Funding challenge, a bane to Kogi council administration

By Abu Mike

The problems confronting Local Government Councils in Nigeria are legion. The most tortuous is funding and it has no doubt crippled the activities of that tier of government.  The issue of funding is one problem that has brought the leadership of the respective councils on collision course with the workers across the country. In kogi State, It has continued to not only, impede good governance in that tier of administration, it is one problem that is giving the state Governor, Captain Idris Wada sleepless nights.

This is an issue, often capitalized on by the opposition to deride the government.  Even those who should know the variables have cashed in on the issues at hand to accuse the government of insensitivity.

It is no longer in contention that monies accruing to the three tiers of government is on the decline.  Presently, two third of states in the country cannot pay salaries. Kogi State government has a staff strength of about 23,000 with a monthly wage bill that stands at N3.2 billion. In the month of March the state government received N2.7billion while the money has gone further down in the months that followed.

It is also not in doubt that most of the councils in the state have been carrying more loads than they can ordinarily shoulder.  Many of the councils are over-staffed and as if to compound their problems, came the issue of minimum wage.
What accrues to Local Government in the state ranges between N3.3 – N3.7 billion monthly.  The entire amount, it must be explained, does not go to the councils.  There are statutory deductions.  It is only after these deductions are made that what remains is shared in line with laid down guidelines or indices.

The statutory deductions include; SUBEB, one per cent for Local Government Service Commission, one per cent to service the Joint Allocation Account (JAC), and five per cent for traditional council.  All of these are on first-line-charge.

In some of the councils, there are other deductions that are often made to meet other obligations.  For instance, there are eighteen number of them, it was learnt, that have outstanding commitments to Federal Inland Revenue Service (FIRS), payment to ex-political office holders, who secured court orders to that effect, common project, which took off in July and COst of Transaction, COT.

There are still such other deductions as deduction for vehicles (cars and motorbikes) purchased by the councils from a joint pool and deductions to meet pension obligations.  In this case, the amount is not fixed because we have workers retiring almost every month.

The council that are indebted to FIRS, it was learnt, pay the sum of N500,000 monthly and this amount is taken at source.  All of these deductions, no doubt, further deplete the amount accruing to them.

The sources of funds to Local Government are fixed.  They are Statutory Allocation, Value Added Tax (VAT), Excess Crude and SURE-P.  The VAT and SURE-P are not subject to any form of deduction.  Excess Crude is no longer applicable since the removal of fuel subsidy.  It now comes as SURE-P funds which are targeted at infrastructural development. With the fall in oil price, a lot has happened to the SURE-P.

When the final amounts are released to the councils, there are some internally approved deductions necessary for the smooth running of the councils.  These include, salaries, security votes and departmental imprest.  These are on first-line-charge.

Investigations have revealed that except for all of these statutory obligations, not a single kobo is deducted for any other purpose.  When contacted, the Deputy Governor, Yomi Awoniyi said the state governor, Captain Idris Wada is worried about the continued short-fall in the allocation accruing to the councils.  He denied the allegation that the state government was tampering with monies belonging to the councils.  He described the allegation as unfounded, saying it is only in the figment of the imagination of those who are bent on discrediting the administration of Captain Wada.

The continued short-fall in allocation is hampering governance at that tier of government.  The Story in the Confluence State is the same sad tale in about 30 states of the federation. Kogi’s case is even better, considering that something is paid as salaries at the end of every month. Salaries are however being paid on pro-rata basis.  A worker in one of the councils who spoke on condition of anonymity said life has been really difficult for them.  “Can you imagine a worker, whose whole salary can hardly take him two weeks being asked to survive on a tiny fraction of say 30 per cent?” he rhetorically asked.

Comrade Tom Abutu, the State President of the Nigeria Union of Local Government Employees (NULGE), denied any extraneous deductions, saying that many of the councils are carrying more loads than they can bear.  While calling on the state government to find a way of ameliorating the hardship being faced by his members, he advised council helmsmen to cut down on waste. He lamented the cost of governance at that level of government. But he also however lamented that even with the absence of political appointees at the councils in the state, nothing seem to have changed. The money accruing to the various councils Abutu maintained, keeps going down on a monthly basis.

