Anambra’s budget of misplaced priorities by Nasir El-Rufai

Published on June 8, 2012
By Daily Post Staff

We continue our budgetary analysis with the South-eastern state of Anambra, with a view to analyse how the state’s budget plans to address development challenges within the state. The state is bounded by Delta to the West, Imo to the South, Enugu to the East, and Kogi to the North. It has a total land mass of 4,416 sq km, situated on the eastern side of the River Niger and has 21 local government areas. Its major towns are Awka, its capital city, the commercial town of Onitsha, and the industrial city of Nnewi. Anambra has a population of 4.2 million and is the nineth most populous nationwide. Most of Anambra’s population is rural. However, as is with every major state, rural-urban migration poses serious burdens for the state’s resources. This pressure is evident in Onitsha where amenities like decent housing, potable water and electricity are in short supply.

Old Anambra State was created in 1976 from part of the East-central state, and its capital was Enugu. Following further state creation in 1991, it was divided into two new states, Anambra and Enugu. Anambra now has its capital in Awka. Governor Peter Obi of the All Progressives Grand Alliance (APGA) resumed office in March 2006, after the removal of Dr. Chris Ngige by a Court of Appeal judgment in Enugu which ruled that Ngige’s election in 2003 was defective. Obi was impeached in November 2006, but was reinstated in February 2007 after the impeachment was overturned. Although a fresh election was held in April 2007, he returned to office in June 2007 after a court ruling decided that he should be allowed to complete his four-year term. He was re-elected for a second term in 6 February 2010.

Obi has a BA degree in Philosophy from the University of Nigeria, Nsukka (1984) and enjoys the title of being the youngest Chairman of Fidelity Bank. Considering Obi’s career achievements, and the fact that he has been to the Supreme Court successfully three times to reclaim his electoral mandate, the people had high hopes that he would improve on the stellar performance of Ngige, sadly, this has not been the case, as his administration has seen increasing crime rate, infrastructure deficits, a number of strikes over minimum wage, higher tax burdens, and exodus of elite, among other challenges.

Unemployment rate in Anambra is among the highest in the South-east zone, at 21.3 per cent, it is higher than the national average of 21.1 per cent. Imo’s unemployment rate is 29.9 per cent and Enugu is 15 per cent. The state has tried to reduce unemployment through its Anambra Integrated Development Strategy (ANIDS) and the Anambra Youth Reorientation and Empowerment Program (ANSYREP), but the problem with these programmes is that they contribute very little to the production base of the state.

The incidence of poverty in the state is very high – actually disappointing. The South-east has a food poor incidence of 41.0 per cent of which 60.9 per cent is absolutely poor, while 66.5 per cent is relatively poor and 56.8 per cent live under a dollar a day. Anambra has a poverty index of 22.8 per cent, the third highest in the zone, and shares the sixth lowest position in Nigeria with Rivers State which also has 22.8 per cent. About 47.6 per cent of the state’s population is core poor, 45.0 per cent is moderately poor and only 7.4 per cent of the state’s population is classified as none poor. Income inequality as measured by changes in Gini co-efficient between 2003 and 2010 increased slightly by 7.6 per cent as against 18.1 per cent for Ebonyi and Enugu States 7.5 per cent increase.

The people of Anambra State are known to be brilliant, enterprising and resourceful. Most of Nigera’s brightest professors, writers, public servants and politicians hailed from the state. One would expect that given this enterprising spirit, the state would create conditions conducive to innovation, business and development. This is not the case, out of the five South-eastern states, Anambra has the fourth lowest ranking for ease of doing business; it was at a distant 35th position out of the 36 states and FCT in 2010. Starting a business involves nine procedures that may span 39 days. Enugu with the best doing business ranking in the zone, takes the 30th position of the 36 states, while Imo is ranked 36, as the most difficult state to do business both in the South-east and nationally.

