With the inability of most Nigerian states to address the issue of indebtedness as well as the seeming incapability of government at all levels to satisfy the yearnings of the people for access to basic amenities just to cushion the effect of this hard times as a result of dwindling economic fortunes, it is imperative that creative and novel solutions be sought in order to avert a looming crisis.
At a time like this, state governments can no longer depend on allocations from the Federal Government which itself is bedeviled with challenges ranging from renewed militants activities in the Niger Delta, herdsmen clashes in the north, low oil prices and more recently unavailability of foreign exchange among others .It is definitely not a good time to start thinking of loan facilities from international donor agencies such as the World Bank, International Monetary Fund or other such agencies if we do not want to be plunged further into indebtedness such that even posterity will never forgive us. Neither would we want to exchange some form of control over the economy of states to these donor agencies for loans.
There is no gainsaying that these indeed are hard times. However, in the words of Robert H. Schuller, tough times never last, but tough people do! It takes only tough people to come up with tough solutions to confront tough times so as to bring about the desired change. Hence, some possible solutions drawing lessons from Kwara, Benue and Osun states respectively.
After reading Adejoh Idoko Momoh’s Indebted Nigerian States and Lessons from Kaduna (http://www.africanliberty.org/adejoh-idoko-momoh-indebted-nigerian-states-and-lessons-from-kaduna/) where he proffered the Kaduna State’s model to economic recovery for indebted states in Nigeria, it birthed this article which I tag a sequel to Adejoh’s. From all indications, there is no reason why other Nigerian states cannot tow Kaduna’s path which threw its doors open for partnership and investment in a summit to chat the path for a new economic course. However, if for any reason they cannot, then lessons from Kwara, Benue and Osun states if adopted should go a long way.
The Kwara State governor, Abdulfatah Ahmed had on the 30th of June 2016 during a meeting with labour leaders on the state of salary challenges of local government workers tabled three options on how to resolve the salary payment problems to include: retaining the payment of salaries on pro rata basis with an understanding that arrears will be paid. Secondly, reduction of staff strength for full payment of salaries of retained staff. Thirdly, payment of salaries for days worked, explaining that if the allocation or funds generated could pay only fifteen days of work instead of twenty, then they work and get paid for the number of days worked. Governor Ahmed was however quick to add that workers retrenchment was not a credible option as that would only add salt to injury.
The Benue State government on the other hand on the 9th of June 2016 approved Friday of every week to be work free days to enable workers in the state to work on their farms. The objective of this is to enable as many workers as possible to produce food to feed their families in the current economic downturn which has made the regular payment of salaries a major challenge. The day off was to be in operation from Friday 10th June up till the end of July, 2016.
Governor Ortom of Benue state believed that at least sixty percent of the civil servants would comply with the directive and that would in turn help the state retain its status as the food basket of the nation. Mr. Ortom also announced that he was taking a two-week vacation which was part of his annual leave from Monday, June 13th to work on his farm, thus leading by example while the Deputy Governor would act on his behalf during the period.
In 2011, the Osun State government under Governor Rauf Aregbesola instituted what it called Osun Broiler Out-grower Production Scheme, OBOPS, an offshoot of a four year collaborative initiative of the government and a private farm- Tuns Farms Ltd- aimed at empowering broiler farmers in the state as well as grow the economy of the state. The scheme provided the broiler farmers with inputs such as day old chicks, feeds, drugs and technical advice. In addition, the scheme provided buy back guarantee for the farmers. It was structured in such a way that accredited broiler farmers produce broilers with input supplied by the privately owned farm. The private Farm will in turn, off-take the broilers that are produced by the participating farmers.
The followings are suggestions to deal creatively with the issue of indebtedness:
First, governors and labour leaders should explore Kwara State governor’s options to the labour leaders in his state. Already, the third option of staff retrenchment to allow full salaries payment of those retained is dead on arrival. The first option of paying salaries on pro rata basis is what if not all indebted states, most of them are employing currently leaving much to be desired on the part of labour union.
The last option of payment of salaries for days worked based on how much is at hand can be explored in the short term while a long term plan is being worked out. This would require transparency and openness of both government and labour union. If the allocation/funds generated can only pay for fifteen days instead of twenty, then let work be done on those days while workers get paid. That way, government is not under pressure to pay beyond what it generates and workers know they are not doing any work for which they won’t be paid.
So, what will workers be doing the other days they are not at work since they won’t be paid if they work? That leads to the lesson drawn from Benue state. The days be declared work free to enable them work on their farms. The objective is the same as Benue state’s- to enable as many workers as possible to produce food to feed their families and sell whatever is left to make some extra money. The state governors will do well to lead by example as Governor Ortom of Benue state has done and give impetus to the newly launched campaign of Mr. President that #ChangeBeginsWithMe. Nigeria is an agrarian society, consequently, if adopted on a short term basis can lead to agricultural reawakening and ensure food security and sufficiency. Also, it will increase internally generated revenue of states while enabling them walk the talk of diversifying the economy.
What about those who don’t have land to farm or those who have land but lack the wherewithal to farm? This leads to the third lesson drawn from Osun state. As in the case of OBOPS, respective state governments through the Ministry of Agriculture will collaborate with established private farms and agro-allied industries within and without their states to provide lands and other necessities such as seedlings, farm implements and the likes to the workers and at a subsidized rate. If the Federal Government’s body language is anything to go by, it will be more than willing to partner in this area as it has planned many incentives to woo the populace to farm. The scheme should provide workers with inputs such as seedlings, fertilizers, farm implements, chemicals and technical advice. In addition, the scheme should also provide buy back guarantee for the workers. It should be structured in such a way that workers produce crops with input supplied while the private industries/government will in turn, off-take the crops that are produced by the participating workers.
These options if explored can lead to a revolution in the agricultural sector which will directly and indirectly impart on other sectors of the economy. Desperate times demands desperate actions and if the lessons drawn from Kwara, Benue and Osun states are taken seriously (if only for a short term) we can be sure to chat a new path to economic recovery as a nation.
Silas Emovwodo, a masters student at the Center for Peace and Strategic Studies, specializing in Peace and Development Journalism, University of Ilorin, Ilorin, Nigeria wrote via silasoghenemaro@gmail.com