally and ensured the culprit went to jail. After that, nobody heard of diversions again.
The strategy of the PTF in procuring these drugs is worth reviewing. Over 60% of the drugs supplied to the PTF were locally produced. In fact, the PTF only imported drugs that could not be produced by the local pharmaceutical firms. The pressure on the existing pharmaceutical companies was so much that almost all these firms had to increase their capacity by expanding and employing more hands. Neimeth Pharmaceuticals, Emzor Pharmaceuticals among others can be contacted to affirm or disprove this. This policy was deliberately made to ensure that more jobs were created within the economy. Builders who built for PTF would also tell you that they were not allowed to import paints. There was a list of all the paint manufacturers in the country maintained at the PTF from which builders bought paints. Within the same period, the capacity utilisation in these companies soared as they expanded and created more jobs. A look at the records kept by IPWA plc and other existing paint makers within the period under review is worth attempting to digest the profundity of the PTF intervention in the building sector; and other sectors it intervened in as its model was so overarching that critics labelled it the alternative government.

This column is not enough to put in a proper perspective the job General Buhari undertook and did while in PTF but it suffices through this glimpse to understand the mindset and the strategy of this maelstrom which the ruling elite hate for his forthrightness – a quality in short supply in governance today.
One can cite the number of roads and hospitals rehabilitated by the PTF. One can also quote the billions it spent. The essence of the PTF, however, lies more in the multiplier effect its intervention had on the economy as a whole than in the number of what it did, which on its own was equally impressive. This distinction is what differentiates growth from development. While the former is quantitative, the latter is qualitative. As a political economist, I know that the economic development of any third world country lies in qualitative transformation.
Before the coming of PTF, General Ibrahim Badamasi Babangida had introduced the Structural Adjustment Programme (SAP) which he had claimed had no alternative. The revered economist, Professor Sam Aluko, had also reminded him that economics was a science of alternatives; that even death had an alternative which was life and that SAP was a kiss of death. IBB was to acknowledge the failure of SAP when out of frustration around 1991, he exclaimed that the Nigerian economy had defied all known economic theories and was surprised that the economy had not collapsed.
The economy did not collapse. The PTF intervention ensured it did not. This was the lesson OBJ failed to grasp when he dissolved the Fund with executive fiat in 1999. As at 1997, funds available to the PTF was about N115 billion and Nigerians could point at projects the fund was expended on. A decade after PTF, the governments from OBJ’s to date had spent much more than that in the power sector alone and have not been able to generate even a megawatt more of electricity.
Managing public funds is serious business. General Muhammadu Buhari was fond of telling contractors on visit to sites: If you perform well, you get a handshake. If you perform badly, you get a handcuff. This is the mantra we need at this historical juncture. The man that incarnates this mantra out of the available presidential candidates is General Muhammadu Buhari.
There is also a lesson to be learnt from the day Buhari left PTF. Obasanjo, on assumption of office, announced the setting up of the interim management committee led by Mallam Haroun Adamu to wind down PTF. The following day, Buhari addressed a press conference and invited the new management to immediately take over. He told Nigerians that everything the new management needed were in the records to which they would have unhindered access. He bid his staff farewell, descended the stairs, literally jumped into his four wheel drive that took him home to Daura. He never stepped into that premises again to this day. And he never fled the country to escape the EFCC.

The Petroleum Trust Fund, headed by former President, Gen. Buhari, has confounded all its critics. As a development agency, it has succeeded spectacularly where all others failed. Pini Jason has the details.

The one silver lining to emerge from the current heavy economic cloud must be the performance of the Petroleum (Special) Trust Fund (PTF). In October 1994, General Sani Abacha hiked the pump price of petrol from N3.25 to N11 per litre, promising, with Decree 25, to set up a Petroleum Trust Fund to distribute the gains from the increase on social and infrasturctural projects. The board of the fund, headed by former Head of State, Major-General Muhammadu Buhari, was eventually inaugurated on March 21, 1995.

The Fund began with an initial capital of about N60bn in 1996. Its all encompassing mandate includes the rehabilitation of roads and waterways, educational and health institutions, providing textbooks and stationary, procuring essential drugs and vaccines, providing water supply systems, reviving crumbling agricultural sectors, connecting outlying areas to the national electricity grid, extending railways and telecommunications and ensuring consistent food supply.

The huge budget and all-embracing mandate earned PTF some criticisms. Some dubbed it "the alternative government," accusing it of duplicating the responsibilities of other existing government agencies. There was for instance an initial conflict about who should be tarring which road, between PTF and the Federal Ministry of Works and Housing.

Yet, for once, other Nigerians began to hope that here was an agency that took its work seriously. The question was: could it carry out its entire mandate, or even a part of it? Everyone waited to see what would happen.

Initially PTF awarded contracts for the rehabilitation of 12,000km of federal highways (including drainages) nationwide, and between 25-100km of urban road in major cities such as Gusau, Benin, Funtua, Zaria, Enugu, Kaduna, Aba, Lagos, Lokoja, and Port Harcourt. A N27.3bn contract was awarded for road rehabilitation in the first quarter of 1996. The sum of N1.328bn was awarded to 53 pharmaceutical companies for the supply of drugs, while the importation of vaccines cost N229.9m. As at December 31, 1997, funds available to PTF stood at N115.1bn.

