Still on seizure of Lagos funds

[Richard Akindele]

FOLLOWING the commencement of the second term of President Olusegun Obasanjo, GCFR in 2003, the Federal Government took a bold step to commence the current widely acclaimed economic reforms in laying the foundation for economic growth, poverty reduction and more transparency and accountability in government.

A strong economic team headed by Dr. (Mrs) Ngozi Okonjo-Iweala, minister of finance, Prof Charles Soludo, Central Bank governor, Mrs Obi Ezekwelesi, Mallam Nasir El-Rufai among other eminently qualified Nigerians was constituted to anchor these reform agenda. To this end, a comprehensive home grown strategy for economic empowerment and development programme was developed by the Team: the National Economic Empowerment and Development Strategy (NEEDS), which was launched in May 2004.
With the economic blueprint in place, the economic team has largely been responsible for driving macro economic and structural reforms in the country which has cut across banking, ports concession, budgetary and transparency issues, etc.

The achievement of these reforms within the short space of time has received accolades both within and outside Nigeria. The ground breaking debt relief of $18billion granted to Nigeria by the Paris Club last year marks the hallmark of the genuine confidence that the international community reposes in the Federal Government in general and the economic team in particular. Despite these achievements, the challenge of making Nigeria a truly transformed economy is still a huge one that requires collective efforts of all the tiers of government.

The main elements of NEEDS include empowering people and improving social service delivery, growing the private sector while focusing on non-oil growth, as well as changing the way government works in order to improve governance. The NEEDS document envisages a collaborative relationship between the Federal Government and the States; most importantly in fulfilling the social charter which guarantees economic, social and cultural rights of all Nigerians, States were encouraged to develop their State Economic Empowerment Strategy (SEEDS).

The rationale for this stems from the fact that States (and the Local Governments which fall under their purview), are the tier of government principally responsible for the delivery of basic social services to the populace. Therefore, the attainment of the country poverty reduction and development objectives and more specifically the Millennium Development Goals (MDGs), which the international community and its development partners are committed to achieve, largely depends on State governments’ capacities
Although, Lagos State is the smallest state in Nigeria, it is the most densely populated. Based on a UN study and the State Regional Master Plan, the State is estimated to have above 15 million inhabitants.

Of this population, Lagos metropolitan area is occupied by over 85 percent on an area that is only 37 per cent of its land mass. With a population growth rate of about 300,000 persons per annum and a population density of about 1,308 persons per sq. km. Lagos State is larger than each of 32 African countries; according to a UN study (1999), the city of Lagos is expected to hit the 24.5 million population mark and thus be among the ten most populous cities in the world by the year 2015. These explosive rates of growth have not only progressively complicated and exacerbated inter-related problems of human settlements and the environment, but have also greatly accelerated poverty. The demand for infrastructure, basic amenities and housing is on the increase. Issues of sanitation, waste management, crime, social conflict, governance and management also need urgent attention. All these conditions surely pose great sustainable development challenges for Lagos Sate.

There is no gainsaying the fact that the proponents of this administrations’ tenure extension hinge their case on the economic achievements of the President. However, beyond the national euphoria lies the inexplicable stunted growth and under-development of the States. Take it or leave it, Lagos State remains the most profound symbol of any key improvement in our economic growth and attraction of foreign investment. Fourteen billion naira (N14bn) of Local Government funds in Lagos State is still being held by the Federal Government presently. It is noteworthy to say that the State has complied fully with all the conditions stipulated by the meditation team of Prince Bola Ajibola including its reversal to the 20 Local Governments against the yearnings of Lagosians.

Following the mediation of the Ajibola team, N20billion out of the N34billion accumulated allocation withheld was paid by the Federal Government in two tranches. This sum has since been distributed to the 20 Local Governments by the State Government. While the Federal Government has found it expedient to continue to pay the statutory allocation of the 20 local governments monthly since August 2005 to date, it is apparently illogical to withhold allocations due since 2004 in the name of political expediency. One is at a loss as to the rationale behind holding on to the balance of 14billion in these crucial economic times.

Nigeria is Africa’s most populous country, and with 90 million Nigerians living in poverty, only India and China have more poor people (DFID CSP 2005). Africa’s attainment of the Millennium Development Goals (MDGs) depends on Nigeria’s success in reducing poverty. This is because one out of every five African is a Nigerian. According to DFID and World Bank Country Support Plans for Nigeria (2005), “Nigeria has the best opportunity for a generation to make significant progress towards achieving the MDGs�. For Nigeria to achieve this feat, the Federal Government must allow economic expediency to take precedence over political expediency of releasing the Local Government Funds in Lagos State.

We must not allow partisan politics prevent the achievement of the set targets that will allow the people of Lagos reap the true dividend of democracy. It is on the basis on the above argument that we are appealing to the Economic Team to prevail on the President to release the held funds of Lagos State Local Governments. We must not allow partisan politics to disrupt the achievements of the economic team and indeed the administration of Chief Olusegun Obasanjo. What legacies should the President and the economic team bequeath on Lagosians? Lagosians are indeed yearning to reap the true dividend of democracy.
Azeez is of the Institute of Development Studies, London School of Economics &Political Science

Source: Vanguard