On May 29, global attention will focus on Nigeria as a new democratic dispensation would be heralded in the country. As expected, the President-elect, Muhammadu Buhari, will be sworn-in as the next president, following his electoral victory at the March 28 presidential elections. Similarly, some incumbent governors and governors-elect would also be sworn-in across the states. But beyond the swearing in, is the fact that most of the governors, if not all have got a lot of work to do as they step into their various Government Houses either for their first or second terms.
The challenges many of the states have are so enormous that they need to be addressed as urgently as possible. For some, it is important for them to encourage investment, which would not only create the most needed jobs but also enhance the revenue potential of their states.
To start with, it is for the governors to create the enabling environment for such investments to thrive, while there would also be the need to initiate policies to help facilitate this investment drive. This would help the states rather than depending entirely on the usually “handout” from Abuja. In this regard, the states would need to sustain and redouble their efforts to substantially reduce dependence on the Federation Account allocation by intensifying on Internally Generated Revenue (IGR).
Recently, many of them reportedly complained over the lean revenue accruing from the Federation Account which, according to them, had been dwindling and fluctuating with the consequence that the states and local governments were getting much less. Without federal funds, it is believed that most of these states may neither afford salaries payment, nor execute any project. Most states have had to take shortterm bank loans to settle wages whenever there were delays in the monthly disbursements by the Federation Accounts Allocation Committee (FAAC).
Each of the 36 states pays yearly salaries in two-digit billions, but most of them only generate IGR in single-digit billions annually. Indications are rife that the Federal Government and the other federating units – states and local governments – are facing a grim financial crises arising from steadily dwindling national income derived predominantly from the sale of crude oil. Since last year, there have been rumblings at the monthly FRAAC where the commissioners of finance from the 36 states and their Federal counterpart meet monthly to review national earning chiefly from crude oil and share the proceeds to the federating units according to the statutory revenue allocation formula which gives the bulk of the revenue to the Federal Government leaving the states and local governments with less.
This has left the governors with one option; to shore up their IGRs as the trend where the states largely depend on federal allocations does not augur well and can no longer be sustained. The best in this circumstance, many believe, is for the governors to identify areas they can generate funds to increase their revenue. At present, Lagos State stands tall in this respect with a projected IGR of about N23 billion per month, which represents almost 50 per cent of its annual budget and N276 billion annually.
There are so much wastes and corruption in some of these states. And this has to be checked. The governors must be able to manage their resources, especially now that revenue has drastically dwindled due to the sharp drop in oil prices across the globe.
The governors, thus, need to be good managers of resources, while demonstrating high sense of accountability and transparency. In like manner, the governors would have to create wealth and jobs. With unemployment rate rising to the skies and poverty ravishing the land, the chief executives are expected to reposition their states to address these challenges. From insurgency in some parts of the North to ethnic banditry, armed robbery and other forms of violent crime, the need to maintain security in the states should be the key to development. The governors are, therefore, expected to be effective chief security officers to be able to protect the lives and property of their citizens. To underscore this fact, our correspondents across the states, present what looks like the governors’ policy framework to achieving the task ahead.
El Rufai’s blueprint
Malam Nasir el-Rufai, Kaduna State governor-elect, seems to have a clear understanding of the task ahead of him as from May 29. There are high expectations also from the electorate, given his antecedents and the lack lustre performance of the outgoing administration. Due to falling oil prices internationally, the statutory allocation from the Federal Government has been dwindling. In addition, el-Rufai is most likely to inherit a huge debt profile from Governor Muktar Yero going by his own account, as the second most indebted state in the federation after Lagos. Domestically, it is indebted to local contractors to the tune of N20 to N30 billion. Significantly, with this lean purse and debt burden, the new administration may find it difficult to meet some of its campaign promises, especially free education from primary to Junior Secondary School level. Notwithstanding, the governor-elect is optimistic that he will deliver dividends of democracy to the people of Kaduna State, by using creative ways to generate revenue.
