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States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake - Business - Nairaland

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States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Adesiji77: 3:36am On Jul 07, 2015
The finances of Nigerian states are deteriorating as governors fail to consider the revenue potential of naturally given resources in their domains and choose to beg for Federal Government bail-outs, such as those granted yesterday, to pay workers salaries.

Over 18 states owe workers salaries for periods ranging between three and ten months.

BusinessDay findings show that each of Nigeria’s 36 states is blessed with either or both arable land for agriculture and solid minerals capable of bringing in sufficient revenue in the form of taxes, if properly exploited.

But states, except Lagos and Ogun, have lazily abandoned the development of these resources, while rushing monthly to Abuja to get their share of the oil slice, which has now become a ‘curse’ with dwindling revenue, leaving many broke and unable to meet obligations.

“What we are reaping now is the result of our warped federal structure,” Ben Osisioma, professor of accounting at Nnamdi Azikiwe University Awka, told BusinessDay.

“Many years ago, when Chukwuemeka Ezeife was governor of Anambra State, I was part of a committee called the Financial and Economic Advisory Council. We were given a mandate to move round the state and see how we would identify resources that would generate enough money and enable it stand on its own.

“We found out that each of the local governments had two natural resources that would be the goldmine. Some local governments in Anambra had clay, which is suitable for ceramics making. So also did other local governments have peculiar natural resources that could be exploited for industrialisation.

“The point is that our states have failed to exploit agriculture and manufacturing,” Osisioma said.

The Nigerian Investment Promotion Council (NIPC) says over 40 million tonnes of talc are in Niger, Osun, Kogi, Ogun and Kaduna states. Incidentally, the Raw Materials Research and Development Council (RMRDC)’s 3,000 tonnes per annum catalytic plant is the only talc plant in the country. With the right environment and laws, pharmaceuticals and cosmetic firms can exploit talc, which is an essential input.

There are over three billion metric tonnes of iron ore deposits in Kogi, Enugu, Niger states and the Federal Capital Territory. But the closure of Aladja and Ajaokuta steel complexes has made it difficult for this resource to be fully exploited.

Uburu and Okposi in Ebonyi State have large deposits of salt that is yet to be fully developed. Rock salt is also available in Benue State, says the NIPC.

Findings show that despite these deposits, the National Salt Company of Nigeria and Royal Salt are the only salt makers in the country.

Kaolin, used in making ceramics and chalk, is found in Edo, Plateau, Ogun and Nasarawa, among other states. Feldspar, silica and quartz, which are also used in ceramics production, are found in more than 20 states in Nigeria, according to Patrick Oaikhinan, CEO, Epina Technologies Limited and professor of ceramics engineering.

“The raw materials are here. But there is no appropriate strategy in place for the development of this industry that can create an estimated 1.2 million direct and indirect jobs. This is why we keep importing ceramics products of over $400 million from China and Europe every year,” Oaikhinan said.

Other minerals found in almost all parts of the country are gemstones, coal (over 600 million tonnes), bitumen (over 42 billion tonnes) and lead/zinc (over 10 million tonnes), NIPC says.

Currently, banks have refused to lend to state governments, as there is no guarantee that the latter can pay back. Even the Federal Government is reluctant to guarantee loans intended to be borrowed from banks by states, top echelon of commercial banks told BusinessDay.

Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry, told BusinessDay that there must be constitutional amendments that will put mining in the hands of states rather than the Federal Government.

Yusuf said the situation in states has continued, owing to the fact that the Federal Government gets all the taxes, leaving states with only Pay As You Earn.

Mathew Ibeabuchi, MD/CEO, MD Services Limited, told BusinessDay that states must begin to think out of the box by taking agriculture seriously, as is done in Malaysia.

“Some countries that do not have oil are robust today. They built agriculture and patiently allowed it to grow. Think of chickens imported from the USA. If USA is exporting one billion chickens, another one billion will be in reserve,” Ibeabuchi said.

http://businessdayonline.com/2015/07/states-fortunes-dip-as-govs-abandon-natural-resources-for-abuja-cake/#.VZs4t_lViko Cc: lalasticlala

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Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by moment5(m): 3:44am On Jul 07, 2015
so sad...
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Kirinwa: 4:28am On Jul 07, 2015
Ok
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Nobody: 9:41am On Jul 07, 2015
So true.
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Nobody: 10:16am On Jul 07, 2015
Booking space to comment later
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by shedrack222: 10:17am On Jul 07, 2015
We already know


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Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Mogidi: 10:17am On Jul 07, 2015
They have free Niger Delta oil to feast on.

