The Nation Newspaper

Tag: States

  • States to get N90b loan

    States to get N90b loan

    TO GET THE LOAN, STATES MUST:

    • Publish audited annual financial statements within nine months of financial year end.
    • Comply with the International Public Sector Accounting Standards (IPSAS).
    • Publish state budget online annually.
    • Publish budget implementation performance report online quarterly.
    • Develop standard IPSAS compliant software to be offered to states for use by state and local governments.
    • Set realistic and achievable targets to improve independently generated revenue (from all revenue generating activities of the State in addition to tax collections) and ratio of capital to recurrent expenditure.
    • Implement targets
    • Implement a centralised Treasury Single Account (TSA) in each State.
    • Have quarterly financial reconciliation meetings with Federal Government to cover VAT, PAYE remittances, refunds on government projects, Paris Club and other accounts.
    • Share the database of companies within each State with the Federal Inland Revenue service (FIRS). The objective is to improve VAT and PAYE collection.
    • Introduce a system to allow for the immediate issue of VAT / WHT certificates on payment of invoices. Review all revenue related laws and update obsolete rates / tariffs.
    • Set limits on personnel expenditure as a share of total budgeted expenditure.
    • Biometric capture of all States’ Civil Servants will be carried out to eliminate payroll fraud.
    • Establish Efficiency Unit.
    • Federal Government online price guide to be made available for use by States.
    • Introduce a system of Continuous Audit (internal audit).
    • Create a fixed asset and liability register.
    • Consider privatisation or concession of suitable State-owned enterprises to improve efficiency and management.
    • Establish a Capital Development Fund to ring- fence capital receipts and adopt accounting policies to ensure that capital receipts are strictly applied to capital projects.
    • Domesticate Fiscal Responsibility Act (FRA).
    • Attainment and maintenance of a credit rating by each State of the Federation.
    • Federal Government to encourage States to access funds from the capital markets for bankable projects through issuance of fast- track Municipal bond guidelines to support smaller issuances and shorter tenures.
    • Comply with the FRA and reporting obligations, including: No commercial bank loans to be undertaken by States; Routine submission of updated debt profile report to the DMO.

    N280b released
    for roads, others

    A N90 billion loan, which the Federal Government believes will help the states in their bid to be less dependent on the monthly handout from the Federation Account, is on the way.

    The loan will be given over one year and  will be extended to the states after they have met 22 conditions. It will be repaid over a period of time. It is not a bailout, Finance Minister Kemi Adeosun said at the Stakeholders Meeting held with Commissioners for Finance on the Fiscal Sustainability Plan (FSP).

    “The amount of the loan is N50billion for three months to be shared across the 36 states, including FCT and then N40billion for nine months,” she said.

    The idea, “is to tie states over for a year so that they rebalance, which is an average of about N1.3billion per state for the first three months and N1.1billion for the next nine months,” Mrs Adeosun said.

    According to her, “it is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states”.

    On the fate of the federation account with this new line of credit to the states, the minister said: “We are not suspending the federation account; federation account will still be there, but we expect the federation account to recover and as it recovers, we will withdraw the need for this support.”

    The state governments, she added, “have agreed to these conditions and the lenders have agreed to make an advance to them to help them through this period.”

    The loan is a bond and it has been guaranteed by the Federal Government and it is being issued and sourced in the normal way bonds are sourced.”

    Adeosun stated that all the “governors unanimously approved the plan; the commissioners endorsed the plan; they know it is going to involve a lot of work in some cases.”

    Some of the conditions that the states have to meet include that “they have to clean out their ghost workers, set up efficiency units, reduce their recurrent expenditure, publish their accounts and also publish their budgets”.

    The minister said: “There are lots of difficult conditions but by paying the price the governors and the commissioners recognise that these reforms are necessary if they want states to be fiscally sustainable.”

