Ngwakwe: Why can't these all knowing Economists raise alarm over the Borrowing Escapades of the Lagos State Government.

It is appalling that while these intellectuals criticize the Government of GEJ in debt management the same people hails Lagos State Government whom if left unchecked will bankrupt the Nations Commercial Capital.

don't mind the hypocrites state like lagos and other acn states are borrowing heavy with the name of nigeria to bankrupt nigeria.

take dat: Did I hit a nerve? Well, I should be asking you the same question because i was referring to your post on Ngozi and her report on loot recovery effort.

#I come in peace!

Na wa for you oh!
I ask you simple question sey make you show me where I bin talk wetin you sey I talk you come dey yarn dogo turenchi.
Can I take it that you cannot sustain your earlier statement:

Anonimi, so recovering N14billion out of N232billion almost a year after is something to rejoice over?

karl max: don't mind the hypocrites state like lagos and other acn states are borrowing heavy with the name of nigeria to bankrupt nigeria.

Is it as if the FG and and other PDP state governments take loans in the name of Togo?

Blessed are the young for they shall inherit the National Debt!

anonimi:

Na wa for you oh!
I ask you simple question sey make you show me where I bin talk wetin you sey I talk you come dey yarn dogo turenchi.
Can I take it that you cannot sustain your earlier statement:

You dey para o? I used your username Instead of quoting the whole post, after all, it isn't your duty to recover the loot. Except you are Ngozi's voltron!

Is ARG anoda political party?? An dis madam engozi self why she dey always carry figures dey deceive us na?.d oda day she been say na 36 percent of naija no get wrk an nw she carry anoda tory come again.we ar watching u all an very soon yawa go gas o

careytommy: for how long will this campaign of calumny continue?

careytommy: for how long will this campaign of calumny continue?

take dat: @Anonimi, so recovering N14billion out of N232billion almost a year after is something to rejoice over? How many PPPRA officials have been sacked and are they facing prosecution? How come we so much cherish mediocrity in this country?

Don't bother responding to that dishonest and discredited crook. Did you not read what he wrote above where he called his own 'supposed' people parasites? I mean, who does that? I.e malign your own so-called people with lies? Please do not dignify that confused liar with a response.

The entire nation knows that the biggest efforts at IGR increment are going on in SW States. Commercial mechanised Agriculture is being pursued aggressively to return the region to its past glory. Since the current democratic experience began in 1999, it is under the current leaders really strong efforts (tourism, attraction of FDI, employments et al) are being seen to make SW States as independent and as socio-economically healthy as possible.

Yet this lying twerp says his own so-called people are "acting like parasite" at a time when they are anything but that. He is a very dishonest and deceitful person only worth ignoring. I don't even think he is sane because which sane Yoruba person will trot out the half-truth, aimed at discrediting the SW, the annoying pretender utters below? Only god knows why some run around pretending to be what they are not.

When we yorubas start growing cocoa and contributing as much as oil does to our national GDP, forex, revenue etc we can request cocoa plantation security contract.
How much of the cocoa revenue did we share with the Niger Delta people in the 60s?
We are currently just behaving like a bunch of shameless parasites!

take dat: Is it as if the FG and and other PDP state governments take loans in the name of Togo?

Blessed are the young for they shall inherit the National Debt!

When some do not have the basic intelligence to note that there is a big difference between the FG expending $7 billion , with nothing tangible seen on ground, with States taking loans to build revolutionary "first in sub-sahara" modern rail network, then they are not worth responding to on threads like this.

Those types are just sentimental and nonsense posters only here to unintelligently bore us saying "Fashola did this also" in defence of their messiah when they don't even know the context within which the argument is presented. I.e the notion that large amounts of money are expended irresponsibly and profligately while no socio-economic improvements are seen. This is what leads to bankruptcy. Buying three planes with $151 million to augment a fleet of 7, and make it 10, is what causes bankruptcy and fiscal headaches everyone, including our children, becomes a prisoner to.

Depleting $7 billion dollars "rainy day" savings ,with nothing on ground, is what bankruptcy is about. It is not building a modern rail network and spending on projects with socio-economic benefits that brings bankruptcy even as we have too many clannish irritants here who don't know this and won't keep to the topic to defend allegations against the Government on its own merit without shouting "Fashola".

