- It is hard to accept in an oil-bearing state since non-oil states do it without levies
Bayelsa State Governor, Mr. Seriake Dickson, has announced the introduction of a compulsory education levy in the state to be administered through a newly established Education Development Trust Fund (EDTF). Justifying the initiative, Dickson said: “It is better for us to put together resources to fund mass education. Yes, in this state we have some educated people but the judgement I have made over time is that we have yet to get that critical mass of highly skilled and qualified personnel and unless we have them, we are in trouble”.
Giving some insight into how the compulsory education tax will be implemented, the governor said it would cut across board and will involve civil servants, businesses, contractors, parents and other stakeholders making some sacrifice for the cause of education in the state. Throwing further light on the issue, he said: “…it will take little contributions from every Bayelsan; some will pay as little as N400, N500 per month. There are others that will have to pay N1,000 or more depending on their businesses. For those in the public service, they will also contribute”. Apparently desirous to lead by example, Dickson said he would be contributing N100,000 monthly to the fund while the deputy governor would contribute N50,000, the Speaker of the House of Assembly, N30,000 and other political office holders also contributing amounts commensurate with their status.
The governor undoubtedly means well and deserves some commendation since the fund is meant, among others, to support free feeding and free uniform for school children as well as other items that will most certainly be of significant relief to parents. However, Dickson’s administration will also have to contend with the perception that Bayelsa as an oil-producing state, which enjoys 13% derivation in addition to its monthly allocation from the Federation Account, should be financially viable enough to effectively fund education without additional tax burden on the citizenry. This is particularly so because Bayelsa State has a population of approximately two million people, which is far less than that of some other states that are providing free education for their citizens without enjoying the benefits accruing to oil- producing states.
Apparently anticipating some degree of resistance to the new tax, particularly at this economic recessionary period, the governor had threatened that anyone who opposed the levy would be considered an enemy of the state. We would rather urge continuous engagement by the administration with stakeholders, with a view to persuading them to see the necessity for the tax and the long-term benefits to the state.
It is no news that Bayelsa State, like most of the 36 states, has been severely affected by the country’s current fiscal crisis attendant on the sharp drop in the international price of crude oil. Lamenting the sharp drop in its allocation from the Federation Account, last year, Governor Dickson said the state was no more in a position to comfortably meet its wage bill obligation of N4 billion to its workers or even borrow from banks to augment salary payment as was the practice in the past. The parlous finances of the state was reflected not just, for instance, in pensioners protesting alleged non-payment of five months pension arrears last year but also by the more significant fact that in 2016, the state’s budget was N150 billion as against N250 billion in 2015, with a negligible sum of N25 billion allocated for capital projects.
The underlying lesson of Bayelsa’s financial crisis, which mirrors the situation in most other states, is the imperative, both to manage available resources more prudently at that level of governance and also for states to creatively tap their potentials to achieve better economic viability and self sustainability, as well as reduce their dependence on allocations from the centre.
