Just 4 healthy states, u can even imagine the states: Abia, Anambra, Jigawa n co

They should cut the politicans pay and use that money to stimulate economic growth. This will create jobs, more government revenue, less crime, and more forex.

Those deemed critical are: Ekiti, Plateau, Benue, Edo, Borno, Adamawa, Cross River, Enugu, Taraba, Ogun, Kogi, Yobe, Ebonyi, Ondo and Kaduna.

LOL why is Enugu here? Thought it was one of the richest states?

Ekiti has been on that list for EVER!! Are they trying to use style to tell us that oil money wont be coming? Ojoro!

Ogetogeo:

Just 4 healthy states, u can even imagine the states: Abia, Anambra,  Jigawa n co

27 states face bankruptcy
•Abia, A’Ibom, Anambra, Jigawa healthy
•Senators urge merger of states
From ADETUTU FOLASADE-KOYI, Abuja
Friday October 28, 2011



Photo: Sun News Publishing


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From the Senate came the gloomy news yesterday that the financial accounts of 27 states are in the red as some of them have been declared either “distressed” or “gloomy.” Only Abia, Akwa Ibom, Anambra and Jigawa states were given a clean bill of health. The six states that are in financial distress are: Kano, Sokoto, Niger, Zamfara, Katsina and Osun.
Those deemed critical are: Ekiti, Plateau, Benue, Edo, Borno, Adamawa, Cross River, Enugu, Taraba, Ogun, Kogi, Yobe, Ebonyi, Ondo and Kaduna.

In the unhealthy cadre are: Oyo, Bauchi, Bayelsa, Nasarawa, Gombe and Rivers while Imo, Kwara, Lagos, Kebbi and Delta were given the ‘tolerable’ tag. The data was sourced from the Nigerian Governors’ Forum (NGF) Labour Policy Report, 2011 as contained in a motion titled: Looming danger of bankruptcy in states: The need for fiscal evaluation, sponsored by Senator Olubunmi Adetunmbi (ACN, Ekiti North).

To forestall the looming catastrophe, the Senate advised the Federal Government to expeditiously review the revenue sharing formula in favour of states and local governments. The Upper Legislative Chamber also directed its Committees on Finance, National Planning; States and Local Governments to study the situation and submit remedial measures to avoid total collapse of the economy of the affected states. Senator Adetunmbi had alerted the Senate of the “great fiscal challenge and looming danger of insolvency as well as bankruptcy facing the states as a result of growing wage-bill associated with the implementation of the minimum wage and other recurrent responsibilities of the states.

“A recent research by the NGF revealed that 20 states face the prospect of unstable and unfavourable financial standing, given the high percentage of their wage-bills to the total revenue accruable to them. Armed with the data, Adetunmbi noted that in most states, the private sector is weak and unable to generate economic growth and jobs that are required, thereby making the states and local governments the largest employers of labour with attendant fiscal imbalance.

“The bulk of the revenue of these states is currently financing payroll of the civil service which constitutes less than 4% of the total population in all states; if this trend continues, many of the states would become financially insolvent and increasingly handicapped to finance real sectors and drive economic growth, job and improved livelihoods,” he said.

He told the Senate that “most state governments now rush to the capital market to raise long-term bonds to finance development projects”, which if misused, would spell doom for their future and the financial quagmire of states.
Some of the state governments that have taken this route of funding between 2002 and 2011 are: Lagos (series 1-N50bn; series II-N57.5bn), Imo (N18.5bn); Kwara (N17bn); Niger (N6bn); Bayelsa (N50bn); Kaduna (N8.5bn); Ebonyi (N16.5bn); Ogun (N50bn); Delta (N5bn) in 2007); Kebbi (N3.5bn) in 2006; Lagos (N15bn) in 2002 and Yobe (N2.5bn) in 2002.