    The Fiscal Sustainability Plan (FSP) highlights five key strategic objectives. These include: to Improve Accountability & Transparency; Increase Public Revenue; Rationalise Public Expenditure; to Improve Public Financial Management and have a Sustainable Debt Management profile.

    By granting the loan, the minister explained,  the Federal Government “wants to make sure that within each state, whatever local advantage they have, they exploit it. So, if there is no private sector, for example, to lend taxes from, maybe there is agricultural produce that can be developed and the state can use that to generate revenue. Maybe there are natural resources which can be exploited and the state could use that to generate revenue. So, what we are saying is that every single state is a centre of prosperity.”

    She called on all the states to “go and look inward and work to improve Internally Generated Revenue (IGR), have the discipline to make sure that they can pay salaries and clear out ghost workers, remove wasteful spending and, as the economy improves, state government will actually improve as well and grow towards the future because Nigeria’s economy is actually 36 states economy plus FCT”. “There are no federal people; everybody lives in the state and every state has to be viable and that is what fiscal sustainability plan will do.”

    The FSP, Adeosun said, “will begin the process of guaranteeing that states take responsibility for their financial viability. Pursuing the objective that IGR rather than  Federal Allocation, should be their principal focus of revenue is a fundamental change in approach,” she added.

    The conditions that the states have to meet before they can access the loan are:

    Publish audited annual financial statementswithin 9 months of financial year end.

    Introduction and compliance with the International Public Sector Accounting Standards (IPSAS).

    Publish State budget online annually.                                               Publish budget implementation performance report online quarterly.                                Develop standard IPSAS compliant software to be offered to States for use by State and Local Governments.

    Set realistic and achievable targets to improve independently generated revenue (from all revenue generating activities of the State in addition to tax collections) and ratio of capital to recurrent expenditure.

    Implementation of targets  Implement a centralised Treasury Single Account (TSA) in each State.                             Quarterly financial reconciliation meetings between Federal and State Governments to cover VAT, PAYE remittances, refunds on Government projects, Paris Club and other accounts.

    Share the database of companies within each State with the Federal Inland Revenue Service (FIRS). The objective is to improve VAT and PAYE collection.

    Introduce a system to allow for the immediate issue of VAT / WHT certificates on payment of invoices. Review all revenue related laws and update of obsolete rates / tariffs.

    Set limits on personnel expenditure as a share of total budgeted expenditure.

    Biometric capture of all States’ Civil Servants will be carried out to eliminate payroll fraud.

    Establishment of Efficiency Unit.

    Federal Government online price guide to be made available for use by States.

    Introduce a system of Continuous Audit (internal audit).

    Create a fixed asset and liability register.

    Consider privatisation or concession of suitable State owned enterprises to improve efficiency and management.

    Establish a Capital Development Fund to ring- fence capital receipts and adopt accounting policies to ensure that capital receipts are strictly applied to capital projects.

    Domestication of the Fiscal Responsibility Act (FRA).

    Attainment and maintenance of a credit rating by each State of the Federation.

    Federal Government to encourage States to access funds from the capital markets for bankable projects through issuance of fast- track Municipal bond guidelines to support smaller issuances and shorter tenures.

    Full compliance with the FRA and reporting obligations, including: No commercial bank loans to be undertaken by States; Routine submission of updated debt profile report to the DMO.

  • States endorse 22 Points Fiscal Reform Action Plan

    All the States in the country have agreed to reform the finances of State and Local Governments under a Fiscal Sustainability Programme to ensure their long term viability.

    A statement from the Federal Ministry of Finance signed by Festus Akanbi, Special Assistant Media to the Minister of finance said “the 22-point fiscal reform action plan to be implemented by States under the Programme mirrors the ongoing public financial management reforms being undertaken by the Federal Government, including: biometric capture of all civil servants, the establishment of an Efficiency Unit, implementation of Continuous Audit, improvement in Independently Generated Revenue (IGR) and measures to achieve sustainable debt management.”

