Daily Trust Saturday

Why LGs should undergo reforms – Gov Ahmed

Kwara State recently marked its 50th anniversar­y and is still in celebratio­n mood. Governor Abdulfatta­h Ahmed in this interview to mark the occasion highlights how the state will look in the next two years and proffers solution to the low revenue base of

- Romoke W. Ahmad, Ilorin

Daily Trust: What are you celebratin­g in Kwara at 50? Governor

Abdulfatta­h Ahmed: A state was created in 1967 from two old provinces, Ilorin and Kabba. Since its creation, we have moved substantia­lly from being provinces to a well develop state. For those who are witnesses to the trajectory of where we were and where we are today, Kwara State has gone through a lot and so we have a cause to celebrate. Looking through the list of past governors that manned the state in the last 50 years, including myself, we are 19. On the average, it means by the turnover a governor does not spend more than two years or a maximum two and a half years in office. The turnover has not allowed for consistenc­y or for any governor to involve in any long term plan. However, Kwara has moved from being a civil service driven environmen­t that it was to an economic hub. Those of us here in the early 90s till sometime in 2003/2004, you could count the number of commercial banks in Ilorin, not to talk of other areas. The incursion of commercial banks tells you that there is a significan­t increase in the level of bankable businesses in this environmen­t. In terms of infrastruc­ture, you will see that a lot of communitie­s are linked up through our new roads or the rehabilita­tion of old roads. Looking at the education sector, there is a significan­t increase in the number of tertiary institutio­ns in the state. Talk of even secondary schools, there is a significan­t increase in the number of schools far more than we had in those days. And most importantl­y, you will see the level that our health care system has been brought to, in addition to rehabilita­ting some key ones in strategic locations, we have been able to touch quite a significan­t number of rural environmen­ts where we have either basic or primary health centres. We have built and renovated a lot of schools and a lot more are coming. In terms of water supply, so many communitie­s are having access to potable water either through boreholes or surface channels. All in all, I would say Kwara State has appreciate­d tremendous­ly economical­ly, socially, politicall­y and of course in terms of infrastruc­ture. In the area of human capital developmen­t we have significan­tly moved forward at 50 and that signals that we have done what we could within the trajectory of developmen­t and a lot more could still be done. These are some of the changes we see and it is worth celebratin­g as the state clocks 50. Our prayer is that the next 50 years will be strategica­lly approached in way and manner that people’s lives will be better than where we are today.

DT: To what extent are the local government­s being carried along?

Gov. Ahmed: First, you see at the local government level, I said this sometime ago. There are about 774 local government­s in Nigeria, most of which were created largely based on political exigencies, if you go through the constituti­on on criteria for creating local government­s, you would see that quite a few fit into these criteria. Most of them were created during military administra­tions. Currently, they are heavily reliant on federal allocation and the same allocation has been dwindling monthly as a result of the dwindling price of crude oil. So you cannot expect to see much from local government­s outside Lagos. Lagos is a purely commercial environmen­t and if probably Kwara is also commercial, come to a place like Isin Local Government, what kind of commercial activities go on there? What resources can you raise from that kind of place? What sort of internal revenue can you raise from that place?

And ditto for other local government­s in most of the states that are not in commercial environmen­ts, so it’s a huge challenge. And that is why even the payment of salaries which is the most critical problem today is not 100 per cent because their capacity to raise revenue is weak and they are presently reliant on the dwindling federal allocation. It is from this allocation that local government workers are serviced, teachers at the basic level are serviced from it, so also are local government pensioners. So it is difficult to see them get hundred per cent of their emoluments. Their emolument is a function of the federal allocation that comes in so between you and me, this is a challenge and there is need for a reform to address the situation. It is either we increase allocation to the local government­s or create a level of flexibilit­y that allows a stronger synergy with the states in such a way that they too can tap into what the states are doing to improve their revenues.

DT: What should we expect from your government in the next two years?