7 Likes

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by O4KASIBEE: 10:18am On Jul 07, 2015
okay
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by ZUBY77(m): 10:18am On Jul 07, 2015
Lazy goats

3 Likes

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by guitarmanpharell(m): 10:18am On Jul 07, 2015
How old r u?
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by boboLIL(m): 10:18am On Jul 07, 2015
K
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by HopeAlive14(m): 10:18am On Jul 07, 2015
It is high time government at all levels in Nigeria start looking towards development of agriculture and shift focus from oil

1 Like

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by HIGHESTPOPORI(m): 10:19am On Jul 07, 2015
BIAFRA OIL MONEY,very soon it will be used for only BIAFRANS,let other states explore their natural resources

7 Likes

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by kenedy175(m): 10:19am On Jul 07, 2015
ok
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by tmv10(m): 10:19am On Jul 07, 2015
k
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by ShakurM(m): 10:20am On Jul 07, 2015
Op, this ur heading na wa o

Reading agn for the 3rd time
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by asumo12: 10:20am On Jul 07, 2015

1 Like 1 Share

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by mrborntodoit: 10:20am On Jul 07, 2015
Our state government is more or less useless, our local governments idle away and at the end of the year, they are entitled to national budget ,the great national cake ,after their tenures,the people vote them back into office according to their tribal and ethnic differences and not according to their performances and transparency .

6 Likes

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by emmanuel2015: 10:21am On Jul 07, 2015
a
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by jumich1(m): 10:21am On Jul 07, 2015
No! it's not laziness on the part of the state governments.
Rather the problem that we have is that of the system of our federation.
Some sections of the country thought that if the true federal system of government is adhered to that they might not survive or develop, and that's what has brought us to this state of despair and underdevelopment.

1 Like

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Flexy2vybes(m): 10:21am On Jul 07, 2015
Abuja kor cake ni grin
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by OCTAVO: 10:21am On Jul 07, 2015
Hmmmmmmmm
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by 812clothings(m): 10:21am On Jul 07, 2015
Our politicians sha!nothing more to say before this politician fanatics will be defending lies and fables.
Well check how to satisfy your fashion quest.
www.nairaland.com/2429375/satisfying-fashion-thirst-ease
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Ucheosefoh(m): 10:22am On Jul 07, 2015
That is why we should vote for men with track record not base on endorsement from one group or a god father, thank God for governor like Peter Obi for not leaving empty treasury for his successor by now Anambra will be among the state begging for bail out
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by sukkot: 10:23am On Jul 07, 2015
cretinous leaders

1 Like

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by kunle86(m): 10:24am On Jul 07, 2015
Story 4 d gods
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by jejemanito: 10:26am On Jul 07, 2015
.
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Nobody: 10:30am On Jul 07, 2015
As they have always done....

Because in an oil dependent economy.....you do not work for your money....you just sit down at home and wait for the money to come flowing into the bank account every weekend.......

Lazy governors. And lazy governors are the fault of lazy Nigerians...who think that development=the size of your bank account.

1 Like

Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Nobody: 10:33am On Jul 07, 2015
Kogi state is a disgrace.

There are the natural resources in the state;

Iron ore, mica, marble, limestone, coal, crude oil, gold, kaolin, tantalite, feldspar and dolomite.

No governor has been able to do anything positive with them.
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Nobody: 10:34am On Jul 07, 2015
if they like.........
meanwhile, learn how to make cool money online tru internet real estate(domain bussiness)
https://www.nairaland.com/2419506/free-tutorial-learn-domain-bussiness
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by Bizibi(m): 10:34am On Jul 07, 2015
I always say here that we should focus on our govs but no,nigerians are busy gazing at the center like zombies.....each state in this country is damn rich,I thought edo state had nothing until I discovered that some elite are making alot of money off the state wealth quietly,if una like dey shout fg......hunger never beat Una yet
Re: States’ Fortunes Dip As Govs Abandon Natural Resources For Abuja Cake by uzo200(m): 10:35am On Jul 07, 2015
end time

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