    The reforms he said were unanimously agreed by State Governors during the National Economic Council meeting that was held on Thursday 19th May.

    The Federal Government is developing a financial support structure which will be directly tied to the attainment of agreed fiscal reform milestones. The ultimate objective of the Programme is to ensure that States are set on a path towards fiscal sustainability.

  • Fed Govt, states partner to boost agric production

    The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has said the Federal Government is now partnering with state governments to take advantage of the increasing tractor density in the country for enhanced agricultural production through land acquisition, preparation and ownership.

    This is through the agricultural equipment hiring enterprises (AEHE) scheme to provide value added services, such as leasing/hiring of various kind of agricultural equipment for land preparation, harvesting and post harvesting, repair and maintenance of such equipment, and as an incubator for training of personnel within farming communities.

    Consequently, Ogbeh said the Federal Government will build zonal capabilities and comparative advantages in each geo-political zone of the country to enhance self-sufficiency in local staples, boost agricultural production for exports and certification; and quality control and packaging. This, he said, would ensure that each part of the country engaged in the cultivation of crops and tendering of animals that are best suited to their peculiar circumstances.

    Ogbeh, who spoke on the sideline of a paper presentation in Abeokuta, Ogun State, said the effort will enable the country avoid unnecessary dissipation of energy on unprofitable ventures, while also ensuring that resources are efficiently and effectively applied for the maximisation of the agricultural potentials of each state or zone. For instance, he said, cassava and rice (ofada) production, as well as kola nut, poultry and aquaculture are distinct areas of comparative advantage in Ogun State which should be attractive to agric investors.

    As part of the initiative to foster development in the sector and also provide enough food all year round, the minister said there will be reactivation, expansion, and utilisation of the existing dams and irrigation facilities in the country. The underground water reserves would also be exploited to meet the water needs for agricultural production and agribusiness.

    “This will help in making agriculture an all year round activity rather than being rain dependent,” he said.

    He agreed that achieving higher yields through the utilisation of improved seeds and seedlings is critical towards the revival of agriculture, hence, the decision to work closely and cooperatively with all key stakeholders, including research institutes and private sector seed production entities

    “We are not satisfied with the extension system in the country, hence our determination to overhaul it by revitalising the extension system by having an extension outfit  in every local government in the country, as one stop shop,  in order to reverse the abysmal low ratio of extension worker to farmer presently put at 1:10,000. We are committed to improving fertiliser types and ensuring that the delivery reaches farmers on schedule,” he explained, adding that government will improve farmers’ access to credit by working towards removing all the existing barriers militating against improved credit penetration to farmers and other key stakeholders in the agricultural sector.

  • 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.

  • Fed Govt to pay states’ March deferred debts

    Fed Govt to pay states’ March deferred debts

    Creditors have got some assurance from the Federal Government on states’ debts that were due for payment last month.

    The debts will be paid, the Ministry of Finance, in a statement, said.

    It said the clarification became necessary following the states’ debt repayment deferral announced last week.

    “Further to the states’ debt repayment deferral for the month of March that was announced last Thursday, the Federal Ministry of Finance has clarified that the debt repayments due to the states’ creditors will be fully paid, notwithstanding the deferral. All creditors, including bondholders, will not be adversely impacted,” it stated.

    It said the deferral is not a bailout but “a responsive measure by the Federal Government to put states in a better position to meet their salary obligations”. The deferral is N10.9 billion.

    All states will receive the relief in this instance, but further deferrals will be “subject to the agreement of a Fiscal Restructuring Plan to be prepared by each state with clear measurable objectives.”

    The statement said the ministry was keen in ensuring that the financial discipline being driven by the Federal Government is replicated in all tiers of government, including elimination of payroll fraud and increased spending efficiencies in overhead.  It called for enhanced financial transparency by the publication of audited accounts and submission of debt profile.

    President Muhammadu Buhari  approved the states’ deferred payment on account of the backlog of salaries owed by many states to their workers and the abysmally low revenue (aboutN299.7billion) available for sharing for the month of March.