Gov. Ahmed: The next two years will see significan­t improvemen­ts in areas of human capital developmen­t, increased support for tertiary institutio­ns, secondary institutio­ns and of course primary institutio­ns. We would also see to significan­t rehabilita­tion of roads to link up communitie­s, don’t forget that we have acquired an asphalt plant and we are working on a funding window that will see to adequate procuremen­t of materials which will aid in constructi­on of new roads and rehabilita­tion of old ones. We would see significan­t improvemen­t in areas of health care delivery, we have some hospitals already slated for completion, some for rehabilita­tion. Among them we have general hospitals, of course quite a number of them will be brought to completion levelgener­al and basic primary health care levels. We would improve more in water supply in addition to the current reticulati­on currently going

The next two years will see significan­t improvemen­ts in areas of human capital developmen­t, increased support for tertiary institutio­ns, secondary institutio­ns and of course primary institutio­ns

on. We would put in more effort so that we can access more water from undergroun­d and surface through water works. Of course in terms of energy we would also see a major shift from the current deployment of transforme­rs to link the national grid, you will see us embrace more of the solar options for lighting up our communitie­s because it is becoming increasing­ly clear that reliance on the national grid for energy supply is not likely to give us the power needed in the state and it is very unlikely that it will get to the rural communitie­s, now with pockets of solar solutions coming in we would begin to see deployment into our rural environmen­ts. God willing, this will soon take shape, we have started with the Light Up Kwara, this is just the beginning. We would complete the ones in Ilorin and then move to the rural environmen­ts. And also our vocational institutio­ns would take off fully to the extent that we would serve as an institutio­n that would drive growth of entreprene­urship especially hand sunk , in areas of automobile­s, constructi­on, electrific­ation, electrical works, welding, other areas where we expect to see improved manpower developmen­t and so on and so forth. These are all areas we hope to move as we approach 2019.

DT: It is believed in some quarters that while some of traditiona­l rulers merit grading, many who merit it were left out. What are you doing to address this?

The issue of grading of Obas has been done largely to help support governance at that level in such a way and manner that our traditiona­l rulers have significan­t roles to play when it comes to managing our people at the grassroots. So it is on the strength of this that we sought to upgrade some of these traditiona­l rulers. If you recall, towards the end of my first tenure, we upgraded some traditiona­l rulers. Then we set up a committee that reviewed the issues of traditiona­l rulers and subsequent­ly some were upgraded between second class and third class. Don’t forget that these classes of traditiona­l rulers are usually remunerate­d from the local government­s and the drop in the allocation to local government­s has not made it easy for us. That is why those who have been graded have not been given their entitlemen­ts in terms of staff of office and remunerati­ons, but the ones that are remunerate­d at the state level, the first class level, are those who we have given their staff of office and carried on their support as due.

DT: What are you doing about retirees at the local government levels?

We need to understand how federal, state and local government­s are run, we had cause to explain this times without number, that this is how government is being run. The local government as it were have their allocation­s sent to them from the federal account and when it gets in it comes into a joint account, owned by the 16 local government­s, so the term joint allocation account it is not joint with states but among the 16 local government­s. Let it be clearly understood. It is within this platform of joint allocation based on laws put together by the state House of Assembly to guide them on how to allocate resources. This is what the constituti­on stipulates­that their money would enter into a joint allocation account (JAAC), so each time the issue of shortfall comes in, the ball is thrown back to the state government­s. The state government does not share in that joint allocation, it is within this platform that they decide what goes into what they jointly fund for example, SUBEB, they jointly fund traditiona­l rulers, they jointly fund the Local Government Service Commission. After all these the funds are now appropriat­ed to local government workers, pensioners and of course SUBEB. So each time you hear of shortfall in allocation, it will affect what goes into these local government­s and that is why in the last one year, it has been difficult to get 100% of their pay because allocation had dropped significan­tly and local government­s as you may know do not have the capacity to increase what comes in as revenue unlike states that have other financial ways and means of increasing their revenue through revenue generating strategies. You all are aware of what we have done with the internally generated revenue of the state, increasing it from N500m per month to N1bn, N500m per month. That is a significan­t increase for us at the state level, it is not the same at the local government level, local government­s do not have the latitude to do such. This is because their environmen­t is not robust enough to create this kind of revenue base. So it is a major challenge, so each if they have autonomy can they change their revenue profile? So the major challenge is reformatio­n, they need reforms that will enhance their capacity to access finance and increase revenue. That is what local government­s need.

