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Tag: finances’

  • Faleke challenges Governor Bello on true position of Kogi’s finances

    Faleke challenges Governor Bello on true position of Kogi’s finances

    •Let Xmas be merrier for workers

    Why should the wage bill of a state shoot up after the discovery and delisting 5000 names from the payroll as ghost workers? Why should 21 council areas have nothing to show for the 44.7 billion they shared in two years? Why should a state with a monthly wage bill of N3.5 billion be shopping for N30 billion to clear two month’s salary arrears?

    The above, and many more, are the posers thrown at Kogi State Governor Yahaya Bello by James Abiodun Faleke, a House of Representatives member and running mate to the All Progressives Congress (APC) candidate in the November 21, 2016, Kogi governorship election, the late Prince Abubakar Audu.

    In a letter to the governor entitled: “A passionate appeal for you to alleviate the people’s suffering this xmas”,  Faleke alleged that public servants in the Confluence State were being denied the dividends of good governance, which formed the plank of the APC electioneering campaign in 2015.

    According to the letter, Governor Bello has been economical with the truth on funds accruing to the state from the Federation Account and the application of such revenue.

    For instance, Faleke said it stood logic on its head for a state that was picking a monthly wage bill of N 2.6 billion prior to a verification exercise that detected 5000 ghost workers to be paying N3.5b after the verification.

    The letter reads: “Shortly after you came in, you embarked on a staff verification exercise which you claimed was aimed at weeding out ghost workers from the payroll of government, thereby freeing more funds for social and infrastructural development.

    “You were applauded for taking that positive step aimed at repositioning our state. However, the people’s enthusiasm as to whether the exercise would succeed or not began to shrink when you prolonged the programme to almost two years without paying any of the workers, leaving mass hunger and angst in the land.

    “Some died in the process, while most of the workers went through unimaginable stress and humiliation all in the name of a staff verification exercise that till date has been more of burden than blessing to the state.

    “Under the previous administration before you started your verification exercise, the wage bill was in the region of N2.6 billion per month, excluding local government wages and when you concluded the verification, you gleefully told the world that your administration had successfully discovered over 5000 ghost workers from the workforce and that you would begin to save at least N1.5 billion monthly through the exercise.

    “Surprisingly, Your Excellency, your administration is now claiming your monthly wage bill is around N3.5 billion! So, where is the money recovered from the 5000 ghost workers discovered? If the wage bill under Governor Idris Wada was N2.6 billion, I think your own wage bill should come down to around 1.5 billion naira and not skyrocket to 3.5 billion naira monthly.”

    Describing the verification as a waste of time and resources, the federal lawmaker alleged that the principal and vice principal of the secondary school attended by the state’s finance commissioner, were among those delisted from the wage bill as ghost pensioners by the panel that carried out the verification.

    Faleke alleged: “Your screening committee did not help matters by declaring bonafide workers and pensioners, ghost workers. So, it is even difficult to know the real bonafide workers and the exact number of the state workforce.

    “A critical example is the case of the principal and the vice Principal that taught your Commissioner of Finance, Idris Ashiru, in secondary school. Mr. Isiaka Aina Sule (Principal) and Mr. Christopher Ayo Olubunmi (Vice Principal) were respectively declared ghost pensioners. They are owed 23 months as we speak.”

    He described as unfortunate that a screening on which the governor spent N1 billion of the taxpayers’ money ended up as an exercise in futility.

    Recalling how he and the late Prince Audu dislodged the Peoples Democratic Party (PDP) administration from the Lord Lugard State House in Lokoja, Faleke noted: “It is for these reasons, with very deep pains in my heart and with all sense of responsibility, that I decided to write you this personal letter on the hard times being experienced by the generality of the citizenry of our dear state under your watch.

    “I decided on this noble path as a principal stakeholder, who devoted time, energy, finance and risked my safety to crisscross the nooks and crannies of Kogi with our late leader, Prince Abubakar Audu to campaign; through an aggressive marketing of our program of action to the long suffering people of our dear state.

    “As Your Excellency is very much aware, the people trusted us and gave us their overwhelming mandate, faithfully handling over the reins of government to our dear party – the All Progressives Congress (APC)  – for a complete positive turnaround of the fortunes of the state.”

