‘States Are Not Bankrupt, But We Have No Money!’

STATES may not be bankrupt, but they are financially in dire straits, Nigeria Governors Forum (NGF) Chairman Chibuike Rotimi Amaechi, affirmed yesterday.

And based on this, the Rivers State governor reiterated the clamour for a review of the revenue sharing formula to enable them discharge their responsibility to the citizenry.

Amaechi told journalists in Port Harcourt yesterday that the states, including Rivers, were not bankrupt, but they lack sufficient funds to enable them provide infrastructure and discharge other financial obligation.

His words: “We are not bankrupt. Do we have money? No! It is challenging, because you can’t be doing all you are doing and you don’t have the funds you need to do them.

“We are not bankrupt, but we don’t have money. We need the revenue formula to change to favour the states, so that we can do more. Even the President comes from Bayelsa and he needs Bayelsa to develop, so that when he retires as President he can come to a conducive environment,” he said.

On the contentious Sovereign Wealth Fund (SWF), which he has described as unconstitutional, Amaechi said the states have not dragged the Federal Government to court to challenge its constitutionality.

Reacting to a report credited to the Edo State government that it does not support other states’ stance on the Fund, Amaechi explained that the governors have agreed with the federal government on a lot of issues and one is that they would not going to court with them on the issue of SWF.

“If the Edo State governor is not in support of what we are doing, in terms of the Fund, if he does not go to court, another governor can go to court to challenge its constitutionality. You don’t need 36 governors to go to court.

“The issue is that it is not true that the governors are in court on the issue of the Fund; we have not taken the federal government to court,” the governor insisted.

He explained that Rivers has repaid N6billion out of the N40 billion it recently accessed from a commercial bank, adding that the government would still push ahead with its plan to raise the sum of N250 billion through bond, as borrowing from banks is no longer attractive due to Central Bank of Nigeria’s (CBN) increment of interest rate.

On the issue of waterfronts slums in Port Harcourt, Amaechi described those residing in the area as illegal occupants.

He disclosed that government would soon commence the demolition of the Abonnema Wharf as soon as the state raises money to acquire all the properties there.

Reacting to Amnesty International’s criticism of the states urban renewal policy, Amaechi described as absurd situation whereby the group’s official stay in cosy environment in London and see nothing inhumane about Africans livings in crime-ridden slums.

He said: “I will demolish the waterfronts; all of them living there are illegal occupants. They what is called temporary occupation licence, which means that when a government wakes up and says it wants its my land back, they are supposed to vacant after seven days. So, first and foremost, the law is not on their side; it is on my side.”

He continued: “But as a human being and as a governor, we are supposed to have a lot of human face to a lot of these problems. We have said we will pay for all the properties we meet in the course of this demolition at a commercial rate.”

The governor stressed that he does not derive pleasure in anyone suffering, but insisted that since 80 per cent of the criminals in Port Harcourt live in the waterfronts, the government is bound to rid the city of these security nuisance.

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=65831:states-are-not-bankrupt-but-we-have-no-money&catid=1:national&Itemid=559

I used to think that this Amaechi is intelligent.

^ what are you saying? That guy is waaay better. I hope you know his position as chairman of governors forum?

With all due respect governor Amaechi, there is what is called "financial prudence". All this "going-to- Abuja- plate- in -hand" won't make Rivers a self sustaining state.
What we need in Nigeria are states that source funds locally, or at the very least can account for the funds disbursed to them. This is why your many of your white elephant projects may need to be scrapped because they are not geared towards making money. They are all social projects. One day Nigeria's oil will finish! Gerrit!  

Posted by: Rhino.5dm

^ what are you saying? That guy is waaay better. I hope you know his position as chairman of governors forum?

He is blaming the revenue sharing formula as if it is a holy grail that everybody must drink from to survive.
What happened to sound economic management of available funds? Rivers gets more money than a lot of states and has no business being bankrupt.

Bros, not morethan three state can survive without going to Abuja. Lagos,Bayelsa,Delta Akwa Ibom and Rivers are the only states on my good book. That said.