Though, Saturday Telegraph inquest to el-Rufai’s media consultant, Muwiya Adekeye, to unveil his principal’s blueprint did not yield any result, a member of the All Progressives Congress (APC)Transition Committee spoke to our correspondent off record. According to the Transition Committee member, the incoming administration will curb waste, plug all loop holes and reduce the cost of governance as well as raise the IGR of the state. “First and foremost, the era of giving out free money to politicians is over.
For example, what is the rationale behind sending rams to a former governor or senator during Sallah or Christmas festivities, when they can afford it?” the source asked. The source did not stop there but added that the government will not sponsor people for pilgrimage as had been the practice from time immemorial. Similarly, el-Rufai, according to the source, will reduce the cost of governance by constituting “a small, effective and efficient cabinet.” The governor-elect himself has said that there would only be about 13 or 14 commissioners and four or five Senior Special Assistants. Before now, all of the 23 local governments in the state have been producing a commissioner each. Presently, there are 26 commissioners in Ramalan Yero’s cabinet.
Apart from plugging loopholes and curbing wastage, the government, it is gathered will also embark on an aggressive revenue drive. At present, the monthly IGR of the state, according to reports, hovers around N1 billion but el-Rufai’s projection is to hit N3 billion in the next one year. Specifically, the government, according to him, will enforce the payment of ground rent and property tax. He has also promised to computerise land sale and acquisition, which is another source of revenue.
In addition to boosting its revenue base, the state’s chapter of the APC has asked all the 34 state constituencies to identify 10 projects each for possible execution. The list will be complied and given to el-Rufai and within one year, the governor is expected to execute at least one project in each constituency.
Amosun: I’ll use technology, block leakages
Ogun State Governor, Senator Ibikunle Amosun, has promised to deploy more technology in revenue generation and block leakages to boost the state’s capacity to execute capital projects during his second term in office. He has also vowed to save cost on the expenses of the state government, even as he enjoined people of the state to support his administration’s efforts towards actualising various electoral promises.
Speaking with Saturday Telegraph on the outcry over dwindling revenue nationwide and how governors could address the shortfall in federal allocation, Amosun said efficiency and effectiveness in the management of revenue should be prioritised.
The governor, who was recently re-elected for a second term, had last year vowed to increase the state monthly IGR from what it is now to N10 billion. He believes this improve generation would lead to self-sufficiency. But speaking yesterday through his Commissioner for Finance, Mrs. Kemi Adeosun, the governor said his administration was committed to making the state economically buoyant despite the prevailing situation in the country. “We will strive to be far more efficient in revenue drive by deploying more technology, block leakages and also try to save cost on our expenses – the cost of doing businesses,” Adeosun told Saturday Telegraph in a telephone interview.
When asked whether the state government intends to reduce the number of political appointees in view of the dwindling revenue, Adeosun said she was not in a position to comment on that. She, however, expressed confidence that the state government could achieve its target of N10 billion monthly IGR. “The state is part of the wider economy and it will function within it. But it (N10 billion target) is achievable,” she added.
Umahi’s development agenda for Ebonyi
Despite being among the three states of the federation that receives the lowest allocation from the Federation account and faced with a high debt profile, the incoming administration of Chief Dave Umahi in Ebonyi State is upbeat of success. In his blueprint earlier presented to the people of the state, Umahi said he would pursue an integrated policy of economic development and transformation anchored on agro-industrialisation. He also promised aggressive prospection and exploitation of the rich mineral deposits to make the state a tourist destination and a haven for investors through a balanced and vibrant economy. Umahi said he will create an economy that will be self-propelled, self-sustaining and self-reliant within 10 years to reduce the risks of dependence on federal allocations.
He equally would like to create jobs for the people of the state, especially in the private sector so as to address the current huge dependence on white collar jobs and its adverse effects for over-head costs. He pledged to actively engage the private sector and build strategic partnerships with the international development agencies to open access to private capital and know-how for harnessing abundant endowments and making the state one of the top destinations for investors. Umahi explained that he will create sovereign investments and savings for the state to allow it benefit from opportunities in the capital market and provide a bulwark for fluctuations in earnings and revenues.