Imagine I take a £10,000 loan to buy a Merc which begins to lose value the minute I drive it out of the dealers garage. I am jobless also and have no income coming in. You take the same amount in loan and use it for a business venture that not only enables you to service the loan comfortably but also puts you on the way to riches and prosperity. How can anyone with a brain compare us? If someone is lampooning me for mismanagement and profligacy, what is the point of anyone, in trying to defend me, mentioning that the poster take-dat also took a loan? You see why some are best ignored here?

It is only in Nairaland that unrepentant bigots employ choice of words to deceive the gullible.

When PDP Governments (States or FG) borrow, it's call bankrupting their respective constituencies while on the other hand their ACN counterpart are said to be developing world class economies and infrastructures.

With all these Private Partnerships going-on in Lagos State, it still owes heavily between $620,000,000 - $750,000,000 as of today and wants to borrow another $600,000,000.

The irony of the whole issue is that Lagos State Government (ACN) is blackmailing the FG (PDP) as to guaranteeing the Loan from World Bank and other team of Creditors.

What is good for the goose is also good for the gander. If ACN Governments can borrow for development and pass it on to the future generations, let's accommodate their PDP counterparts to do the same or rather, let there be a ban on internal and external borrowing for ALL.

nawa for this Naija o.

The government is to f**king big taking in money and producing almost zero value! That is the problem along with rampant corruption and absolutely zero accountability/transparency as to what and where the money is being spent on and the results obtained.

Ngwakwe: It is only in Nairaland that unrepentant bigots employ choice of words to deceive the gullible.

When PDP Governments (States or FG) borrow, it's call bankrupting their respective constituencies while on the other hand their ACN counterpart are said to be developing world class economies and infrastructures.

With all these Private Partnerships going-on in Lagos State, it still owes heavily between $620,000,000 - $750,000,000 as of today and wants to borrow another $600,000,000.

The irony of the whole issue is that Lagos State Government (ACN) is blackmailing the FG (PDP) as to guarantee the Loan from World Bank and other team of Creditors.

What is good for the goose is also good for the gander. If ACN Governments can borrow for development and pass it on to the future generations, let's accommodate their PDP counterparts to do the same or rather, let there be a ban on internal and external borrowing for ALL.

Stop being ignorant.

Borrowing in itself is not bad. Borrowing is necessary for development. The difference here is that the FG seizes over 50% of oil revenues and as such its projects should be met by revenues from oil firstly and additional funding may be met by borrowing. But it has to reduce corruption first and then squeeze more efficiency/productivity out of what it has. The FG is embezzling these funds. Lagos on the other hand is borrowing for developmental projects.

In the last 10 years, many articles have been published in leading global journals such as the Financial Times, Economist, Wall Street Journal, etc commending Lagos state governors on its progress and development. There was even a CNN program on the Eko Atlantic project. How many of these type of positive articles have been published about GEJ's government? Instead world leaders are asking GEJ to be more accountable considering record oil revenues. Not forgetting how GEJ made a monkey of himself on CNN with Amanpour.

While you are it, can you supply us with the debt profile of Abu Dhabi, Qatar, Saudi Arabia, Kuwait?

Katsumoto:

Stop being ignorant.

Borrowing in itself is not bad. Borrowing is necessary for development. The difference here is that the FG seizes over 50% of oil revenues and as such its projects should be met by revenues from oil firstly and additional funding may be met by borrowing. But it has to reduce corruption first and then squeeze more efficiency/productivity out of what it has. The FG is embezzling these funds. Lagos on the other hand is borrowing for developmental projects.

In the last 10 years, many articles have been published in leading global journals such as the Financial Times, Economist, Wall Street Journal, etc commending Lagos state governors on its progress and development. There was even a CNN program on the Eko Atlantic project. How many of these type of positive articles have been published about GEJ's government? Instead world leaders are asking GEJ to be more accountable considering record oil revenues. Not forgetting how GEJ made a monkey of himself on CNN with Amanpour.

While you are it, can you supply us with the debt profile of Abu Dhabi, Qatar, Saudi Arabia, Kuwait?

Is the government seizing your money? why not start by fighting corruption in your state. Maybe you can finance your development without borrowing. When a country of 160M relies on oil(2.2m barrel) as the single source for almost 80% of public spending, what do you expect?[b][/b]

bethnals: nawa for this Naija o.

The government is to f**king big taking in money and producing almost zero value! That is the problem along with rampant corruption and absolutely zero accountability/transparency as to what and where the money is being spent on and the results obtained.

