Scramble for revenue: World Bank allays incoming Governors’ fear, pledges support
…Raise red flag on our debt profile – Bauchi Gov. tells W’Bank
…Calls for strong IGR campaign
…Approaches to management of economy must change, he says
As apprehension lies before incoming governors over challenges of the economy, particularly revenue shortfalls, huge debt burden and inflation, among other reflection of economic shambles, the World Bank has allayed the fears of the Governors-elect in the Country who would on May 29 be sworn-in as the Chief Executive Officers of their respective States.
The incoming Governors to be sworn-in on May 29 include those newly elected and those returning for a second term.
The newly elected governors are Alex Otti of Abia State; Umo Eno of Akwa Ibom State; Hyacinth Alia of Benue State; Bassey Otu of Cross River State; Sheriff Oborevwori of Delta State; Francis Nwifuru of Ebonyi State; Peter Mbah of Enugu State; Umar Namadi of Jigawa and Uba Sani of Kaduna State.
Others are Abba Kabir Yusuf of Kano State; Dikko Umar Radda, Katsina; Nasiru Idris of Kebbi; Mohammed Umar Bago of Niger State; Caleb Mutfwang of Plateau State; Siminialayi Fubara of Rivers; Ahmed Aliyu of Sokoto; Kefas Agbu of Taraba and Dauda Lawal of Zamfara.
On the list of re-elected Governors are Ahmadu Umaru Fintiri of Adamawa State; Bala Mohammed of Bauchi State; Babagana Zulum of Borno State; Muhammad Inuwa Yahaya of Gombe; Abdulrahman Abdulrazaq of Kwara State; Babajide Sanwo- Olu of Lagos State; Abdullahi Sule of Nasarawa State; Seyi Makinde of Oto State and Dapo Abiodun of Ogun State.
Nigerian NewsDirect had reported that the incoming Governors who apparently are worried by the dangers ahead, have begun to brainstorm on matters relating to how to handle revenue challenges, a subject which has formed a focal point of their induction programme.
Stakeholders have lamented the economic challenges of the Country worsened by over 22.2 per cen hyper-inflation and public debt burden of over N46.25trillion, amidst dwindling revenue shortfalls.
It is feared Governors from States with low revenue may fall into financial struggles as projections have shown the heavy burden of debt servicing may worsen to 100 per cent of revenue going into servicing debt, a development that may further shrink Federal allocations to States.
However, the World Bank has allayed the fears of the incoming Governors, assuring them of its commitment to support governments at all levels in Nigeria to deliver on their mandate of providing good governance and services to the people.
Country Director of the World Bank, Shubham Chaudhuri, assured the incoming Governors at their ongoing induction in Abuja on Wednesday.
Chaudhuri said that the Bank looked forward to more bilateral engagements and programmes that could be supported in various States.
“We are here to help Nigerian government, both the federal and sub national level to deliver to all your citizens.
“We can, we are here to support Nigeria, not just for financing, but hopefully to provide support in any way we can to meet its challenges.
“Beyond financing, we provide a range of analytic and advisory services,” Chaudhuri said.
According to him, there is no reason for Nigeria not to be on positive trajectory in terms of GDP and Per Capita Income profile, just like Countries as Indonesia who shared certain similarities with the Country including oil production, population and democracy.
Speaking with journalists on the subject of the economy, Gov. Bala Mohammed of Bauchi State argued that he believed the Bank should raise a red flag on Nigeria’s rising debt profile.
“Honestly, you heard me ask a question. I wonder what the World Bank is doing.
“Apart from giving us grants, assistance, States Fiscal Transparency, Accountability, and Sustainability (SFTAS) and of course loans, they should be able to raise a red flag.
“They should be able to tell the managers of our economy that we cannot continue to borrow endlessly,” he said.
Mohammed who expressed concern that the rising public debt profile of Country has affected both the Federal and State Governments, submitted that the need for the Country to correct the perception about debt was sacrosanct, stressing the need for States to look inward for revenue.
“Our debt servicing requirement is about 95 per cent of the revenue. So the States are affected by this macro economic reality.
“The oil proceeds are not been shared. And we are here celebrating success, what success?
“We are going to go under, unless we do something inward to really correct our own perception, our own notions and our own approaches to the management of the economy of the Country.
“It is a monolithic economy. And yet even where we are getting money, we have taken so much up front. The Federation has to be looked at as a structure because States have to have a say in the management of the economy,” Mohammed said.
In his response, Plateau State Governor-elect, Mr Caleb Mutfwang, said Nigeria need not the World Bank to serve it warning before exercising caution particularly when it is glaring that the public debt profile has become burdensome.
Recall that in his submission to the incoming Governors as they brainstormed over way out of the challenges before them, Vice President Yemi Osinbajo had recommended they explore the Information and Communication Technology (ICT) sector.
In what seems like a rescue blueprint out of revenue challenges, Osinbajo who noted that of the total N21.04trillion real Gross Domestic Product figure, the ICT sector contributed 16.22 per cent in the fourth quarter of 2022 up from 14.07 per cent in the first quarter of 2022, told the incoming Governors to invest in broadband coverage and other ICT infrastructures within their first 100 days in office, affirming that the “multiplier effect on the economy is unimaginable.”
“This was achieved by the deployment of Starlink Internet Services across the country, which has helped bridge the existing internet connectivity gap across rural communities in Nigeria, where other network operators could not deploy their services. I encourage you as new governors to prioritise this and make it one of your achievements in the first 100 days of your administration. The multiplier effect on the economy is unimaginable.
“Of the total N21.04 trillion real Gross Domestic Product figure, the ICT sector contributed 16.22 per cent in the fourth quarter of 2022 up from 14.07 per cent in the first quarter of 2020.
“4G penetrations across the country have also increased from 23 per cent in 2019 to 80.86 per cent and this has been attributed to the increase in the number of users of the 4G technology in most States in the Country,” the Vice President who was represented at the induction by the Secretary to the Government of the Federation, Mr Boss Mustapha, had said.
The Vice President had also told the Governors to focus their attention on giving opportunities to the youths in their respective States and Local Governments.
He submitted that with the right incentives, the youth population can help contribute significantly to the growth of the sub-nationals.
“It is imperative to unleash the potentials that lie in our youths. It is no longer news that over 75 per cent of our population is under the age of 35. More decisive actions are needed to turn this demographic asset into an economic dividend.
“A young, productive, youthful population, with access to education, skills, social protection, affordable housing, and medical care, will power Nigeria’s economy, now and well into the future,” he had said.
