Managing State Government Insolvency By Dr Kenny Odugbemi
We have had uninterrupted 25years of democracy leaving Nigeria with 130million multidimensionally poor citizen
We have had poor governance at federal and state level by nepotic and ethnic bigots as leaders and heads of government last administration was the worst in history where financial wrecklessness reign collapsing all institutional structures leaving more liabilities than asset
Focussing only at Federal level without considering impunity at state level will not provide vivid picture of the state of our Nation
Federal government remain inefficient ineffective with many head of MDA's not contributing meaningful as most policies are audacious, repulsive and reactionary
State level intervention has further crippled all effort of social intervention from Federal government because of incompetent and non transformational State governors
Condition assessment of our democratic governance since 1999
- 25 years of democracy in Nigeria has failed to address multidimensional poverty affecting 130 million citizens
- Poor governance, nepotism, and ethnic bigotry have plagued federal and state levels
- The previous administration was particularly disastrous, leaving behind liabilities and collapsed institutions
- Focusing solely on federal level issues won't address the larger problem
- Federal government remains inefficient and ineffective, with many heads of MDAs not contributing meaningfully
- State level intervention has hindered federal social intervention efforts due to incompetent and non-transformational governors.
To address these challenges, consider:
- Strengthening institutions and promoting good governance
- Encouraging inclusive
Highlights of the state of affairs in Nigeria:
- Federal government provided N2bn social intervention across 36 states due to fuel subsidy removal, but many states mismanaged the funds.
- Monthly allocations to states have more than doubled, but security votes have not effectively addressed insecurity.
- Over 30 states have poor Internally Generated Revenue (IGR).
- Oil-producing states receive 13% derivation
- Managing State beyond insolvency
- States' mismanagement of funds and lack of transparency
- Inability to pay minimum wage despite abundant mineral resources
- Limited value addition to increase revenue
- Exception: Nasarawa state's facilitation of battery manufacturing industries utilizing lithium deposits
Evaluation:
- Governance and accountability issues
- Lack of diversification and value addition in mineral resources
- Insufficient revenue generation andm management
Suggestions for better state
With the deregulation of power supply, states can explore opportunities to boost their productivity. Here are some advice for the 36 states:
1. Invest in power generation: Develop independent power projects (IPPs) to increase electricity supply and reduce reliance on the national grid.
2. Promote industrialization: Encourage industries to set up operations in your state by offering incentives like tax breaks, subsidies, and infrastructure support.
3. Develop infrastructure: Invest in roads, railways, and ports to enhance connectivity and facilitate trade.
4. Diversify economy: Explore alternative revenue sources beyond federal allocations, such as agriculture, tourism, and mining.
5. Enhance security: Ensure a secure environment for businesses and investments to thrive.
6. Improve governance: Foster transparency, accountability, and good governance to attract investments.
7. Develop human capital: Invest in education, skills development, and healthcare to build a productive workforce.
8. Encourage
Further review
uninterrupted 25years of democracy leaving Nigeria with 130million multidimensionally poor citizen
We have had poor governance at federal and state level by nepotic and ethnic bigots as leaders and heads of government last administration was the worst in history where financial wrecklessness reign collapsing all institutional structures leaving more liabilities than asset
Focussing only at Federal level without considering impunity at state level will not provide vivid picture of the state of our Nation
Federal government remain inefficient ineffective with many head of MDA's not contributing meaningful as most policies are audacious, repulsive and reactionary
State level intervention has further crippled all effort of social intervention from Federal government because of incompetent and non transformational State governors
To address these challenges, consider:
- Strengthening institutions and promoting good governance
- Encouraging inclusive and
Conclusion
Nigeria requires a comprehensive approach. Here's a general framework:
1. Governance:
- Strengthen institutions
- Promote transparency and accountability
- Encourage citizen participation
2. Economy:
- Diversify revenue sources
- Invest in infrastructure development