https://www.newsindicator.com.ng/2022/03/06/osun-economy-and-why-electorate-must-keep-faith-with-oyetola/

Osun economy and why electorate must keep faith with Oyetola

By Adebayo Adedeji

Some three years ago, in the early life of this administration, this writer predicted that Osun state was likely to face economic challenge considering large chunk of its federal allocation deducted to settle loans obtained by the previous governments in the state. As at November 2018 when the current government was inaugurated, the debt stock of the state was in the range of N270bn. This included the financial commitment not captured by the Debt Management Office of Nigeria. This was the total debt left behind by the Rauf Aregbesola-led government, even though it inherited merely N15bn debt in November 2010 when it came on board.

In the first two years of the Oyetola administration, an average sum of N2.4bn was deducted from its monthly allocation to service inherited debt. Funds due to the administration to execute its numerous lofty programmes are taken at source to service debt owed by the defunct government. Whereas during the reign of Rauf Aregbesola, the average statutory gross allocation to the state government was N50bn. Specifically, in 2013, its gross allocation was N55bn. Meanwhile in 2019, during Oyetola governornship, the Net that actually came to the state was paltry N24.2bn even though the allocated gross was N51.9bn. The balance of N27.7bn was deducted to service inherited debt. This same time, Oyo State went home with N55bn, Ekiti State with N41bn and Ogun State with N38bn.

This is the precarious situation in which the current government has fared in the last 39 months. Nevertheless, the administration has discharged its responsibilities creditably. From N10.5bn Internally Generated Revenue (IGR) it met at inauguration, the administration has worked assiduously to move the IGR to N19.5bn in 2020. In fact, the IGR for Jan-June 2021 was N13.5bn, while the unofficial record indicated it ballooned to close to N30bn for the whole year of 2021. The government of the day is still able to meet its statutory obligation because of the exemplary leadership Governor Oyetola has provided in the state as shown through IGR improvement.

How would the state have survived the depleted federal allocation without a financial engineering that led to a substantial leap in its IGR?

Still and all, unless the state government sustains its drive towards financial prosperity, where the state could meet its obligation with less or no recourse to the federal allocation, it may be contending with crises in the immediate future.

The distributable federal allocation for the month of January ( but shared in February) is an indication that there is a fire on the mountain because the allocation accruable to states dipped to a four-year low. Unlike in December 2021 when N699.82bn was disbursed, only N574.66bn was disbursed in January of this year. The sharp drop in the allocations follows the Federal Government's announcement of its plans to deduct N950bn for the payment of fuel subsidy allocations due to States in 2022. If the situation persists, many states, particularly grossly indebted states like Osun, would find it difficult to pay salary and pension of their workers because about 35% of what should be available to them would be sized down for subsidy payment. For January, Osun state, for example, was allocated N1.425bn but the sum of N1.8bn was deducted to service its loan. What this means is that the state did not only receive nothing in allocation, it also recorded a negative of N375m which would be carried forward in the next distribution.

Graciously, what the state has going for it is the financially studded team which has brought its experience to bear in administering the state economy. The Oyetola-led government is a clear departure from what we used to have in the state when, even in the season of anomy -- when the government could not pay salary and pension -- over N500m was voted for callisthenic display during the Children's Day. The current government is plugging leakages and freeing up resources to finance its projects. There is no part of the state that has not felt its impact in the areas of infrastructure, primary healthcare centres, wealth creation, and food support scheme that has catered for no fewer than 330,000 people since inception in April 2021.

Oyetola government is reputed for prompt payment of salary and pension. Since inauguration, it has committed about N160bn to resolve salary, pension and gratuity obligations. This is as it has coughed out about N75bn to offset part of the N270bn debt it inherited. No state in Nigeria, besides Lagos, has a better record than this in the period under review.

Governor Adegboyega Oyetola has given a good account of himself. And with him in the saddle for another four years, the resources of the state can be put into better use. The financial challenge ahead of all states in the country -- the challenge of dwindling resources in the face of rising expenses -- calls for deft administrators with deep financial understanding in the mode of current Osun governor, who before coming into public life, had top-notch experience working in the private sector. It is logical he is allowed to steer the affairs of the state further, most especially when the touted replacement for him in the opposition party is an haphazardly educated power monger who could barely read and write. Committing the future of Osun state in the hands of an empty head who does not know the difference between Copyright and Piracy may be suicidal. Osun should not toil with its future by installing a nondescript loafer whose only job experience outside family business and influence was working as a bartender in some backend restaurants in the United States.

Oyetola deserves the second term and, in my humble opinion, he should get it. Sincerely, he should.

That O-Thief must not be allowed to get his cronies in ever again!

Oyetola is a finance expert unlike Aregbesola the Surulere fridge repairer , IFA preist turned Poly Ibadan engineering graduate

Release funds, pay salary, gratituty and allowance to stimulate the economy that largely depends on civil servants

How many people in Osun can afford domestic flight of 50k to warrant a white elephant project like Osun Airport, what is Opon imon tablet to a kid whose parents can't buy MTN data because they got paid half salary, why Sentimentaly hold on to LAUTECH when you can't fund it and already have a state university to cater for




.

We prefer Adeleke

Adeleke would be better