State governments appeared to be the worst hit by the current low prices of oil in the international market. They have largely hinged developmental projects in their states on their allocations from the Federation Account.
Since the oil prices started nose-diving last year, the states have been thrown into unimaginable financial crisis. With more workers at the state level than the federal, most of the states have been struggling with payment of workers’ salaries since income to the Federation Account started reducing.
The problem appeared to be defying all solutions as series of bailouts from the Federal Government have not got the states out of the woods.
Although, there have been some allegations that some states have not been using the bailout funds from the Federal Government to meet salaries arrears and other urgent obligations in the states. To make more funds available to run the states, the governors have also prevailed on the Federal Government to stop deductions of their outstanding loan repayment from their share of the Federation Account.
Apart from pushing for upward review of revenue sharing formula in favour of state governments, they also asked for 18 months moratorium before starting repayment of some loans and bailout funds.
In their move to find a solution to the crisis, the Nigeria Governors’ Forum (NGF) and the National Economic Council (NEC) normally chaired by the Vice President, have become very regular in the past months.
The NGF have met three times at the Banquet Hall of the Presidential Villa, Abuja, in the past one month.
The governors met on the 20th and 27th of April, 2016 in Abuja. The recent meeting was held last Wednesday, 18 May, 2016 where they decided to seek access to World Bank grant towards boosting their financial status. The present situation has gone a long way to show that the states have difficulty standing on their own without the income from the Federation Account.
Knowing that many untapped opportunities abound in the states, those not yet looking into exploration of solid minerals in their domains should start work in that direction now. They have no reason not to do this now as the President Muhammadu Buhari’s administration has expressed commitment to diversifying the Nigeria economy. The state governments should also find ways to partner with the private sector in order to urgently exploit the solid minerals and other opportunities they have comparative advantage.
SGF’s sucker punch
Like a punch below the belt, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu was momentarily shocked to his marrow last Wednesday.
The missile came via a joke from the Secretary to the Government of the Federation (SGF), David Babachir Lawal, just before the Federal Executive Council (FEC) meeting.
Before Kachikwu came into the Council Chamber around 9:57am, Lawal had been trying to get ministers to settle down for the business of the day. But when Kachikwu came in some ministers were still on their feet exchanging pleasantries with their colleagues. Kachikwu also greeted the Minister of Power, Works and Housing, Babatunde Fashola and other ministers who were standing close to him. While he was doing that, Lawal said through the microphone: “Petroleum, you are shaking hands when there is no fuel.”
Kachikwu immediately became quiet and sat down. It was obvious that he didn’t like the joke, though the displeasure may have been hidden behind a pair of dark glasses.
Fashola came to his defence by replying SGF: “Petrol now sells for N107.”
Fashola was referring to the report claiming that one of the oil marketers, AA Rano sold fuel at N107 per litre in Kano State.
Only time will tell if the joke will make Kachikwu avoid his colleagues in subsequent FEC meetings till fuel supply and pricing normalise in every part of the country.
Foreign media hold the ace
Not a few State House correspondents were unhappy with the media coverage of the visit of one of the rescued Chibok girls, Amina Ali, to the Presidential Villa last Thursday. There appeared to be a preference for foreign media. No single print reporter accredited to cover the Presidential Villa, Abuja, was allowed to enter the President’s office to cover the visit.
Those who were first allowed in were foreign cameramen and reporters of media organisations including CNN, Aljazeera, VOA, Reuters.
After they had settled down, some State House correspondents on the list including NTA, Channels, TVC and AIT cameramen and reporters were allowed in.
At the end of the visit, Borno State Governor, Kashim Ibrahim, also gave impression of having preference for ‘white’ skin above ‘black’ one.
Some members of the State House correspondents, who had already gathered at the President’s office’s entrance, approached him for an interview as he was coming out from the President’s office. But he walked past the cameras and reporters and said he was not granting any interview on the matter.
Before he walked to his vehicle, a white reporter of CNN approached him and he stopped to grant an interview to the gentleman. Most Nigerian media organisations have online editions that take the news beyond borders.