This does not negate the fact that many of the other states cant survive by self sustaining with proper planning and implimentations. The political will is our great hinderance.

Amaechi should be seen as the spokes person of ALL states, since he chairs the committee. And if so, then it wont be out of place for him to say such. BTW, have you seen the transformation package of Amaechi? The guy dey try big time. Kudos to the guy.

Onlytruth:

Posted by: Rhino.5dm
He is blaming the revenue sharing formula as if it is a holy grail that everybody must drink from to survive.
What happened to sound economic management of available funds? Rivers gets more money than a lot of states and has no business being bankrupt.

Onlytruth:

With all due respect governor Amaechi, there is what is called "financial prudence". All this "going-to- Abuja- plate- in -hand" won't make Rivers a self sustaining state.
What we need in Nigeria are states that source funds locally, or at the very least can account for the funds disbursed to them. This is why your many of your white elephant projects may need to be scrapped because they are not geared towards making money. They are all social projects. One day Nigeria's oil will finish! Gerrit!

This my exact problem with all the governors. Aside from Sule Lamido, none seems to be building anything that would empower the people to stand up for themselves and generate money. All we have are flower planting and monorail competitions that lead to nowhere.
The people need to be organised to generate wealth, instead we have white elephant and other fund sucking projects for which billions have been borrowed.

I am really dissapointed at the sorts of words that have come from the likes of Amaechi and Fashola. Its really disgracefully shabby reasoning that the states need the FG to survive. Can you imagine that Rivers is financially stressed? There are many questions to be answered.

When last did you visited Rivers? The only reason why anyone cannot commend Ameachi's multi task and gorilla's approach in enhancing Rivers state is ignorance. If you carefully take note of many life touching infrastructural project springing on quietly then, you will give thumbs up for the guy. Remember the decay is Rivers cant be fixed with magic stick, as you will always want to believe about Nigerian system.

Without solid infrastructural base, all transformation will be frustrated.

Lemme give a clue why monorails in River is not a white elephant project.

Now consider how much someone living at Eleme will be saving by going to mile 3 for his business? This guy cant rent a house around mile 3 due to high cost of living/rents in that area(which may double or even triple). I didn't factor in the the stress relief which cannot be quantified with money

If you know the hardship people face in transporting thenselve to work on daily basis in Rivers, you would pray and fast for the actualization of that project. I feel pain and internal rage whenever i see people struggling to board buses in Rivers.

The Amaechi buses, as they are popularly known, was a huge success and a very huge source of revenue to the state or is that not what you guys are clamouring for? If yes, then why not put a monorail in place to parmenantly solve the trasportation problem of the state?. Those monorails you refer to as white elephant projects are one of the most successful project to be embarked by any government in recent times, NO? Prove me wrong!


Believe you me, that guy has a great foresight when you carefully analyze his works.

Beaf:

This my exact problem with all the governors. Aside from Sule Lamido, none seems to be building anything that would empower the people to stand up for themselves and generate money. All we have are flower planting and monorail competitions that lead to nowhere.
The people need to be organised to generate wealth, instead we have white elephant and other fund sucking projects for which billions have been borrowed.

I am really dissapointed at the sorts of words that have come from the likes of [b]Amaechi and Fashola. Its really disgracefully shabby reasoning that the states need the FG to survive. Can you imagine that Rivers is financially stressed? [/b]There are many questions to be answered.

Rhino.5dm:

When last did you visited Rivers? The only reason why anyone cannot commend Ameachi's multi task and gorilla's approach in enhancing  Rivers state is ignorance. If you carefully take note of many life touching infrastructural project springing on quietly then, you will give thumbs up for the guy. Remember the decay is Rivers cant be fixed with magic stick, as you will always want to believe about Nigerian system.

Without solid infrastructural base, all transformation will be frustrated.

Lemme give a clue why monorails in River is not a white elephant project.