    The government said last week that with about 27 states experiencing challenges meeting their salary payments and in response to the obligatory repayments due to the Federal Government from the states in respect of their restructured loans, the Federal Government offered to defer for March, the repayment of their obligations to all their creditors.  The deferral amounted to a total of N10.9 billion.

  • Buhari: three Northeast states lost N3 trillion to insurgency

    Buhari: three Northeast states lost N3 trillion to insurgency

    President Muhammadu Buhari has said three Northeast states lost N3 trillion to the Boko Haram insurgency.

    This was contained in a statement by the Senior Special Assistant on Media and Publicity, Garba Shehu.

    The President yesterday ordered the release of 10,000 tonnes of grains from the national strategic reserves for national distribution.

    Buhari directed the Minister of Agriculture, Audu Ogbeh to ensure that all able-bodied men and women in IDP camps be assisted to return to farming.

    The directives were in reaction to calls for government measures to ease hardship associated with food inflation.

    The Presidency, however, asserted that the devastation of the economy was caused by the Boko Haram insurgency, corruption and lack of planning by past administrations and one that should not be blamed on the change agenda of the Muhammadu Buhari administration.

    The Presidency also rejected insinuations that poverty and lack were products of the change mantra.

    The statement reads: “This should be dismissed as an erroneous and misplaced opposition criticism.  The President understands the pain and the cries of the citizens and he is spending sleepless nights over how he can make life better for everyone.

    “Contrary to assertions by a faction of the opposition, Conference of Nigerian Political Parties (CNPP), the President’s energy and focus are on changing the life of Nigerians, with a view to making  it better than he met it.

    “Change is a process. Change does not happen overnight. Change can be inconvenient. Change sometimes comes with pain. Over the past year, the government has been working night and day to deliver on its promise of change to Nigerians, and the painful process is still on.

    “This is work in progress. As life gradually returns to normal in much of the country and the Northeast, agriculture will resume and traders from neighbouring African countries will once again feel safe to do business with us, yet another boost for our economy.”

    The Presidency maintained that it is only when Nigerians appreciate where they are coming from that they will grasp the essence of what the  journey entails.

    Recalling the previous administration’s claim that the Federal Government losses amounted to about $18 billion, the Presidency said it would have been a miracle for Nigeria’s economy not to have felt the effects of that.

    “And, in addition to the thousands of lives lost to the insurgency, thousands have also lost their livelihood. The Northeast is a mostly agrarian society, which means Nigeria has lost billions of naira in agricultural produce. Many communities, which have had their yearly planting and harvesting cycle disrupted by Boko Haram attacks or occupation are yet to return to their farms. In many of these communities, there has not been planting and consequent harvest for between two to five years.”

  • States generate N682.7bn IGR in 2015

    The 36 states in the country have generated about N682.7 billion as Internally Generated Revenue (IGR) in 2015 fiscal year.

    This is contained in a report released by the National ‎Bureau of Statistics on Friday in Abuja.

    An analysis of the report showed that Lagos state generated the highest IGR of N268.2 billion, followed by Rivers state with N82.1 billion and Delta with N40.8 billion.

    It showed the states with the lowest IGR ‎in 2015 as Ebonyi state with Zero IGR followed by Yobe state with N2.2 billion and Zamfara with N2.7 billion.

    The report also showed that the overall IGR of states had dropped by N25.18 billion from N707.9 billion in 2014 to N682.67 billion in 2015.

    The report showed that while some states recorded a decline in revenue when compared to 2014, others were able to shore up their revenue base within the 2015 fiscal period.

    The report also showed that 11 states were able to shore up their revenue within the period while 24 recorded a decline in revenue performance.

    The 11 states that were able to shore up their revenue according to the report are Ogun state from N17.49 billion to N34.59 billion, Abia from N12.3 billion to N13.4 billion, Anambra from N10.4 billion to N14.79 billion.