“There will be a robust accounting system with a strong financial management infrastructure, with a view to improving the level of IGR automation and reducing the over-dependence on unstable Federal revenues. Some of our immediate neighbours are the oil-rich states of the Niger Delta.
We would develop a protocol for long- term partnership with these states to leverage our respective resources to our mutual benefit. “My administration will play a leading role in the diversification of the economy to reduce reliance on oil receipts and engender local content in our domestic economy. We would work with our development partners as well as development finance institutions to improve the leverage of the state’s financial resources to create multiplier effect in terms of the budget resources available to the state.
The state will divest from stateowned enterprises that are a drain on resources,” he said. According to him, there shall be improvement on tax collection systems under the Pay As You Earn (PAYE) framework. While protecting the poor, he promised an aggressive pursuit of the Technical, Vocational and Entrepreneurship training of the youth with the aim of making them self-reliant.
I’m going to rejig Cross River economy – Ayade
For Ben Ayade, the governor-elect of Cross River State, the state today boasts of perhaps the most outstanding conference centre in the whole of Africa, which will drive a lot of traffic into the state and make it a robust economy. Speaking on how he intends to drive the economy, Ayade said: “I am going to rejig the economy profile of the state and of course create an opportunity for investors to come into the state. “But essentially, I do believe that the core focus of my administration is taking advantage of all the natural resources we’ve got.
It is not true, never ever true, that you have to inherit plenty to succeed. My take is that all the core investors that have been talking with me, the whole essence is, how we can package our debt and turn it into an asset. I have a motto, a motto that every single debt that we have got, we are packaging it for sale and of course the essential element in economics is that if you want to convert a liability to an asset, you have to present the fundamentals to be attractive and exciting. “We are a state with over one million hectares of forest; that forest is an asset, an asset that has remained unexploited.
We have conserved this forest in the course of time without exploitation, but that’s not the way we are going to go forward. We will create a robust profile that will excite any investor to come into Cross River State so that gradually, we will be moving from a civil service state to a business state.
That is the model we’re going to be driving. “For instance, we think that as a state, we must own a shipping line. The national shipping line is long gone moribund. What is wrong with a state government having a shipping line? If we can ship in our petroleum products either internally or from foreign sources, we can run our own profile. In the first three to six months, what we are going to experience is not massive employment but massive deployment. So, what we are going to do will be to improve upon the current structure. “To do this, every ministry should be able to generate funds. While we will not sack any worker, all those who are in the ministries doing nothing will have to be sent to the agricultural sector to work. It is as complex as it is simple.
I do not believe that you need to tax your people to prosperity but I also believe that as responsible people, you owe government the duty of paying your tax. You must, therefore, put it in such a way that it has a very good balance. I have also noticed that the duty of government to tax creates a burden to be responsible because when you tax somebody, you owe that person some responsibilities.
When you tax people, you owe them the duty to make their business work. “But we must create that balance because you need that balance for government to continue to sustain infrastructure and at the same time, allow you make money and live a good life. So, we will create a balance and review some where we need to review. We are expecting more investors to come into the state so we will revisit the tax and ensure that they thrive,” Ayade promised.
I’ll implement my campaign blueprint, says Ortom
Benue State governor-elect, Chief Samuel Ortom, has said his approach to revenue generation would be through infrastructure provision and cutting of bogus budgetary spending. According to him, the issues of roads connecting the people are very important to any meaningful administration but when you have challenges of funding it can be difficult. “I know that the present government has done its best to ensure that we have good roads network all over the place. Sometimes when I come here and I go to a street that before then could not be accessed and I see a tarred road, it shows the commitment of government. But when you’re spending more than 70 per cent of your revenue on recurrent expenditure then it becomes a problem and the same thing is happening at the federal level.