Adetunmbi called for urgency in the review of the revenue sharing structure among the federal states and local governments in view of the “financial quagmire” of affected states. Contributing, Senate Leader Victor Ndoma-Egba, canvassed a merger of states and slammed the practice of state governments going cap in hand to Abuja for revenue, adding that, “there is federalism more in name than in practice.”

Also, Chairman of the Niger Delta Committee, Senator James Manager, re-echoed the call for merger of states and asserted that “all the states are distressed. Something has to be done. So many states are not supposed to be states because they have nothing to offer, they are burdens on Nigeria. Those not viable should be merged with the viable ones, hence, the imperativeness of fiscal federalism.”

Minority Whip Ganiyu Solomon noted that the revenue formula is long overdue for review, adding that there was too much concentration of power at the centre. Corroborating Solomon, Senator Ahmed Lawan submitted that the states were not getting their own fair share of the revenue, stressing, “it is totally unfair that the Federal Government should continue to get 53 per cent; it is not justifiable”.

Senator Sola Adeyeye queried the rationale for having “a Federal Ministry of Agriculture when there are no federal farms; communication, aviation, industry and housing when all the properties have been sold to the private sector.”
Thereafter, senators canvassed a review of the sharing formula from the Federation Account to further enrich the states and local governments as well as compelling the Federal Government to transfer some of its responsibilities to the lower tiers of government.

Imagine, even Lagos is not healthy. I give kudos to Akwa Ibom, even with all d capital projects undertaken by this government, the state still remain healthy

Imagine, even Lagos is not healthy. I give kudos to Akwa Ibom, even with all d capital projects undertaken by this government, the state still remain healthy

goodluck pdp, fresh air nigeria. we are watching

^^ Wot have Gej got to do with hw states manage dia resources? Did u even read d article? If u r too lazy to read n understand, i wonder ur moral justifications @ calling names. Smh
Some states are borrowing beyond their limits to fund projects, while few odas r managing dias effectively, xpecially Akwa Ibom, u r here spewing rubbish.
Go bck, read d article n make useful contribution

now i can see why peter obi of anambra state mention that anambra state never borrow money with all the project being done in anambra mostly come from internal generated revenue, from main market biggest in west Africa, spare parts dealers from nkpor and nnewi,plus head bridge pharmaceutical companies.

The healthy states are all governed by the PDP and all in the east!!!!what happened to the so called progressive acn states?

^^ and who told u they r all frm d east and governed by pdp?
Is Jigawa state in d East?
Is Anambra State governed by pdp?
Wot progressives are u toking of? Did u bother to read d article?
Its from the National Assembly if u dnt knw, even Amechi, the chairman of gov's forum comfirmed it

^^ and who told u they r all frm d east and governed by pdp?
Is Jigawa state in d East?
Is Anambra State governed by pdp?
Wot progressives are u toking of? Did u bother to read d article?
Its from the National Assembly if u dnt knw, even Amechi, the chairman of gov's forum comfirmed it

hw far.am new here.abeg hew can 1 post note

Ogwokor gwokor!
2 Igbo states
1 Hausa state
1 Calabar state

Something good from Abia after all. . .we thank GAD!

[flash=500,500]
https://www.youtube.com/watch?v=P5k9KAr4C9A[/flash]

Ogwokor gwokor!!!!

[size=20pt]Senator Sola Adeyeye queried the rationale for having “a Federal Ministry of Agriculture when there are no federal farms; communication, aviation, industry and housing when all the properties have been sold to the private sector.” [/size]

Nigeria na wah!
Private sector=goverment pocket!
Ogworrrrrkor gworrrrrrrkor!

1025:

goodluck pdp, fresh air nigeria. we are watching

Every slowpoke want to comment on Nairaland, i wonder how this one locate the reply button when he/she couldn't read and understand the story?

Lasinoh:

Ogwokor gwokor!
2 Igbo states
1 Hausa state
1 Calabar state

Something good from Abia after all. . .we thank GAD!

