Opinion: 36 ineffectual Governors of 36 challenged states

This is certainly not the best of times to be a state governor in Nigeria. The drastic drop in the prices of crude oil and its attendant effects on a mono-product economy like Nigeria has dealt a near fatal blow to the finances of the federal and state governments.

In recent past, states commissioners of finance used to depart Abuja to their states with a wide smile, their briefcases bursting at the seams with their states’ share of the national cake, into the warm embrace of their principals. The situation has changed.

The states are in dire straits and are near- bankruptcy. States that were getting monthly allocations in the region of billions of Naira in the past are now going home with a few millions. The governors are not only troubled, but puzzled at the sudden dramatic dwindling of their states’ income. They are at wits end on how to turn the situation around. Major fallout of this shortfall is their inability to pay workers’ salaries and also carry out other functions of state.

Before things went awry, the governors ran the states with the swagger of feudal overlords. They bestrode their domains like Colossus. They determined whose bread gets buttered. Monies were spent whimsically without recourse to due diligence and transparency. They reveled in profligate lifestyle and paraded a retinue of bloated political aides.

Not even the states assemblies could rein in these emperors and restrain them from financial recklessness. These governors appropriate and expropriate scarce public resources under the guise of security votes and fritter it away as slush funds. More often than not, the states assemblies are mere appendages of the executives and cannot stand up to checkmate the excesses of the governor.

Provision of certain basic amenities to the masses seems to be a feat that has been elevated to the pedestal of rocket science. Digging a few boreholes for the masses is celebrated and almost equated with sending a man to space. Same goes for constructing a few kilometers of roads. Drums are rolled out and prime time adverts are placed on national television to needlessly eulogize the ‘magnanimity’ and sheer ‘generosity’ of the governor, for deeming it fit to pour asphalt and coal-tar on the road for the masses. The governor is feted, celebrated, worshiped and venerated on a hallowed pedestal.

Local government councils suffer untold hardship due to the misrule of the governors who appeared to have arrogated the powers of sole administrators to themselves. The overbearing influence and hijack of funds meant for this tier of government by the governors has stultified developments and economic growth in the local councils.

In line with the persistent calls for a paradigm shift from over dependence on oil as the major earner of the country, some states are beginning to think outside the box and taking commendable steps to diversify. The states have a variety of options that they could pursue to make their economy more sustainable and revenue streams more diverse.

It is not all gloom as a few states are beginning to wake up from their slumbering states. About a month ago, the Lagos State Government and Kebbi State entered into a partnership on the establishment of a commodity value chain that will give a quantum leap to food processing, production and distribution. The partnership is aimed at bringing about national food sufficiency and food security, as well as creating employment and wealth distribution for the benefit of both states and the nation in general.

Lagos State is the largest consumer of food commodities in Nigeria by virtue of the State population. She has an estimated consumption of over 798,000 metric tonnes of milled Rice per year which is equivalent to 15.96 million of 50kg bags, with a value of N135 billion per annum. In addition to rice, Lagos is presently consuming 6,000 herds of cattle daily which may increase to 8,000 in the next 5 years.

Lagos State is one of the largest producers of poultry and thus has a large demand for maize for livestock feed production. The State also houses most of the industrial users of wheat and sorghum; mostly flour mills, bakeries, breweries and food manufacturers. Kebbi State, on the other hand, is blessed with a vast arable land suitable for the cultivation of Rice, Wheat, Ground nut, Maize, Sorghum and Sugar cane.

The people are traditionally Rice farmers with average land holding of about 10 Hectares. Presently, Kebbi has over 50,000 metric tonnes of paddy in store produced from the last 2 planting seasons.

With these considerations in mind, Lagos State and Kebbi State decided to collaborate and exploit areas of comparative advantage to create value for both States. This alliance will ensure food Security, job creation, increase in farmers’ income and the overall improvement in the living conditions of the residents of both states through wealth creation and poverty reduction. This is the first time in the history of Nigeria that two States are collaborating to develop their agricultural potentials and it is a well thought-out step in the right direction. This is the way to go.

Cross River State has also unfolded plans to expand land under cocoa cultivation and revamp old farms in a bid to double outputs.4,000 hectares of previously unplanted areas has been earmarked for cocoa cultivation. The state government plans to introduce the most modern cocoa hybrids capable of yields of two metric tons per hectare, with farmers receiving five million cocoa seedlings to cultivate new farms and revamp new ones.