Regardless of what clannish irritants say, the fact is that the FG commandeers 52% of all Nigeria's income. 36 States get 26% and 772 Local Government get 20.2%. This is why many, even beyond Nigeria, are united indicted the FG for receiving so much and giving very little in return. The budgeted excesses and profligacy of the centre are things no sane or honest person would seek to defend.

Nobody is saying that borrowing like Lagos State is bad, FG internally generated revenue is growing and your type will always see the cup empty rather than half empty, not to talk of being half full.

There was a thread today about Abuja World Trade Center. You know what? Your ilks called it misplaced priority.

Eko Atlantic is a PPP initiative and doesn't warrant Lagos State owing and soliciting for $600,000,000:00 from World Bank and other Creditors as in borrowing more than SE/SS Combined.

If Abia State Government borrow a tenth of Lagos State debt, you will definitely know that T. A. Orji is far better than glorified Fashola.

Katsumoto:

Stop being ignorant.

Borrowing in itself is not bad. Borrowing is necessary for development. The difference here is that the FG seizes over 50% of oil revenues and as such its projects should be met by revenues from oil firstly and additional funding may be met by borrowing. But it has to reduce corruption first and then squeeze more efficiency/productivity out of what it has. The FG is embezzling these funds. Lagos on the other hand is borrowing for developmental projects.

In the last 10 years, many articles have been published in leading global journals such as the Financial Times, Economist, Wall Street Journal, etc commending Lagos state governors on its progress and development. There was even a CNN program on the Eko Atlantic project. How many of these type of positive articles have been published about GEJ's government? Instead world leaders are asking GEJ to be more accountable considering record oil revenues. Not forgetting how GEJ made a monkey of himself on CNN with Amanpour.

While you are it, can you supply us with the debt profile of Abu Dhabi, Qatar, Saudi Arabia, Kuwait

Katsumoto:

Stop being ignorant.

Borrowing in itself is not bad. Borrowing is necessary for development. The difference here is that the FG seizes over 50% of oil revenues and as such its projects should be met by revenues from oil firstly and additional funding may be met by borrowing. But it has to reduce corruption first and then squeeze more efficiency/productivity out of what it has. The FG is embezzling these funds. Lagos on the other hand is borrowing for developmental projects.

In the last 10 years, many articles have been published in leading global journals such as the Financial Times, Economist, Wall Street Journal, etc commending Lagos state governors on its progress and development. There was even a CNN program on the Eko Atlantic project. How many of these type of positive articles have been published about GEJ's government? Instead world leaders are asking GEJ to be more accountable considering record oil revenues. Not forgetting how GEJ made a monkey of himself on CNN with Amanpour.

While you are it, can you supply us with the debt profile of Abu Dhabi, Qatar, Saudi Arabia, Kuwait?

Ignore that dude. I have never known him to give his own original opinion on any thread. Everything is always a response to what others have said paying homage to his fondness of obfuscation and mind-numbing relativism.

You will never get anywhere with someone who cannot give a straightforward and pertinent response to what is being discussed.

Instead every response is one pandering to the obvious inability to take responsibility for one's own actions by trying to always justifying wrongdoing through relating it to other wrongdoing - perceived or real. Tedious. We are talking of the management of Nigeria at the centre and some are talking of Fashola and the opposition. At the very least it should, as one example, be obvious to some that there is a big difference between GEJ squandering $7 billion of "rainy day" savings of all Nigerians and relating that to what Governors are doing in 36 States of Nigeria. There should be a separate place and time for that. Issues here simply involve what accrues to the centre and the gross mismanagement of that which affects everything and everyone downwards - including Governors.

You have just depicted your clannish, egocentric and megalomaniac self with this your statement.

What intellectual thread have you opened in Nairaland since May 29, 2011 to show your balanced erudite initiative than attacking anything whether good or bad done by the opposition except the ones that are out of favour with GEJ.

You never see anything good in others with contrasting views let alone commend their initiative or progress.

Always out to sing the glory of your benefactors.

Gbawe:

Ignore that dude. I have never known him to give his own original opinion on any thread. Everything is always a response to what others have said paying homage to his fondness of obfuscation and mind-numbing relativism.

You will never get anywhere with someone who cannot give a straightforward and pertinent response to what is being discussed.

Instead every response is one pandering to the obvious inability to take responsibility for one's own actions by trying to always justifying wrongdoing through relating it to other wrongdoing - perceived or real. Tedious. We are talking of the management of Nigeria at the centre and some are talking of Fashola and the opposition.

atlwireles:


Is the government seizing your money? why not start by fighting corruption in your state. Maybe you can finance your development without borrowing. When a country of 160M relies on oil(2.2m barrel) as the single source for almost 80% of public spending, what do you expect?

