Dr Ngozi Okonjo-Iweala, the Director-General of the World Trade Organisation (WTO), has cautioned newly elected and re-elected governors against accumulating excessive debt for their respective states across Nigeria. Addressing the audience on Monday at the Nigeria Governors Forum (NGF)’s 2023 induction program, themed “Governing for Impact: Building Sub-national Governance,” the former Finance Minister emphasized the importance of investing in infrastructure, education, and basic healthcare, while also prioritizing the payment of teachers, healthcare workers, and pensioners.
To foster transparency and maintain the trust of citizens, Iweala called upon states to disclose information about federation revenue allocation and internally generated income (IGI). She reminisced about her time as the finance minister during the administrations of Presidents Obasanjo and Jonathan, emphasizing the need to resume the practice of publishing financial information for citizens’ awareness.
During her address, Iweala urged the governors to exercise caution regarding their debt profiles and exercise prudent control over expenditures. While encouraging investments in infrastructure, education, and healthcare, she stressed the importance of promptly compensating teachers and healthcare workers. The former finance minister further highlighted that only a few states generate significant internally generated revenue.
Renowned billionaire businessman Tony Elumelu also spoke at the event, urging Nigerian leaders, particularly the governors of the 36 states, to empower young people for national development. Elumelu emphasized that investing in the younger generation would guarantee a better Nigeria, urging the governors to create an enabling environment for their growth and transformation.
Iweala reiterated the significance of increasing internally generated revenue (IGR) alongside the federal allocation received by the states. She emphasized the need for more transparency, efficiency, and effectiveness in managing these funds. Quoting an analysis of data from the National Bureau of Statistics and state audited financial statements by Budgit, an organization providing comprehensive financial reports on country budgets, Iweala revealed that 33 states relied heavily on federal transfers for the majority of their revenue, with 13 states depending on monthly allocations for approximately 70% of their income.
According to Iweala, while the aggregated IGR from the states increased from N1.2 trillion in 2020 to N1.61 trillion in 2021, it paled in comparison to the FAAC (Federation Accounts Allocation Committee) allocations received by the states, which amounted to N2.23 trillion in 2020 and N3.16 trillion in 2021.
Dr Ngozi Okonjo-Iweala previously served as the finance minister under President Obasanjo’s administration and later as the Coordinating Minister of the Economy and Minister of Finance during President Jonathan’s administration. Her insights and recommendations provide valuable guidance to the governors as they assume their roles and responsibilities in the various states across Nigeria.
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