If we don’t take time it’ll go to 80 per cent or even 90 per cent,” he said. At the local government level, Ortom said: “I think as we speak, they (Gabriel Suswam-led government) are spending more than 90 per cent on recurrent expenditure, it then becomes difficult. Some local government areas even find it difficult to construct ordinary culvert; that to me is not right. He also said industrialising the state is the way out to ensure that commercial activities are going on. We would try to bring investments from outside so that all these industries and other things can be funded in a manner that we will divert attention from government to the private sector, and make the private sector more lucrative. I also think this is something that government can do.
“My government will be the type that will seek to include everybody. Everybody must be a stakeholder. This is democracy and that is the beauty of it. Everybody should come on board but there should be direction as to where we want to go and we’ll follow it and by the grace of God we’ll be able to succeed. On unemployment,the only option is what I told you before – industrialisation. When you export your primary products you are exporting jobs; that is what we’ll seek to correct.
“Today, I know that once in a while we have opportunities to fill in vacancies in certain government organisations, departments or ministries. The same thing applies to states, but what will give a boost and minimised unemployment is nothing outside industrialisation and this is what government is doing at the federal level.
I will seek to ensure that we replicate what is happening at the federal level back home. Of course worldwide that is what is happening. Industries are the ones providing jobs. If you go to China it is not government that is providing jobs for the over one billion people that are there. That is the way forward,” he said.
I’ll consolidate on fiscal operations – Dankwambo
Gombe State Governor, Dr. Ibrahim Dankwambo, was re-elected on the platform of Peoples Democratic Party (PDP) and will be sworn-in on May 29 for the second tenure of four years. The ultimate desire of his administration, according to him, is to consolidate on its fiscal operations, engendering strong and sustainable economic development as well as job and wealth creation to reduce poverty and upscale living standard.
Having analysed the revenue and expenditure profiles and the volatile economic circumstances, the governor said he is going to boost his revenue profile for infrastructure development through consolidating the development efforts for the benefit of the people.
“Through the completion of all ongoing projects and programmes, the provision of physical infrastructure, deepening the implementation of the poverty reduction initiatives, projects and programmes, we would pursue human capital development for sustainable development.
This would lead to aggressive rural development drive and maintaining a robust monitoring and evaluation system that would serve as a feedback to the citizens on their stewardship. “Others areas to boast the revenue is by strengthening development cooperation and partnership with all interested and willing parties, maintaining peace and security throughout the state and strengthening regional cooperation and development,” he stated.
Ganduje vows to cut ‘bogus’ spending to boost revenue
Kano Governor-elect, Dr. Abdullahi Ganduje, said given the dwindling revenue shortfall accruing to states across the country, he has marshalled out his revenue blueprint. This, he said, excludes the concentration on creating internal means to boost his revenue generation.
He also vowed to block financial leakages in government’s spending as well as reduce the cost of governance in order for him to achieve his campaign promises. The governor-elect, among other areas, said that he would give prominence to boosting of agricultural development via irrigation farming by making the over 20 dams that are yet to be put into use. He also promised to create additional means that will help local farmers to process their produce easily. Ganduje hinted that since the state had commercial viability, he would open its gate to foreign investors by ensuring that the state enjoys maximum security through the creation of a well-equipped security network that would boost investors’ confidence. Similarly, he explained that he will not delve into the activities of the industrial sector, but would allow them free hand to operate and revive some of the closed down industries. “Some of them would be given soft loans from government,” he promised.
Though there are well over 90 projects yet to be completed, the governorelect has promised to complete and concentrate on other critical development areas, which requires a lot of finance despite the little resources coming from the Federation Account. In same vein, chairman, Garo Local Government Area, who doubles as the Association of Local Government chairmen, Murtala Garo, said all the 44 local government areas were going to be used for revenue drive for the incoming administration.
He said presently, they have developed a blueprint of the economic viabilities of each local government in agricultural and natural resources to harnessed and use it as a contributing economic factor for the development of the state. “That is why we in the Local Government will use our meagre resources to help the state and as well develop our areas, which already we have gone far in that direction,” said Garo.