    Bauchi from N4.85 billion to N5.39 billion, Borno from N2.76 billion to N3.53 billion, Edo from N17 billion to N19.1 billion, Kogi N6.5 billion to N6.7 billion and Nasarawa from N4.08 billion to N4.28 billion.

    The rest are Niger from N5.73 billion to N5.97 billion, Sokoto N5.6 billion to N6.2 billion and Taraba from N3.79 billion to N4.15 billion. (NAN)

  • Should states be created?

    The Governor of Lagos State, Akinwunmi Ambode recently constituted a 12-man 50th Anniversary Committee for the celebration of the creation of Lagos State on the 27th May, 2017. This committee has its chairman, the Nobel Laureate, Professor Wole Soyinka, and Chief Rasheed Gbadamosi, former Minister for National Planning, as the co-chairman. Other members of the committee are: Hon Habeeb Fasinro, Chief Olawale Cole, Mrs. Sarah Boulos, Mrs. Abimbola Obafunwa, Prof. Mrs. Senapon Bakare, Mrs. Chika Balogun, Mr. Folarin Coker, Professor Ademola Abass, Bolanle Austen Peters and Mrs. Olufunmilayo Balogun, who is the secretary of the committee.

    I am sure the governors of Kano, Kwara and Rivers states will set up similar committees before next year.

    In creating the 12 states on May 27th, 1967, General Yakubu Cinwa Dan Yuma Gowon (81) made the following announcement, “the twelve new states, subject to marginal boundary adjustments, will therefore be as follows: North-Western State comprising Sokoto and Niger Provinces. North-Central State comprising Katsina and Zaria. Kano State comprising the present Kano Province. North-Eastern State comprising Bornu, Adamawa, Sardauna and Bauchi Provinces. Benue/Plateau State comprising Benue and Plateau Provinces. Lagos State comprising the Colony Province and the Federal Territory of Lagos. Western State comprising the present Western Region but excluding the Colony Province. Mid-Western State comprising the present Mid-Western State. East-Central State comprising the present Eastern Region excluding Calabar, Ogoja and Rivers Provinces. South-Eastern State comprising Calabar and Ogoja Provinces. Rivers State comprising Ahoada, Brass,Degema, Ogoni and Port Harcourt Divisions”.

    There was a major error in General Gowon’s announcement on that day.

    West Central State made up of River Niger and Ilorin provinces, which came to be known as Kwara State, was omitted in the broadcast of General Yakubu Gowon. The state was eventually created when the decree on state creation was later promulgated by General Yakubu Gowon. He then named the following as the governors of the new states: Benue-Plateau State, Chief Superintendent of Police, Joseph Decchi Gomwalk (1935-1976), East-Central, Anthony Ukpabi Asika(1936-2004), Kwara, Brigadier David Femi Lasisi Bamigboye (75), Lagos—Brigadier Mobolaji Olufunso Johnson (80), North Central—Brigadier Abba Kyari (78), North- East—Brigadier Musa Usman (Air Force), North-West—Police Superintendent Usman Faruk (81), Rivers—Lieutenant Alfred Papapreye Diete-Spiff (Navy), South-East—Brigadier Jacob Udoakaha Jacob Esuene (1936-2004) – Air Force, Police Commissioner, Audu Bako (1924-1980)—Kano and  West—Brigadier Robert Adeyinka Adebayo (88).

    As for Mid-Western State there was initial delay in the appointment of a governor. Major Albert Okonkwo of the Biafran Army was administrator of that state by then. The state was later liberated by Lt. Col. Murtala Ramat Mohammed (1938-76) and he eventually named his friend, Lt. Col. Samuel Osaigbovo Ogbemudia (83) as Administrator. After 57 days, General Gowon under pressure and appeals later confirmed the appointment of Lt. Col. Samuel Ogbemudia as governor.

    The very day General Gowon created the 12 states was the day he declared state of emergency throughout the country.

