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.

Azeez Salawu     Hikmah AbdulKareem     Ajuloopin     Garba Ado Sanni     Salihu Jibril Garbi     Gbemisola Oguntimehin     Garment Factory     Mohammed Ibrahim     Akanbi-Oke     Abdulganiyu Oladosu     Usman Alkali Baba     Bureau Of Lands     Yusuf Abdulkadir     Tescom.kwarastate.gov.ng     Lithium     Ayo Adeyemi     Ilorin Muslim Community     Valsolar     Saad Omo\'ya     Cassava Growers\' Association     Rice Farmers Association Of Nigeria     CCB     Kamoru Kadiri     Ubandoma     Oloyede     Akanji     Ita-Nmo Market     Muhammed Danjuma     Muhammad Akande Olarewaju Odunade     Edu     Salmon Babatunde Salmon     Kayode Oyin Zubair     United Nigeria Airline     Folashade Omoniyi     Wale Oladepo     Sidikat Uthman Ajibola     Abubakar Suleiman     Sidikat Alaya     Yusuf Aiyedun     Kwabes     Kwara University Of Education     Towoju     Face Masks     Kanu Agabi     Shonga     Lotus Bank     Seed Technologies     Abdullahi Saadudeen Alikinla     Ronke Adeyemi     Bolakale Kawu Agaka     Sa\'adu Salau     Abdulmajeed Abdullahi     Kolawole Bashirat     Abdulhakeem Adelaja Amao     Police Commissioner     Baba-Isale     Abdulrasheed Lafia     Binta Abubakar Mora     Rebecca Olanrewaju     Lasiele Alabi Yahaya     Jamiu Oyawoye     Halimat Yusuf     Akeem Lawal     Isiaka Oniwa     International Public Sector Accounting Standards     Savannah Centre For Diplomacy, Democracy And Development     Babaloja-General     Gbadeyan Gbadura Yomi     Niyi Ogundiran     Rueben Parejo     Kale Bayero     Jide Oyinloye     Tunde Oyawoye     John Kehinde Salako     Sobi Specialist Hospital     Sardauna Of Ilorin     Fatai Olodo    

Cloud Tag: What's trending

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

General Tunde Idiagbon International Airport     Babata     Ilorin Water Reticulation     Government High School (GHS), Adeta     KW-GIS     07039448763     Ayo Adeyemi     Kwara State Fish Farmers Association     Orisa Bridge     Ojuekun Sarumi     Yahaya Jibril Usman     Madawaki     ITP     AGILE Programme     Tunji Olawuyi     Yemi Sanni     Idowu Aremu     Abubakar Abdulraheem     Muhammad-Mustapha Suleiman     Kwara Consultative Forum     Abubakar Abdullahi Bata     Timothy Olatunde Fadipe     Oasis Muslim Care Foundation     Ibikunle Ogunleye     Saka Saadu     Harrison Osauwagboe     Aminu Adisa Logun     Babajide Ajayi     Suleiman Abubakar     Kupchi Hosea Maxwell     Bello Oyebanji     Patience Jonathan     Rafiu Ibrahim     Mutawali     Kwara State Sports Commission     N-Power     A.G.F Abdulrasaq     Bayer AG     Quranic Recitation Competition     Neuropsychiatric Hospital     Nigeria Governors\' Forum     Government Girls’ Day Secondary School Pakata     Riskat Opakunle     Ajayi Okasanmi     Kassim Babamale     Seun Bolaji     Shao     Gobirawa     Kwara State Polytechnic     Nigeria Customs Service     KWSIEC     Taiwo Joseph     Abdulrahman Iliasu     Bilikis Oladimeji     General Hospital, Offa     Sobi Specialist Hospital     Col. Adedipe     M.Y. Abdulrahaman     Aliyu Alhassan     NIPOGA     Toyosi Thomas     Council Of The Wise     Omotosho     Tinubu     Aminat Ahmed     NaAllah     College Of Education     Ibrahim Abdulqadir Abikan     Senate President     Timothy Akangbe     Shehu Alimi Foundation     Henry Olaosebikan     Alimi     Michael Nzwekwe     Kwara South     Saraki     Nigerian Correctional Service