Currently, the state accounts for about 30 percent of the country’s cocoa production, with the South Western region producing about 60 per cent. The governors are beginning to think and act.

The need to diversify Nigeria’s economy has become a cliché that has enjoyed more oration than action. Agriculture, solid minerals, creative economy and tourism are some of the low hanging fruits that the states must immediately harness. They do not have to re-invent the wheels. Development models that have been tested and proven elsewhere can be easily replicated, modified and domesticated to suit peculiar needs of each state.

The search for alternative sources of income should not be limited to natural deposits and agriculture, but crafts and ideational endowments. In some climes, states with investments in research and development institutions benefit from financial gains accruable from proceeds of major scientific and technical breakthroughs, development of new drugs and vaccines etc.

In the area of solid minerals, there is a lot to be done. The Federal government had extended a hand of fellowship to the states to collaborate with the Federal Government in solid minerals development. States are not prohibited from engaging in joint venture in the development of solid minerals in the country. There is need for the Federal Government to partner with the states to achieve greater efficiency since the law provides for community involvement in the sector.

The state governors need to be reminded that Nigeria is blessed with an excellent climatic condition suitable for the cultivation of a plethora of cash crops. It is possible that these governors are out of touch with reality and are oblivious of the agriculture-based opportunities that abound in their domains.

Crops such as groundnuts, rubber, cocoa, oil palm, cotton, wheat, sorghum, tomato, maize, soybean, beans/cowpea, cashew nuts and a host of others are cash crops have huge commercial value. Before the advent of oil, earnings accrued from the export of these crops were the mainstay of Nigeria.

The export skins and leather industry is huge, believed to be worth around $4.4 billion for raw hides and skins, $14 billion in rough-tanned and finished leathers of all types and $25 billion for footwear with leather uppers. It is a huge market that states should explore, create conducive environment for investors and encourage public private partnerships. Neital, a tannery and shoe production outfit, owned by the Borno state government, exported finished leather to Italy and Spain.

In just one major export, their financial report recorded N112, 000,000, which was close to its $1 million target in two years. The company had to shut down due to the insurgency in the north eastern part of the country. Other northern states should jumpstart similar initiatives and encourage private sector participation in the tannery business which is laden with money spinning potentials. Brazil, Australia and the United States make billions of dollars from the exportation of hides and skin.

The United States hide, skin and leather industry set a new record in 2014, exporting more than 2.85 billion USD worth of cattle hides, pig skins, and semi-processed leather products. China’s yearly import bill of hides and skin is over a billion dollar. In November 2000, an international news agency spotlighted Nigeria as a country that eats its shoe leather and walk on bare feet. The skin of animals like cows, sheep and goats, which are needed for the production of goods like shoes, bags and belts, are being eaten at an alarming rate by Nigerians.

Also Read: Opinion-Exploring the business side of Agriculture

The restrictions placed on agricultural produce from Nigeria and other African countries by the European Union have to a large extent, affected earnings accruable from commodity exports. The European Union (EU) is one of the largest importers of agro commodities from Nigeria. Despite the benefits of such produce, however, there is a growing awareness in the EU and the United States (U.S) on the microbial and chemical challenges of the produce. Concerted efforts must be swiftly put in by all key players in the sector the correct the non-conformities raised by the EU.

At present, it is reported that 27 states cannot pay their workers’ salaries. It is such a pathetic and unacceptable situation. Governors were elected to find solutions to the problems faced by the governed rather than become ‘beggars’ by relying on the Federal Government for bailout.The era of going to Abuja cap-in-hand for bailouts may well be over.

The ingenuity and resourcefulness of the governors are being subjected to a litmus test. This is an auspicious moment to prove how truly excellent their Excellencies are. The governors have to look inward and explore the numerous and untapped vistas of developments that abound in their states. They need a critical study and in-depth appraisal of their socio-economic milieu with a view to exploring and harnessing the latent opportunities that are inherent in their states.

The Nigeria’s Governors forum is one veritable platform that the governors can use to cross-fertilize ideas and synergise on practical steps that should be taken to revamp the economies of their states.

Leadership is a call to serve. The present economic situation calls for a visionary and pragmatic leadership. States must come up with novel and home-grown initiatives to discover their latent potentials and increase their revenue streams. This is the time that true leaders, who know their onions, prove their mettle.

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Op–ed pieces and contributions are the opinions of the writers only and do not represent the opinions of Y!/YNaija

Akanimo Asuquo Sunday writes in from Lagos, Nigeria. He can be reached via Twitter:@akanimosunday2 and [email protected]

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