    On discrepancies in the state finances, Faleke urged the governor to explain why a whopping N30 billion is required to settle unpaid arrears after telling the whole world that his administration was owing only two months of salary arrears.

    Faleke said: “Only recently, your government promised to pay all the workers before the end of the year based on the final release of the Paris refunds but surprisingly, your commissioner for Finance was quoted to have said that the state government needs N30 billion to clear all outstanding salary arrears and pensions.

    “Now could the N30 billion be the value of the said two months arrears your government is claiming to owe workers? What is really happening? Right now, some states have paid December 2017 salaries ahead, while some have approved the 13th month salaries with bonuses. But, in Kogi, the workers are not even sure if they are workers or not. Most of them are owed over 18 months, while pensioners are crying to be paid.”

    Alleging that the 21 local government areas have not justified the more than N45 billion allocated to them in the past two years, the House of Representatives members accused the governor of short-changing the councils.

    He said: “Your Excellency, the local government areas under your appointed administrators have received over N45 billion since you assumed office (See Table 1). Yet, there is nothing to show for it. Though, it is common knowledge that your administration releases an average of N10 million per month to these administrations from their allocations.

    “The question is, what do you do with the rest of the monies meant for these local governments after giving your administrators their usual monthly N10 million handouts from the over N100 million that accrue to each of them as monthly allocations?

    “The local government salaries that are supposed to be paid from those allocations are not paid. And no developmental projects taking place in any of these local governments.”!

    Backing with his allegations with two tables, one showing what accrued to the council areas and the other the earnings of the state from internal and external sources, Faleke claimed the state got over N20 billion from the Federation Account and from Internally Generated Revenue (IGR).

    He said: “It may also interest Your Excellency that your administration has received over N200 billion as at today from Federal Government and Internally Generated Revenue sources respectively (See Table 2).

    “The question is what you have done with such a humongous sum of money in a state where people are daily dying of hunger and committing suicides.”

    Faleke, who warned that the failure of the government to live up to the promises of the APC to people could have grave consequences for the party in the Northcentral state, said: “Are we not playing on the sensibilities of the people as a party?

    “Be informed, Your Excellency, that the image of our party, the APC, in Kogi State  has been destroyed to such an extent that other parties in the state are now being emboldened take over power.”

    He, however, urged the governor to rededicate him to the service of the people, saying: “It is not too late to make amends. You can start from this December by ensuring that workers and pensioners received their dues promptly.

    “Then you can now follow up by abandoning the regime of profligate spending and embracing the noble path of development through aggressive road construction networks across the state, massive infrastructural facilities, provision of funds for the development of our health and educational sectors respectively among others.”

    “That is the way to start cleaning the Augean stable that Kogi has become, unfortunately.”

    According to Faleke, the performance of the governor must have disappointed those who helped him into office after the logjam created by the demise of Prince Audu before his declaration as the winner of the last Kogi governorship poll.

  • Afreximbank finances trade with 100m Euros loan

    Afreximbank finances trade with 100m Euros loan

    The African Export-Import Bank (Afreximbank) yesterday got 100 million Euros credit line from the European Investment Bank (EIB).

    The fund, received at African Union-European Union Summit, in Abidjan, will be used by the lender to boost trade finance in Africa.

    This facility will help the lender in financing trade-related long-term productive investments by private sectors or commercially operated public sector entities in Afreximbank member countries.

    In a statement, the bank said the seven-year loan will finance trade-related investments and projects in Africa, with particular emphasis on small and medium-sized enterprises (SMEs) engaged in export manufacturing.

    “It is expected to enhance intra-African trade, Africa’s value-added exports, as well as trade with the European Union, thereby strengthening trade as a key driver of economic growth and competitiveness. The facility agreement will add strong impetus to our drive for expanded intra-African trade and for the promotion of industrialisation and export manufacturing across Africa,” President of Afreximbank, Benedict Oramah, said.

    He was delighted that the EIB decided to partner with Afreximbank in the pursuit of Africa’s trade development. “We are confident that, with the facility, we can look forward to mutually beneficial development outcomes for our two institutions and to the further strengthening of the relationship between Africa and Europe,” he said.

