• Thursday, April 25, 2024
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BusinessDay

Here’s what Abba Kyari’s death means for Nigerian economy

Abba Kyari

The death of Abba Kyari, President Muhammadu Buhari’s chief of staff, could affect more than the political dynamics in the country.

Kyari, who contracted the deadly Coronavirus on an official trip in March to negotiate a power deal with officials of German electric company Siemens AG— that was meant to take a fresh stab at resolving Nigeria’s many struggles to keep the lights on, died Friday April 17 according to an official statement by the presidency.

Late Kyari was one of the most influential persons in Nigeria by virtue of his office as chief of staff.

Sources close to the presidency say he was one of President Buhari’s most trusted adviser.

He was described as the defacto head of the government because in a country where the presidency holds an inordinate amount of centralized power and government funds, deciding who has access to the president accords immense power and influence.

Kyari’s passing is a major blow to the Buhari presidency particularly as it leaves a gaping hole in the administration of the country at a time when it is faced with the double whammy of the Coronavirus outbreak and collapse in crude oil receipts. Both factors are likely to tip Nigeria’s economy into its worst recession in 30 years according to the International Monetary Fund (IMF).

Kyari’s death could potentially throw a spanner in the Siemens power deal even though some expect the deal to be followed through by the Minister of Power, Saleh Mamman.

The deal is crucial for the economy as it is supposed to result in a doubling of Nigeria’s electricity generation and raise distribution capacity three-fold to 11,000 MW by 2023.

The worry however is that the deal may be hijacked by people who wield a stronger influence than Mamman with Kyari now out of the way.

The enthusiasm with which Kyari pushed for the deal, even risking his life by traveling to Germany despite the rising spread of Covid-19, is perhaps a sign of just how much seeing the deal through meant to him.

Kyari’s death could also affect the speed of decision-making within the highest levels of government, where the shots are made for the economy in dire need of reforms.

That would be particularly telling at a time where Nigeria is faced with unprecedented economic challenges that would require the best hands to fix.

Kyari was considered the brains behind the Buhari administration and was described as an intellectual by those he came in contact with.

Kyari, who had worked at the likes of Unilever Nigeria Plc and Exxon Mobil Corp.’s Nigerian unit, held degrees from the University of Cambridge and University of Warwick in law and sociology.

His demise could spell the end to his largely socialist ideas which economists argue have held back the economy, but it could also leave a vacuum in the economy too big to go unnoticed.

With a new appointment expected to follow, Kyari’s strong personality and pro-activeness may perhaps be what the economy misses the most with President Buhari in charge.

“With Kyari’s death, Nigeria is now truly leaderless,” said Farooq Kperogi, a professor of journalism at Kennesaw State University and political commentator.

“Sometime in the midpoint of last year, a northern retired general told me Abba Kyari said in private that people who vilify him don’t realize that without him Nigeria would be rudderless and descend into chaos. Now, he is gone, and the chaos he talked about would start in the coming days,” Kperogi said via his twitter handle Saturday.

Calling the shots

Late Kyari, who was appointed in 2015, was a trusted figure by Buhari.

In August last year, the president ordered all correspondence from then-newly appointed ministers to be passed through Kyari.

All submissions for the President’s attention or meeting requests were to be channelled through the Chief of Staff—Kyari, while all Federal Executive Council matters be coordinated through the Secretary to the Government of the Federation.

He had the President’s ear and that power ensured he kept all the ministers and other staff in check. They all had to work with him to succeed.

Kyari was appointed by the president to the board of the Nigerian National Petroleum Cooperation (NNPC), which experts believe needs to be broken into smaller companies in a reform to improve oil sector governance and market framework.

Kyari, who issued a query to former Federal Inland Revenue Service (FIRS) boss Babatunde Fowler over revenue shortfall last year was also in a leaked letter criticized by Babagana Monguno, National Security Adviser, over said interference on matters bordering on national security.

There are news reports of his interference in the health ministry which limited the former minister Isaac Adewole’s ability to make critical procurements for the sector.

Some analysts say the late Chief of Staff acted in accordance with the provisions of his office.

Importantly, Kyari sat on top-level meetings and was in attendance at the Economic Advisory Council (EAC) meetings.

Kyari was also part of key teams set up to advise on Nigeria’s course of action during the COVID-19 and after, e.g. the COVID-19 economic response team which includes both the CBN governor and finance minister and VP Yemi Osinbajo’s Economic Sustainability Committee.

Political analysts say since Kyari was ill before his demise, plans to ensure continuity of the function of his office had already been put in place especially with the availability of Boss Mustapha Secretary to the Government of the Federation (SGF).

Time will tell just how much the economy shapes up to his passing.