    It was also the very day that he assumed full powers as Commander in Chief of the Armed Forces and Head of the Military Government.

    To me the creation of states in Nigeria on that day was the first major coup by the minorities. For the man who created the states, General Gowon, an Angus, is from Pankshin, in the present day Plateau State. The man who wrote the memo on the creation of states was a Kanuri, Alhaji Ibrahim Maina Damcida (1933-2012), who was as that time a Federal Permanent Secretary. And the chairman of the Committee of Federal Permanent Secretaries that submitted the list criteria to be used for the creation of states at that time, was Chief Allison Akene Ayida (85) is from the present Delta State, who later became Secretary to the Government of the Federation.

    It was the creation of states in May 1967 that liberated the minorities in this country and gave them a platform and a voice.

    In his book titled” Rise and Fall of Nigeria, Chief Allison Ayida, wrote that,” the minorities form about 45% of the total population in the country. The political arithmetic is that in any democratic process, one of the major groups needs the support of the minorities to gain power. Besides, any group temporarily out of power feels like a minority. This reinforces the contention that we should not return to the system of winner-takes-all. No section should be made to feel perpetually enslaved like second class citizens”.

    My friend, Senator Joseph Sarwuan Tarka(1932-1980) told me in London in 1978 that if Gowon had not created states, his United Middle Belt Congress which was inaugurated in 1955 and signed an alliance with the Action Group of Chief Obafemi Awolowo on May 6, 1957, will be still be fighting against oppression. According to him “the states creation saved Nigeria”.

    I am sure if the states were not created, many Adaka Boros would have emerged by now.

    That being so, the Igallas, the Nupes, Ijaws, Tivs, Idomas, Ibibios, Junkuns and all other minorities should celebrate the creation of states next year as a date for their own independence too.

    Although we still have the issue of minority within the states but if an Annang man like Chief Godswin Akpabio could be Governor of Akwa Ibom and an Igbiraman Yahaya Bello could be governor of Kogi State, there is hope that someone from Oke-Ogun could be governor of Oyo State someday and an Idoma could be Governor of Benue State and other minorities could be elected governors in all the states in future.

    The relevant question now is will new states ever be created? My answer is why not.

    Economic buoyancy has never been the major criteria for the creation of states. Of the five military rulers that have created states in Nigeria (General Gowon—May 27, 1967, General Murtala Muhammed – February 3, 1976, General Ibrahim Badamosi Babangida (74) – September 23, 1981, General Ibrahim Badamosi Babangida – August 27th, 1991 and General Sani Abacha (1943-1996)—October 1,1996 none of them has explained that they created the because of economic viability.

    If we are to talk of buoyancy, how many states in Nigeria today could boast of complete economic independence? As of today all the states are indebted. I believe agitation by the people determines whether a state will be created in spite of section 8 of the constitution.

    It is the constant agitation by the people that will determine whether Okun, Idoma, Ogoja. Ibadan, Ijebu and other areas will become states in the future.

     

    • Teniola, a former director at the presidency, stays in Lagos.
  • ‘Fed Govt, states should partner on solid minerals’

    ‘Fed Govt, states should partner on solid minerals’

    Solid minerals can drive industrialisation and economic growth in the country, the sector stakeholders have said in Ilorin, the Kwara State capital.

    The stakeholders spoke at the 52nd Annual National Conference of Nigerian Mining and Geosciences Society (NMGS).

    Kwara State Governor Abdulfatah Ahmed and Solid Minerals Development Kayode Fayemi were in attendance.

    Both Governor Ahmed and Dr Fayemi decried the neglect of the sector by successive governments in the country.

    Ahmed used the occasion to call for partnership between the Federal Government and states for a survey of the quality and quantity of solid minerals in the country in order to build a geosciences database.

    He said, “No doubt, the solid mineral sector has the potential to generate significant revenue for the country but has been largely underexplored due to the reliance on oil resources.