    Oramah said that the purpose of the facility was fully aligned with Afreximbank’s current strategy which prioritised intra-African trade, intra–African investments and export manufacturing, expressing the view that it would contribute to employment creation, increased economic activities, and increase in tax revenues for fiscally constrained governments, amongst other outcomes.

  • Afreximbank finances African trade

    The African Export-Import Bank (Afreximbank) has reiterated its commitment to promote and finance intra-and extra-African trade, its President, Benedict Oramah, has said.

    Speaking in Eritrea, when the country’s President, Isaias Afwerki received a delegation of the bank, Oramah outlined the bank’s current strategy, which focused on intra-African trade, industralisation and export development as well as trade finance leadership. He said Eritrea could benefit from its implementation when it became a member of the bank.

    President Afwerki urged African financial institutions to focus on assisting African countries to address the disadvantages arising from the underdevelopment of the continent’s economy.

    He said that despite the fact that Africa was endowed with 60 per cent of the world’s resources, the continent continued to be disadvantaged because of the underdeveloped economy which saw it exporting mainly raw materials and primary products.

    “Eritrea believes in working with financial institutions that can help in transforming the African economy,” he said, adding that, in the last 25 years, the country had been trying to invest heavily in infrastructure.

    President Afwerki expressed Eritrea’s willingness to join Afreximbank as a Member State and said that it would aim to be an effective contributor to encourage and ensure the creation of the environment for the delivery of the services for which the bank was created.

    Eritrea would implement the required procedures to become an active member of the bank, he pledged.

    Oramah commended Eritrea for the many changes it was implementing to transform the economy, including in the areas of transport, water and agriculture.

    Joining President Oramah on the Afreximbank delegation were Head of Communications and Events, Obi Emekekwue; Regional Chief Operating Officer, East Africa, Kudakwashe Matereke; Special Assistant to the President on Banking and Special Initiatives, Ekene Uzor; and Jacqueline Clarisse Motsebo of the Board Secretariat.

    The delegation also held a separate meeting with Berhane Abrehe, Minister of Finance of Eritrea, and Hagos Ghebrehiwet, Economic Advisor to the President of Eritrea, to brief them on the bank’s programmes and services.

  • PLIN empowers ministers on finances, branding

    Ministries would be a lot easier with more resources and strategic branding, coupled with effective media exposure.

    This was the focal point at a one-day effective and impacting leadership workshop for gospel ministers last week in Lagos.

    The capacity-building workshop, which attracted hundreds of ministers, was organised by fast-growing Pastors Leaders Interceding Network (PLIN).

    Convener of the network, Apostle Jide Johnson, identified finances as a major ingredient for ministerial effectiveness.

    He said ministers must learn to trust God for provision while also strategically positioning themselves to attract support.

    To attract support, he said they must emphasise their gifts and talents as well as learn to sow seeds for abundance.

    Warning against covetousness and greed in ministries, Johnson, a former chartered banker, said gospel workers must show themselves approved before all men.

    He added that ministers must project themselves profitably and commit to excellence while also praying aggressively.

    Pastor Joshua Aderinola spoke on ministry branding, saying ministries must have strategies in place to build and maintain good reputation.

    Branding, he said, encourages commitment, creates royalty and allows ministries to maximise revenue and profit.

    He said churches can build brands by identifying targeted audience, communicating brand attributes and improve personal development.

    Dr Ben Efe said ministers must learn to preach short and impacting messages to get positive results.

    Efe said the most effective messages are those that have one point, urging preachers to cut down on illustrations and examples.

    He called for constant practice of messages, planning with a team and critiquing sermons for optimum results.

  • How to handle your finances in marriage

    DEAR HARRIET,

    My husband and I are always arguing about money. Why is money such a big issue in marriage? Thanks.

    Mrs. Akin

    Lagos.

     

    Although money is not everything in a marriage, it can make or unmake a home. Money is very important to everyone as to couples. Many marriages are in trouble today because of money, while some have failed and died.

    It is hard to admit that money is often the root of most problems in marriages, but if handled properly, it can be a source of amazing intimacy. That is not to say that money is the centre of life or that managing the family finances must be a heavy burden. In fact, financial success is really just a matter of making good choices consistently.

    However, the issue of money is so fundamental in marriage that we cannot overlook it. For example, when couples struggle financially, we see an increase in domestic arguments, breakups and chaos.