Anambra State is not much endowed with mineral resources and the few known to exist are not exploited. For example, Tungsten at Oba, and large deposits of lignite in Onitsha, Idemili, and Nnewi councils are yet to be exploited. Kaolin is mined in the Ukpor lhembosi axis for the ceramic industry at Umuahia in Abia State; while the deposits at Afuleri are not exploited. Sandstones of Ameke Formation are quarried in several places, particularly at Abagana and Nsugbe for construction purposes. Natural gas has been discovered at Ebenebe Ridge, southeast of Ebenebe town, and preliminary prospecting indicates that crude oil exists in commercial quantities in the state. Cash crops in the state include coco yam, cassava, rice, maize and oil palm.

The 2012 budget for the state is N82.5 billion as against N66.9 billion in 2011, representing a 23.2 per cent increase. N46.8 billion (57%) is apportioned for capital expenditure, and N35.7 billion (43%) is for recurrent expenditure. Analysing the recurrent budget further, N9.2 billion or (26%) is set aside for Consolidated Revenue Fund Charges, N16.3 billion (45%) for personnel costs, N7.4 billion (21%) for overhead costs and N2.8 billion (8%) as subvention to parastatals/ tertiary institutions. Anambra’s total IGR for 2012 is projected at N12 billion, the same figure as was projected in 2011. This means, while its expenditure has increased, the state has not enhanced its capacity to collect or expand its tax base.

The two major contributors to IGR in 2012 will be N6.7 billion from taxes and about N4 billion from fines and fees. If this IGR is measured against the states projected personnel costs of N16.3 billion, Anambra cannot pay its staff salaries without reliance on federal allocation; this means it is one of those ‘dependent’ states and is not economically viable for independent existence.
The 2012 budget will be funded by projected capital receipts of N47 billion, N12 billion as IGR and N36 billion as FAAC allocations, bringing total revenues to N95 billion, out of which N12.3 billion would be transferred to Capital Development Fund. In sectoral terms, N28.2 billion (34.2%) is allocated to the economic sector, N24.2 billion (29.4%) to the social sector, N9.7 billion (11.82%) for the environmental sector and N20.2 billion (24.52%) for general administration.

The education sub sector is allocated N10.99 billion. The state has a longstanding reputation of being an educationally advanced state: it has at least nine institutions of higher learning, its literacy rate is comparatively high, in a 2010 NBS literacy survey, youth literacy in the state was said to be 92.9 per cent and adult literacy at 74.0%. However, compared to its South-east neighbours, the state has the third lowest adult literacy amongst the five states, Abia has 78.2 per cent, Imo 80.8 per cent, Enugu with 64.6 per cent and Ebonyi with 69.8 per cent. This means that in education terms, Anambra is performing poorer than most other states in its region. From this regional perspective, it means investment in education urgently needs attention and ought to be ramped up.

A meagre N1.4 billion is budgeted for health, and considering that health should be the core focus of any state government, this amount is barely adequate. From this sum, it is evident that the government has misplaced priorities, apportioning only 1.7 per cent of the entire budget to a sector that directly affects the livelihood of all of its populace.

Another major problem of the state is roads and soil erosion. In a bid to tackle this, the government apportioned N10 billion to continue the construction of several intra-state highways and bridges, targeting the completion of about 100km of roads this fiscal year. However, only N1.696 billion is allocated for drainage, erosion control and sewerage. This we believe would not address the challenges in that area.
Water supply which also is a major problem will get only N800 millio: of this sum, it is hoped that expansion works on major water schemes would be carried out, and new ones built. This sum is little, and may not amount to much improvement in water supply in the state.

Agriculture is apportioned N1.4 billion, an evidence of misplaced priorities: with figures like these, it is no surprise that unemployment in the state is high. How can a state government allocate only 1.7 per cent of its entire budget to agriculture in a rural state? Unemployment can be tackled effectively with agriculture if the value chain challenges in food and cash crops production are tackled.
The housing sub sector will get N1.8 billion, the government plans to partner the private sector in providing more residential accommodation, a core focus will be on completing all existing projects. This is commendable.