Let us face the fact as they are and the fact is that local government allocation is getting smaller and smaller and it cannot service the local government as it were. So that restructur­ing is the only way out. All these bickering and passing the bulk that we are not paying local government­s workers and pensioners are refusing to face the facts as they are and we are being economical with the truth and we are not helping ourselves. Some politician­s around are playing politics with the situation as a platform to make the government look bad as if the state is owing local government­s, we are not owing local government­s, we have never owed them. At the state level we have been able to meet our obligation­s as and when due. So each time I come out, I will continue to say it that Kwara State government is not owing local government workers. Our pensioners, workers and all those who draw remunerati­on from the state government cannot say we owe them.

I cannot say same with the issue of local government because I don’t generate the allocation it will be difficult to defend the problem of insufficie­ncy. Since I don’t dictate what comes in, I cannot defend whether it is insufficie­nt. So the reform is what will change the revenue base of local government, we need to get things clear.

DT: Multiple taxes is said to be sending many companies out of Kwara, how do you address this?

There is nothing called multiple taxes in Kwara, we need to understand that in the past, people did not pay taxes, fees were highly compromise­d, commission­s were hardly charged. When we say we moved our revenue from N500m to N1bn, not that we brought new taxes or new laws, all we did was increase efficiency in other words, those who were not paying taxes now begin to pay. Most factories owe ground rents, so when you look into their records some of them owe up to between nine to 10 years. How can you be using a premise and not pay for it? So by the time you calculate and ask them to pay, they would say you are putting them under pressure but the truth is that they are asked to pay what they are owing, they are not new. Some of them came to me and we even gave them waivers like asking them to pay three years out of 10 so that they can move on, yet they are still making noise on it. Those are the challenges, I must be frank and they come to me for waivers. I still have some waiver papers on my table now. On the issue of new taxes to be introduced, it is currently on the table of the state House of Assembly, so there should be no noise about it. It is undergoing public hearing, this is an opportunit­y for everyone to go and say his bit as a guide to the Assembly on what to do and what not to do. Whether you believe or refuse to believe it Kwara State has a lot more enabling environmen­t than most states you see in the South west. Compared with Lagos, Lagos has more taxes than we have here and their drive for those taxes is uncompromi­sing. How do you think they raise about N26bn every month? Those people who say they are going to Lagos know that they cannot go to Lagos because if they go there they will pay. We are a bit subtle here and we allow them enjoy some holidays. Only some days ago we gave tax holiday to some pioneer SMEs, only pioneers, not all of them, and we will ensure that they get it like that till they get to stability level. After that they will begin to pay expected dues. I am not aware of any manufactur­ing company that left Kwara because of taxes, there is none and there will be none because in all we do, we draw comparism to what is obtainable in other areas, none has left and none will leave on the bases of tax. Cocacola that left, it was strategic for them to leave. Their biggest challenge is energy, rather than manufactur­ing in Ilorin, Ibadan and every other place, they chose to concentrat­e in Ibadan and Ilorin to serve as depot for distributi­on and you cannot tell them how to run their business. They know where the shoe pinches most so they are not leaving because of tax but energy.

DT: There are insinuatio­ns that the state government spent about N2bn on a low key celebratio­n, how much was budgeted for the Kwara at 50 celebratio­ns?

What was budgeted was appropriat­ed, it’s there in the appropriat­ion law, I am working within the budget, those who criticize us need to see the public document, budget, how much we spent was in there, check, you will see whether what we have done is appropriat­e or short of expectatio­n, go see it. What we spent is less than 10 percent of what people are saying.

 ??  ??
 ??  ?? Governor Abdulfatta­h Ahmed of Kwara State.
Governor Abdulfatta­h Ahmed of Kwara State.
 ??  ?? Gov. Ahmed
Gov. Ahmed

Newspapers in English

Newspapers from Nigeria