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.

Moronfoye     Shettima     Abdulrahman Abdulrasaq     Afetu Of Alabe     Abubakar Suleiman     Mashood Abdulrafiu Agboola     GGDSS Pakata     Nigerian Medical Association     Jani Ibrahim     Valsolar Consultoria     Adesoye College     Waheed Ibrahim     Abegunde Goke     Ojuekun     Kwara TV     John Dara     Chief Imam Of Ilorin     Bilikisu Gambari     Lanre Issa-Onilu     Simeon Sayomi     Mohammed Yisa     Olatunji Bamgbola     Tunde Kazeem     Lawal Jimoh     Ayobami Akanbi     Oniwasi Agbaye     Boko Haram     Ilorin South     Pakata Patriots     Bello Taoheed Abubakar     Code Of Conduct Bureau     TESCOM 2025     AGILE Programme     Umar Sanda Yusuf     Moshood Bakare     Akeem Lawal     Titus Ashaolu     Ridwan Agboola     Aisha Abodunrin Ibrahim     Memunat Monsuma     Emir Of Lafiagi     Kazeem Gbolagade     Ajibola Ademola Julius     Doyin Agbamu     Tunji Arosanyin     Surajudeen Akanbi     Sarkin Malamai     Vasolar Consultoria     Bamidele Adegoke Oladimeji     Galadima     Fatai Garuba Labaka     Bashir Badawi     Madawaki Of Ilorin     Yomi Adeboye     Forgo Battery Company Limited     Ishak Mohammed Sabi     Laolu Saraki     Gobir Organization Foundation     Kwara State Football Association     Yusuf Lanre Badmas     Alapado     Ilofa     Ilorin Metro Park     Tunde Mukaila Mustapha     Abdulmutalib Shittu     Rueben Parejo     Magaji Erubu     Ghali Alaaya     Baba Issa Awoye     UITH     Col. Taiwo     Marufat Oladosu     Prince Sunday Fagbemi     Gbugbu     Abdulsalam Firdaous Amosa     Arandun     AbdulRauf Keji    

Cloud Tag: What's trending

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

Oke-Oyi     Kawu Baraje     Ayeyemi Sulaiman     Adesoye College     Olokoba Sulyman     Yemi Osinbajo     Tsaragi-Share     Olateju Lukman     Savannah Centre For Diplomacy, Democracy And Development     Muyideen Ajani Bello     Ayodele Shittu     United Nigeria Congress Party     IHS     Logun     Ilorin Airport     Hausa     Ministry Of Women Affairs And Social Development     Summit University     Women For Change And Development Initiative     Kwara State Pension Board     Muritala Olarewaju     Tosho Yaqub     Omotoso     Seni Saraki     Ronke Adeyemi     Abdulrahman Abdulrasak     Muhammed Taofeeq Abdulrazaq     Ayodele Kuburat Olaosebikan     University Road     Moronfoye     Bola Sagaya     Isiaka Gold     Press Release     Iqra Books     Special Adviser On Digital Innovation     Magaji Erubu     YAKOOYO     Baba Adini Of Kwara State     Hajj     Erubu     Nigerian Army     Bature Bello     Suraj Tunji Oyewale     Mohammed Danjuma     Shuaib Boni Aliyu     Ijagbo Health Centre     Ekiti     Joshua Adeyemi Adimula     Al-Hikmah Radio     Sherif Sagaya     Iyeru Grammar School     Saka Isau     Ajibola Saliu Ajia     Yakubu Mohammed Abdullahi     Sarafadeen Kayode Akorede     Muftau Akanbi Oke     Frootify     Idowu Laro     ER-KANG Mining Nigeria Company Limited     Olajumoke Monsura Gafar     Abdulsalam A. Yusuf     Alabere     Abdulkadir Jimoh     Olusin Of Ijara Isin     Hamid Bobboyi     Issa Baba     Mustapha AbdulGaniyu     Saliu Mustapha     Emmanuel Olatunji Adesoye     Hameed Oladipupo Ali     Elerin Of Erin-Ile     Plat Technologies Limited     Okiki     Kwabes     Abraysports FC     Kayode Issa     Democracy Day