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| Dignitaries at the Local Governance Retreat in Calabar |
By Eval Asikong
As stated earlier, the retreat, as organized by the Federal Ministry of Budget and National Planning in collaboration with World Bank and European Union (EU), is intended to generate a deliberate road-map for government at subnational level to stay afloat in this time of economic distress. It has been revealed that while revenue from Federal Account and Allocation Committee (FAAC) has shrunk by 40% as a result of sharp drop in the global price of crude, almost 80% of the states rely solely on FAAC allocations for 80% of revenue and at the inception of this administration, 30 states were already distressed which has made the bailouts to be rolled out.
Since the bailout is considered as a relief which effect is expected to be ephemeral, while cause of the economic recession at global and national level has not been fixed, the solution proposition is that significant IGR will shield states from national and international revenue shocks which could be achieved through fiscal policy reforms and roadmap for economic growth at sub-national level of government in Nigeria with Lagos as a reference point.
The Cross River Commissioner For International Development Cooperation, Hon. Francis Ettah made some pathetic revelations about the situation in Cross River State where the state’s share of the federal allocation is a monthly average of N800million with a staggering monthly wage bill of N2.5 billion aside the crippling debt portfolios waiting to be serviced. And that Cross River has suffered unjustly thus: firstly, her oil rich Bakassi Peninsula was ceded to Cameroun and secondly, her oil rich shelf was given to her sister state. Thereby making her the only Niger-Delta state that is a non oil producing state.
However, Commissioner Francis Etta sees the current recession as a blessing in disguise because it has the tendency to provoke our collective thinking and stir the ingenuity of survival to purpose. However, he appreciated the import of EU and World Bank in assuaging the plights of most drowning economies through their donor and intervention schemes. And to show the level of importance the administration of Prof Ben Ayade places on the partnerships of international funding and donor organization, the ministry of International Development Cooperation has been created with the sole responsibility of coordinating these draw-downs, aside prompt fulfilment of fiscal obligation orderwise known as counterpart funding. The state has equally put in place strong institutions with enabling environmnent for SLOGOR scheme to succeed.
Alhaji Sabo Muhamed, the Auditor General of Yobe, while speaking, remarked that aside the sorry state of Cross River, the state remains the most admired in the country for its refined social disposition of peace and calmness, aside its cleanliness. That Cross River is a state of possibilities and blessed irrespective of how they try to downplay her to the background.
Others who spoke were Prof Kabiru Dangago, the Kano State Commissioner for Finance; Mr Haruna Amin, the Accountant General of Jigawa State; Dr Charles Akeola, the S.A. on Budget to Ogbeni Rauf Aregbesola, Governor of Osun State; and Barr Alphonsu Ogar Eba, the Director General of Cross River Agency of Due Process and Price Intelligence who gave a goodwill message unbehalf of Cross River State Finance Commissioner, Mr Ekpenyong Asuquo. Many technical sessions were entertained. The retreat will end on Friday, being 23rd of September, 2016.