    “Yet the opportunities are vast. For example, 30 per cent of the planet’s mineral resources, and specifically, more than 40 per cent of global gold, diamond and manganese, to mention a few, is found in Africa. Nigeria is no less endowed.

    “According to the 2012 audit report of the Nigeria Extractive Industries Transparency Initiative (NEITI), Nigeria has about 40 different solid minerals spread across the country. Yet on the average, the sector contributes only about 0.34 percent to the country’s GDP.

    “More than ever before, there is profound optimism that the sector can serve as a key driver in the quest for sustained economic growth and development in the country. The cumulative experience and expertise in this room today makes you all key to this quest.

    “As things stand in our country, the only way governments can continue to meet their obligations to the people is to create a broad based and sustainable economy: an economy that relies on revenue and growth from multiple sectors and is structured to create prosperity for the current generation without jeopardising that of the future.

    “However, it is important to note that Section 44 (3) of the 1999 Constitution vests the Federal Government with the ownership and control of all minerals, mineral oils and natural gas, in Nigeria.

    “Also, the Second Schedule, Part1, item 39 of the Exclusive Legislative list in the 1999 Constitution restricts State Governments from developing their respective mining industries.

    “As a result, this has limited the authority of states in the mining sector. This restriction has led to states having no authority to regulate the sector despite, playing host to miners.

    “Indeed, it is ironic that this restriction exists at a time states are required to exploit alternative sources of revenue such as the solid mineral and mining sector.

    This structure has led to environmental degradation as licensed miners sometimes carry out mining activities in a haphazard manner, as states are unable to regulate their activities.

    “I, therefore call on the Federal Government to allow increased participation by States in the solid mineral sector, especially in exploration, the collection of royalties, fees, fines and taxes accruable from solid minerals.

    “With this, states will be able to stimulate more growth, increase their Internally Generated Revenue, and create critical jobs for youths.

    “While we have a fairly accurate estimate of the mineral resources our country is endowed with, it is believed these barely scratch the surface of the vast mineral deposits in Nigeria. We must however acknowledge that mineral exploitation is expensive and time consuming.

    “In Kwara state, we are blessed with Gold, Kaolin, Marble, Dolomite, Tourmalines, Limestone and several other solid minerals which we are focused on exploiting to form the base for industrial development in the state.

    “Likewise, in order to diversify our economic base through solid minerals, this administration has put in place strategies to formalise and grow the industry.

    “These strategies include: enumerating and regulating operators and growing micro-and small-scale operators in the sector amongst others.

    “Furthermore, we are making plans to organise informal miners in the sector into cooperatives and given access to Small and Medium Scale Enterprises (SME) loans. This is to encourage small business owners in solid mineral and mining sector.

    “We have also set up the Midway Minerals Development Company Limited as a special purpose vehicle to acquire mining licenses and promote investment in the sector. Currently, we have five mining permits covering 445 cadastral units for mining Tourmaline, Tantalum, Dolomite and Marble.

    “Additionally, we are ready to acquire additional licenses to further exploit opportunities in the sector and by forging partnerships with private sector investors.

    Dr Fayemi used the occasion to decry insufficient funding of the ministry over the years.

    He added that out of the one billion Naira voted for the ministry in the 2015 budget, the ministry could only access N352 million.

    Dr. Fayemi added, saying, “This year alone Bukina-Faso next door to us is spending $80 million on generating geosciences data. Kenya is spending $65 million on generating geosciences data. It is not the total budget of the ministry. It is clear to us and President Muhammadu Buhari that if this sector is to thrive, we also need to inject more funding, not just government funding but private sector funding.

    “To this end, one of my first tasks as a minister was to meet all the managing directors of commercial banks and the Governor of Central Bank (CBN) to encourage them to become involved in mining by setting up solid mineral’s desk in their various banks, just as they have agric desk; and also organising an intervention fund for the sector, which we are now working on.”