FILE
PHOTO: President Muhammadu Buhari,and Vice President Yemi Osinbajo
(middle) and other party leaders, pose for snapshot after a meeting with
APC governors.
The current decline in global crude oil prices is a wake-up call
for Nigerian states to rise to the realities of looking inwards to
survive through the difficult times.
Most states of the federation apparently live from hand to mouth, severely feeling the impact of plunging oil prices.
Every month, their representatives go to Abuja for the Federation
Accounts Allocation Committee (FAAC) meeting, where oil revenues are
shared among the three tiers of government and the FCT.
In days when crude oil sold for an average of $100 per barrel, money
was not the problem for some of the states. Allocations were often above
budgeted benchmark price, and, besides statutory allocations, the
government had excess crude oil money to share.
With revenues from oil exports shrinking every passing day and the
excess crude revenue account almost depleted, states have to explore
alternative ways to survive.
Here are 14 survival tips for state governors in the period of economic downturn.
- Kill corruption before it kills the states
One of the greatest challenges states are facing is corruption.
States’ budgets are often padded with over-bloated contracts and bogus
projects.
In many states, project sums are over-inflated, resulting in high
incidences of abandoned projects. Sometimes before contracts are
awarded, contractors are expected to make huge upfront payments to
approving officials. If corruption is removed in the contract awarding
process, states would save enough money for effective governance and
development.
- Cut the governors’ long convoys
Despite the poor revenue situation of the states, the flamboyant
lifestyles of their governors remain untouched. The trademark of most
state governments is long convoys of latest models of exotic cars for
governors, members of the executive councils and wives.
The costs of maintenance, fuelling and repairs of these vehicles are
always major drain pipes on the resources of the states. If the states
could cut down their appetite for exotic cars in long official convoys,
they will save significant resources for other development priorities.
- First Class flight tickets and private jets
Apart from long official convoys, state functionaries spend huge
portions of their resources on travelling within and outside the
country.
Most state government officials travel with first class air tickets,
while others have private executive jets permanently on standby to fly
them across the country and abroad, many, on private trips.
Think about the cost of maintaining an aircraft – from parking permit
at the airport, through insurance, to periodic maintenance abroad. If
the states cut down the use of First Class air tickets and use of
private jets, huge revenues can be saved from the excess expenditures
associated with these lifestyles.
- Cut down on retinue of personal aides, political appointees and overheads
State governments will save huge revenue for development if they
significantly reduce the number of political appointees that draw hefty
salaries and allowances.
Most of the political aides, who receive huge fringe benefits from
the system, are purely for political patronage and don’t bring any value
to the system.
Monthly overhead payments to government departments should also be
pruned, and redundant government agencies scraped to reduce wastages.
- Do away with security votes allocations
Every year, allocations for security votes take a huge chunk of the
states’ budgets. Generally, expenditures under security vote allocations
are never subjected to scrutiny. So, governors are at liberty to spend
the allocations on anything that catches their fancy.
However, since all the issues the security votes are meant to be used
for have already been catered for in the annual budget of the different
government agencies, the states could save big by abolishing continued
allocation for security votes.
- States’ liaison offices drain the purse
Every state has liaison offices in the Federal Capital Territory and other key states of the federation.
They have the full complement of staff and all the perks of office
for the governor, ranging from official convoy of cars, governor’s lodge
and guest houses, to political aides, advisers and assistants. All are
maintained with huge allocations from the states. With such offices,
most of the governors are virtually away from their states.
If the offices are scrapped, the budget allocations for their upkeep
and maintenance will be saved for other meaningful uses in the state.
- Stop playing “Father Christmas”
Most state government executives accumulate huge extra budgetary
expenses in the form of donations that do not add value to the business
of governance.
Governors also donate vehicles, money or give contracts at inflated
rates to traditional rulers and top politicians to either get
traditional titles or political favours.
If such expenses that do not add value to the economic development or
social welfare of the citizenry are stopped, or cut down by at least by
30 to 50 per cent, states would have more revenue saved for other
development purposes.
- Check “ghost workers”
The payroll of most state governments are replete with names of
non-existing workers who receive fat salaries and other benefits,
including pensions, from more than one pay points in various ministries,
departments and agencies.
States need to establish a structure that would check the ghost
workers syndrome to save them huge revenues lost to faceless workers.
- Halt the frivolous borrowing
Most states in Nigeria borrow to spend and not invest. Some of the
projects for which loans were taken for implementation are often
abandoned, as such monies are often diverted to private pockets.
If states cultivate the habit of borrowing only when it is absolutely
necessary, they would be saved the pain of servicing loans that have no
projects on ground to show for them.
- Curb excessive media hugging
Most state governors love the media attention and publicity stunts.
States buy spaces in newspapers and magazines, prime time on live
television and radio which often run for several hours. These media
exposures cost a fortune of revenue that could have been saved for more
important developmental uses.
For every conceivable programme, heads of state parastatals and
agencies buy spaces in newspapers and magazines or TV airtime to sing
the praises of governors and their wives.
- Change the “Owambe” mentality
Most state governments see every little event, from the birthday of
the governor or his wife, to the marriage of the relation of any of its
functionaries, as an opportunity to organise expensive parties, where
expensive drinks are served and costly gift items are distributed to
guests.
During such ceremonies, special attires, with face of the government
official embossed, are imported and distributed at state expense.
State sponsored banquets, lunch and dinner events are regular menus of some state governments.
In some instances, some governors hire private jets to convey guests
to secluded locations for exclusive parties at the expense of their
states.
If the states must survive the difficult times, the state governors
must stop this attitude and ensure that every kobo at their disposal is
spent wisely to the benefit of the people.
- Stop award canvassing
State governors are known for jostling for recognition and seeking
bogus awards from groups, organisations and media houses interested in
merchandising same for cash.
Most of the governors pay huge amounts to be selected the best for the award so long as it does not come from their pocket.
Other governors pay millions of naira to get honorary doctorate degrees from universities in Nigeria and beyond.
Stopping this habit could save huge revenue for meaningful development project.
- Look beyond oil glass; explore areas of comparative advantage
There is no state without one natural resource or other endowments
that could be tapped into. Every state has several agricultural products
they can develop into a veritable revenue spinner.
States must look inwards and identify these natural endowments and
work towards establishing cottage industries in industrial clusters
capable of creating jobs, while generating revenue for the government.
Farm settlements in areas of comparative agricultural advantage could be one of the viable ways to go.
- Step up internal revenue generation drive
Without oil, states must look at other revenue generating avenues
available. Citizens in most states do not seem to be paying taxes.
States should think outside the box and decide to introduce taxes on
luxury items. Tax consultants could be of help.
Post a Comment