What is clear from this analysis is that the state like most states of the federation is not allocating funds to adequately address the key social challenges that confront its people. It should slim down the size and cost if its government, learn to prioritise its budget allocations, expand its revenue base from taxes by attracting Federal Government and private sector participation in mineral exploration, improve its business climate by easing the starting and running of a business.

The state like other South-east states must address the security challenges arising from violent crimes and kidnapping that has scared the elite and investors from the state. The state should leverage its human resources by refocusing the priorities of government on SME and industrial development, investing in infrastructure, agriculture and human capital. It needs to capitalise on the enterprising nature of its people by tackling unemployment, poverty and infrastructure deficits.

Until that time, it will remain a state with big prospects and very little growth.

“You’re ignorant,” Peter Obi blasts El-Rufai

Published on June 10, 2012

Following his recent assertion that Anambra State was the poorest state in the country, that it was educationally backward, lacked priorities and suffered from poor infrastructural development, governor Peter Obi of Anambra has said that former FCT Minister Mallam Nasir El-Rufai was speaking out of ignorance.

According to Obi, his administration had laid a proper foundation for the solid growth of the state from a near zero situation when he assumed office six years ago, noting that only those who had not been to the state, and who had poor knowledge of the state’s recent history could say so.

He said, “I am surprised that somebody I am not sure has been to Anambra State even as a minister comments about the state from the point of view of what I consider as pure, unadulterated ignorance.

“It is an insult to the Igbo race to openly or even remotely suggest that any part of Igbo land is the poorest in the country. This negates our resourcefulness and ingenuity as a people.

“Honestly, I do not know what propels him or what interest he is protecting. We need people to help to assess and validate what we’re doing. We’re on course and we’re doing the right things.”

“The handover of schools to their former missionary owners and the take-off grant of N6bn for their infrastructural development is a feat that was replicated in the health sector with handover of hospitals to mission schools.

“On sports development, the state’s fortunes have been witnessing a steady rise in recent years at sports festivals due to government’s conscious sports development strategy aimed at spotting and grooming young talents to stardom.

“Our emphasis is on the youth not on adults and we’re marching towards a situation where the state will recapture its lost glory,” he said.

It would be recalled that the former Minster over the week said that “Obi has a BA degree in Philosophy from the University of Nigeria, Nsukka (1984) and enjoys the title of being the youngest Chairman of Fidelity Bank. Considering Obi’s career achievements, and the fact that he has been to the Supreme Court successfully three times to reclaim his electoral mandate, the people had high hopes that he would improve on the stellar performance of Ngige, sadly, this has not been the case, as his administration has seen increasing crime rates, infrastructure deficits, a number of strikes over minimum wage, higher tax burdens and exodus of elites, among other challenges.”

dubem3:
i decided to create this thread after reading through a thread where Peter Obi the incumbent Anambra state governor was accusing el rufai of insulting the Igbos.
now, the first thing that comes to mind as an Anambrarian is how disgusting el rufai could be and the urge to call him all kinds of name and detest him follows. but then, i happened to also read further and saw how el rufai insulted ndi Igbo. All i saw was constructive criticism with facts and figures. My igbo brothers please before you feed on my flesh, hear me out.
i happen to know peter Obi after he claimed his mandate (not personally). I attended a lecture he gave and truly i loved the man. he seemed to have vision. i saw the spark in his eyes while he spoke.i felt the passion he exuded. he was good. years later (more like many months) i began to have doubts. what was happening? before i get carried away with my thoughts, back to the topic at hand.
the worst that could happen is we judge ourselves based on the pointers el rufai gave and seeing that we are better off than he gave us credit for, like the proverbial lizard that jumped down the iroko tree, we will praise ourselves if non would. but brothers, facts and figures don't lie.my questions are these

how would you access peter's performance so far?
why did peter ignore all that el rufai say and focus on an insult that didn't exist?
are these claims by el rufai true?
Anambra, what's the way forward?