[flash=500,500]
https://www.youtube.com/watch?v=P5k9KAr4C9A[/flash]

Ogwokor gwokor!!!!

Never a dull moment with you on NL.

Good

Imagine the so called Lagos, and oil producing states are not even healthy.

I am ashamed

Kudos to anambra and abia

Sun of god:

27 states face bankruptcy
•Abia, A’Ibom, Anambra, Jigawa healthy
•Senators urge merger of states
From ADETUTU FOLASADE-KOYI, Abuja
Friday October 28, 2011



Photo: Sun News Publishing


More Stories on This Section

From the Senate came the gloomy news yesterday that the financial accounts of 27 states are in the red as some of them have been declared either “distressed” or “gloomy.” Only Abia, Akwa Ibom, Anambra and Jigawa states were given a clean bill of health. The six states that are in financial distress are: Kano, Sokoto, Niger, Zamfara, Katsina and Osun.
Those deemed critical are: Ekiti, Plateau, Benue, Edo, Borno, Adamawa, Cross River, Enugu, Taraba, Ogun, Kogi, Yobe, Ebonyi, Ondo and Kaduna.

In the unhealthy cadre are: Oyo, Bauchi, Bayelsa, Nasarawa, Gombe and Rivers while Imo, Kwara, Lagos, Kebbi and Delta were given the ‘tolerable’ tag. The data was sourced from the Nigerian Governors’ Forum (NGF) Labour Policy Report, 2011 as contained in a motion titled: Looming danger of bankruptcy in states: The need for fiscal evaluation, sponsored by Senator Olubunmi Adetunmbi (ACN, Ekiti North).

To forestall the looming catastrophe, the Senate advised the Federal Government to expeditiously review the revenue sharing formula in favour of states and local governments.

so what is going to happen if the FG decides to review the revenue sharing formula, are they going to increase other states own and leave Abia, Akwa Ibom, Anambra and Jigawa states revenue becos they are healthy?? Am just curious!

“The bulk of the revenue of these states is currently financing payroll of the civil service which constitutes less than 4% of the total population in all states; if this trend continues, many of the states would become financially insolvent and increasingly handicapped to finance real sectors and drive economic growth, job and improved livelihoods,” he said.

He told the Senate that “most state governments now rush to the capital market to raise long-term bonds to finance development projects”, which if misused, would spell doom for their future and the financial quagmire of states. Also, Chairman of the Niger Delta Committee, Senator James Manager, re-echoed the call for merger of states and asserted that “all the states are distressed. Something has to be done. So many states are not supposed to be states because they have nothing to offer, they are burdens on Nigeria. Those not viable should be merged with the viable ones, hence, the imperativeness of fiscal federalism.”

lol, Na wa oo for dis Niger Delta man but he said the truth anyway.

The "Trippe A" states have a clean bill of health. NICE

aksquaad:

hw far.am new here.abeg hew can 1 post note

You just did dear

  Armed with the data, Adetunmbi noted that in most states, the private sector is weak and unable to generate economic growth and jobs that are required, thereby making the states and local governments the largest employers of labour with attendant fiscal imbalance.

“The bulk of the revenue of these states is currently financing payroll of the civil service which constitutes less than 4% of the total population in all states; if this trend continues, many of the states would become financially insolvent and increasingly handicapped to finance real sectors and drive economic growth, job and improved livelihoods,” he said.

I think the bolded is the main reason why Anambra and Abia state is among the healthy state, not that they are richer than states like Rivers, Lagos, Delta state etc,

I see no reason why Anambra and Abia is better than Imo or Rivers. Even USA, Japan, Germany and the developed world owe far more than Africa . Of what use is it to leave your people suffering in terms of basic infrastructure just to keep a clean financial slate?

We should keep borrowing and developing our States. Rivers recently secured a 100billion bond and the momentum of infrastructural development has sky rocketed.

