Vanguard, MONDAY, JUNE 22, 2015 — 23
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overnors of the 36 states of the federation rose from a meeting in Abuja last week Wednesday, resolving to meet President Muhammadu Buhari on the financial crisis crippling the affairs of some states in the federation. According to the chairman of the Governors’ Forum, Abdulazeez Yari, the governors viewed the financial crisis facing the states as national issue as there are also Federal Government agencies that owe salaries for upward of seven to eight months. The new chairman of the Governors' Forum said: “We decided not to talk of the bailout directly, though the problem we observe is not only a state matter. It is a national matter. Some federal agencies are being owed for seven months and above. The Federal Government cannot operated on rents from oil whatever debt is outstanding just do it alone because of the export. It is a pity that no state as the new governor of Akwa government has developed its Ibom is trying to do to the dwindling economy. "So, instead of requesting for internal resources to the point private jet his predecessor the bailout, because we have that it can stand on its own acquired with state money instead of going cap-in-hand to to make sure that the Federal without federal allocation. While the oil boom lasted, no beg the Federal Government for Government has liquidity, but where will the Federal government functionary in a bailout. In Akwa Ibom for instance, the Government find the liquidity? these states was ready to put It is sending a very wrong on a thinking cap that a day will former Governor bought a signal that the states are come when rent on oil will dry private jet for the state, built a football stadium that may only be asking for bailout and we all up. used once in a year. The jets While the rents accruing from know that the economy of the country is in a very bad shape. oil lasted, governors were living owned by state governments are "So, instead of sending a bad like lords of the manor. They parked and maintained with signal and aware of the flew and hired private jets, state funds. The question is; implications, we are asking moved around in fleets of why should a state own a private the Federal Government to vehicles and kept chains of jet? Akwa Ibom State governor, pay the states for the Federal aides. Some were busy using Government jobs that have state resources to marry for their Emmanuel with his private sector been executed by the states. children and themselves. They background is said to be "We would be asking the hosted lavish parties. The unfavourably disposed to the Federal Government to settle money they should have private jet acquired by his the backlog owed the states. invested in projects that would predecessor, Godswill Akpabio The Federal Government have brought future returns to to ease his movement outside the owes some states N10 billion, states was wasted on frivolities. state and is contemplating N20 billion, N30 billion and Some of these governors built Lagos State, N50 billion. So, if mansions with state money in we can get back some of this the name of Governor’s Lodge money, we can settle some of in several locations in their to meet their the backlog of wages and states Federal ostentatious lifestyle. salaries." These are monies that could The situation facing states at Government the moment is self inflicted. have been used for incomeshould tell these State governors had the yielding ventures. Some of these governors have invested opportunity to develop their shameless local economies and grow their their state's money in private governors in internal revenue generation. companies which they have But many of these state dishonestly converted to their unequivocal governors prefer to rely on personal use. Such properties terms that it allocation from the federation now that the chickens have will not bail out account. For too long, the come home to roost, should be Nigerian economy has lived sold and the money realised any state on rentals. The economy from them used to offset
Governors: No bailout coming from anywhere disposing of the aircraft. The governor is said to be shopping for buyers of the jet to relieve him of the burden of fuelling and maintaining it. Akwa Ibom is not the only state with a private jet, Danbaba Suntai of Taraba had even gone to the extent of not only owning a private jet but flying one himself. It is heart-warming that the state governors are aware that the Federal Government itself is cash strapped and cannot help itself or bail out the states. The Federal Government should tell these shameless state governors in unequivocal terms that it will not now or in the future bail out any state. They should be told to go back to their states and straighten up their finances. In fact, the Federal Government should begin to make allocation to states based on accountability. States must account for the money they get from the federation account monthly and they should be made to publish their annual statements of account. They should not just be collecting money and not give proper account for it. Every state must publish its account as well as every local government. This is the kind of change the APC government and legislature should bring about in the country. A survey has shown that Nigerian politicians, especially state governors, deliberately
involve themselves in flagrant and ostentatious expenditure as a way to show off their class, without the knowledge that their action is responsible for the underdevelopment of the economy. Many governors are richer and more powerful than some presidents around the world. In the states, governors are the beginning and end of all wisdom. The governor is the state and the state was created for his good pleasure. They may occasionally try and display some decorum in treating the state’s funds as belonging to the citizens, but don’t be fooled. Much of that fund is their pocket money literally. In some states, the SURE-P fund for instance, is essentially the governor’s chop money. Security votes and ecological funds belong to this category too. No two governors are alike though every state gets the governor it deserves. Nigerian governors are the masters of their universe, the lords of their manor and conquerors of their realms. They are capable of being dictatorial, democratic, benevolent, malevolent, difficult, simple, matured and childish all at once. They are tough, calculating and ingenious in maneuvering the turbulence associated with that unique office. Now that the financial situation in states is precarious, state governors should come off their high horses and face reality. They should cut down on their frivolities and spend the state resources on what is necessary. Time is now for altruistic service. There is no bailout from anywhere.
Business& Economy Hill+Knowlton Strategies debuts in Nigeria By SEBASTINE OBASI
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eading international communications consultancy Hill+Knowlton Strategies has expanded its physical footprint in Africa with the launch of a new office in Lagos, Nigeria. Hill+Knowlton Strategies Nigeria builds on the company’s existing strong presence in Sub-Saharan Africa and further extends the agency’s ability to serve its rapidly expanding client interests in African countries in a fully integrated way. The Hill+Knowlton Strategies global network consists of
some 88 offices, including key African markets such as Egypt, Ghana, Kenya, Rwanda, South Africa, Tanzania, and Uganda. Hill+Knowlton’s entry into Nigeria is said to reflect a recognition of the vast economic and commercial potential of the West African country, which sits among the top five investment countries in Africa, and which has seen a surge in capital inflows into the market. Additional streams for investment have also opened up, with the establishment of fledgling economic sectors in the Nigerian market. The growth in investment and
funding for domestic companies, as well as an increase in Foreign Direct Investment (FDI) and joint ventures in the country, has created an attractive platform for H+K from which to grow and develop its client base. “Global businesses with longterm growth strategies are focusing on the African continent,” said Lars Erik, Chairman and CEO of Hill+Knowlton Strategies, Europe, the Middle East and Africa. “Nigeria has the largest economy in Africa, as well as a population of 170 million people which is expected to expand to 200 million by 2019.
TRADE MISSION - From left: Chief Fola Osibo, Chairman, Export Committee, Nigerian British Chamber of Commerce (NBCC); Mr. Hassan Mohammed Hassan, Minister of Industry, Trade & Investment, Nigeria High Commission, London; Prince Dapo Adelegan, Deputy President NBCC/ Mission Leader and Mr. James Houston, Chairman, NBCC-UK Network at the Nigeria House at the ongoing Export Trade Mission to the UK. C M Y K