if you have something constructive, please share with us...no tribal bashing...below is what el rufai said...its long but you can take pains to read

merengue:
Anambra: The Limits of Propaganda
By Hon. Chudi Offodile

http://omojuwa.com/2012/re-anambra-the-limits-of-propaganda-nasir-ahmad-el-rufai

Where did Mallam Nasir El-Rufai go wrong in his presentation on Anambra’s budget of misplaced priorities? Is it the facts he presented that Anambra State with adult literacy at 74.0% is behind Imo (80.8%) and Abia State (78.2%) or that the two major contributors to IGR will be N6.76 billion from taxes and about N4 billion from fines and fees? If this IGR is measured against the state projected personnel costs of N16.3 billion, Anambra cannot pay its staff salaries without reliance on federal allocation; this means it is one of those ‘dependent’ states and is not economically viable for independent existence. Can anyone fault this simple analysis from information provided by the government itself?

I need not restate all that El-Rufai laid out in that piece but I was surprised that he was accused by Governor Obi of insulting the Igbos and that only Anambra State indigenes can assess his administration not outsiders who have never visited the state like El-Rufai. Anyway, I am an Igbo from Anambra State and I state as follows: I do not feel insulted in anyway by the article in question and being from Anambra State, I wish to exercise the right which the Governor graciously granted only the indigenes of Anambra state, which is the right to assess his administration.

Peter Obi brought civility into governance in Anambra State at a time politics in the state had degenerated to dangerous and unacceptable levels. That I must concede. But he has also taken, as they say, liberty for license, engaged in needless propaganda, pursuit of federal lucre and in the process, squandered a golden opportunity to positively transform a fruitful virgin state.

Propaganda works and it has worked well for Peter Obi, but it has its limits. One of the areas where a lot of propaganda has gone into in Anambra state is road construction. A lot of quality roads were constructed by the Ngige administration. But the present government claimed to have ‘Asphalted’ over 500 km of roads and claims that Anambra State has the best network of roads in the Country. How much did it cost the state, assuming the number is accurate and of what quality?

A government that prides itself as the most prudent in Nigeria should present the whole picture to its citizens. For instance, in May, 2011, the government of Cross River State under Senator Liyel Imoke, signed contract agreements Publicly with eight contractors for the construction of 474 km of roads valued at N20.325 billion to cover 28 communities across the State under the Cross River Rural Access and Mobility Project. The Projects are being jointly funded by the African Development Bank contributing N7.016 billion and Cross River State contributing N13.308 billion.

How much exactly did the 500km of roads built in Anambra State by Governor Obi cost? Informed citizens have put the figure at between N48 billion and N60 billion, more than double of what Cross River State is spending for corresponding kilometers of roads. As regards the quality of the roads, most indigenes would admit that you can determine which road was done under Ngige and the ones under Peter Obi by the standard. The roads built under Ngige are of a much higher quality. Most of the roads done by Peter Obi will have to be re-awarded, a case of penny wise, pound foolish.

Another major propaganda point is that the government of Peter Obi has not borrowed while other profligate states have been borrowing recklessly. How can a state with massive infrastructure deficits keep its funds in the bank while the Governor’s major developmental efforts will be in commissioning of bore holes, immunization programmes and giving grants to schools seeking accreditation? How much of the state government money is actually in the bank and can the government come out categorically and deny the rumor that over N150 million is paid out by the ‘banks’ as commission every month? Is there a correlation between these monthly commission payments from the banks and the fact that the average cycle of contracts and payment in the state is two to three years sometimes more in order to maintain a certain minimum bank balance?

While rebuking El-Rufai for daring to point out the facts about the state, the Governor claimed that he has attracted industries to the state and mentioned two: Innoson Motors and SAB Miller Breweries in Onitsha. Innocent Chukwuma is from Nnewi in Anambra state. His company, Innoson has always been in Nnewi, long before Obi became Governor. It started as a motorcycle assembly plant before moving to buses, and other vehicles. So Peter Obi did not attract Innoson to Anambra State. He considers as a major achievement the fact that he built the road leading to the Innoson factory and brought the President to commission it. Congratulations!

