Osinbajo counsels states on financial viability

In a view to discourage over dependence on a source of revenue and ensure financial viability in Nigerian states, Vice President Yemi Osinbajo has urged state governments to begin to think like countries.

Osinbajo said the idea of financial viable in states should be seen from the medium to the long-term perspective, adding that states needed to seek alternative revenue sources to drive key capital projects.

The Vice President made the disclosure while delivering a key note address at the Leadership Newspaper Awards and Conference 2017, with the theme, “Towards financially viable state governments.”

He noted that thinking like countries would make states plan like one as there was no time to wait for constitutional reforms that may be required for further devolution of power to the states.

“We must act whether or not there is this reform. In many cases, states have control of some of the resources that can make a tremendous difference in the way that they operate,” he said.

Osinbajo pointed out that financial viability was not just about earning more, but about doing more with less, stressing that state governments should embrace continuity in their implementation plans.

Read also: INCREASED TAX: Group raises the alarm over job losses

The Vice President, however, advised against prioritising raising Internally Generated Revenue (IGR) at all costs, as this could be counter-productive on enterprise and investment growth.

Meanwhile, qestions have been raised over the years about the states’ autonomy in Nigeria, one would think states could leverage presence of natural resources in their territories to make long-term plans.

However, the idea of states having full liberty to explore their resources has long been a myth than reality as described by many, a structure where states seek permissions to explore their resources has raised concerns to the feasibility of financially viable states in Nigeria.

Gbenga Olawepo-Hashim, a 2019 Presidential aspirant, on Wednesday said decentralisation of power was the only way Nigeria could survive as a productive country, advocating that states should have control over the resources in their environment.

By Oluwasegun Olakoyenikan…

 

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