You actually make an argument against GEJ and his Party. It is the indolent and clueless PDP-led FG ,since 1999, that has ensured Nigeria remains dependent on oil. It is the PDP's central ethos and accepted modus operandi of sharing Nigeria's wealth, without much thought for wealth creation through diversification of economic activities, that is responsible for where we are today.

If we are a people committed to facts on the ground then it is clear, looking purely at policy drive and fiscal/socio-economic agenda, the main opposition Party is miles ahead of the PDP and very different in approach. PDP is the Party of parasitism. This is what the statistics and figures prove and not merely 'sentimental utterance' from me, delivered to carry a debate, similar to what many are fond of delivering here.

For example, all ACN-led States spend more of their annual budget on capital expenses than was the case under PDP administrators. Also, those States, in a relatively short period, have seen serious increase in IGR from what obtained under PDP administrators. There is a drive to collect tax more effectively and promote fiscal responsibility.

Within all those States, and for those adequately endowed, there is a real and serious drive to diversify economic activity , (via embracing commercial mechanized Agriculture, tourism et al) and ultimately move toward weaning those States from a reliance on allocation from the centre. Attracting foreign direct investment is now a matter of deliberate and well-thought out effort instead of it being an afterthought as was the case under PDP administrators who are happy to indolently wait on accrual from the centre slavishly. We could go on all day and I would be happy to provide statistics and facts that show those able to shun sentiments that PDP is the Party that believes in parasitism, profligacy and the concept of everyone everywhere remaining addicted to income from oil. Consider what is revealed about Lagos dispassionately and align this with the concept that similar is what other ACN-led States are cohesively and practically working towards. We can have our differences but let us respect the facts and statistics as obtains worldwide.

http://pmnewsnigeria.com/2013/05/07/the-challenges-of-governance-and-dev-in-lagos-2/

The Challenges Of Governance And Dev In Lagos (2)
Published on May 7, 2013 by · No Comments
By Babatunde Fashola

Lagos, of course, has chosen a different path. It lives largely on the revenue it raises by itself.
70% of its N499 billion ($3.2 billion) budget for year 2013 and the preceding years have been self-generated.
The Federal Government’s monthly allocations only account for 30% of Lagos’ annual resources-to-budget cost.
In order to maintain this financial hold, the Federal Government keeps 52% of the nation’s resources.
The states, all 36 of them, get a 26% share between them. The 774 local governments, including the 37 created by Lagos, share only 20.2% of the country’s revenue amongst them.
The debate therefore is not only about the cost of such a large government but also about its effectiveness.
The Primary Health Care Centres, where newborn babies get vaccinated and immunised against disease, are not in the capital but within the 774 (plus 37) local governments.
Can the money held in large supply at the centre reach them in time and in good quantity before they die?
The primary schools, which are the foundations of early learning, are also in these local governments. (In Lagos there are 1,001 of such primary schools).
How quickly and efficiently can we fund them from the centre before these children get tired of waiting, drop out and become child labourers?

The impact of a behemoth Federal Government is no less exacting on the transport system in a sub-optimal way.
In Lagos the Local Governments have 6,415 roads, the state government has 3,028 and the Federal Government has only 117.
Yet the Local Governments have only their share of 20.2% (shared with 717 others) and the states have only their share of 26% (shared with 35 other states) of national revenues to fix these roads. Remember the Federal Government owns the least number of roads. Yet she keeps 52% – the lion’s share of the Federal resources.
How efficiently therefore can the Nigerian Governmental system provide roads that are so critical to prosperity for her people?

These are the structural challenges of government that we must overcome.
They sum up the demand for a truer federal union that is being demanded by the 36 state governors in terms of fiscal and political federalism. I associate myself with this demand in its entirety.
The realization of these demands on their own, may not necessarily leapfrog us into El Dorado. But without them the journey will be tortuous. If they materialise they liberate the possibilities that lie inherent in the diverse capacities that the Nigerian states and local governments are blessed with.

In that event, the Federal Government will not be without authority or responsibility. But in my view it will be better able to co-ordinate the diversities for mutual prosperity.
While these challenges exist we are not folding our arms and twiddling our thumbs. On the contrary we have become more determined in Lagos and more resourceful.