Okowa plans to boost IGR
Delta State governor-elect, Senator Ifeanyi Okowa, has designed several means of hitting the ground running from May 29. He said: “I will formulate multi-sectorial and multi-dimensional strategy on revenue drive and spending policy. I shall block all leakages in government income and expenditure, and bring governance to the doorsteps of every citizen of the state.” On IGR, Okowa said he had decided to lay emphasis on the following areas to get the desired results out of his blueprints for the development of the state.
He has equally vowed to accelerate the positive challenges that these mega industrial activities will offer by seeing to their completion for valuable economic advantages and boost the IGR of the state. “The state under my watch will work closely with relevant agencies of the Federal Government in commerce and industry and engage the private sector effectively to drive commerce and grow industries,” he promised. Having acknowledged that the state has tremendous potentials in agriculture, Okowa has also vowed to pursue multiple strategies that will boost the sector by encouraging free market for raw materials and foodstuffs.
“I shall engage the youth by encouraging cluster farming, supporting and promoting out-growers associations. Robust and focused agricultural extension services will be put in place to support the farmers. “Input provision, mechanisation and cooperative farming will be aggressively pursued. It is my earnest desire to encourage and create the enabling environment for commercial farming to thrive through the private sector and public-private-partnership.
I will ensure the active participation of the local government areas in the development of agriculture; by this, the revenue of the state would have improved. During my tenure as governor, at least, one city or urban settlement in each of the 10 federal constituencies will be designated for comprehensive renewal,” he said. In doing this, the governor-elect has vowed to focus on creating and improving on internal road networks, dualisation where necessary, drainage, construction of bridges and flyovers, erosion control, modern transportation facilities and provision of electricity and other public utilities.
“The development of roads, bridges and ancillary infrastructure would not only ease commercial activities but consequently enhance economic growth and personal wellbeing of Deltans. It will attract foreign investors to the state, and indirectly add advantage to the state’s revenue. I am determined to create a virile civil service whose full potentials will be developed through proper recruitment and focused capac-ity building. Integrity, hard work and honesty will be rewarded,” he assured. On wealth creation and employment generation, Okowa said, “With the executive arm under my watch, employment will remain the central theme of all my policies. I will deploy and harness every resource available, especially through agro-businesses, to confront the scourge.” According to him, deliberate effort will be made to generate employment and productive livelihood for the teeming youth population. This, he was convinced, “will not only go a long way in reducing undue conflict in our communities but shore up the revenue drive of the state.”
Ugwuanyi’s revenue challenge in Enugu
Enugu State governor-elect, Ifeanyi Ugwuanyi, had on January 20 during his tour of the Enugu East Local Government Area, promised the people of the state that within the first six months of his administration, he would create 10,000 jobs for the unemployed youths in the state. “We will create 10,000 new jobs for the unemployed youth within the first six months of my administration if elected,” he assured.
Lalong: Job creation, prudent revenue management my priority
Plateau State governor-elect, Mr. Simon Lalong, has said he believes the most effective way of tackling poverty is through job creation and a radical reduction in unemployment. He said his government will embark on small and medium enterprises through macro and micro economic policies that focus primarily on job creation by creating awareness on available support to several new businesses. “Our government will establish opportunity Centres and state Venture Capital Fund where small businesses can access support and conduct all their businesses as well as provide initial funding for start-ups and early stage enterprises,” he said.
Another area he emphasised on is the agro-allied, food processing sectors, which he said, have vast agricultural potential for the state, especially in attracting industrial development for the processing of sugar potatoes. Others are yam, cassava processing, moringa (zogale), fish processing, medicinal plants processing, agro-forestry, textile industry among others. On the area of solid minerals exploration, he said that available data from the Federal Ministry of Mines and Steel Development reveals that government is only generating less than 25 per cent revenue from solid minerals.