Now consider how much someone living at Eleme will be saving by going to mile 3 for his business? This guy cant rent a house around mile 3 due to high cost of living/rents in that area(which may double or even triple). I didn't factor in the the stress relief which cannot be quantified with money

If you know the hardship people face in transporting thenselve to work on daily basis in Rivers, you would pray and fast for the actualization of that project. I feel pain and internal rage whenever i see people struggling to board buses in Rivers.

The Amaechi buses, as they are popularly known, was a huge success and a very huge source of revenue to the state or is that not what you guys are clamouring for? If yes, then why not put a monorail in place to parmenantly solve the trasportation problem of the state?. Those monorails you refer to as white elephant projects are one of the most successful project to be embarked by any government in recent times, NO? Prove me wrong!


Believe you me, that guy has a great foresight when you carefully analyze his works.

Why go off topic now? This issue here concerns wealth generation and not  how many shiny things the governor has constructed in the last 4-5 years. This is a problem here.  States are businesses and ought to be run in efficient ways. Amaechi's statements above should be rejected. How long will Rivers be a state to depend on monthly handouts?

^ How do you create wealth without the basic infrastructure in place. Is saving money not wealth saving?

Those things are interwoven. Good roads,school,hospital,transportation and all that should be the stepping stone for any viable investment.

Rhino.5dm:

^ How do you create wealth without the basic infrastructure in place. Is saving money not wealth saving?

Those things are interwoven. Good roads,school,hospital,transportation and all that  should be the stepping stone for any viable investment.

no they are not -- not in the way you are trying to make it seem. Even the man who lives under the bridge is able to generate income without first waiting for when he gets his two-storey house and flashy car

I'm amazed that some people here are comfortable with the present revenue sharing formula, one which results in the FG holding most of the funds/power whereas the states that need the funds are made to appear as beggars. Amaechi's concerns are very valid alas the FG doesn't have the political will to bring about an improvement. And whats all this talk about Amaechi engaging in white elephant projects? Rivers state is in dire need of basic infrastructure and that's what he's attempting to provide (albeit haphazardly IMO). Which of the present projects there are white elephant projects abeg?

Do you have any problems with having a concrete base before embarking on creation of wealth?.

Now you tell, how do you intend to generate wealth in a state like Rivers or if you are living under the bridge .

Please am eager to learn something today. . . . .Before you respond, i indulge you to view Rivers State from google earth first.

Kobojunkie:

no they are not -- not in the way you are trying to make it seem. Even the man who lives under the bridge is able to generate income without first waiting for when he gets his two-storey house and flashy car

it is only in nigeria that federalislm is turned on its head.

I had rather have solid tarred road with street lights from Eleme to Igwe Ocha than idiotic monorail in Igwe Ocha which Nigeria does not have technological knowhow to maintain. For example in USA, people leave and go to work everyday of the week from cities with equivalent distance from Enugu to Owerri. This is made possible by good roads, no police checkpoint, no custom checkpoint and constant visibility of highway patrol officers. In addition, there is world-class inter-state railway system. Most of the city projects embarked by certain governors in Nigeria are at best white elephant.

The current noise about revenue sharing is a misguided political folly instigated by spoilers. I read an article where all the states under the financial insolvency are from northern region except Osun State from the southern region. Yet we were told the governors from northern regions are not crooks and usually have financial surplus every years.

Nigeria as a country is practical joke and must come to an end by any know means.

Dede1:

I had rather have solid tarred road with street lights from Eleme to Igwe Ocha than idiotic monorail in Igwe Ocha which Nigeria does not have technological knowhow to maintain. For example in USA, people leave and go to work everyday of the week from cities with equivalent distance from Enugu to Owerri. This is made possible by good roads, no police checkpoint, no custom checkpoint and constant visibility of highway patrol officers. In addition, there is world-class inter-state railway system. Most of city projects embarked by certain governors in Nigeria are at best white elephant.

The current noise about revenue sharing is a misguided political folly instigated by spoilers. I read an article where all the states under the financial insolvency are from northern region except Osun State from the southern region. Yet we were told the governors from northern regions are not crooks and usually have financial surplus every years.

Nigeria as a country is practical joke and must come to an end by any know means.