    It’s difficult to show love towards your spouse when your mind is occupied with worries about financial matters like school fees, house rent, and other bills. Only couples who are open in their finances can stand hard times because there is no financial secret.

    Talking about why money is such an issue in marriage, we find out that couples most times rate each other’s spending differently. Phrases, like I’m the saver, while you are the spender, are commonly used.

    The perception of spending money between husband and wife is different. Most women usually take care of family daily expenses, groceries, clothes for the family, while men spend on large purchases like plasma TVs, cars and computers. However, they are spending differently.

    In some homes, for example, money can be used to dominate a relationship or satisfy a hungry ego to some spouses. Too little of it can be a source of anxiety, especially when there are children to be educated, too much of it can also lead to inflated egos and break bond.

    These are ways money can affect a marriage. Unemployment is not left out. It can affect self-esteem, confidence level, emotional state of a spouse and this can really affect a marriage.

    Moreover, extended family expenses can be a financial challenge to a family, if not discussed and managed properly.

    Lifestyle not in accordance with the available resources can put a huge strain on spouse’s relationship. Gigantic purchases like building or buying a house, car, if not within budget and proper time can pose as a problem. If you and your spouse quarrel over money most times, here are some guides.

    Talking about money with your spouse is one way of solving money issues. You are in a better position to solve the issue pressing on your marriage mostly if it has to do with money. Looking for what suits your family, some families can work better with joint accounts, for instance, while others can have joint and still maintain separate personally accounts. You know what! Look for what suits your family and apply it. Always remember to save for a rainy day.

    Keeping spending on check:  Gone are the days of cutting your coat according to your size. With the economic situation, couples should know that it is now cut your coat according to your fabric. Therefore, having a plan on what is important and necessary is vital. Communicating with your spouse, deciding on how much money will be allocated to daily running of the house, how much to save for big projects and so on together must be put into consideration in order to avoid monetary problem in marriage.

    Avoid blaming each other when things go wrong. This is one common challenge that couples who are going through financial problems experience. A situation whereby a spouse sees his  or her spouse as somebody who spends alone, while he or she hardly spends, if not treated properly, might lead to some bigger problems because in the real sense, they both spend. It is just that their priorities are different in terms of their purchases as mentioned earlier.

    Avoid debts: This is another aspect that affects marital relationship. Avoid purchases on credit. Don’t go buying what you can’t afford; something we have to know is that good things never come to an end. There will always be nice stuff; however, that you cannot afford it today does not mean that you can’t tomorrow. Go for what you can afford and be contented.

    Approach all financial issues as a team, setting goals for resolving your financial setbacks. Agreeing on a course of action together provides the clarity of purpose necessary for finding a solution.

    Remember don’t blame each other when things go wrong. The blame approach doesn’t work in marriages and love.

    Self-pity also is a waste of emotion. Don’t wallow in it. Feeling sorry for yourself or your situation does not solve anything. Getting out is by taking a team approach to focus and act positively.

    Take action today to begin addressing your financial issues together. More so, celebrating together over a financial breakthrough should not be left out. Times do occasionally get tough, but here’s the bottomline-if you have a loving and trusting relationship with someone who believes in it.

    If you love someone completely, then understand that your true love will sustain you through the best of times and the worst of times.

     

    Harriet Ogbobine is a counsellor and a motivational speaker. Send your questions and suggestions to her on bineharriet@gmail.com or text message only 08054682598. You can also follow her on twitter: @bineharrietj, blog: liwh.com.ng

  • On the troubled states’ finances

    On the troubled states’ finances

    For some years now, the finances of the state governments have been in a mess. They have become largely insolvent and financially bankrupt, and this sad state of affairs is a major source of public concern. Of the 36 state governments, some 27 owe salary arrears and pensions of four to five months to their workers. If these bankrupt states were private companies, they would have been legally required long before now to wind up their affairs. This deplorable situation is unprecedented in Nigeria’s fiscal history. The grim financial situation, which has had the predictable effect of deepening mass poverty in our country, has been blamed on the 70 per cent fall in oil revenues on which all the governments of the federation depend. Oil revenues account for over 80 per cent of the revenues of the federal and state governments. The structural diversification from oil dependency needed has not happened.

