Director-general of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, has advised Nigerian governors to avoid piling up debts on their states and to prioritise citizens’ welfare if they want to have successful tenures as governors.
In an address at the Nigeria Governors’ Forum (NGF) induction ceremony yesterday at the Presidential Villa, Abuja, Okonjo-Iweala emphasised the importance of prudent financial management for state governments and the need to sustain payment of workers’ salaries.
The former finance minister and minister of finance during the Obasanjo and Jonathan administrations urged governors to prioritize the payment of teachers, healthcare workers, and pensioners, while investing in infrastructure, education, and basic healthcare.
Highlighting the need for increased internally generated revenue (IGR), Okonjo-Iweala suggested that governors should focus on transparency and efficiency in their financial practices.
She encouraged them to publish information about the federation revenue allocation and IGR, to enable citizens to have a clear understanding of their state’s financial situation.
She said, “Nigeria is a country with no social contract, meaning that Nigerian political leaders have never been able to agree with each other to stick to a common set of principles, values, and policies that consistently deliver for their citizens regardless of ethnic group or political persuasion.
“You have a lot of healing to do – within your states, and between them. Through your words, deeds, and policies, you need to demonstrate to Nigerians that they are equally loved; that they can settle and do business in any part of the country without fear,” he said.
Moreover, Okonjo-Iweala emphasized the importance of monitoring debt profiles and controlling expenditure. According to her, while investing in critical sectors such as infrastructure, education, and basic healthcare, governors should prioritize the timely payment of teachers and healthcare workers.
Citing data analysis from the National Bureau of Statistics and Budgit, an organisation dedicated to providing financial reports on country budgets, Okonjo-Iweala revealed that a majority of states rely heavily on federal allocations for revenue.
In fact, for 33 states, federal allocations account for the majority of their revenue, with 13 of those states depending on monthly impact allocations for approximately 70 percent of their revenue.
While state governments experienced a slight increase in IGR, rising from N1.2 trillion in 2020 to N1.61 trillion in 2021, these figures pale in comparison to the Federal Account Allocation Committee (FAAC) allocations of N2.23 trillion in 2020 and N3.16 trillion in 2021.
“While I commend those states that have made additional efforts, governors need to do much more. States must figure out ways to increase IGR. This goes hand in hand with using your 48 percent share of federal allocations more transparently, efficiently and effectively.
“You must share with your state citizens how much FAAC allocation you receive each month, how much IGR you collect, and how you spend it.
“We used to publish this information routinely during my time as finance minister under Presidents Obasanjo and Jonathan. We must resume this practice so your citizens can hold you accountable.
“Excellencies, please watch your debt profiles, and keep careful control of expenditures, even as you invest in infrastructure, education, and basic health systems. Please endeavour to pay teachers, health workers, and others their salaries, and retirees their pensions,” Okonjo-Iweala told the governors.
The WTO chief executive pointed out that the COVID-19 pandemic severely impacted Nigeria, leading to a rise in poverty rates, as according to the World Bank, an estimated 95 million Nigerians fell below the national poverty line in 2022, accounting for 43 percent of the population.
She also highlighted the potential of Nigeria’s youthful population, stating that the country has an opportunity to attract investment in labour-intensive production processes.
She encouraged governors to create business-friendly environments to attract both domestic and foreign investment, stressing the importance of Nigeria positioning itself as a platform for producing goods and services to meet regional and global demand.
Speaking on youths’ craving to relocate from Nigeria, she said: “Excellencies, you must make your states and all Nigeria a hospitable, encouraging place where young people want to stay and thrive, not leave. Much as we appreciate remittances sent home by these migrants, Nigeria will not develop and prosper if its youthful, tech-savvy population leaves. Without them, our demographic dividend disappears.
“Turning to the fashion space, people across the continent want to dress like us. Nigerian fashion is taking Africa and the world by storm. Our leather industry is moving up the value chain: we used to send tanned leather to Milan, now we are developing shoes, bags, and carpets ourselves of good quality, fit for consumption at home and abroad.”
In addition, Okonjo-Iweala acknowledged Nigeria’s achievements in the creative industries, particularly music, film (Nollywood), and fashion. She urged the government to capitalise on these sectors’ potential for growth and explore opportunities for cultural tourism and export of digitally-delivered services.