INDEED

Rhino.5dm:

Do you have any problems with having a concrete base before embarking on creation of wealth?.
Now you tell, how do you intend to generate wealth in a state like Rivers or if you are living under the bridge .
Please am eager to learn something today. . . . .Before you respond, i indulge you to view Rivers State from google earth first.

Nothing, absolutely NOTHING stops Governors from doing both at the same time. Matter of fact, it should be one of the first projects any governor ensure if being worked on, from first day in office. You don't focus on how to spend available funds without ensuring that you are also generating funds . . bringing in more. I mean think parable of the 10 talents. You don't just go spending to improve the states without ensuring you have in place avenues to also generate money for the same state. There is no excuse. States are businesses not charities.

One of the major reasons why the solid tarred roads, new buildings, constructions etc. don't last/ are not maintained is that by the time the structures are completed, there is no money left to ensure their maintenance, and so they decay in no time, and by the next Governor, we are rebuilding the very same roads, structures, etc.  And we go around the cycle which we know as the norm in Nigeria one more time. You do not embark on any project until you are SURE that you have a way of making funds to MAINTAIN those projects. The argument here is not that Governor's not build at all. It is good to build but if you are going to build these structures using Government money, then ensure the state has a WORKING revenue generation formula in place to ensure maintenance.

he says he's broke but not bankrupt. pray, what's the difference?

Dede1:

[b]I had rather have solid tarred road with street lights from Eleme to Igwe Ocha than idiotic monorail in Igwe Ocha which Nigeria does not have technological knowhow to maintain. [/b]For example in USA, people leave and go to work everyday of the week from cities with equivalent distance from Enugu to Owerri. This is made possible by good roads, no police checkpoint, no custom checkpoint and constant visibility of highway patrol officers. In addition, there is world-class inter-state railway system. Most of the city projects embarked by certain governors in Nigeria are at best white elephant.

The current noise about revenue sharing is a misguided political folly instigated by spoilers. I read an article where all the states under the financial insolvency are from northern region except Osun State from the southern region. Yet we were told the governors from northern regions are not crooks and usually have financial surplus every years.

Nigeria as a country is practical joke and must come to an end by any know means.

Word.

Posted by: Kobojunkie

Nothing, absolutely NOTHING stops Governors from doing both at the same time. [/b]Matter of fact, it should be one of the first projects any governor ensure if being worked on, from first day in office. [b]You don't focus on how to spend available funds without ensuring that you are also generating funds . . bringing in more. [/b]I mean think parable of the 10 talents.

Once in a while [b]kobojunkie talks sense. The one above is simply apt.

Now over to you Mr Rhino.

As I said before, Rivers state should have no business begging or borrowing money. In fact Rivers should be lending money to other poorer states and making some money from the interests! Whatever money that comes from the FG should  be surplus that should be used for longer range economic planning. Every project embarked on should be able to sustain itself, or at least not depend on future FG handouts. Rivers should be a shinning example of how oil money can be used to design a self sustaining economy independent of oil ,  because oil will finish one day, and the day is not even far off. I don't see any signs yet that Rivers is laying the foundation of financial prudence in getting ready for that future.

The bolden is right on point. I understand the needs to carryout routine preventive maintenance or repairs when there is failure/s. That should not negate the huge impact of the projects on the citizens. The question here is, are they employing the services of reputable firm with capabilties of handling those projects? If yes then, you should know that every contracts specify the quality of works to be done.

We cant just wish away laudable projects by mere speculating our inability to maintain them. I laugh at those thinking monorail is a waste. The facts here is, most people facing the predicament of moving from place to place feels otherwise. Until you are able show why you think those projects are wastage then, i think we should concerntrate on the positive side.

Things are changing in some states in Nigeria and there is a huge drift from the previous "I dont care"perception and non chalant attitude of people toward protecting investments; as many people are becoming more concern about the activities of government.

We are at cross-road between talking to acting IMO.

Beside, i can point to you several projects that some people fears the realistic and sustainability ends and were proven wrong.

I cant speak for Enugu on this monorail stuff but, Rivers citizens truely desreve mass transist system to cull the stress and high cost of transportation in the state.