^^^^


They are talking about their financials not necessarily their economic outlook. All these nations you have listed owe debt other than U.S. have a low debt profile, and besides, as much as they owe, they generate huge amount of revenues more than Africa. Although I do agree what's the use of starving the people from basic infrastructure in order to keep a clean financial record, however, when the people are not ready to pay or even evade taxes, how do you intend to pay it back?



No I do not support the "keep borrowing to developing our states", that is so a wrong/faulty mentality. Rivers took 100billion in Bonds, agreed, now what is their IGR as compared to their debt? Keep in mind that they have to keep a low debt profile so my question is what is their Debt Ratio and the Revenue-to-debt ratio? 

This is the reason I stressed about Lagos debt in comparison to its revenue at large because holding a debt of more than $2billion is very risky particularly when Lagos hasn't achieved it targeted revenue point; putting a debt a state is so not an appropriate thing to do particularly when state has no idea on how to generate revenues to pay back these debts.

manny4life:

^^^^



No I do not support the "keep borrowing to developing our states", that is so a wrong/faulty mentality. Rivers took 100billion in Bonds, agreed, now what is their IGR as compared to their debt? Keep in mind that they have to keep a low debt profile so my question is what is their Debt Ratio and the Revenue-to-debt ratio? 

I have little or no information with regards to what you seek but I believe that if the infrastructure is put in place, there is tendency of increased economic activity and this in turn will translate to revenue generation.

^^^ i personally will not like it if i hear the imo state government will go to the bond market or borrow money to finance capital projects.

@abagworo

Which momentum are you talking about? These are roads that have been in a state of construction over 5 years, the one in front of my house, contractor started work 2 weeks ago digging gutter but as at today he has gone on christmas break. The governor kept saying rain is worrying oya we are in dry season yet its go slow, go slow.

@abagworo, I know you will not see any reason why Anambra is far better off than your imo state, because you are always high on envy. But put that aside, you don't have to join Rivers state and your Imo state in any race because one is economically/commercial vibrant state while later is simply empty with more of civil servants thereby making the local/state govt biggest employer of labor which is very very unhealthy for your state of imo. Imo state is basically dry economically with little or no private sector investment. You cannot say same for states like Anambra, Rivers, Lagos and even Abia where the private sector are largely the highest labour employer. States like Rivers, Lagos, Anambra can afford to go to bond market because of its IGR, but it will be highly suicidal for a state like imo which based most of its income on federal allocation.

chino11:

@abagworo, I know you will not see any reason why Anambra is far better off than your imo state, because you are always high on envy. But put that aside, you don't have to join Rivers state and your Imo state in any race because one is economically/commercial vibrant state while later is simply empty with more of civil servants thereby making the local/state govt biggest employer of labor which is very very unhealthy for your state of imo. Imo state is basically dry economically with little or no private sector investment. You cannot say same for states like Anambra, Rivers, Lagos and even Abia where the private sector are largely the highest labour employer. States like Rivers, Lagos, Anambra can afford to go to bond market but it will be highly suicidal for a state like imo which based most of its income on federal allocation.

unfortunately i have to agree with this.

Abagworo is correct on this one. Assuming that the money borrowed will be spent on infrastructure and spent relatively efficiently, it makes sense to borrow.

You cannot use the poverty of your state as a reason not to build the basic things that Nigeria and Africa more generally lack. I could see if this were some overdeveloped place like in the Western world where they've long since reached diminishing returns. Or if it were borrowing to build something in the Gobi desert [size=3pt](though incidentally this same Gobi desert evidently has oil and gas )[/size]

But neither of these situations are true.

To not borrow is the equivalent of a man who has an offer to go to medical school/law school and know he will have a very high salary once he finishes his course, but doesn't have the cash and is unwilling to borrow (despite lenders finding him credit worthy.)

If such a man decides to stick with his minimum-wage job rather than vastly improving his earnings potential, we would call such a man a f[i]o[/i]ol.

