- With a new dispensation kicking off under the gale of an economic crunch, governors must do things differently
Regardless that some candidates had to literally climb over the mountain to become governors during the last election, it does not seem this is the best of times to hold that position. The reasons are plain for all to see and indeed, one common manifestation of the dire times we are in is huge arrears of wage bills in about half the states of the federation.
What this shows clearly is that the nation’s economy has dipped to its nadir. The federal allocation which remains the main source of revenue for states has dropped to about half its size since same time last year. The crash in crude oil price late last year has triggered a sharp drop in Nigeria’s earnings and with all the attendant negative up-thrusts.
Sadly, and as nearly everyone knows, there is no end in sight. In other words, oil prices are not going to shoot up anywhere near the $100 per barrel level of the past couple of years in a hurry. First, the world has found alternatives to crude oil fuels. Second, the US has built up so much reserve she now has a glut. In fact, she will soon become a major exporter of crude oil. Finally, Nigeria mismanaged successive oil booms over the years, including that of the last four years.
She never diversified her economy despite enormous petro-dollar revenues. She did not even build refineries and petro-chemical complexes as other major oil producers did. Today, the cost of importing various petroleum products is a major crippler of her economy. Today, both the federal and state governments are really in a quandary as to how to meet such immediate needs as staff salaries.
The situation is indeed dire but it is also a time that calls for quick-minded leaders, especially governors in the driving seats of states.
It is trite to begin to admonish about prudence and diversification of revenue bases. State governors must think out of the box now. They must first cut the fat and strategically trim their bloated workforce. Nearly all ministries and agencies of government down to the local councils are always brimming with ‘ghost workers’. They must bring in the exorcist immediately. In fact they must punish the culprits and accomplices to sound a warning that ‘ghosts’ must remain where they belong – the tombs.
While at the civil service secretariat, they must make the workers work. Many government agencies and departments like transport companies, land registries, commerce and tourism departments really should be money spinners but for leakages and graft. These holes must be blocked and these areas revamped to run more efficiently and yield more revenues.
So much waste goes on around the executive offices and the political appointees. A governor’s convoy can actually be shorter, travels can be fewer and frivolous but expensive ceremonies must be discouraged. Government must begin to be more business-like or better still, run like business. No serious governor engages hundreds (some thousands) of aides and turns around to bemoan large wage bills. Budgeting must be the serious business it is meant to be and that is at the heart of planning.
How many state governments truly plan their finances and stick to it even on an annual basis? So many projects and programmes with little economic value to states litter the country.
Lastly, a concerted effort must be made by governors to extract an urgent review of the constitution to free up some matters on the exclusive list such as mining and value-added taxes (VAT) so that states can earn more revenues from these areas. We wager that it is not exactly correct that some states are not viable.
It is basic economics that every state has its areas of comparative advantage. Besides, wealth is always in the mind of leaders and their people and not under the ground. The viability of any economic entity lies first in the ingenuity of the leader. It is a time like this that we know those who can truly govern and the pretenders.
