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How Govs Are Tackling Poverty Page the EXECUTIVE SUMMARY | Secretariat 2 a Nigeria Governors’Forum Monthly Publication Highlights

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How Govs Are Tackling Poverty Page the EXECUTIVE SUMMARY | Secretariat 2 a Nigeria Governors’Forum Monthly Publication Highlights THE EXECUTIVE SUMMARY AN NGF MONTHLY PUBLicatiON Vol.1. No. 9 September, 2018 How Govs Are Tackling POVERTY Page THE EXECUTIVE SUMMARY | Secretariat 2 A NIGERIA GOVERNORS’FORUM MONTHLY PUBLICATION Highlights Al-Makura: A fair deal for disabled | P23 Bagudu: Gov Masari’s Governors Pro-poor Lalong: initiatives | P6 A farmers Pro-poor Spearheading local delight initiative in entrepreneurship | P28 pictures | P31 | P10 Shettima: Umahi: A sigh of relief | P8 To restoring THE TEAM Borno | P13 Director–General Asishana B OKAURU www.akwaibomstate.gov.ng Executive Director (Fin & Admin) Abubakar JIBIA TOUCHING LIVES IN MORE WAYS ... Executive Director (Res & Str) Abdullateef SHITTU n Over 1700km of roads n 35 bridges n Completion of the State Secretariat Annex Head Media Public Affairs Agriculture n Construction of 2nd airport runway n Upgrade of Airport main runway to category 2 n 11,000 hectares coconut plantation n Only state to own & maintain an airport independently n 2,100 hectares cassava plantation in 15 LGAs (FADAMA) n Flood control at Nsikak Eduok Avenue, Uyo n 48,900 registered rice farmers n 21 Storey modern office complex...loading Abdulrazaque BELLO-BARKINDO n 450 youths trained on cocoa maintenance n Subsidized fertilizers, oil palm & cocoa seedlings n Akwa Prime Hatchery -10,000 day old chicks weekly Roads & Infrastructure n Free Improved Corn seedlings n Vegetable Green Houses Snr. Publications Officer n Cattle ranch loading... n Over 1,200 hectares of rice cultivated n Construction of Tractor Hiring Enterprise Centre Halima S. AHMED Education n Over 300 rural development projects across 31LGAs n Free & compulsory basic education in public schools n Over 400 inter-ministerial rural intervention projects n Take over of 7 community secondary schools n Rehabilitation / construction of over 500km NGF Health Advisor n Construction & Renovation of 208 school blocks of rural feeder roads. n Strategic interventions in Tertiary Institutions - roads, equipment, academic blocks, etc Rural Development n Procurement & distribution of free text books & other educational materials Dr. Ahmad ABDULWAHAB n Subventions to public primary & secondary schools n Over N600 million WAEC fees for indigenes in n Free medical services for children below 5 years, public secondary schools annually pregnant women & the aged. n Over 25 Containers of state-of-the art medical equipment Agric Economist Salaries & Entitlements n Construction & upgrading of secondary healthcare facilities across the state n Prompt payment of salaries & allowances to Public Servants. n Relief for over 4,000 mal-nourished children n Payment of gratuity n Free screening & treatment of over 15,000 people Bunmi AKANBI n Payment of backlog of 10 years pension. for various eye diseases Health Youth Empowerment , Researchers Capacity Building & n Syringe Manufacturing Factory (Largest in Africa) Sports Developments n Pencil Factory & Toothpick Factory n Electric Digital Metering Solutions Manufacturing Factory n Over 20,000 youths trained in various skills n Resuscitation of Peacock Paint Industry n Ongoing construction of 10 Modern Sports Centres n 153+mw Ibom Power Plant & 3 sub-stations Abdulaziz OLORUNISHOLA n N2bn interest free loan for small scale entrepreneurs and n Fertilizer Blending Factory traders n Ibom Industrial Park/ Jetty loading... n First and second Akwa Ibom State Youth Sports Festival n Plastic Manufacturing Factory loading... n Through sound financial planning, investment and management, n Flour Mills and Coconut Refinery loading... n Akwa Ibom has become the Football Capital of IT Nigeria - Hosted the Super Eagles to becoming the first African Team to qualify for the Russia 2018 World Cup States new fiscal reality - Industrialization with a match still to play. Nigeria's Emerging Industrial Hub n Akwa United won Nigeria FA Cup twice in 3 years n Ibom Angels emerged runners up 2017 Nigeria Bassi HEMAN Female FA Cup (the first time a female team from the state has ever qualified for the finals of a major national competition). a review | P3 n Team Akwa Ibom finished 2nd on the medals table at 2017 National Sports Festival Ubong ESSIEN n The state received 3 Excellence Awards on Sports Development from the Federal Government n Most Comprehensive Sports Development Programmme n Most Patriotic Sports Supporters n Best Sports Infrastructure Senior Economist n Governor Udom Emmanuel was Best Sports Governor 2017 n Ongoing reconstruction of Eket stadium David NABENA Promise made; Promise delivered. Photography ...expect more His Excellency Mr. Udom Emmanuel Saeed SANUSI Governor, Akwa Ibom State Ministry of Information & Strategy © 2018 Legal Advise: Chijioke CHUKU www.nggovernorsforum.org Page THE EXECUTIVE SUMMARY | Economy 3 A NIGERIA GOVERNORS’FORUM MONTHLY PUBLICATION States new fiscal reality - a review n the last three