    But that is not the only reason why the various state governments, as well as the federal government, are in such a financial mess. To this lame excuse must be added the reckless spending of most of the state governments, as well as the prevailing lack of financial accountability and looting of the public treasury. In most of these states, the governors cannot be held to account for public expenditures by the legislatures. Current EFCC financial investigation at the centre has shown how under the Jonathan PDP federal government vast sums of money, running into billions of naira and the US dollars, (over half of our total foreign reserves), including funds meant for arms purchases for the military, were frittered away and simply diverted to private pockets to keep Jonathan in power. The political project failed but it left the nation financially prostrate. Now, if the financial searchlight were turned on the states, as it should, the findings would be no less as frightening as those at the centre.

    To address this horrible financial situation in the states, the federal government, which is itself facing a financial crisis, has rolled out a series of financial bailout plans to salvage the financial mess in the states. First, it offered the 27 insolvent states huge loans, in billions of naira, to meet their outstanding debts to their workers who had not been paid for upwards of four to five months. This has turned out to be a mere palliative. As a recent ICPC report has revealed, some of the indebted states diverted the bailout loans to other purposes. Most of the 27 states are still owing their workers months of unpaid salaries. Some payments were made to the workers, but these only covered outstanding arrears, and not current payments due. As it is now, the states involved are now back to where they were before they received the bailout funds from the federal government. Some of the bailout funds were, as usual, misappropriated by the governors, some of whom after leaving office, have continued to receive from their state governments, huge amounts of money as salaries and pensions. Some of the states’ bailout funds were used to repay huge bank loans recklessly taken to fund unproductive capital projects, most of which have now been abandoned for lack of funds.

    In recent weeks, and in response to the dire financial situation of the states, the federal government has announced additional financial bailout for the states. These include the deferral of the repayment of state debts to the federal government. The deduction by the federal government of such states’ debts, running into billions of naira, is to cease immediately. In addition, the federal government has offered to assist the state governments in restructuring their huge and outstanding bank loans. Such state loans are to be guaranteed afresh by the federal government.

    It is perfectly reasonable and understandable that the federal government should come to the immediate assistance of the states with these large financial bailouts. Its options are severely limited. The alternative is to allow the states to collapse. But this will be catastrophic. It is in the states that much of our economic activities and employment take place. It is where our GDP is generated. Without these financial bailouts, the states will simply collapse. As a matter of fact, the states are already in a state of financial paralysis. Many of their workers no longer report for work. A few do once a week. They simply cannot afford the transport fare to their offices. In some of the states, no commissioners have been appointed. They are being run by the governors and the permanent secretaries, a situation that undermines financial accountability and probity. In effect, there is virtually no government in most of these hugely indebted states. The federal government is rightly concerned about this deplorable state of affairs in the states and hopes the bailout funds will return the states eventually to fiscal and budgetary balance. But it is a forlorn hope that may not be realised.

    Already, Labour is demanding that the minimum wage, now N18,000 per month, be increased to N56,000 per month. Many will consider this demand justified in view of the massive public corruption, the current inflationary pressures, and the rapid rise in the cost of living. House rents and food prices have on the average increased by over 30 per cent. But if this demand is met, the states will simply collapse. The arrears of unpaid salaries will increase and cannot be met. The states will be forced to resort to layoffs and this has serious implications for the political and social stability of the nation. The workers’ unions have warned that they will not accept any retrenchment of workers. But layoffs are some of the practical measures now badly needed to restore states’ finances to financial stability. Nigeria is looking increasingly like a civil service state, one in which most of the workers contribute very little, or nothing, to our economic growth. To reduce this huge cost of governance, something drastic has to be done to our bloated bureaucracy.

    It is unlikely that the states, without fundamental financial restructuring, including cost reduction, can recover financially, even with these bailouts from the federal government. They cannot generate any significant increase in their IGR, as the few businesses in the states are collapsing fast. Revenue from solid minerals is a matter for the future, not immediately. Massive financial investments will be required over the years in the exploitation of non-oil minerals. It is not clear where these huge investments will come from in the current climate of global economic uncertainties. Besides, the volatility of commodities’ prices, including non-oil minerals, will make such huge financial investments less attractive globally.

