A key task of leadership is to chart the way forward for the people towards accomplishment of set goals. This task becomes more imperative during crisis period; when there is confusion and hopelessness all around; when there is a storm and people seek all avenues for survival. Little wonder it is said that crisis brings out the leadership in a man, and particularly in existing leadership, crisis brings out the best among those of them that are the very best.
When, towards the end of the administration of former President Goodluck Jonathan, Kwara State government began to issue monthly statements announcing reduction in its federal allocation, many who were not on the same political page with the authority argued, most contemptuously and provocatively, that it was pretentious. But when the same pattern continued under the current administration and extended to several other states such that many could no longer pay salaries and had to run to Abuja for bailout, the reality soon dawned on us all that Nigeria was in a grave economy quagmire.
Between the last days of the Jonathan's administration and the beginning of this year, Kwara must have lost close to half of its normal monthly allocation from the federation account. That is huge and considering the fact that a greater percentage of the state budget, like many other states, was based on the federal allocation, meeting the goals spelt out in the financial estimates generally became very difficult, if not impossible. Many states have had to abandon capital projects and concentrate mainly on paying salaries and even that too was not on regular basis. Some states openly confessed their inability to meet basic requirement of salary payment.
It was a challenge. It was a storm. But like the eagle, it has brought out the best in Kwara State. For instead of sitting down to complain, the state government only sat down to think out of the box to ensure we do not sink with the storm. And it is that brainstorming that has given birth to IF-K; a novel way of funding infrastructure that has not been employed by any other government in Nigeria.
Listening recently to Governor Abdulfatah Ahmed who led the thought-process that produced the model provided an inkling into the leadership focus of his administration despite the national economic challenges. According to him, "When we came in 2011, we were quite ambitious on what we wanted to do on human capital development; how to improve on infrastructure and of course, how to improve on the economy. We had a document which was part of our foundation process, the Medium Term Expenditure Framework for Kwara State. Under that framework, we had outlined financial requirements that will aid us in achieving the set target.
"So, to that extent, we had to go back to the drawing board and work out how best to create a funding module that suits the current exigencies in Nigeria's economy and, of course, Kwara State. We thought of going to the capital market, but then it became a bit cumbersome as we had to go through some hurdles within the specific timeframe that we had to come up with ingenuities in creating a funding model. That gave rise to the Infrastructure Development Fund.
"We did a data review of what the financial gaps were and we came up with a deficit of about N250bn to move Kwara State to the desired level that will see Kwara State truly positioned among the comity of well positioned states not only in West Africa but, of course, in the world. Now getting to do a drive for a N250bn infrastructure looks a bit herculean, so we sought to create modules out of it. The modules require an uninterrupted financial inflow that guarantees sustainability. That was how we came up with the possibilities of creating an Infrastructure Development Fund."
"My confidence in this new model is that given the phenomenal success so far recorded by the state's internal revenue generating agency, which, like IF-K, was also derided by our detractors but has become the golden bird; this new model will also succeed, even if men don’t give it the chance at inception.
Imagine that before the KIRS began operation this year, we were making maximum of N600 million monthly as IGR but now without any new tax, the agency has been steady at about N1.7 billion".
It is another noble vision of Governor Ahmed which though derided at inception has become, no doubt, a testimony to good thinking; the evidence of a good policy. Ahmed concentrates on the formulation and implementation of good policies for sustainability as no matter how novel an idea is, it will soon fritter away without a policy backup.
The governor recently told a group of journalists that "policies are pathways that create direction for government activities. Because, it will not only help focus on what’s needed to be done but also on critical areas that affect the people and how you could achieve these set policies within a specific time frame. So, policies are key to any developmental system as it allows optimization of resources. For us, polices are seen as part and parcel of main programme in directing what we want to do in government."
And for those who still don't understand the workability of the model, Governor Ahmed explains: "This fund allows us to put some seed money, which we have put aside for a while and of course largely for capital development programmes, into a basket and this basket will be managed by financial trustees and of course, we created an irrevocable standing payment order from our internally generated revenue".
"By the way, I am happy to let you know that we saw the need to create this through the things we have seen in the country as not requiring us to rely on the federation allocation and immediately we changed the internally generated revenue module. This has given room for funding into the Infrastructure Development Fund and as a constant flow coming from our internally generated revenue, we now see a clear window to fund infrastructure on monthly basis with a minimum of N500m which creates a pool that is investible and, of course, we have gotten our contractors to see them as more of partners rather than contractors because the model allows them to participate with us in driving our infrastructural development needs. Contractors will now see themselves investing their fund and getting paid from the Infrastructure Development Fund.
"We have looked at the workability of this model and its completely suit our need. That is how we will continue to carry on our development projects in Kwara State as a way forward. I want to assure Kwarans that with the model, we will begin to see projects executed from envelope basis. With the specific envelope that we are addressing, once we are through with that. In other words, as contractors are completing their jobs and are exiting, a fresh envelope will now come in and we will start key in and funding as such to drive infrastructure development. So for us, it brings to end the era of abandoned projects. Because, it gives that comfort that the lender and the partners require to see to invest their funds in driving capital development in partnership with Kwara State. So for us, it is one of the best things that has ever happened to us today and we see that model being sustained because it is also backed by law which gives it a sustainable platform to see it carrying on capital development projects for Kwara State."
With this innovation, the state is now on auto run in the execution of projects such as the Garin Alimi underpass, Osi and Ilesha Baruba roads, indoor sports hall of the Ilorin Stadium Complex , Michael Imoudu to Gamo road and dualisation of Sango to Uiversity of Ilorin Teaching Hospital road, among others.
Oba is Chief Press Secretary to Governor Ahmed.