On Sab Miller, the Governor will need to address the rumor making rounds in the state concerning the ownership of 22% of Sab Miller shares. Anambra State Government owns 10% while the remaining 12% is said to be owned by other businessmen from Anambra State. Who are those other businessmen? Since they are not ghosts, it is important that their names be made public to avoid ugly rumors.

Talking about investment in the state, the Governor is known to be a successful trader before he became Governor. If the state is so attractive for business, what informed the decision of his own company NEXT International to invest over N12 billion building the two largest shopping malls in Abuja, one in Mabushi and the other in Central Area, opposite federal ministry of transport? The Governor announced proudly that this year, he will pay N32 million as tax in Anambra State. Why invest and create employment outside the state and then pay tax in Anambra State? It is a very strange way of doing things. Anambra State needs the investment and jobs that the Governor outsourced to Abuja and other places. I call on the Governor to publish his tax returns to know exactly where the N32 million income tax is coming from. Is it from dividends or other sources? Since he mentioned it, we need to know more.

Anambra State is a rural state and nobody can deny that. It has no airport, no stadium and no good public secondary school. If you fall sick in the state and you are unable to navigate yourself to the Nnamdi Azikiwe Federal University Teaching Hospital, you are finished. The State University Teaching Hospital, Awka, which was ‘commissioned’ by President Jonathan in 2010, is still an ongoing project in 2012. Yet, the money is in the bank! None of the three ‘cities’ within the state; Awka, Onitsha, Nnewi is really habitable. There is no public water supply system in those areas. The Government of Obi competes with individuals in the provision of boreholes all over the state with his so called development partners. No place like that can attract talents who will contribute to the development of the state.

Little wonder then, that two out of every three property/land transactions in Asaba and Enugu involve indigenes of Anambra State. Most members, past and present of Anambra State House of Assembly and Commissioners including most of the bank managers in Anambra State, all have their houses in Asaba and Enugu from where they commute to Anambra State. Why not? Their children have to attend good schools which do not exist in Anambra State. What Obi has managed to achieve in six years, is sustaining the rural status of the state.

The only habitable estate in Awka Capital Territory is the Udoka Housing Estate built by the Chukuemeka Ezeife administration in 1991/92. Across the other side of the Enugu – Onitsha expressway is the Ngozika Estate built by Obi’s government of a quality much lower than the Jakande houses of the eighties. He claims to have secured accreditation for School of Health Technology, Obosi, School of Midwifery, Nkpor, School of Nursing, Iyienu. Fine! But these are institutions built by his predecessors and he is listing securing accreditation as his achievement.

He announced that he invested N4 billion of state funds in Orient Petroleum but it was conceptualized and set up by Dr. Mbadinuju. The Anambra State University was set up by the same Mbadinuju and when Peter Obi builds a faculty building or hostel in the school, he will advertise it as a monumental achievement. Yet he claims that there was nothing on ground when he became Governor of the state. Even the Women Development Centre, Awka which is Anambra’s equivalent of the International Conference Centre, Abuja [Don’t laugh] was built by Mbadinuju. And I ask, apart from the State Secretariat, what project of note has Peter Obi initiated and completed in the past six years?

Thisday newspaper in awarding Governor Obi (4) four stars in its rating of Governors stated among other things that he built 77 bridges and 103 Schools. These are unsubstantiated claims. Some bridges, yes but not a single school was built under Peter Obi. What he did was that he awarded contracts to the 177 town unions in Anambra State to build 4000 classroom blocks in the schools within their communities. Unprecedented absurdity! He has no coherent educational policy. He would donate computers to some schools, give some principals’ money directly to build toilets in their schools and then supply some with generators as the spirit moves him. When the cacophonous interventions failed, he then out of frustration, rather than a carefully thought out policy, handed over the schools to the missions to continue from where they stopped 40 years ago. Lord have mercy!!