    The financial handouts from the federal government are in the long run unsustainable. The present financial situation of the federal government is just as bad as that of the state governments. Its revenue has fallen by over 70 per cent. Its current budget deficit is nearly N2 trillion. It is currently borrowing N600 million monthly to pay its own workers and pensioners. Its SWF of $1billion has been virtually depleted. The foreign reserves are down to barely $27 billion. Oil exports and revenues are recovering slowly, but they are unlikely to hit the mark of over $100 per barrel for some time. Inflation is rising steadily and job losses are on the rise. All this means that the federal government will be hard put to continue offering the states financial bailouts on the current scale for much longer. But even if it could, it is not in the long term economic and political interest of our country. It negates the basic principle of federalism in our country. Over dependence of the states on financial bailouts by the centre makes the states too weak and the centre too strong.

    The governors were reported recently as warning President Muhammadu Buhari that their financial problems will not be resolved unless their share of the federally collectible revenue is increased. At the moment, the states receive just about one per cent each from the total revenue, while the federal government gets about 51 per cent. This powerful argument is one that has been made over the years without any success. It has polarised our nation. Though it has considerable merit, it has been hugely politicised and has no appeal for the federal government. With its enormous financial responsibilities for defence, national security, external affairs and infrastructure development, the federal government too is short of funds. Though it makes sense the persistent call for fiscal federalism is not yet clearly defined by its proponents. The crux of the matter is the source of the oil revenue. If fiscal federalism means allowing the states to wholly retain revenues derived from their states, what happens to both on shore and off shore revenues, which constitute over 80 per cent of total revenues? If the oil rich states keep revenues accruing to them totally, both the federal government and the states that are not oil producing will be worse off. Only the oil producing states will have the potential of being viable. This will lead to economic chaos.

    The long term solution to the financial problems of the states is to compel them to return to fiscal and budgetary responsibility and stability. In other words, they should be made to understand that they must bring their finances under greater control, and that they cannot continue to depend indefinitely on federal bailouts. States that are unable to cut their expenditure should be made to bear the consequences of their financial profligacy. In fact, the National Assembly should start thinking of how the large number of states can be constitutionally reduced from 37 to 18, or to a more manageable figure. This is going to be politically difficult. Even now, there is a continuing demand for more states to be created. But a change in the number of states and their finances is necessary now. The states have become a financial albatross on our country. We must find ways of controlling this financial monster, or else the whole country will soon face economic and financial disaster.

  • State finances after federal bailout

    We must give thanks to President Muhammadu Buhari’s rescue package for all the states of the federation that could no longer discharge their financial obligation to their employees following the drastic reduction in federal allocations consequent upon the drop in earnings from crude oil sales. With the exception of a few states, most of the states of the federation were under stress and acute distress. I visited the secretariats of Oyo and Osun in Ibadan and Osogbo respectively when both states were on strike I was struck and saddened by what I saw.  The two places were virtually lifeless and deserted presenting a scene that I had never experienced in Ibadan where I had practically lived all my life. The situation reminded me of glory departing from Israel as a result of sin and conquest by its enemies. Ibadan which has withstood enemy conquest since its foundation circa 1830 presented a sorry situation. Osogbo was also a sad reflection of what I saw in Ibadan. Yet these two state capitals had never witnessed the kind of stupendous development that governors Abiola Ajimobi and Rauf Aregbesola had accomplished since their creation. The road networks in Ibadan put to shame all previous governments in the state since independence. Aregbesola has definitely transformed Osogbo not only in terms of roads but by building modern and  up-to-date mega-schools in the state as well as feeding school children once a day a phenomenon that states collecting jumbo federal allocations have not been able to replicate or match. You can blame this young man for too much optimism but certainly not for corruption or squander-mania

    My prayer particularly for Aregbesola is that through internally generated revenue he will  be able to finish all the projects he has embarked on especially the dualisation of Akoda to Gbongan which will lead to the emergence of a conurbation stretching from Osogbo through Ede, Ode-omu to Gbongan  with common services for all the towns brought together and increase in the tax base and springing up of  industries enjoying economy of scale  because of the size of the new market. While still on Osun, I wonder why there has been so much negative focus on the state as if it were the only state lagging in payment of salaries. Perhaps this has something to do with the over-exposure of the governor or perhaps people have come to expect too much from him. Whatever the case may be, there has been all kinds of do-gooders demonstrating more enthusiasm than wisdom offering help and even food to the so-called starving population of Osun State!