Let me conclude now by saying that whilst we contend with these challenges and struggle to build infrastructure, our most enduring infrastructure will be the one we build in people’s minds, especially the next generation.
This is why we have committed time and resources to rebuild our education. We are seeing results in the right direction but the journey is still long.

However, even long journeys can be punctuated by delightful pit stops. One such encouraging pit-stop came via a text message from the Vice-Chancellor of the Lagos State University (LASU).
I must point out that LASU is the state owned university, different from the federal owned University of Lagos also in our state. They are our older, and if I must say for the time being, our more illustrious cousins.
The message from the Vice-Chancellor was that LASU has been ranked 11th amongst all the universities in Nigeria. We are the only state owned university in this ranking. This is significant because it shows rewards for our efforts. It validates the far-sighted but tough decisions we took to re-position the university.

It puts a fine egg on the faces of those who sought to make political capital of a decision so fundamentally critical to our human development index. But this is not our destination. Our destination in the short term is to be the best in Nigeria. In the medium term to be the best in Africa and in the long term to be the best in the world.
That process has already started. We are already building affiliations for LASU across the world. Nothing would please me more than to establish such an affiliation with this school and the Johns Hopkins University. It would have made this trip really worth making.

I will only now ask you to put everything I have said into perspective. If at any point I sounded like I spoke from a place of contentment then that was certainly not my intention.
The truth is that all we have done is to lay down a marker for the sort of state we are trying to build.
If I can claim any success, it is that the dream I have always had for Lagos is now no longer just a picture in my head – it has taken manifestation into something more tangible. And more importantly, it has become a shared dream. I would like to express, once more, my gratitude for being asked to speak in such esteemed company. I appreciate the time you have devoted to being here and hope to welcome you as visitors to Lagos in the near future.
•Concluded.

Ngwakwe: Nobody is saying that borrowing like Lagos State is bad, FG internally generated revenue is growing and your type will always see the cup empty rather than half empty, not to talk of being half full.

There was a thread today about Abuja World Trade Center. You know what? Your ilks called it misplaced priority.

Eko Atlantic is a PPP initiative and doesn't warrant Lagos State owing and soliciting for $600,000,000:00 from World Bank and other Creditors as in borrowing more than SE/SS Combined.

If Abia State Government borrow a tenth of Lagos State debt, you will definitely know that T. A. Orji is far better than glorified Fashola.

How do you define my ilk? What is my ilk? Those against wasteful spending, corruption, and incompetence.

First, what does PPP stand for? If you know what it means, then you will know that the Lagos state government will have financial obligations in a PPP initiative. Second, where in the article that YOU supplied did it indicate that the $600 million loan for Lagos is going to be expended on the Eko Atlantic project? Attempting to blur the lines of a debate so as to gain advantage doesn't work with me. For example, you provided an article that stated that Musa went to Kano and then YOU inferred that Musa went to a party, when the article is silent on what Musa went to Kano for.

Lastly, Orji borrowing is not an issue, the main point would what Orji does with the money. Do you even understand why governments and corporations borrow money. Fashola has not borrowed up to .05% of what the UK government has borrowed, do we then infer that Fashola is more competent than the UK administrators?

You need to up your game.

atlwireles:


Is the government seizing your money? why not start by fighting corruption in your state. Maybe you can finance your development without borrowing. When a country of 160M relies on oil(2.2m barrel) as the single source for almost 80% of public spending, what do you expect?[b][/b]

Do you lack comprehension skills?

The debt is for the federal government and states.

nigeria is a country that's is likely going to crash because it's a destroyed country. The money from oil is going. If the oil price crashes that is the end.

What are the steps taking by all level of governments to get money from other areas (sectors) different from oil??

solomon111: This gbawe of a guy just specialise in digging up questionable anti-GEJ articles.
This old man has become so predictable.
He is either spamming nairaland with untrue anti-GEJ news or unreal pro-Acn propaganda.

Instead of attacking the poster, why don't you say something constructive about the topic or you quietly sit at the guests corner and read other people's comments. Why do you and your likes always resort to insult when you don't have reasonable thing to say? sorry for you bro!

Jack Baueress: Instead of attacking the poster, why don't you say something constructive about the topic or you quietly sit at the guests corner and read other people's comments. Why do you and your likes always resort to insult when you don't have reasonable thing to say? sorry for you bro!

Don't mind the tw1t. They are the sort ruining the forum. Did I write the article?

karl max: don't mind the hypocrites state like lagos and other acn states are borrowing heavy with the name of nigeria to bankrupt nigeria.

