Sanusi: Why Nigeria may remain underdeveloped
On October 30, 2011 · In News


 



If the governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, has his way, the nation would jettison the states, local governments and ministries which, according to him, are not viable.

To him, it has come to a time in the life of Nigeria that it must overhaul the structures that make the states spend about 96 per cent of their resources paying salaries and allowances as against making capital investments.

He also did not see the wisdom in the establishment of nine new federal universities when existing ones are crying for funds.

The CBN governor spoke yesterday during a book presentation in Kaduna, saying to retain the status quo is for Nigeria to remain underdeveloped.


Sanusi Lamido Sanusi

“Ultimately, we will have to be confronted with the task of taking the difficult step of overhauling the political structures that we have”, Sanusi said while delivering a paper entitled, “Reinvigorating education in Nigeria: An essay in honour of Professor Adamu Baike.”

He added: “Do we need 36 states? Do we need the number of ministries that we have? Is an economy where states spends 96 percent of their revenue paying civil servant an economy that is likely to grow in the long run? These are difficult questions that we need to ask.

“We have created states and local governments and ministries as structures that are economically unviable and the result is that we do not have funding for infrastructure, we do not have funding for education; we do not have funding for health”.

Speaking on the government’s expenditure portfolio, Sanusi said: “I don’t know how many people know that 70 percent of the revenue of the federal government is spent paying salaries and overhead; leaving the rest 30 percent for 150 million Nigerians”.

What this means, according to him, is that there is no money for the provision infrastructural facilities by the various tiers of government, pointing out that in an emerging economy like Nigeria, a well designed educational policy should be an integral part of its development strategy.

According to him, the present development strategies should include measures to invest in human capital that facilitates the upgrading of industries and engender the economy to attain optimal resource utilization.

Noting the growth in the number of federal, state and private universities in the country in recent times, Sanusi said that “the recent decision of the federal government to establish nine additional universities will further increase the number of federal universities by 2011.

“It is not the place of the Central Bank governor to comment on education policy. But one wonders the wisdom behind creating new universities when the ones we have built are still suffering from underfunding”.



http://www.vanguardngr.com/2011/10/sanusi-why-nigeria-may-remain-underdeveloped/

@ sanusi , i dont blame you, i blame yaradua who appointed you,

do u know that out of about more than 1 million ume candidates less than 150,000 gain admission,

do u know that the cost of education is increased with the farther the university is from the students home base ,

do u also know the major beneficiaries of these 9 university is the north and the north is educationally disadvantaged.

What have you achieved in the cbn that was given to you, all banks both old and new now have challenges

I totally concour with Sanusi, why establishing new universities when you cant fund the existing ones and i guess we need revisit the idea of regional or zonal government as we can no longer cope with that amount on administration alone and local governments should be scrapped.

He is stating the obvious.

Ekt bear u hit d nail on d head, but u must realise this is a first for Nigeria. A top govt official telling us the truth while in office. Compare him and El Rufai who while in office saw nothing wrong with the way funds were allocated and utilized and had no qualms with removal of fuel subsidy but does today.

We need more of Sanusi willing to tell us the truth at all times.

Now he raised a point that Nigerian students spend 155b on education in Ghana, this is a symptom of a fundamental flaw, the other day there were arguements abt d increase in sch fees of LASU we need to ask ourselves what can be done to bring at least 70% of that amount back to Nigeria.

I would say govt improve the standard of education increase the fees and allow the people who can pay pay and set up grants and loan facilities for the indigent and underpriviledged, let the rich ones have their way and let the poor ones find their level.

Yeah he is stating the obvious but when it comes from Soludo or Okonjo Iweala, people will wax lyrical.

hercules07:

Yeah he is stating the obvious but when it comes from Soludo or Okonjo Iweala, people will wax lyrical.

Who are these people? When they state the obvious too I don't get particularly impressed

Just relax once it happens I will draw your attention to it.

@marvix: Fair enough. I'm not seeing he is a bad guy for stating the obvious, just to be clear.

Hercules and Ekt let's discuss d issues leave d personalties politics is a deep game and takes strong conviction and courage to say d truth as it is.

SLS said some states spend 97% of their revenue paying civil servants d FG uses 70% these are serious issues he is suggesting we reduce number of states which would affect more nothern states than southern cos there would be more viable states in d south than in the north for sure. SLS is asking for consolidation of states we could possibly revert to regional style of govts if we take his idea serious.

Now compare him to El Rufai who never said anything while serving as minister and suddenly found his tongue after been displaced from office. I kno SLS has more to say but wld rather bid his time but one thing is for sure he can not be cowed and would gladly resign if pushed or pressured to do something he does not agree will b in d best interest of Nigeria, a govt official to take over a sitting presidents bank is no mean task, challenge and dare members in the NASS is no coward, he shld be prepped for presidency either in 2015 or 2019!