    It is of course true that the APC states in the South-West borrowed money for infrastructural development following hostile treatment by the PDP-controlled federal government. With the decline in the value of the naira, these states may in future be the better for the loans they took. If they had waited longer, the kind of work done with minimal allocations one sees in Ekiti under Fayemi,  Osun under Aregbesola , Ogun under Amosun, Oyo under Ajimobi and the giant strides in Lagos under Fashola may never have been accomplished. It is only when one visits neighbouring states of Kogi and Kwara in the same cultural environment that one can appreciate what has been accomplished in these states.

    All I have said is  of course no excuse for poor planning and not saving money against  lean times. But when faced with absolute and abject underdevelopment, does it really make sense to postpone responding to the development yearnings of our people? This is the question we should ask ourselves.

    The answer lies in each state becoming self-sufficient and not depending on revenues accruing to the federal government that itself, unhealthily in economic sense, depends on hydrocarbon sale and taxes levied on multinationals involved in their production. We must as a people and a country move away from dependency on oil and gas. Our country is blessed by God. We are in the tropics where we can grow crops all the year round unlike in the temperate regions of the world where for half of the year, the land is too cold to support agriculture. With a population one ninth of that of India and vast arable land lying fallow, we should not be importing rice from India Thailand, the USA and Bangladesh of all places! We should not be importing vegetable oils from Malaysia and Indonesia or textile from anywhere when all our textile mills are mothed up and moribund due to lack of use. We should not be importing any kind of wines including champagne of which we are the largest consumer outside France. We should refrain from eating or using whatever our ingenuity cannot produce. The only concession I would make is industrial machineries, industrial inputs, transportation and electrical grid and maybe, chemicals and drugs. We should do away with our indulgent lifestyles of conspicuous consumption .This was the strategy the Chinese adopted that leapfrogged their economy from the laughable level it was a few years ago to the fastest growing economy in the world. This prescription is at the macro level of the nation.

    But at state level, we must allow the people to own the government. The situation at present where only salary earners pay taxes is one of the reasons why the people do not care if state officials are corrupt or clean. The unearned income from oil and gas is a curse and this is why we suffer when their prices like a yoyo go up and down

    We must bring back the regime of flat or poll tax on all adults. Jangali or cattle tax should be levied road tax should also be paid. The federal government should allow states to collect VAT and VAT which is actually luxury tax which need not fall on the poor should be increased to 20 percent . We should not wait until our economy goes the way of the Greek economy and international caretakers are called to impose unbearable conditionalities on us before we can access development assistance. States must also levy commodities tax on cash crops and recreate commodities boards that used to exist before the craze of market forces determining price of commodities. This will help stabilise prices paid to producers who will be protected from the vagaries of rise and fall in the world market. All the states of the federation should be asked to explore charging annual land use and development tax on home owners in such a way that the least able to pay are excluded. Transparency will be the watch word. If the people see what is being done with their taxes, they will respond positively to these changes. All this will be unpopular to begin with but it is the duty of government to explain to the people their responsibility. This is the meaning of representation based on taxation which is at the core of democratic governance. Dependence on oil and gas revenue will not last and the earlier we get used to paying for the services we need the better and the less painful it will be in the long run.

    Finally, the federal and state governments should stop meddling in the financial affairs of their universities. There is no where in the world not even in the richest countries in the world where university education is free. Councils of universities should be allowed to draw up their budgets and spread the cost to users of their services so that they can operate maximally and efficiently. The present situation where salaries are not paid particularly in the state universities leads to poor graduates and inability of these tertiary institutions to contribute to the pool of knowledge and consequently to industrialization and wealth creation. A situation where school fees in universities are pegged at N25,000 or N50,000 a year is not just laughable but very sad and shows us as an unserious country. States that cannot fund one university as in the case of Ondo goes ahead for purpose of vainglory to establish three! And before you know it all other states will join in a race to establish funny institutions and call them universities.

    If only we will be honest with ourselves and be less selfish and ego driven, I doubt if there is anybody in government in this benighted country who does not know that we are punching bellow our weight both nationally any internationally.