Because Lagos has an healthy debt profile.
Lagos state has a recurrent - capital expenditure ratio of 40%:60% .in order words ,the amount spent on paying salaries and allowances is 40% of the budget while 60%. Of the budget is available for roads(that is about $2 billion dollars).
So Lagos state can devise to get rid of the debt within one year by merely reducing capital spending by 25%.this without any teacher losing are job .mind you lagos will ride out an oil shock better.
Also all Lagos debt have been used to fund strategic wealth creation projects to position the state for the future.
The federal government on the other hand spends 80% of the national wealth on salaries and allowances.the 20 % left for capital expenditure is mostly stolen .the reason why they have to borrow borrow to do simple maintenance work.
Mind you ,any sustained fall in oil prices will expose the gej led federal government for what it is; corrupt and confused.

bloggernaija:

Because Lagos has an healthy debt profile.
Lagos state has a recurrent - capital expenditure ratio of 40%:60% .in order words ,the amount spent on paying salaries and allowances is 40% of the budget while 60%. Of the budget is available for roads(that is about $2 billion dollars).
So Lagos state can devise to get rid of the debt within one year by merely reducing capital spending by 25%.this without any teacher losing are job .mind you lagos will ride out an oil shock better.
Also all Lagos debt have been used to fund strategic wealth creation projects to position the state for the future.
The federal government on the other hand spends 80% of the national wealth on salaries and allowances.the 20 % left for capital expenditure is mostly stolen .the reason why they have to borrow borrow to do simple maintenance work.
Mind you ,any sustained fall in oil prices will expose the gej led federal government for what it is; corrupt and confused.

Indeed. The well-chronicled profligacy and waste of GEJ, typified by very bizarre decision-making and an outright refusal to take advice that promotes fiscal responsibility and accountability, is not something anyone has fabricated.

Jonathan has a 3 year history, since 2010, of directly shunning expert advice beneficial to Nigeria, often delivered expensively as the work of a convened technocratic think-tank, to the extent no one is willing to give him the benefit of the doubt any longer. It is now clear to the entire world he is part of the problem and this is why condemnation of his leadership now vociferously transcends the border of Nigeria. If you will argue the Yorubas and Hausa/Fulanis "hate" GEJ then what applies to Obama, Cameron, Prof. Ayittey, the EU et al? The truth is that GEJ's repeated actions/inaction and flagrant disregard for sound advice, over 4 years, now show he is indeed corrupt and confused as you opine.

http://www.vanguardngr.com/2012/01/subsidy-issues-the-wastages-that-drain-development/

SUBSIDY ISSUES : The wastages that drain development

on January 23, 2012 / in Politics 5:03 am / Comments


BY CHARLES KUMOLU
CONCERNED about the high cost of governance and economic leakages in the system, the Federal Government in September 2010, set up an Expenditure Review Committee, ERC, headed by Professor Anya O. Anya. The committee described the size of the federal bureaucracy as unsustainable.

While it was expected that the government would address the issue to forestall further waste of funds, Nigeria still has over 40 ministers managing often competing bureaucracies. This report takes an in depth look at the various leakages and channels of waste in the system.

THE “war” triggered off by the removal of the alleged fuel subsidy may have been fought, won or lost but it has raised bitter concerns about how Nigeria’s commonwealth is managed at all levels of government.



From the federal ministers, who displayed how best to support a president in time of crisis, to the joint labour delegation whose doggedness kept the executive arm of government on its toes, and among the general public, the concern about the wastage in the system is near unanimous.

Indeed, most revelations that emanated from the recent subsidy impasse, have become a source of worry to most Nigerians who believe that the cost of governance has risen considerably at the expense of the welfare of the citizenry.

Examples of wastages range from the cost of sustaining constitutional system of government through the multiplication of bureaucracy and officials of government to the open stealing of government funds by those in government and their proxies.

Who needs bicameral legislature or a huge cabinet?

The Senate and the House of Representatives with a total of 469 members carry out almost the same functions with the notable exception of the approval of certain categories of executive appointments, which is the preserve of the Senate.

Leading the pack of those who cried out loud on the matter recently was the Governor of the Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi.

He queried the rationale behind the huge vote for recurrent expenditure in the 2012 budget, saying if he had a choice, he would recommend the sacking of 50 per cent of the civil service and a restructuring of the country.