One thing even the most uncharitable critic of PTF will admit is that it has evolved a new way of doing things. This is true to its mission statement which is 'to establish and operate an open, modest and efficient organisation for the purpose of achieving the honest and timely execution of carefully designed socio-economic projects.'

Right from its inception, the Head of State directed the fund to operate a lean bureaucracy. It depends therefore largely on consultants supervised by Afri-Projects Consortium, the management consultant to PTF. This policy has created jobs and boosted the confidence of Nigerian professionals such as architects, engineers and quantity surveyors.

In many other ways, PTF has thrown a lifeline to dying sectors of the economy. Most of Nigeria's pharmaceutical companies were failing, and the foreign multinationals were divesting. But through its drugs procurement programme, PTF has turned the balance sheet of most of them into profit. Equipment and car leasing companies are also benefitting from the multiplier effects of PTF operations.

Banks and insurance companies have also benefited. Nigeria has a history of contractors collecting mobilisation (advance) fees and not carrying out the contract. But not with PTF. Every advance payment up to N10m must be guaranteed by a PTF-approved bank, while other advance payments are covered by performance bonds issued by similarly approved insurance companies. This method, apart from increasing solvency through cash deposits, has created business for banks and insurance companies.

One of the insurance companies that has benefited from PTF as a provider of performance bonds is The United Nigeria Insurance Company (UNIC), a composite insurance company which provides both life and non-life insurance. The total assets of UNIC stood at N979m while it grossed premium income of N916m and settled claims of N263m in 1996. With a staff of 552 spread all over its nationwide branch network, UNIC is today one of the leading insurance company in Nigeria.

Another company that has done good business with PTF is IPWA plc, formerly International Paints (West Africa) Ltd. IPWA is today one of the biggest and most diversified paint manufacturers in Nigeria. The company product range spans automotive paints, building paints, industrial coatings and marine coatings. Others are packaging coatings, protective coatings and wood finishes.

Most PTF contractors, specialist advisers and consultants lease and use computers, fax machines, printers and photocopiers. This has provided a new market for computer companies like Leading Edge Ltd., headed by Mr Tony Edoro, the managing director. Leading Edge is foremost in cloning computers with parts from diverse companies such as US Micro-Generation, IBM Direct, Merisel and Gateway. According to Mr Edoro, a widely experienced computer systems engineer, the advent of PTF has been good for Leading Edge. The company's turnover has grown from N50m in 1995 to well over N100m in 1997.

Apart from energising several sectors of the economy, PTF is also setting the pace in another direction. In the words of Mr Salihijo Ahmad, of Afri-Projects Consortium, the twin objectives of PTF are to "rehabilitate infrastructures and reorientate the people." This the fund does through its insistence on transparency even though some critics still accuse it of lopsidedness in project execution and selection of consultants and contractors.

In a country dogged by lack of transparency, PTF is the first, and perhaps the only public institution in Nigeria to publish its annual accounts. Last year, when he presented the annual report and accounts of 1996, Gen. Buhari promised to present the 1997 accounts before the end of the first quarter of 1998. He fulfilled that promise.

The 1997 account of PTF shows that it disbursed N24.3bn on roads, N21.2bn on security, N7.8bn on health, and N3bn on other projects. Other disbursements include N2.2bn on water supply, N936m on food supply and N476m on education. It realised a total of N1.049bn from various investment activities.

Reviewing the success story of PTF, Gen. Buhari said: "We have consolidated our execution of the take-off projects for the previous year and increased our intervention within the sectors. There is no doubt that the years ahead will witness even more intervention, as reports of some of the studies commissioned are received and project execution commenced."

The fund has embarked on community education to sensitise and enlighten communities of its activities. The idea is to bring recipients closer to the objectives of the fund, so that they can participate in project identification and selection as well as eventual PTF projects in their areas.

One aspect of the overall project that the public has raised an eyebrow over is the Armed Forces PTF. According to Gen. Buhari, PTF is under instruction to allocate 20% of its funds to the armed forces, and another 1% to the Federal Capital Territory. The allocation to the Armed Forces is probably a continuation of a practice that started during Gen. Babangida's time when he used to allocate excess revenue from the projected price of crude directly to the commanding officers. But what worries critics of PTF is that the military is not accountable to anyone regarding its utilisation of funds. Moreover, critics question the wisdom of allocating such a huge chunk to the military (who also usually takes the lion's share of the budget) over and above food supply, education and health. Apart from roads, the allocation to all other sectors does not add up to the Armed Forces PTF allocation.

Nobody knows how long PTF, a purely intensive intervention agency, will last or whether there will be a place for such an agency under a democratic set up. That decision, Gen. Buhari said, will be up to Nigerians. For now his preoccupation is to rehabilitate infrastructure and reorientate the people towards a new, effective and efficient way of executing uninflated contracts without kickbacks and without consuming mobilisation fees. Said Gen. Buhari to PTF contractors: "If you perform well, you get a hand shake. If you perform badly, you get a handcuff."

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