Undoubtedly, the year
2015 will remain a memorable year in the minds of many across the globe
with its good, bad and ugly sides, particularly from political and
economic spheres. From economic front, oil which serves as main stay of
the economies of many countries, Nigeria inclusive , witnessed an
all-time shock in global market as crude oil price dropped from $110 per
barrel as at December, 2014 to below $30 per barrel now in the global
oil market with no end in sight to its instability.
Consequently, many
economies which are built around proceeds from oil could not absorb the
shock from the persistent fall in global oil price. The worst hit are
countries with monolithic economies like Nigeria which its mainstay has
been oil over the decades.
Nigeria's economy
since the neglect of agriculture in 1970s has been largely driven by
proceeds from oil while the global oil price remains a platform of
drafting the annual budget.
However, the
persistent fall in oil price has dealt a big blow on Nigeria's economy
in the year under review. This has led to the rise in unemployment rate,
abandonment of developmental projects across the country, non payment
of workers' salaries when due as well as increase in poverty level.
Today, many states in
Nigeria which hitherto relied on monthly hands-out, courtesy of oil
revenues could not survive in even paying wage bills not to talk of
meeting other obligations in infrastructural development. This is indeed
embarrassing in a country with over 170 million population with
abundant human and natural resources.
It is an open secret
that in many states of the federation, developmental projects have
largely been abandoned owing to the current economic realities while
many state governors are incapacitated to initiate any new projects as
promised during their campaigns while projects encapsulated in budgets
could not be executed as planned.
In Kwara State, there
are ongoing projects which ought to have reached completion levels but
could not be executed and completed as planned owing to lack of funds.
Such projects include but not limited to the Ilorin Water Reticulation
project, provision of equipment and take off of the International
Vocational Centre, Ajase Ipo and road constructions in Ilorin, Offa,
Arandun, Rore, Arobadi-Megida among others.
Others are the
establishment of the two campuses of the State University at Ilesha
Baruba and Osi, construction of phase one of Kishi-Kaiama road,
dualisation of Zango-UITH road, dualisation of Michael Imodu, provision
of eight hundred and sixty transformers and rehabilitation of the Indoor
Sports Hall of the State Stadium Complex ,Ilorin.
Addressing some
stakeholders recently at the Banquet Hall, Opposite Government House,
Ilorin, Governor Ahmed did say that projects and programmes encapsulated
in the 2016 budget would be executed with improved revenue.
But for how long will
state governments rely on federation allocations? For how long will
state governments seek bail out from the federal government in times of
financial crisis? For how long will state governments resort to
commercial banks and capital markets for loans and bonds to pay
salaries and finance capital projects? Not for too long, says Kwara
State Governor, Dr Abdulfatah Ahmed.
His perspective on the
issue: any serious government must think outside the box and devise
means of alternative sources of revenue to meet its wage bills and other
commitment in infrastructural development and provision of social
amenities.
In Kwara, Gov. Ahmed
is walking his talk as another vista has been opened in the annals of
the State with the establishment of the Kwara State Internal Revenue
Service (KWIRS) and subsequent commissioning of the Revenue House of the
Service with the charged by Governor Abdulfatah Ahmed to rake in five
billion naira monthly, N60 Billion annually.
The new IGR drive is a
bold effort in looking inwards for enhanced revenue generation and
restructuring in the face of shortfalls in earnings from crude oil
sales. Consequently, the drive is seen as a platform towards reducing
reliance on oil proceeds, plugging leakages in revenue collection
processes and growing the the economy.
Other money spinning
sectors which hitherto have been neglected or under-exploited must be
given the necessary impetus and incentives towards opening up
opportunities for the teeming unemployed youths and diversify the
state's economy with a view to stimulating the economy. Particular
reference is the huge but immensely unexplored and exploited tourism
potentials across the State. If Owu Water Falls in Owa Kajola is
transformed into tourists haven value adding economic activities will
not only sprout along that axis of the state its IGR will be greener.
The free fall of the
federal allocation which snowballed into the current economic challenges
is highly embarrassing, considering the human and material resources
the God Almighty blessed this dearing country with. In fact, all
resources are in abundant in Nigeria!
Kwara must be drifted
to economic prosperity through opening up of other opportunities that
could raking in huge revenues. This, if done, will no doubt insulate the
state from its age-long over reliance on monthly federal allocation
which largely comes from oil proceeds.
Without shadow of
doubt, Kwara State is blessed with natural resources which include Gold,
Kaolins, Colombite, Tantalite, Marble, Silica Sand, Granite (Black and
White) Sand, Gravel, Talc, Tourmalines, Mica, Gypsum, Garnet, Emerald,
Clay, Aquamarine, all of which could be exploited to form the base for
industrial development in the state. All these items present
opportunities for milling companies and firms looking to use these raw
materials as inputs.
Already, there is a
plan in the pipeline to categorise artisan miners into clusters for
coordination and assistance. However, the State government must develop
the will to design a blueprint in partnership with the Federal
Government on ways to harness the mineral deposits in the state.
Importantly, the Federal Government must come up with a clear policy
direction synergising with state governments in exploiting abundant
precious stones and metals in the country.
No doubt, Kwara is
agrarian community and farmers could be supported to make agriculture
more attractive to them and even graduates. The Kwara State Government
should as a matter of urgency review all its agricultural policies in
order to match input with output if the state must be truly seen as pace
setter in agribusiness. It is important to get supplements and other
incentives across to genuine farmers at appropriate farming seasons
rather than unintended beneficiaries. Again, diversifying the economy to
agriculture, solid minerals and tourism is a sure-way to stimulating
the economy, create employment opportunities and guarantee shared
prosperity.
Residents of Kwara
State should equally assist the government in building viable economy
through regularly payment of taxes and reduction of reliance on white
collar job to small and medium enterprises and agriculture which are
believed to generating wealth if right incentives are given by the
government.
The Federal Government must also wean Nigerian economy from
the increasing import bills which made the country to import all sort
of items from toothpicks, pencils to foods that could be produced
locally. Relying on locally made items will in no distant time stimulate
the economy, create employment opportunities and preserve foreign
exchange earnings.
Equally, the human
capital flight need to be checked by assisting entrepreneurs and
artisans with capital or grants as a way of boosting local economy and
activate Kwara's huge potentials. The already established micro-credit
scheme of the state government needs to be rejuvenated to accommodate
more artisan groups and encourage more youths to go into farming, solid
mineral, small scale production in order to reduce reliance on
white-collar jobs and alleviate the growing poverty in the land.