“The solid mineral sector as a key driver of economic growth offers viable prospects for mining, mineral processing and the manufacture of a host of intermediate raw materials for local industries and foreign exchange earnings. It presents the opportunity for diversifying our local economy with the view to reducing poverty and dependency on oil revenue,” he said. Lalong stressed that developing the mining industry would radically curb the growing level of unemployment and move rural miners into middle class. He also said his administration would provide an enabling environment that would facilitate investment in mining, rather than neglecting its potentials.
Ambode: I’ll boost IGR thro ugh structured economic blueprint
Lagos State governor-elect, Mr. Akinwunmi Ambode, has vowed not only to reposition the state’s economic potential but also strengthen the state’s revenue generation profile. Presently, Lagos appears to be the only state that could still conveniently pay its workforce and execute its numerous projects simultaneously in spite of growing apprehension and lamentations from others states.
Many others have become indebted to their workforce as a result months of unpaid salaries. From the N600 million IGR in 1999, the state now generates N23 billion monthly and N276 billion annually. Hence, to consolidate the financial buoyancy of Lagos, Ambode said his administration would create a roundthe- clock economy that is typical of a city-state like Lagos.
He also promised to set up a Lagos Employment Trust Fund (LETF) with N25 billion over four years, through an access to finance business worth a minimum of N1 billion annually across the five divisions of the state. This strategy, Ambode said, will allow the youth and unemployed people in the state to have access to adequate finance for entrepreneurial ventures. In his economic blueprint, the governorelect expressed commitment to drastically reducing unemployment in the state through jobs creation, transportation, housing, agriculture and infrastructure renewal and development.
“My government will protect the growth of small and medium scale enterprises through tax incentives while also implementing government policies that will encourage the private sector to employ more citizens and foster economic development. We will boost IGR by improving the collection mechanism through e-governance,” he said. He did not stop there but plans to encourage the creation of a Corporate Social Responsibility Trust Fund (CSRTF) by the private sector, to be managed by a Board of Trustees (BoT).
aside that, Ambode promised to pursue a fully integrated transport management system that takes into consideration roads, rail, water and walkways as means of mobility for ease of movement of residents in the city centre and the suburbs. He said: “We will introduce and establish officially designated bus stops and routes in Lagos. We will improve on traffic with construction of new roads and maintaining existing ones, as well as placing directional signs in strategic places. We will also increase the usage of our waterways through channelling and dredging.”
To vigorously address the problem of housing deficit for the estimated 21 million residents, Ambode said his government would create communities that are self-sustainable for residents that will encourage even development across the state. “We will provide affordable housing schemes by collaborating through Public Private Partnerships (PPP) to increase the available housing stock. Our government will improve on the current policy of home ownership through Lagos HOMS and provide ownership options such as Rent to Own Programme (ROP),” he assured.
Already, Ambode has recognised that governance is a continuum and, as such, promised to build on the current administration’s efforts on agriculture by opening up the virtually untapped aquatic and seafood resources in the state. Harping on his determination to pursue the resolutions of the state economic plan, Power, Agriculture, Transportation and Housing (PATH), the governor-elect said he would drive the state’s economy through the key areas. He added: “We will provide incentives for agricultural processing companies, thereby providing employment for our bulging youth population.”
Recognising the need for a more robust infrastructure as the cornerstone of the state economy, Ambode, in his economic blueprint, said: “We will ensure the provision of good and motorable roads across the state, excellent by-passes, pedestrian bridges, traffic intersections, public and amusement parks and ensure that all public institutions and facilities are of the highest standards and quality.”
• Additional reports from Uwakwe Abugu (ENUGU), Ibraheem Musa (KADUNA), Kunle Olayeni (ABEOKUTA), Uchenna Inya, (ABAKALIKI), Clement James (CALABAR), Cephas Iorhemen (MAKURDI), Ben Ngwakwe (GOMBE), Muhammad Kabir (KANO), Dominic Adewole (ASABA), Musa Pam (JOS) and Muritala Ayinla (LAGOS).