From my research and analysis i for long concluded that there is no singular project that can transform Rivers economical other than this monorail. Here am talking about plans on ground by Ameachi to expand portharcourt via a huge project tagged "greater portharcout"

Kobojunkie:

Nothing, absolutely NOTHING stops Governors from doing both at the same time. Matter of fact, it should be one of the first projects any governor ensure if being worked on, from first day in office. You don't focus on how to spend available funds without ensuring that you are also generating funds . . bringing in more. I mean think parable of the 10 talents. You don't just go spending to improve the states without ensuring you have in place avenues to also generate money for the same state. There is no excuse. States are businesses not charities.

One of the major reasons why the solid tarred roads, new buildings, constructions etc. don't last/ are not maintained is that by the time the structures are completed, there is no money left to ensure their maintenance, and so they decay in no time, and by the next Governor, we are rebuilding the very same roads, structures, etc. And we go around the cycle which we know as the norm in Nigeria one more time. You do not embark on any project until you are SURE that you have a way of making funds to MAINTAIN those projects. The argument here is not that Governor's not build at all. It is good to build but if you are going to build these structures using Government money, then ensure the state has a WORKING revenue generation formula in place to ensure maintenance.

hello rhino how do u embed a video here ?

kobo can u help me on that. pls

[flash=200,200]http://www.youtube.com/embed/fHamIZiviIk frameborder="0" allowfullscreen></iframe>[/flash]

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[flash=200,200]http://www.youtube.com/embed/fHamIZiviIk" frameborder="0" allowfullscreen></iframe>[/flash]




[flash=200,200]http://www.youtube.com/embed/fHamIZiviIk" frameborder="0" allowfullscreen></iframe>[/flash]

Rhino.5dm:

The bolden is right on point. I understand the needs to carryout routine preventive maintenance  or repairs when there is failure/s. That should not negate the huge impact of the projects on the citizens. The question here is, are they employing the services of reputable firm with capabilties of handling those projects? If yes then, you should know that every contracts specify the quality of works to be done.

I don't think that question is a valid one anymore given that we already know from over 50 years of experience, that Govenors need to ensure only reputable firms handle state projects. If a Governor does give out contracts to non reputable companies, then that Governor ought to be held fully responsible for the loss to the State.

Rhino.5dm:

We cant just wish away laudable projects by mere speculating our inability to maintain them. I laugh at those thinking monorail is a waste. The facts here is, most people facing the predicament of moving from place to place feels otherwise. Until you are able show why you think those projects are wastage then, i think we should concerntrate on the positive side.

People are not wishing away laudable projects . . . we have had many of those  . . .eg. Tinapa, but the problem is many of these turn into burdens on society or a waste. And no one wants more of those.

Rhino.5dm:

Things are changing in some states in Nigeria and there is a huge drift from the previous "I dont care"perception and non chalant attitude of people toward protecting investments; as many people are becoming more concern about the activities of government.
We are at cross-road between talking to acting IMO.
Beside, i can point to you several projects that some people fears the realistic and sustainability ends and were proven wrong.
I cant speak for Enugu on this monorail stuff but, Rivers citizens truely desreve mass transist system to cull the stress and high cost of transportation in the state.
From my research and analysis i for long concluded that there is no singular project that can transform Rivers economical other than this monorail. Here am talking about plans on ground by Ameachi to expand portharcourt via a huge project tagged "greater portharcout"

I don't think you get it. The State tells you it has no money. If this continues for a couple more months/a year, what do you think will happen to the many projects that have been completed in the past couple of years?
A State is a business venture. You can have all the plans you want to, but if there is no money coming in to ensure successful completion and maintainance of all that is being built, you end up with nothing but stories of how it was all wonderful for a time.

Do you understand the faulty revenue system Nigeria is operating? Not until when there is true federalism your points hold no water.

Drill oil in Bayelsa and share with Borno that produce Boko Haram!!!!! For what??

