Kwara Councils Debt Profile: Shelling Fallacies From Facts. By Oyewale Oyelola

Date: 2018-01-15

It's sadden that local government areas in Kwara State are having difficulty paying outstanding salaries and pensions accrued during the period of economic recession that hits Nigeria in 2016 and 2017 due to fall in the global price of oil-the major source of revenue for the country. Kwara State Governor, Alhaji Abdulfatah Ahmed is really pained that thousands of workers in all the sixteen local government areas of the state are having challenge meeting their financial needs as a result of the situation.

However, many critics and opposition in the state of harmony are using the issue of outstanding salaries in Kwara councils to dent the image of the State Government, forgetting that local government is a separate entity and third tier of government according to Nigeria's 1999 Constitution. It's therefore imperative to separate fallacies from facts in order not to mislead innocent populace in the State.

According to details released by National Union of Local Governments Employees (NULGE), Kwara State Chapter, the outstanding salaries and pensions owed by all the 16 councils as at September, 2017 is N5,048,059.163:26k. The detailed analysis shows that the number of month(s) owed by each local government varies as against the generalisation that the councils are owing workers the same months and contrary to false information of alleged 16 months outstanding salaries. NULGE's analysis revealed that Kaiama LG is owing one month while Ilorin East, Ilorin South and Oyun councils are owing 10 months. Workers in Asa, Ifelodun, Moro, Oke-ero, Irepodun and Ilorin West are been owed eight months while Edu, Ekiti, Baruten and Isin LGs are owing 7 months and Offa with Patigi are owing six months.

Another fallacy in the public domain alleges Kwara State Government of diverting councils fund through Joint Accounts Allocation Committee (JAAC). This is blatant lie, JAAC was introduced to create platform for local government leaders to discuss revenue issues and share LGs allocation from Federation Account. Kwara State JAAC comprises representative from each council (Chairman or Supervisory Councillor for finance), State Commissioner for Finance, representative from ministry of local government.

To put the record straight, the monthly JAAC meeting is chair by State Commissioner for Finance who gives report from FAAC and members discuss framework to share their allocation due to each council.

They sometimes make provision for joint projects. The state government do not tamper with local government funds. Governor Ahmed led administration is operating a transparent government by publishing monthly allocation to the State/Councils. In December 2017, all the 16 local government areas received N2.3billion from FAAC.

Furthermore, the monthly wage bill of councils is another issue that needs clarification. The current monthly wage bill is N2.1billion, it comprises salaries of employees, pensions, SUBEB deduction and loan repayment. SUBEB monthly deduction is N900million while the councils are paying N257million monthly repayment of loans from commercial bank in 2015. Therefore, the story of inflated wage bill is mischievous, misleading and false.

Similarly, some people have accused State government of taking over councils revenue collection through KW-IRS. It's far from the truth because Governor Ahmed in his bid to increase revenue of local governments in state introduced Tax Reform. The reform empowered KW-IRS to collect revenue on behalf of the councils and remit amount due for each local government monthly. The Chairman of KW-IRS, Dr. Awodun recently announced that the revenue service collected over N200million for councils in 2017 from 12 out the 18 available revenue lines.

Apart from the aforementioned facts, some critics have also tagged LG executives as puppet to the state governor as they only do the bidding of the governor. This is really laughable because loyalty to State governor doesn't mean local government chairmen can not do things on their own. Its worthy of note that Governor Ahmed during swearing in of newly elected Chairmen/Chairpersons charged them to be creative in order to deliver dividend of democracy to the grassroots.

Recall the innovative and resourceful governor of the state of harmony during the heat of the crisis in 2016 mandated biometric exercise for local government employees, the exercise led to elimination of ghost workers and reduced monthly councils wage bill by N100million.

The state government also introduced Tax reform which empowered Kwara State Internal Revenue Service (KW-IRS) to collect revenue on behalf local governments. KW-IRS presently manages 12 out 18 revenue lines and it has helped increased LG revenue by 100percent.

Moreover, state governors across the country have urged Federal Government to take over full funding of SUBEB, if this is done it will ease the financial burden on local government areas in the state. The plan of Kwara State to take over the funding of Junior Senior Secondary (JSS) would go a long way resolving the outstanding salaries debacle.

It's however imperative for executives of local government in the state to harness their potentials to increase their Internally Generated Revenue by exploiting other revenue lines outside KW-IRS coverage, block leakage and avoid wasteful spending.