Perform Or Be Voted Out, PMB Tells Governors-elect
On his part, President Muhammadu Buhari emphasized the importance of delivering on campaign promises and urged the governors to prioritise the needs of the people.
He made the call yesterday at the opening of the 2023 induction for re-elected and elected governors with the theme: Governing for Impact (Building Sub-national Governance), organised by the Nigeria Governors Forum (NGF) at the presidential villa, Abuja.
In a speech delivered by the Chief of Staff to the President, Ibrahim Gambari, President Buhari commended the democratic process in Nigeria, highlighting the recent general elections that saw the election of a new president and 18 newly elected or returning governors.
According to him, democracy is an ongoing process that requires constant self-reflection and improvement to ensure inclusivity and faith in the system. The president shared his personal experience as a veteran of the democratic process, urging patience, tolerance, and the appropriate channels for seeking redress in case of unfair practices.
He reminded the governors that on May 29, they would assume office and become responsible for their respective states, inheriting all the assets and liabilities associated with governance
Noting the increasing maturity of the electorate, President Buhari stressed that public officers who fail to meet the expectations of the people or deliver on their campaign promises would be voted out in the next election.
He called for the promotion of ideals that address the challenges of democracy and governance in the country and acknowledged the critical role of sub-national governments in socio-economic development.
Buhari highlighted the progress made during his tenure, despite challenging fiscal conditions. He emphasised the government’s focus on infrastructure development, agriculture, and strengthening the armed forces.
The president also commended the efforts and sacrifices of the armed forces in maintaining Nigeria’s territorial integrity and combating insurgency.
Let Your Successors Be, Saraki, Aliyu, Dankwambo Caution
Former Senate President Bukola Saraki has urged outgoing governors to refrain from meddling in the governance of their states as they prepare to leave office at the end of this month.
Speaking at a farewell dinner for the governors held in Abuja, Saraki, who is also a former governor of Kwara State, advised the 18 outgoing governors to embrace a new phase of life and continue to contribute to national development.
In his goodwill message to the governors, Saraki commended their services to their respective states but emphasized the importance of allowing their successors to carry out their duties.
He said, “When you are no longer governor, allow your successor to do their work. Go back to your families – I am sure your wives, children, and grandchildren are counting the days. You are bracing up for a new phase of life which is completely different.
“Spend more time with your families. Save your money for hampers and rams because they won’t come as usual.”
Another former governor, Babangida Aliyu of Niger State, shared his experiences on life after office and urged both new and returning governors to prioritise the welfare of the people regardless of political affiliations.
Aliyu cautioned against personalising power, warning that such actions could have negative consequences.
He said, “At times, people will say this is our time. Don’t make that mistake. A former governor who made that mistake is now walking on the streets.”
Aliyu emphasised that being governors does not automatically make them the best or brightest, stating, “That you are governors today does not mean that you are the best. Some of us were not the brightest in class. Perhaps, we were in the last 10 in the class. So, don’t think that because you are governors, you must impose your successors.”
Former Gombe State Governor, Ibrahim Dankwambo, recounted the challenges of transitioning from office to post-office life, highlighting an amusing incident involving an unnamed former governor who missed a flight due to relying on his aides for reminders.
Dankwambo advised outgoing governors to avoid meddling in the affairs of their successors and to prepare for retirement by engaging in meaningful activities.
He said, “You are retiring from work, not life. Avoid meddling into the affairs of your predecessors. As you get older, your health cannot be taken for granted. You have to bear the pressure.”
The deputy secretary-general of the United Nations, Amina Mohammed, emphasised the need for states to work effectively for their citizens, asserting that Nigeria cannot achieve greatness without strong foundations.
She called for partnerships and deliberate policies to empower Nigerian women, stating, “Nigeria cannot be great without the states. We know that we don’t have strong foundations but through hard work, this country can be better.”
The farewell dinner was attended by past, serving, and incoming governors, including Kayode Fayemi, Aminu Tambuwal, Aminu Masari, Charles Soludo, Bala Mohammed, Babagana Zulum, Dauda Lawal and Rev Fr Hyacinth Alia.
