A Governor and his Strategic Mayors III
I read an article titled: Gov. Alex Otti’s Alleged ‘Authoritarian’ policies spark outrage among Abia State Local Government Officials as Chairmen decry new restrictions on appointment, salary caps, and revenue seizure. The author reported that during a closed door meeting on November 13, 2024, there were new Instructions read out by the honorable commissioner of Local Government and Chieftaincy Affairs, Prince Uzor Nwachukwu. The author’s skillful report can be summarized thus:
Restrictions on Appointments:
Prohibition on Chairmen appointing key officials, including the Secretary to the Local Government Council. Only the Chief of Staff and a limited number of Supervisory Councillors are permitted
The publication detailed that measures such as curtailing traditional appointments have been scrapped.
According to the report, another vexicious issue is the Salary Caps:
Henceforth, elected councillors will earn ₦200,000, while supervisory councillors and personal assistants will earn ₦100,000 each.
Chiefs of Staff has been pegged at ₦150,000 and Mayors/Chairmen will earn ₦1.5 million and their deputies, ₦500,000
On the alleged Revenue Seizure, the article detailed that revenue from major local councils will be redirected to the state government, thereby rendering local revenue officers inactive. Elimination of Support Roles, these roles have been scrapped – chief press secretaries, media and publicity officers, special advisers and assistants. The author concluded that these policies have raised concerns about the erosion of local autonomy, centralized control, and the potential hindrance to effective governance. It emphasized that local government officials are questioning whether Governor Otti’s actions align with democratic principles or mark a shift toward authoritarian rule.
While appreciating the author for bringing to the attention of the state’s Chief Executive some perceived discomforts in some quarters, I have decided to deal with the report in its own merit without questioning it’s authenticity.
I have it on record that Governor Otti is intentional about resource mobilization, profiling and disbursement. Specifically, he has entrenched. The following:
- Reduced Recurrent Expenditure: Otti’s budget allocates 16% to recurrent expenditure, significantly lower than the 47.2% allocated by his predecessor.
- Increased Capital Expenditure: 84% of the budget is dedicated to capital projects, focusing on road infrastructure, education, and healthcare.
He prefers to guard against likely unbridled expenditure. His Excellency is appealing to all and sundry that the economic benefits of these policies will depend on effective implementation which he is determined to ensure it succeeds.
What’s the relationship between the state governors and the federal government? The federal government of Nigeria has various ways of influencing state government appointments, revenue mainstreaming, and activities. For instance, as regards Revenue Allocation The federal government controls a significant portion of the revenue allocation, determining how much each state receives. For instance, in January 2022, the Federation Account Allocation Committee (FAAC) disbursed N766.47 billion to the three tiers of government, with the federal government receiving N279.46 billion, states N221.19 billion, and local governments N163.88 billion. In terms of Fiscal Federalism The federal government applies the Vertical Allocation Formula (VAF) to determine revenue sharing among the three tiers of government. This formula dictates the percentage of revenue allocated to each tier.
Another interesting fact is State and Local Government Creation Are you aware that the federal government has the power to create or dissolve states and local governments, affecting their autonomy and revenue generation capabilities. The largest churn of revenue generation space is controlled by the federal government. Revenue Generation Agencies Federal agencies like the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) collect revenue on behalf of the federal government, limiting state governments’ control over revenue generation. Federal Agencies’ Oversight: Federal agencies oversee and regulate various sectors, such as finance, commerce, and natural resources, which can impact state government activities and revenue mainstreaming. Now, regarding laws backing these restrictions, some relevant ones include
The Constitution of the Federal Republic of Nigeria Outlines the federal government’s powers and responsibilities regarding revenue allocation and state government oversight. Federation Account Allocation Committee (FAAC) Act Guides revenue allocation among the three tiers of government. and Nigeria Customs Service Act Establishes the NCS’s role in revenue collection.
The federal government is heavily invested in this process and the state governments are at the receiving end.
The recent policies implemented by Governor Alex Otti’s administration, though perceived as restrictive, are actually a strategic move towards fostering fiscal discipline, effective resource allocation, and sustainable development in Abia State. By streamlining local government appointments, salaries, and revenue management, the state government aims to reduce unnecessary expenditure, promote transparency, and channel resources towards critical infrastructure projects. For instance, it will aid Boost to Infrastructure Development: With a focus on road construction, education, and healthcare initiatives, Abia State is poised for economic growth and job creation. Secondly, Improved Resource Management: By curbing wasteful spending, the state government can optimize resource utilization and attract investments. Thirdly, Enhanced Transparency: Increased oversight and accountability will foster trust among citizens and investors. Other benefits include Better Public Services: Efficient allocation of resources will lead to improved healthcare, education, and infrastructure services for citizens. Another is Empowered Local Communities: By prioritizing local government autonomy, Abia State can unlock the potential for grassroots development. Could there be any politically strategic benefits? These are not far fetched. An example is Good Governance: Governor Otti’s LG policies demonstrate a commitment to responsible leadership and accountability. We can not forget Strengthened Institutions A more effective and efficient local government system will reinforce the state’s institutional framework.
Let’s give Governor Otti’s administration the time and support needed to unfold the true intent of these policies. With patience and cooperation, Abia State can emerge stronger, more prosperous, and a model for sustainable development in Nigeria.
Dr Chukwuemeka Ifegwu Eke writes from the University of Abuja Nigeria.