Thisday again listed a new Onitsha hotel and convention centre under construction as one of his achievements. This brings me to the issue of transparency and due process. Contracts under Obi are generally not advertised and are usually arbitrarily awarded. This ongoing convention centre was one of the few advertised and tenders received from companies all over Nigeria. After the pre-qualification and opening of the financial and technical bids, Costain won the bid and was invited by the Anambra State Ministry of Commerce to collect the award letter. Before that could be done, Obi unilaterally awarded the contract to another company. Serious companies avoid Anambra State resulting in the poor quality of work seen in the projects undertaken by Obi’s government.

Governor Obi has announced two years to the end of his tenure that he will build a new Governor’s Lodge and Governor’s Office before he hands over in March 2014. Informed citizens are asking him not to bother. Since he has lived in a temporary governor’s lodge and operated from a temporary governor’s office for six years there’s no hurry.

Lest I forget, three years ago when people complained about the lack of development in the State, Governor Obi announced to Anambra people that he was developing a base map for Awka, Onitsha and Nnewi with a United Nations group, Habitat in order to have orderly development. Great idea! Three years after, can someone please ask the Governor the status of the ‘base map’?


Hon. Chudi Offodile is a Lawyer and former member of the House of Representatives who served between 1999-2006 representing Awka North/Awka South Federal Constituency, Anambra State. He was also Chairman of the Public Petitions Committee of the House of Representatives.[/b]

SSS detains El Rufai at Awka

By Augustine Awvode on November 17, 2013

•He has no business in Anambra, says Obi

Interim Deputy National Secretary of the All Progressives Congress (APC), Malam Nasir el-Rufai, was yesterday in Awka prevented from moving out of his hotel room to monitor the Anambra governorship election.

el-Rufai told the News Agency of Nigeria (NAN) at the ‘Finotel Hotel’ where he lodged that some armed men of the State Security Service (SSS) restrained him from moving out of the hotel to monitor the election.

He said:“I arrived in Awka by 7 p.m. on Friday and had a brief session with the APC candidate, Sen. Chris Ngige. When I came out to have my dinner, I saw three heavily armed SSS officers at the hotel.

“I asked them why they were following me; they told me that they were protecting me because Awka is not safe.

“I told them that I came with my own security. This morning, as I was about to have breakfast, they blocked the corridor and tried to restrain me from going out but I pushed by and went to the restaurant to eat.

“After my breakfast, I will be going to the APC Situation Room in town to monitor the election. I am being unlawfully detained here,’’ he said.

NAN reports that at this point, one of the SSS men entered the restaurant and confiscated the reporter’s tape recorder and deleted the recorded interview before returning it to her.

When contacted on telephone, the Director of SSS in the state, Mr. A.U. Okeiyi, confirmed the report, saying that el-Rufai was being protected.

“el-Rufai is not an ordinary person. If anything happens to him, they will blame the security,’’ he said.

Heavily armed security men were seen guarding the premises of the hotel.

Anambra State Governor, Peter Obi, reacted angrily to the development.

He said the former minister of the Federal Capital Territory (FCT) had no business in Anambra State on the day of election.

The governor said genuinely accredited observers are not hindered by anybody.

“Accredited observers are moving around freely. But I am not sure el-Rufai was accredited by INEC as an observer.

“Like I said before, he has no business or any reason to be in Anambra at this time. All he is doing is dragging the name of Anambra in the mud.

“I can’t go to Katsina and monitor a governorship election. This is a federation. Even if he belongs to a particular party, the party has chieftains in this state and people of the southeast extraction.

“People should know that we have one country and we must build it for our children. el- Rufai has no reason to be in Anambra State.

“Quote me anywhere. I can’t go to Katsina State or Kano or where ever he may come from and go and monitor elections there. He should stay there”.

Diligence:
El-Rufai should apologize for his sin of mendacity.

He had acknowledged that orders/directives were from Abuja...but in 2022, he tried to rope it on Mr Peter Obi.

Again, what's wrong with El-Rufai? Old age or terrorism?

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