  • Insurgency affects NIPOST’s finances

    Insurgency affects NIPOST’s finances

    The continuous activities of the members of the Boko Haram sect in the Northeast of the country have adversely affected the financial profile of the Nigerian Postal Services (NIPOST) and the movement of mails and other postal services.

    The service has also suffered because of the number of retirees who  served the agency and disrupted the operations of the service which equally affected the earnings of the service in the past one year.

    Speaking in Umuahia, Abia State capital, during the Southeast zonal merit award ceremony for deserving staff of the service, the Post Master General (PMG) Mallam Ibrahim Mori Baba said that despite the challenges, they have been able to forge ahead through the efforts of the dutiful staff.

    The PMG said, “These challenges notwithstanding, you demonstrated unalloyed commitment to duty and undaunted resolved to move the organisation forward through improving on your services to our numerous customers”.

    The PMG who was represented by the deputy DPMG mails, Leonard Nwankwo said that the zonal awards programme has been made a yearly event, “Because of management’s belief that it will impact on the morale of staff and also boost productivity”.

    Baba noted that the award programme has also generated intense and healthy competition among the staff and bringing out the best in them in terms of innovations and better ways of improving on the productivity level of all levels of staff in the service.

    He said that the occasion of the award programme is based on the belief of the NIPOST that their staffers are their greatest asset, which is the reason behind the management idea to introduce the programme as a way of showing gratitude to the staff who had distinguished themselves in their various duties.

    The PMG told them that management had continued to explore ways of improving on the condition o the workers, which they has exemplified in the recent payment of outstanding bonuses owed to staff, “Despite our precarious financial condition”.

    Baba regretted that some of the staff have refused to change their ugly attitude to work, “Like coming to work late, loitering around from office to office peddling rumors, counter officers eating while at the counter and exhibiting rudeness and lack of courtesy to our customers”.

    Earlier in his welcome speech, the Area Postal Manager, Abia territory, Ignatius Umeadi said that the employee reward is a monetary or non monetary recognition that an organisation provides to its employees in order to express appreciation form good performance or behaviour.

    Umeadi said that it is also a systematic approach to employee rewarding, which is a part of corporate strategy which stands for continual rising of the performance level of the whole organisation.

    He said, “The token gifts that will be presented to you today are not intended to compensate your hard work, but to serve as symbolic tonic to stimulate and motivate you to work harder, while those who did not make it should work harder to make it next time”.

    On the reason for choosing the war museum for the occasion, Umeadi said, “This venue was chosen especially for those who are not from this territory and who were not born or were too young during the civil war to use the opportunity to see and know about the 30-month civil war”.

  • ‘Councils should not disrupt varsities’ finances’

    The Pro-Chancellor and Chairman of Council, University of Ibadan, Chief Wole Olanipekun (OFR), has warned universities governing councils against interfering in the financial activities of universities.

    Olanipekun spoke on Monday while inaugurating some projects including the Faculty of Dentistry Office Complex and Auditorium; Large Animal Theatre, Faculty of Veterinary Medicine; Faculty of Arts’ Library and UI Water Factory.

    The Pro-Chancellor explained that the duty of a governing council is to ensure that the institutions are well maintained to support research development and growth of education.

    He said: “The way we can assist is to give the university unimpaired freedom. It is not the duty of any member of council to interfere or poke nose. The universities deserve some degrees of liberty.

    “How the universities are run should be the management’s duty. Our duty as council is to ensure that the university is well maintained. We also ensure that due process is followed on how projects are awarded to contractors”

    The SAN promised to ensure that credibility is maintained in all activities of the institution, adding that the council will not tolerate any act of corruption from the principal officers of UI.

    In his welcome address, the Vice-Chancellor, Prof. Isaac Adewole, thanked the council for giving the managment free hand and enabling environment to perform.

    Adewole said: ”This project is the testimony of that. We shall support the Faculty of Dentistry beyond the donation by making it work within the next four weeks.”

    In her address, the Dean of Dentistry, Prof. Modupe Arowojolu, expressed gratitude to the Council for facilitating the project funded by the Tertiary Education Trust Fund (TETFUND).

    The dentistry building project started in July 2011 with the approval for the additional works on the building given in February.

    Also during the inauguration of a water project worth over N40 million, the VC said it was established to generate revenue for the school reduce over-dependent on government funding, while providing vocational training for students.