There are also structural costs that may need a tinkering of the constitution to resolve. One of these is the constitutional requirement that each state of the country should have a minister. It is not as if any of the presidents since President Olusegun Obasanjo had shown any concern in this perspective as none ever maintained less than 40 ministers at any time.

The National Assembly has also helped to sustain the unwieldiness by proliferating the number of committees leading to increased expenses.

The Senate has more than 54 standing committees a situation that every Senator is either a vice-chairman or a chairman. It is a survivalist measure for the Senate president and speaker who use committee positions to buy loyalty of legislators, but all at the public expense.

The House of Representatives on its part has more than 70 standing committees. The United States Senate has 16 standing committees compared to Nigeria’s 54. [b]It would be recalled that the Theophilus Danjuma-led Presidential Advisory Committee, PAC, had in January 2011, expressed concern over the increasing cost of governance and advised President Jonathan to reduce the number of ministries, departments and agencies (MDAs).

PAC, in some of its recommendations, insisted that the government should begin the process of merging and reducing the federal ministries and other government agencies to help cut down on government’s unnecessary spending. The PAC also recommended a rationalisation of all non ministerial agencies to eliminate overlap, duplication and redundancies. The Nigeria Labour Congress has also made a similar call.

Reduce number of ministers

Nonetheless, these unheeded suggestions were also supported by a report which maintained that, the emoluments (salaries, allowances, perks, etc) of 17,474 public office holders and the judiciary at all tiers of government amount to about N1.2 trillion per year, gulping about 60 to 70% of the federal budget in a country of 140 million people.

Besides that is the uproar associated with many provisions of the 2012 budget, which have generally been termed as wasteful, bloated and unrelated to the felt needs of the majority of Nigerians.[/b]

An extract of the presidency’s budget would seem to indicate that the focus of the authorities could well be out of tune with the sufferings of the common man.

The presidency proposed N230.133million on the acquisition, upgrading and furnishing of the VP’s official guest house.

Over N1.06billion, comprising N500million for the construction and furnishing of the extension of the same VP’s lounge, and another N560million for the construction of official quarters for the VP’s director of protocol (DOP), aide de camp (ADC) and security chief, was provided for in the 2011 budget for the same Aguda house.

Another sum of N116.733million has been provided in the 2012 budget for installation of universal power system (UPS) facilities at the VP’s residence, while about N108million has been budgeted for the provision of communication equipment at the VP’s guest house along with the presidential villa, Dodan Barracks and State House, Marina.

Salaries and emoluments of lawmakers: Another source of worry is the jumbo salary and allowances of federal, state and local government legislators. Ever since the current CBN governors revealed that Nigerian lawmakers gulp 25% of the national budget, controversy has continued to trail the structuring of salaries of political, public and judicial officeholders by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC). Each senator reportedly earns N15.18m in salaries and allowances monthly, just as each member of the House of Representatives takes home N10.59m a month. Annually a Senator takes about N198.54 , while a House member earns about N127.18m.

Further checks revealed that , it will cost the country at least three hundred and thirty eight billion, six hundred and forty five million eight hundred and forty five thousand, five hundred and ten naira N338,645,845,510bn in taxpayers’ money to keep the 469 members of the Senate and House Representatives.

Comparatively, a lawmaker in the United Kingdom earns $8,686(N1.3m) monthly while his counterpart in Sweden earns $7,707 (N1.2m) monthly. In addition, with a total annual package amounting to over N500 million ($3.23 million), the office of the Senate president gets 10 times more money than the $400,000 (N62million) US president Barack Obama earns as annual salary.

Security votes

Section 14(b) of the 1999 Constitution states that: “the security and welfare of the people shall be the primary purpose of government.” Although this vested the security of lives and properties in the hands of government, it did not state that there shall be a pool of funds called “security vote.”Every year, billions of naira are squandered under the guise of security votes in Nigeria. The funds earmarked to provide security for the president, governors and their domains, end up being transferred into personal bank accounts. With security challenges such as armed robbery, kidnapping and bombing campaigns on the increase across the country, many Nigerians wonder what the security vote is being used for.

The governor of Imo State, Mr. Rochas Okorocha, disclosed after he came into office that his predecessor, Mr. Ikedi Ohakim, received a whopping N6.5 billion annually as security vote.

During the four years that he was governor, Ohakim could then have collected N26 billion as security vote if Okorocha is to be believed. But the security challenges in Imo State only grew worse during Ohakim’s stewardship.