There is good debt, and there is bad debt. While borrowing to hand out free food or to pay salaries is obviously bad debt, borrowing to build bridges, roads, etc is good debt.

Abagworo:

I have little or no information with regards to what you seek but I believe that if the infrastructure is put in place, there is tendency of increased economic activity and this in turn will translate to revenue generation.

It's cool you don't have such information, however, that is my whole point; you don't start putting infrastructures in place when you haven't given people a reason to establish a local presence first. In the cycle of economy, people need to have a reason to establish a presence first (service, finance, entertainment, agriculture industries,  government, etc), after such presence has been established, then there's a need and reason for infrastructures.


Rivers/Lagos/Anambra/Abia already created reasons to establish a presence. Rivers is an oil state, Lagos is the center of it all because because made it that way, Anambra on the other hand is into manufacturing/capital base, while Abia takes the center front of all types and capability of manufacturing (I might be wrong with my analysis and I'm open to correction). Therefore, infrastructures is paramount to the future progression of these states, building infrastructures without identifying your niche industry, without giving people a reason to to establish a presence is so dangerous, high risk alert.


This is where the "What-If", a significant part of risk comes into play. Just because IMO built a $100 million tunnel (road and rail), doesn't mean I will relocate or establish a presence in IMO, nor pay taxes or tolls in IMO, something has to spur me( a niche industry/field(s). Now, that's my own argument all along which is why I asked, HOW DOES IMO CITIZENS AND IT'S GOVERNMENT INTEND TO PAY THEIR DEBT WHEN THEIR IGR IS REALLY LOW?


Let's put into perspective, assume IMO gov identifies their industries as Tourism/Travel, Entertainment/Recreation and Services (health care), if gov is gradually developing all these industries with minimal loans rather than massive debts, don't you think it will make perfect sense that he can gradually generate revenues from here? As people come to the states, IMO generate revenue. If IMO builds Sea-World with classy teaching and research education facilities, don't you think Sea-World will have close to 1/4 million visitors annually? Two purpose served; education and entertainment.

manny4life:

It's cool you don't have such information, however, that is my whole point; you don't start putting infrastructures in place when you haven't given people a reason to establish a local presence first. In the cycle of economy, people need to have a reason to establish a presence first (service, finance, entertainment, agriculture industries,  government, etc), after such presence has been established, then there's a need and reason for infrastructures.


Rivers/Lagos/Anambra/Abia already created reasons to establish a presence. Rivers is an oil state, Lagos is the center of it all because because made it that way, Anambra on the other hand is into manufacturing/capital base[b], while Abia takes the center front of all types and capability of manufacturing (I might be wrong with my analysis and I'm open to correction).[/b] Therefore, infrastructures is paramount to the future progression of these states, building infrastructures without identifying your niche industry, without giving people a reason to to establish a presence is so dangerous, high risk alert.


This is where the "What-If", a significant part of risk comes into play. Just because IMO built a $100 million tunnel (road and rail), doesn't mean I will relocate or establish a presence in IMO, nor pay taxes or tolls in IMO, something has to spur me( a niche industry/field(s). Now, that's my own argument all along which is why I asked, HOW DOES IMO CITIZENS AND IT'S GOVERNMENT INTEND TO PAY THEIR DEBT WHEN THEIR IGR IS REALLY LOW?


Let's put into perspective, assume IMO gov identifies their industries as Tourism/Travel, Entertainment/Recreation and Services (health care), if gov is gradually developing all these industries with minimal loans rather than massive debts, don't you think it will make perfect sense that he can gradually generate revenues from here? As people come to the states, IMO generate revenue. If IMO builds Sea-World with classy teaching and research education facilities, don't you think Sea-World will have close to 1/4 million visitors annually?

you are not wrong in abia's analysis

that is my fear for borrowing for a state like imo state.anambra and abia can afford to do that because they have carved a nich for themselves where wealth can be generated but for imo it is not yet clear though.