Opinion
The Governors’ New Headache
A nation where states and local government councils get so much money monthly but have little or nothing to show for it, leaves much to be desired. This is one of the reactions of some Nigerians to the current agitation by state governors for increased revenue allocation to states and local government councils from the federation account.
Revenue is shared monthly by the three tiers of government. However, despite the huge amount of money shared, it is disturbing that many states and local government councils lag behind in infrastructural and economic development.
A critical look at the yearly budgets of most states and councils shows an increase in recurrent expenditure above capital spendings. This means the states consume far more than they invest in development.
The implication of this poor vision is not lost on the nation. While poverty continues to bite harder, as it is currently experienced, the country witnesses infrastructure decay. All these translate to ignoble standard of living. Little wonder, states and their federal counterparts incur recurring low budget performance because of mismanagement and poor planning.
The current contentious revenue grant gives the Federal Government 52.68 per cent, states 26.72 per cent, while local government councils receive 20.60 per cent. Whereas, in other climes, where true federalism is practiced, states and councils generate revenue with which they run the government and provide social infrastructures for the citizenry. Income is hatched through taxes and national resources, among others. Why is it different in Nigeria? Why can’t states generate enough revenue internally?
If state governors can dare the odds and look inwards, they will generate income far more than the monthly allocation they get from the federation account at the moment. But this is not the case. Rather than concentrate on ways of generating revenue internally, some state governors are hell-bent at getting more money from the Federal Government by embarking on the unconstitutional exercise of creating more local government councils. Others go as far as underdeclaring their internally generated revenue. I wonder why so much money is voted by some governors for recurrent expenditure, while they are unable to pay their workers the N18,000 national minimum wage.
Since state governors are reluctant to pay increased wages, it is expected of them to check inflation in their respective states. Unfortunately, some of them are so ignorant of basic economics that they can hardly identify elementary inflation index.
Another issue which constitutes a waste is the contentious security votes. Deplorably, this also forms part of the bloated recurrent expenditure in all state budgets. Most Nigerians express anger against the rather euphemistic expression for this stealing. Imagine the level of development states will attain if all that goes as security votes is plunged into development.
If security votes are utilised properly, would we experience the unprecedented killings, kidnappings and robberies in our midst? If security votes are put into their proper use, wouldn’t we have adequate intelligence and well-equipped law enforcement agents to combat crimes?
Curiously, even money that are voted for capital expenditure are often under-utilised. That is the reason we have myriads of abandoned projects flung around the country. The bad state of our roads, poorly funded health institutions and schools and lack of basic infrastructure can be attributed to this factor.
It is a pity that in spite of our enormous resources and potentials, poverty is prevalent in the nation. Basic United Nation’s indicators place Nigeria among the 20 poorest nations in the world.
The question of poverty in our nation is traceable to the under-utilisation of resources. If resources are well used, education, health, agriculture etc will be properly financed and jobs will certainly be created.
Indeed, the problems we have in our nation are not caused by inadequate revenue allocation to states from the federation account, but mismanagement, corruption and accountability by state governments. If the revenue allocation formula is reviewed, will it solve these problems listed above?
The truth is that state governors should start thinking of how they can survive without allocation from the federation account and not attribute their failure to inadequate funding.
Arnold Alalibo
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