Nigerian Governors Forum Retreat: Matters Arising
Now the NGF retreat is concluded a lot of issues raised, questions and complaints! I cannot say everything was addressed satisfactorily. It appears every one is talking of the blessings or curses of our oil wealth, to add to that the experts that were invited were all talking oil and nothing more. I heard Kayode Fayemi say he wants the oil to dry up, and I say sir, the presence of oil is not stopping you from exploring other sources of income, if anything it should enhance your exploring other sources. He also mentioned tax and how a few end up paying, while I agree completely with him as a source of income, but he can still look inward, government should not live by tax alone!
Gov Chibuike Amaechi of course being from the oil region disagreed with oil drying up bit. He said there are enough resources in other regions and spoke of working the land enough to get 3000 hectares that can employ 3000 northern youths for instance, that would make it difficult for Boko haram to recruit any of those 3000 youths. Good point! A few others complained about our lost groundnut pyramids, cocoa, palm tree etc. Well it's a fact that most of these governors are hitting eight years in power, if they'd planted on their first year they'd be reaping or close to reaping by now. It's no use crying over spilt milk or should I say levelled groundnut pyramid or blighted cocoa or even fire razed oil palm plantation. Get to work!!
Gov Babatunde Fashola while responding to debt level of states pointedly said that debt is not a thing we should feel sorry for ourselves for being in. While making reference to the thirty billion dollars debt of Nigeria during President Olusegun Obasanjo era, that he has quarrel with the fact that we paid to have about 60% written off and I absolutely agree with him. He noted that in the UAE they use debt financing to fund most of their capital projects by borrowing from the neighbouring Qataris etc. That debt only becomes a problem when it is used to finance recurrent expenditures (now this is on point!) Rather than fund capital projects. Adding that the US is circa 16 trillion in debt, yet have the best infrastructures etc. While I agree with Mr Governor I would like to remind him that the US still lends her money to the likes of Nigeria desperate to owe at any cost, while they borrow from countries like China at very low interest rate. I would like to advise Gov Fashola if he is not already seeking out such cheap loans to do so if he must borrow! World bank, Paris Club etc are not the right candidates!!! This would make servicing these debts a lot bearable.
Now this brings me to the issue or a resource I consider very critical which interestingly none of the governors nor the invited experts on economy mentioned not even fleetingly. Which is harnessing Alternative and renewable energy. Despite the abundance of this natural resource no one complaining of the "oil curse" talked about it! Does it mean that these governors don't know what it means or the importance of it? Energy mix is the way to go, if any responsible government wants to empower her citizens. My advice to them is, when next they're having this kind of retreat they need to invite professionals in this field to educate our governors to think more in this direction as a source of energy and consequently income for the government looking at tax revenue. Governors must realise nowhere in the world anyone is happy to pay tax, in fact people or companies do everything to evade tax or minimise the amount they get to pay. Hence, any governor looking to use tax as a source of income needs to give the people he intends to tax a source of income by investing in energy heavily and alternative and renewable energy for a good energy mix. Suffice it to say that they can access Green Funds and other related grants and instruments to make this a reality.
Gov Chibuike Amaechi of course being from the oil region disagreed with oil drying up bit. He said there are enough resources in other regions and spoke of working the land enough to get 3000 hectares that can employ 3000 northern youths for instance, that would make it difficult for Boko haram to recruit any of those 3000 youths. Good point! A few others complained about our lost groundnut pyramids, cocoa, palm tree etc. Well it's a fact that most of these governors are hitting eight years in power, if they'd planted on their first year they'd be reaping or close to reaping by now. It's no use crying over spilt milk or should I say levelled groundnut pyramid or blighted cocoa or even fire razed oil palm plantation. Get to work!!
Gov Babatunde Fashola while responding to debt level of states pointedly said that debt is not a thing we should feel sorry for ourselves for being in. While making reference to the thirty billion dollars debt of Nigeria during President Olusegun Obasanjo era, that he has quarrel with the fact that we paid to have about 60% written off and I absolutely agree with him. He noted that in the UAE they use debt financing to fund most of their capital projects by borrowing from the neighbouring Qataris etc. That debt only becomes a problem when it is used to finance recurrent expenditures (now this is on point!) Rather than fund capital projects. Adding that the US is circa 16 trillion in debt, yet have the best infrastructures etc. While I agree with Mr Governor I would like to remind him that the US still lends her money to the likes of Nigeria desperate to owe at any cost, while they borrow from countries like China at very low interest rate. I would like to advise Gov Fashola if he is not already seeking out such cheap loans to do so if he must borrow! World bank, Paris Club etc are not the right candidates!!! This would make servicing these debts a lot bearable.
Now this brings me to the issue or a resource I consider very critical which interestingly none of the governors nor the invited experts on economy mentioned not even fleetingly. Which is harnessing Alternative and renewable energy. Despite the abundance of this natural resource no one complaining of the "oil curse" talked about it! Does it mean that these governors don't know what it means or the importance of it? Energy mix is the way to go, if any responsible government wants to empower her citizens. My advice to them is, when next they're having this kind of retreat they need to invite professionals in this field to educate our governors to think more in this direction as a source of energy and consequently income for the government looking at tax revenue. Governors must realise nowhere in the world anyone is happy to pay tax, in fact people or companies do everything to evade tax or minimise the amount they get to pay. Hence, any governor looking to use tax as a source of income needs to give the people he intends to tax a source of income by investing in energy heavily and alternative and renewable energy for a good energy mix. Suffice it to say that they can access Green Funds and other related grants and instruments to make this a reality.
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