years, State governments Figure 1: Contraction in State revenues, 2010–17 have experienced a combination of ad- verse fiscal and macroeconomic condi- tions that have exerted strong pressures on their fiscal sustainability. Following the fall in oil prices since mid-2014 which led Ito a slump in oil revenues and a contraction in economic activities in 2016, governments have had their budget operations disrupted by both shocks in revenue shortfall and weaknesses of high and largely unrealistic budgets. The mid-2014 oil bust was the latest of the recurring episodes of boom and bust cycles, similar to the oil collapse of 1980 – 1986 , and the sharp decline recorded in 2009, when oil prices fell sharply from around US$100 to just above US$60 in one year. The impact has been devastating and it has resulted in a steep turnaround for a country that was hitherto Source: Office of the Accountant General of the Federation and Joint Tax Board ranked amongst the world’s fastest growing economies , bringing with it fiscal shocks and Rising Domestic Revenues macroeconomic disruptions amidst rising un- To prevent governments from shutdown, the Rise in government borrowing employment and poverty. aftershocks of the fiscal crisis compelled States The periods of 2015, 2016 and 2017 also This piece is intended to highlight the im- to rapidly grow their domestic revenue. Inter- marked an era of higher debt vulnerability, pact of the recent oil price slump on the fiscal nally generated revenue (IGR) grew by 20% in with records of high budget deficits, mounting environment of States, the response of State 2016, up from a 2.9% contraction recorded in debts and unpaid public sector wages across governments, as well as useful lessons for the 2015. By 2017, IGR reached N936 billion as States. During the period, the federal govern- future. State governments deepened efforts to raise ment responded by providing bailout packages revenues. Common reforms that triggered to States to help shore up short term liquidity Falling Federation Revenues the growth in resource mobilization included and address accumulating wage bills, pension One of the direct impacts of the oil price granting autonomy to tax authorities, improv- and contractors’ arrears, but the bailouts also slump was the fall in State revenues. State gov- ing taxpayer mapping and incorporating the had other unintended consequences, leading ernments recorded arguably one of the worse informal sector, adopting modern technology to a spike in deductions from federation trans- periods of revenue contraction, as federation to block widespread leakages in revenue col- fers and extending pressures on the ability of revenues declined steadily over a three-year lection, community engagement, tax-for-ser- State governments to service short-term debts. period between 2014 – 2016 at rates of 13%, vice initiatives and the review of obsolete laws Total public debts have tripled in the last sev- 25% and 19% respectively. Federation reve- and tax rates. en years, growing from N1 trillion in 2010 to nues declined from N3.1 trillion in 2013 to N2 The rise in domestic revenues helped shore N4.5 trillion in 2017, with more States trans- trillion in 2015 and N1.6 trillion by 2016 be- up domestic financing, but much of the iting into higher debt positions and a higher fore settling at N2.1 trillion in 2017 (figure 1). growth was accounted for by only a few States risk of default. Much of the growth in debt The fiscal rebalancing saw a reversal of the pre- due to the varied level of reform implementa- stock was largely due to the rise in government vious growth trend in federation transfers to a tion – much of it also unstable. For example, borrowing in the last three years. Government record comparable to the total of N2.1 trillion in 2016, States such as Kwara, Kano, and Ogun borrowing grew from an annual compound recorded in 2010. The reversal accounted for a recorded high growth rates in IGR reaching rate of 22% between 2010 and 2013, to 30% loss of over N4 trillion in unearned income for 140%, 127% and 111% respectively, while ma- since 2014 to date. The rise in government the 36 State governments between 2014 and jor winners in 2017 were Sokoto (98.4%), Jiga- borrowing has also been widespread, but for 2017. wa (88%), and Borno (86%). The high growth a few States including Anambra, Jigawa, Soko- in domestic revenues has provided strong to and Yobe that maintained a low debt stock evidence on the expansive room for revenue and only six (6) States reducing their total debt mobilisation and the gap between the revenue stocks in 2017 – Bayelsa, Delta, Gombe, Imo, potential and revenue effort of most States. Kebbi and Osun. www.nggovernorsforum.org Page THE EXECUTIVE SUMMARY | Economy 4 A NIGERIA GOVERNORS’FORUM MONTHLY PUBLICATION States new fiscal reality - a review State debts have risen faster than revenues, 2010–17 Accounting for up to 40% of the total budget of a number of States, personnel costs is another major threat to budget implementation in the country. The excesses of public sector employment have continued to crowd out funding for health, education and infrastructural development.
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