While Kwarans and residents must play their part by paying their tax promptly, provide useful advices to councils management and engage their representative (councillor) with the aim of bring meaningful development to their communities. Local government employees should increase their productivity by performing their duties effectively.

 

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Yusuf A. Usman     Kola Bukoye     Salman Jawondo     Abubakar Abdulraheem     Tafidan Kaiama     Akande Idowu Ayoola Muhammed     Ibrahim Issa Jetti     Kishira     Saheed Alakoso     Vasolar     Alimi Abdulrazaq     Ghali Muhammed     Ojuekun Sarumi     Victor Gbenga Yusuf     Split Diamond Interchange     LAK Jimoh     Ibrahim Mashood     Isiaq Khadeejah     Yusuf Abubakar     Al-Hikmah University     Afolayan     Sidikat Uthman Ajibola     Just Law Forum     Olumide Daniel Ibitoye     Ariyo     Mohammed Ghali Alaaya     Ajasse-Ipo     Kwara State Government     Na\'Allah     Hussein Oloyede     Ganmo Power Sub-Station     Abdulquawiy Olododo     Yakubu Mohammed Abdullahi     Olabode George Towoju     Olomu Of Omu-Aran     AbdulFatai Adeniyi Dan-Kazeem     Abdulmumini Jawondo     Ibrahim Bio     Gbajabiamila     Aliyu Sabi     Yekini Adio     Waziri Yakubu Gobir     Charcoal     John Olobayo     Moremi High School     Lawal Olohungbebe     Hassan Taiye Salam     Lithium     Matthew Babaoye     African Democratic Congress     Modibo Kawu     Mukhtar Shagaya     Labaeka     Chief Imam Of Lafiagi     Abdulrosheed Okiki     National Association Of Nigerian Students     Funmilayo Braithwaite     Agor     Gobir     Adeniyi Ojo     Abdulazeez Arowona     Akeem Olatunji     Ilorin General Hospital     Abubakar Kawu Baraje     Centre For Digital Economy     Aasiyat Bello Oyedepo     Amule Elementary School     Mohammed Saidu     Pacify Labs     Afeyin-Olukuta     Taofik Abiodun Ahmed     Bayo Lawal     Esuwoye     Abubakar Lah     Bayer AG     Ibrahim Abdulqadir Abikan     Ahmad Olayiwola Kamaldeen    

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Kwarareports.com     College Of Health     Islamic Development Bank     Hussein Olokooba     Doyin Agbamu     SSA Youth Engagement     Erubu Oba Zubair     Valsolar     National Democratic Congress     Omotoso     Shehu Alimi Foundation For Peace And Development     Isiaka Rafiu Mope     Dasuki Belgore     Ifelodun     Musibau Akanji     LEAH Charity Foundation     Babatunde Idiagbon     Ita-Nmo Market     Taofeeq Olateju     Haliru Dantoro     Mamman Saba Jibril     United Nigeria Airline     Ahmad Belgore     Abubakar Imam     Yoonus Lawal     Ilorin East     Garba Dogo     NULGE     Suraj Tunji Oyewale     Abdulmutalib Shittu     General Hospital, Offa     Barakat Community Secondary School     Awwal Jawondo     Quran     Fatimoh Lawal     Abubakar Baba Sulaiman     Ilorin Like-Minds     Ope Saraki     Abdulrahman Abdulrazak     Marafan Shonga     CACOVID Palliatives     Habeeb Abdullahi Al-Ilory     Ganmo Electricity Sub-Station     Sabo-Oke     Magaji Nda     Saad Omo Iya     Christopher Ayeni     John Obuh     Ogbondoroko     Special Adviser On Digital Innovation     Abdulrahman Abdullahi Kayode     Lawal Olohungbebe     Ajidagba     Halimah Perogi     Sambo Murtala     Village Alive Development Association     Kamaldeen Ajibade     Moro     Federal Allocation     Olosi Of Osi     Abdullahi Adisa Akodudu     Aliyu Adebayo     Yakub Lai Gobir     SSA Youth     KSIRS     Abdulraufu Mustapha     Abdulfatai Baakini     Abdulazeez Uthman     08001000100     Ambassador Kayode Laro     Kwara State Coalition Of Business And Professional Associations     Jeunkunu-Malete-Bani     Yusuf Olaolu Ali     A.O. Belgore     Riskat Opakunle     Taofik Abdulkareem Babaita     KFA