IT is no longer news that no fewer than 23 states across Nigeria are owing their workers salaries in arrears of between 8 and one month. Rather, what is new is the defaulting state governors rail-roading their colleagues to piling pressures on the new Buhari Federal Government for a possible bailout to enable them meet their financial obligations to their workers.
Using the platform of the Nigeria Governors’ Forum (NGF) which only a few weeks back got its fangs back following the forced reconciliation of hitherto feuding groups within the fold, the governors presented a wish list before President Muhammadu Buhari at a meeting on Tuesday convened principally to seek possible ways of coming to the rescue of states who have not been able to pay their workers.
Before the Tuesday meeting, opinion moulders had different views about the propriety or otherwise of the quest for bailout for the defaulting states who have consistently blamed their woes on the dwindling allocations from the Federation Account occasioned by the fall in the price of oil in the international crude oil market.
The outcome of the meeting between the 36 states governors and President Buhari was not unexpected as it was predicted accurately that there is little or nothing the federal government could do to help the defaulting governors as the federal government was much more deeply in a precarious financial state that has made it unable to effectively finance its budget let alone be able to bail any state out.
The president himself being a man of few words had told the governors that his new administration would do its utmost to make the states run better. He urged the governors to brace up for harder times in the next three months a period his administration faithfully looks up to, to gain some measure of financial stability. Although this expectation was not premised on any concrete economic projection, it is believed that the period would enable the new government to effectively monitor the cash flow and identify areas of leakages and plug them.
Analysts believe that the new government would break even in its quest for funds for development if it succeeds in preventing further stealing by public officials
He however acceded to request by states for refund of monies reportedly spent in executing federal government projects in their respective states insisting however that due process must be followed.
The President agreed to take some steps to cushion the present hardship facing states with no particular reference to the ones owing their workers salaries in arrears. He assured that a committee headed by the Vice President Yemi Osinbajo would look at the excess crude account to see what could be shared immediately.
Sharing of proceeds from the Federal Account or the lack of it can not be said to be at the core of some state government’s failure to pay their workers which has constituted a form of albatross blighting the expectations from the new government.
The states would actually receive their respective share of the monies from the excess crude account created by the last government which the gonernors have succeeded in making President Buhari to see as an illegality, but how many of the defaulting states would agree to prioritise payment of their workers? This is because the states that have not paid their workers have always received their allocations from the Federal Account on a monthly basis but had failed to prioritise workers’ salaries is their respective scales of preference.
The answer to this question can be located in how effective the respective defaulting governors managed resources at their disposal. The answers point to the incongruity in attempts to evade responsibility by trying to hold solely other factors culpable.
Granted that these factors including the dwindling allocation from the central government, the skewed revenue formula that gives more resources to the federal government; it must be stated that it is the responsibility of the governors to determine areas of priority in the disbursement of their revenues.
If they decide to divert it to financing ‘legacy’ projects in utter neglect of workers salaries, it remains their decision and they can not shy away from it consequences. It is on record that the former Finance Minister and Co-ordinating Minister of the Economy Dr. Ngozi Okonjo-Iweala had told the world how she had advised state governors to prioritise payment of salaries in the face of dwindling oil revenue which is the main contributor to the nation’s economy. From what is happening today in most states of the federation where workers now beg before they can feed their families, it is clear that only a handful of state governors heeded the erstwhile minister’s counsel.
Attempts have been made to shift culpability to the Jonathan administration for allegedly mismanaging the nation’s economy. Of course, Jonathan and his government can be blamed for everything under the sun including obvious excesses and profligacy involving some of the governors both in the immediate past and serving.
But the question they must answer is, how come that some state governors are still able to pay their workers. States like Edo, Anambra, Lagos, Delta, Bayelsa, Kaduna, and even the strife turn states of Borno, Yobe and Adamawa are not on the list of states indebted to their workers.
It is on record that Governor Adams Oshiomhole besides being up to date with workers salaries payment, his deft commitment to infrastructure development has remained afloat as contractors have not abandoned sites on account of the state government owing them.
Also, Governor Willie Obiano of Anambra state is in the class of his counterpart from Edo. While many would attribute the current financial stability of the non-oil producing state of Anambra to the prudent and frugal way his predecessor in office Mr. Peter Obi managed the state before him, it must be said that Governor Obiano has not deviated from the standards already set in the state as Anambrarians are the better for it.
The pear review component of the Nigeria Governors Forum (NGF) objectives which had been observed in breach should be taken more seriously by the defaulting governors. They should ask from the Comrade Governor and Willie Obiano how they have managed to sustain the tempo of the delivery of dividends of democracy in the face of the dwindling federal allocations and the poor credit rating of most state government which has prevented them from further borrowing from the bond market.
This has become imperative because sulking in the face of present crippling financial crisis and do nothing is not an option worthy of consideration.
This is where one is compelled to decry recent media reports suggesting that Governor Rauf Aregbesola of the state of Osun has resigned to fate in the face of serious financial crisis confronting its resulting in his failure to pay state workers and pensioners seven months salaries in arrears.
Resignation to fate is not an option in this business and the governor must be clear on this.
Aregbesola was quoted as saying during his interaction with State House Correspondents in Abuja that: “the truth is that I will not fail to say that it (inability of his state to pay salaries) is a situation absolutely beyond my control.
Baring possible attribution of the problem besetting the state to his poor management of state resources Governor Aregbesola was quick to add that he has transformed the state of Osun than he met the state.
These governors who have found themselves in the same boat with Governor Aregbesola want to be clever by half. If one may ask, how effective can a process of resource management be that seeks to deploy funds in such a manner that workers emoluments are not paid for upward of eight months no matter how competing other needs of state are. This is a food for thought for these states helmsmen.
The ‘opportunity’ of the present crisis in the nation’s mono-economy has strengthened the argument over the years that most states in the country are not financially viable. The inability of the governors to grow their respective states’ economies such that they can in turn help broaden government revenue sources is directly responsible for the present poverty in the land. The option of lean government and wasteful assets disposal has been seriously canvassed but the life style of the average Nigerian public office holder does not seem to welcome this as some of these governors have private jets and other exotic assets which do not add value to the living standard of the citizenry.
Rather than explore this avenue, one is saddened by the demand by the Governors’ Forum for the depletion of the excess crude account which the president has unfortunately approved. Even though the states are independent of the authority of the Federal Government in terms of how the respective governors manage their affairs, Nigerian had expected the president to issue some reprimand concerning the way the states have been appropriated by these powerful men with cries of huge debts burdens renting the air.
One is also saddened by the obvious bulk passing and failure to take responsibility by those who ought to.
It is instructive to note that the earlier Nigerian leaders learn to take responsibility for their actions or in-actions the better for the development of the country Nigeria
The bail out seekers should know that the excess crude account and the Sovereign Wealth Fund were designed to save us for the rainy days. The rains are now falling in torrents and the governors now want to benefit from an idea which they detested abinitio.
However the concern raised by the governors of shortfalls in the excess crude account occasioned by alleged un-approved withdrawals from the account should be properly investigated to ascertain the veracity of the allegation.
The governors should be encouraged to create similar Excess Crude Accounts in their respective states now that we have realized its usefulness. They must also now realise that it is their responsibility to bail out their respective local councils who are not insulated from the salaries crisis with council workers in most states of the federation groaning under the weight of unpaid wages and salaries.