Lemme gist you small. Afam power station should be able to provide 24/7 power supply to Rivers . The governor is willing to invest in that direction but, the fear of "fat lazy cow" call the FG is stopping him. How do you expect governor to start investing of project that have direct bearing on his citizen only to be snatched by FG? Going by how constant power supply is a panacea to any meaningful development. You see my point.

Why should Rivers invest on power that will be shared with Zamfara for FREE?? Not until we address our economic system; i posit states to concerntrate on what you term as "white elephant projects"

These guys are carefully selecting among many things to done at the moment.

P.S Amaechi is chairman governors forum, so it wont be out of place to say such.

Onlytruth:

Posted by: Kobojunkie
.

Now over to you Mr Rhino.

As I said before, Rivers state should have no business begging or borrowing money. In fact Rivers should be lending money to other poorer states and making some money from the interests! Whatever money that comes from the FG should be surplus that should be used for longer range economic planning. Every project embarked on should be able to sustain itself, or at least not depend on future FG handouts. Rivers should be a shinning example of how oil money can be used to design a self sustaining economy independent of oil , because oil will finish one day, and the day is not even far off. I don't see any signs yet that Rivers is laying the foundation of financial prudence in getting ready for that future.

Let me ask you this question, what do you think Amaechi should to create wealth?

Rhino.5dm:

Do you have any problems with having a concrete base before embarking on creation of wealth?.

Now you tell, how do you intend to generate wealth in a state like Rivers or if you are living under the bridge .

Please am eager to learn something today. . . . .Before you respond, i indulge you to view Rivers State from google earth first.

Define concrete base? A Base with no way to ensure that more money comes in even as you spend most all you have? Or one in which you have in place sure means of generating funds even as you build?

You can scan through the HELP section for that. Am using phone to type,.

macjive01:

hello rhino how do u embed a video here ?

He explained that Rivers has repaid N6billion out of the N40 billion it recently accessed from a commercial bank, adding that the government would still push ahead with its plan to raise the sum of N250 billion through bond, as borrowing from banks is no longer attractive due to Central Bank of Nigeria’s (CBN) increment of interest rate

wow . . . .he still has 34 billion to pay but wants to borrow another 250 Billion.

On top of the federal allocation?

Who's to repay this money and how?

If anything the fed govt should cut of all funds sent to 'financially inept' governors and states.

Rhino.5dm:

Do you understand the faulty revenue system Nigeria is operating? Not until when there is true federalism your points hold no water. 

Drill oil in Bayelsa and share with Borno that produce Boko Haram!!!!! For what??

Lemme gist you small. Afam power station should be able to provide 24/7 power supply to Rivers . The governor is willing to invest in that direction but, the fear of "fat lazy cow" call the FG is stopping him. How do you expect governor to start investing of project that have direct bearing on his citizen only to be snatched by FG? Going by how constant power supply is a panacea to any meaningful development. You see my point.

Why should Rivers invest on power that will be shared with Zamfara for FREE?? Not until we address our economic system; i posit states to concerntrate on what you term as "white elephant projects"

These guys are carefully selecting among many things to done at the moment.

P.S  Amaechi is chairman governors forum, so it wont be out of place to say such.


Let me ask you this question, what do you think Amaechi should to create wealth?

Again you are going off the issue. We are speaking here of states not generating funds and you are going on about how power sharing, which has been in place for well over 30 years, is affecting em now. I mean if a man was born with no feet, but decides to purchase expensive louis vitton loafers, do you think anyone would be interested in listening to him whine about how his not having feet is reason why he is unable to wear the new shoes. Why do you continue to inject the irrelevant into this?

If an unemployed man spent his only $10,000 in building a house, what does the beauty and wonder of the structure to do with the fact that he now has no money at all, and no job or business to help bring money in?

With constant light and good roads/transport system in place, Lagos would have to seat up to match Rivers. Those projects are what i refer to as concrete base.

Kobojunkie:

Define concrete base? A Base with no way to ensure that more money comes in even as you spend most all you have? Or one in which you have in place sure means of generating funds even as you build?

I can't believe some people here are dissing the monorail systems springing up. What the hell is wrong with providing modern, affordable transportation to the masses?