I think one of State or Local Govt should be scrapped.  Preferably LGs, they should not be recognised by FGN. States can divide themselves to as many development units as they like.

marvix:

Hercules and Ekt let's discuss d issues leave d personalties politics is a deep game and takes strong conviction and courage to say d truth as it is.

SLS said some states spend 97% of their revenue paying civil servants d FG uses 70% these are serious issues he is suggesting we reduce number of states which would affect more nothern states than southern cos there would be more viable states in d south than in the north for sure. SLS is asking for consolidation of states we could possibly revert to regional style of govts if we take his idea serious.

Now compare him to El Rufai who never said anything while serving as minister and suddenly found his tongue after been displaced from office. I kno SLS has more to say but wld rather bid his time but one thing is for sure he can not be cowed and would gladly resign if pushed or pressured to do something he does not agree will b in d best interest of Nigeria, a govt official to take over a sitting presidents bank is no mean task, challenge and dare members in the NASS is no coward, he shld be prepped for presidency either in 2015 or 2019!

not too sure about that.potentially s lot of northern states have enough agricultural and solid minerals to survive.

Sanusi 2015!!!
No shaking!
All the way behind U sir!

By d way scrap d states, retain LGAs in six regions.

@asha at their standing today what do u think the northern states can do with their agricultural and mineral deposits, what does it contribute to their total revenue as at today. That is the challenge they are having, so we can go back to having 6 regions and the regions will receive allocations as states are receiving now and decide how many states they want while the FG will prescribe a minimum standard for the states to be formed and no extra revenue is given to regions with higher state but more allowance for them to boost IGR.
Asha its not really a question of where is better off for me its more of Sanusi saying the truth and pushing for a change to the status quo that would affect his geopolitical zone badly as they are the ones benefitting from this arrangement with Kano having 40LGs compared 2 Lagos with 20LGs

Drummaboy ur suggestion makes sense, if we divide ther country in 6regions and all d LGs stand and States disappear and then additional states are allowed to emerge after LGs agree unanimously to combine for development purposes. This would indeed become the rebirth of the nation, but I fear this is very impossible cos those benefitting from d present structure and others hoping to benefit frm d present structure won't let it work

Is an economy where states spends 96 percent of their revenue paying civil servant an economy that is likely to grow in the long run? These are difficult questions that we need to ask.

Sanusi is an Idiiiiooot, he wants to hold his grand father's estate together. There is no reasons why any state should be paying 96% of their revenue on concurrent expenditure. What we have in many states are bad Managers, Ex Gombe State Goverment paid himself $ 1 million dollars severance pay to himself whose fault is that. 

This is an extract about Akwa Ibom State

The state government forwarded an Appropriation Bill of a whopping N309 billion for 2011, out of which 80 per cent is devoted to capital projects, thus making the state the highest in capital to recurrent ratio in the country.

Neighbouring Rivers State, which is also one of the best performing states in the federation, has 64 percent reserved for capital expenditure.

This is a state created after Kwara, ONDO, OGUN, and Kano. For this reason I object to any cull in state creation. State creations brings development close to grass root people. We need good managers to manage the states. Another thing I have noticed of recent,  why has all the State Houses of Assembly suddenly become fearful, toothless bulldogs allowing the Governors to rule with ignominy. They should be impeaching any incapable Governor, they are the last bastion of the common man.

KnowAll:


Sanusi is an Idiiiiooot, he wants to hold his grand father's estate together. There is no reasons why any state should be paying 96% of their revenue on concurrent expenditure. What we have in many states are bad Managers, Ex Gombe State Goverment paid himself $ 1 million dollars severance pay to himself whose fault is that. 

This is an extract about Akwa Ibom State


This is a state created after Kwara, ONDO, OGUN, and Kano. For this reason I object to any cull in state creation. State creations brings development close to grass root people. We need good managers to manage the states. Another thing I have noticed of recent,  why has all the State Houses of Assembly suddenly become fearful, toothless bulldogs allowing the Governors to rule with ignominy. They should be impeaching any incapable Governor, they are the last bastion of the common man.

you have no idea of what you are saying here

Thanks Asha u were spot on the guy has no idea what he is saying

how can they talk of impeachment when they are all sharing the loot and oppressing the masses with d looted money?

Thanks Asha u were spot on the guy has no idea what he is saying

State creation brings development closer to grass root THAT is a FACT. Let us look at Akwa Ibom State and Cross River State. If Akwa Ibom was not created the development in present day Akwa Ibom would not be there for all to see. In fact today Uyo has fly-overs and worth not meanwhile the old capital of Calabar is still stuck in its old glorious past.

Same thing Ibadan City, one would expect that City to have moved on since the hey days of Awolowo, but because they had bad managers since this civilain dispensation started they are stuck in the rut of under-development. Can you say the samething of Mimiko's Ondo State one the states created from Ibadan or Oshiomeles's Edo State one of the states created from former western Region-NO

We need good managers not mediocres that is the bottom-line.  