[b]Presidential aircraft and cost of maintenance: To a lot of Nigerians, the size of jets in the country’s presidential fleet amounts to waste, considering what it costs to maintain the fleet.

In the proposed 2012 budget, the presidency reportedly budgeted N18 billion for its presidential fleet. It was gathered that Nigeria has no fewer that ten aircraft in the presidential air fleet. Only Russia and Mexico are known to have higher number of aircraft in a presidential air fleet while several other countries maintain none.

Following, the whopping amount dedicated for the maintenance of the presidential fleet, analysts have argued that the amount is only N1 billion higher than what could provide decent accommodation for the 17 million Nigerians estimated by UN Habitat to be homeless. In contrast, the Egyptian government operates an Airbus A340 200 (Registered SU GGG) as a VIP transport.

Similarly, the Pope flies on a chartered Alitalia fixed wing aircraft when travelling to or from more distant destinations. The tradition is for the Pope to fly to the country he is visiting on a chartered Alitalia jet and to return on a jet belonging to a flag carrier from the visited nation. The Queen of England flies on commercial aircraft.
[/b]
N280m for two presidential bullet proof cars: Under the “replacement of aged vehicles of the presidential ground fleet (PGF)”, in the 2012 budget proposal, N280 million is set aside for two bullet proof vehicles for the President and the Vice President.

The 2012 budget also proposes for the “procurement of two treated (bullet proof) Mercedes Benz saloon 600 E Guard for use by the President and Vice President at N140,000,000 each”.

Next year, the Presidency plans to spend N356,724,300 to replace aged vehicles belonging to the presidential ground fleet. Besides, there are plans to acquire “five Mercedes benz saloon 350 (semi plain/partial bullet proof) at N25,000,000 each, 10 jeeps (assorted Range Rover, Prado and Land Cruiser) at N10,000,000 each and procurement of accessories and maintenance equipment for guard vehicles at N25,000,000.”

Multiple ministers/Special advisers

Whereas the 1999 constitution mandated the President to appoint at least one minister from each state of the federation including the FCT, currently, there are about 42 ministers. This does not include agencies, embassies, commissions and parastatals. In a lecture titled “Perspectives on the cost of governance in a democracy”,Mallam Nasir El Rufai lamented that, up until December 2006, there were 31 cabinet level Ministries including the FCT Administration and about 42 Ministers.

According to him “The reforms of 2006 led to the merger of the ministries of petroleum and power into a single Energy Ministry, water resources and agriculture into a single agriculture ministry, commerce with industry, the addition to Steel Development to the mandate of the Solid Minerals ministry, the abolition of the ministries of police affairs, communication, and Cooperation and integration into larger ministries, works into transportation.”

He noted that the reforms reduced the number of cabinet level MDAs to 21 but without a significant reduction in the number of ministers but that the Yar‘Adua and Jonathan administrations reversed these reforms leading to the increase in the ministries to 30 and accommodating between 42 and 48 ministers. Also, the present administration has also been criticized for accommodating a record number of Special Advisers who by some estimates are now more than 16. Special Advisers are almost of cabinet rank. El Rufai is not alone in this claim of government profligacy, as many believe that a larger part of the country’s income goes to political office holders.



[b]Over 400 parastatals



The federal government, apart from its 42 ministries, reportedly runs about 400 parastatals. The ministries with the highest numbers are Health, 77; Science and Technology, 40; Education, 41; Agriculture, 44; Power and Steel, 27 agencies. Most of the parastatals, investigations revealed, are unable to provide prompt and efficient services, for which they were established. This has led to the erosion of public confidence in the ability and sincerity of public administrators who manage them.

Granting of special waivers: The waiver granting policy of the government has been identified as another source of wastage in governance. And it has started generating concern from various quarters. For example, the House of Representatives not long ago, described the policy as a conduit pipe draining the nation’s economy.

Speaker Aminu Tambuwal, weeks after assuming office, criticised the government over the waiver policy. He particularly expressed worry over alleged indiscriminate waivers granted to companies offering diverse services, describing this as inimical to the growth of the nation’s economy.

In a bid to check the alleged arbitrary waiver granting policy, the House reportedly mandated its Joint Committees on Finance and Customs and Excise to investigate over N276.9 billion in waivers and exemptions granted by the government.[/b]

- See more at: http://www.vanguardngr.com/2012/01/subsidy-issues-the-wastages-that-drain-development/#sthash.jiyWk7co.dpuf

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