Asked how he feels the state could be of help.  He said the essence of JAC is to enable the state augment what accrues to the councils.  “Whatever the state gets as internally generated revenue, it gives the councils a certain percentage”, he explained.

Determined to find a lasting solution to the problem, it was gathered that the state government had to order an audit of workers in the various councils and also made effort to ascertain that what SUBEB takes monthly is not over-bloated.  This, it did by auditing the number of teachers in the state.  The process has been completed. Presently the Staff strength of teachers in the state is put at 33,000 with an expected wage bill put at N1.3 billion. More than that amount is however required to pay the N18000 minimum wage. Unfortunately, what the teachers got to pay salaries was N1billion in the month of March and April, 2015.

Reacting, Suleiman Abdullahi, Chairman Kogi State NUT, said he is not a happy man. He has accused the government of owing teachers a backlog of salaries and allowances. But Nuhu Ahmed, Executive Secretary of SUBEB denied the allegation, even as he reveals that a committee has been set up to confirm the actual money owed for teachers leave grant. In all, it has all been allegation and counter allegations. But government have been appealing for understanding. The problem is however one that can only be managed with improved allocation which can only happen when the country experience an improvement in its economy.

The audit carried out by SUBEB was not a retrenchment exercise as was being insinuated in certain quarters.  It was an exercise meant to ensure that there are no leakages in the system.  Apart from the fact that some people’s appointments are irregular, there are those who take more than one salary from the same source and there are those working and receiving pay from more than one source. At the end of the audit exercise, it was discovered that the Teachers are 33000 in strenght and what is needed for their salaries is about N1.6billion. Ironically in March, April and May, what accrued to them was only N1billion. This amount could not even pay the 70% percentage they felt initially was unacceptable.

Analysts say It is possible to resolve the problem disclosing that what is required is the political will.  The administration of Captain Wada is summoning the political will to resolve the problem.  The administration is not unmindful of the fact that meanings would be read into its actions. The truth however is that, the governor cannot sit back and watch things go bad in the councils.  He cannot continue to pretend that all is well while in the real sense, things are not well. Unfortunately, it is not his fault.

It would be recalled that in July 2014 when the finances of the councils got a little respite, the governor ordered that all of them should pay full salaries.  This is a clear indication that the government truly has the workers in the various councils in mind. It also indicates that he keeps tap on what comes in to the councils.  He has also been concerned about how to make the councils improve on their internally generated revenue.

It is not in doubt that it is money that oils the wheel of any organization.  It therefore goes without saying that the present financial state of councils in the state is capable of obstructing development.  A council that cannot meet its salary obligation leaves the workers with no choice than to seek alternatives to augment whatever they get as salary.  This way, the work suffers.

But for what comes to the councils as SURE-P funds, it would have been pretty difficult for any council to put on ground anything in terms of project in the last two years.  How can a council that cannot pay salary, execute projects? SURE-P funds do not come every month.  They are seasonal funds, targeted at specifics.  Where a council has a challenge to fix a broken down culvert, It becomes impossible to do so because the resources are not there.  The helmsman becomes insensitive.  At least, so it will be in the eyes of the electorate.

Many of the past council Chairmen have been accused of non-performance.  In truth, it is not as if some of them set out not to do anything.  They were confronted by the realities on ground-there is no money to meet the challenges of infrastructure, which they promised the people that they will address once they were voted into office.

The State Commissioner for Local Government and Chieftaincy Affairs, Alhaji Abubakar Sadiq Ainoko, commenting on the audit carried, said it has given the Ministry the actual persons on their payroll. The total staff  strength of the entire Kogi State Council workers he says stands at 26,542 as at march end. The expected Monthly wage bill needed to offset the workers at that levels of government he put at about N1.6billion. Unfortunately the councils do not get up to that.

Mr Ainoko attributed the fall in oil price as what has seriously occasioned the shortfall to councils, but appealed for patience and understanding pending when things improve. He disabused the minds of many persons who though ignorantly place the blame for the pro rata payment to council workers in the state on the door steps of the State government to make findings proper investigation of what is obtainable in other states adding that they would find out that the state is doing better.
As things stands currently, analysts have opined that it is only an improved allocation to the various tiers of government, especially to the local councils that can put to an end the issues of salaries that has hindered the better working condition for teachers and workers at the council level in the country.

Abu Micheal is the press secretary to Kogi State Deputy Governor.