KnowAll:

State creation brings development closer to grass root THAT is a FACT. Let us look at Akwa Ibom State and Cross River State. If Akwa Ibom was not created the development in present day Akwa Ibom would not be there for all to see. In fact today Uyo has fly-overs and worth not meanwhile the old capital of Calabar is still stuck in its old glorious past.

Same thing Ibadan City, one would expect that City to have moved on since the hey days of Awolowo, but because they had bad managers since this civilain dispensation started they are stuck in the rut of under-development. Can you say the samething of Mimiko's Ondo State one the states created from Ibadan or Oshiomeles's Edo State one of the states created from former western Region-NO

We need good managers not mediocres that is the bottom-line.  

how about local councils within a region being empowered to generate their own revenue and take care of themselves.no more allocation(how i hate that word in nigerian context) from abuja.

you cited ibadan.as big as ibadan is why can't they be allowed to generate their own revenue to take care of itself without abuja allocation.taxes and what ever money generated in natural resource in any local council or local governmet should at least 50% remain there while the rest goes to the region that local council belongs to.

you stay in uk remember council tax?

Sanusi is worried about funding for the new Fed Unis? Wait till Jonny buoy biulds his proposed airports in all states to compliment the NTAs.   Jonathan reminds me of that politician that once promised his people to "water them and fire them" when he gets into office. Airports and universities in all states! Funding? Viable? Quality? na u sabi.

how about local councils within a region being empowered to generate their own revenue and take care of themselves.no more allocation(how i hate that word in Nigerian context) from Abuja.

you cited Ibadan.as big as Ibadan is why can't they be allowed to generate their own revenue to take care of itself without Abuja allocation.taxes and what ever money generated in natural resource in any local council or local governmet should at least 50% remain there while the rest goes to the region that local council belongs to.

you stay in UK remember council tax?

We have started down this road of States collecting funds from Abuja, we cannot change the rules of a game when the match has already started. What we should transcribe to is any new state created henceforth would have to generate their funds internally for 3 years  without any funds from Abuja, that would reduce all these ridiculous clamouring for state creation because they think they would be getting hand-out from Abuja.

I am sure those clamouring for states like Anioma and another one within the SE area would keep their traps shut. For one Anioma is northern part of delta State, if a state is created today, they would probably be entitled to 30% of what current Delta State is getting with the remainder 70% going to the southern part of the state because that is where the receipts from oil derivatives comes froml. So it makes sense for Asaba to be part of Delta now than being a state that no sooner or later would be another bankrupt state, hence why I am against creation of any state that cannot sustain themselves.

But cancelling an existing state telling them to merge with another state is a NO-NO.

This is lack of initiative on the part of Sanusi.
This is why he made so many people lose their jobs in the banking industry.
He wants people to lose their job again in the civil service.
he wants Islamic banking,N150k withdrawal and deposit limit.
He is a traitor to the young ones.
He should go and rest.

Abeg sanusi should go and lie down inside gutter,its like he doesn't know how many people are seeking admission into the university.

koolman:

This is lack of initiative on the part of Sanusi.
This is why he made so many people lose their jobs in the banking industry.
He wants people to lose their job again in the civil service.
he wants Islamic banking,N150k withdrawal and deposit limit.
He is a traitor to the young ones.
He should go and rest.

You need to outgrow this childish rant.
Scroll up and read what intelligent people have been posting.

The North can survive, they just need good people to manage them, I am sure agriculture contributes the highest to GDP, if they can get their acts together, they will be flying. The money being used to pay civil servants in those states can be channelled to capital projects that will benefit far more people.

Nicely said Mr CBN Governor; let see sense in what he has said rather than throwing the baby away with the bath water.

By the way, Nigerian government seem not to like the truth, if this were to be coming from someone else mouth; a Remi Babalola treatment would have been for such person. He declared that NNPC is bankrupt; this lead to Him being moved from ministry of Finance to one portfolioless ministry which paved way for His resignation.

This Sanusi guy is full of utter and complete befuddlement at times

The problem is not the creation or existence of states but the stupid laws which denies the states of complete autonomy under a federalist system that we supposedly operate.

That's a good one from Mr. Sanusi! I agree that most States in Nigeria are not viable. Adopting the six geopolitical zones to replace the existing States is not a bad idea. In addition, the Regional Governments must exercise autonomy including resource control, while the FED govt should maintain national security with 25% taxation on regional based resources. This will put the Governors back to work, rather than expecting monthly manna from the FED govt. It will also make the center small and less attractive.

Nonsense. These people are super-smart and super-corrupt , A LETHAL COMBINATION

Our main problem is light but the PHCN ogas have swallowed too much bribes to let there be light.

If there was light, whther the govt is working or not, the economy will WORK.

These people are always distracting us.

when a corrupt person leaves, they will do one flimsy trial for him, humiliate hima bit, satisfy the eyes of the illiterate masses and then after the person emerges to enjoy his loot forver more afterall he can't be tried again,

even if that wants to happen, ordinary people will cry, ha ha.

Education+exposure is freedom mehn.

The state governors that spend 96% of their income on salaries are to blame not necessarily the number of states.