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Policing The Infrastructural Support Fund And Deepening Fiscal Federalism, By Tunde Abatan

Kazeem Tunde
9 Min Read

Policing The Infrastructural Support Fund And Deepening Fiscal Federalism, By Tunde Abatan

 

Nigeria has never been short of ideas neither has it lacked the ability to design the modus operandi of any innovation or programme to achieve its set goals.

Rather, what is lacking is the sincerity of purpose of those charged with the duty of bringing about a fortuitous implementation of such set goals without derailing its genuine intentions.

And that to me appears to be the biggest undoing of the various social intervention programmes of successive governments in the country.

When in 1995 or thereabout the military government of the late General Sani Abacha set up the Petroleum Trust Fund, PTF, headed by former President Muhammadu Buhari, it was intended to breach the infrastructural gap in the country using resources from our crude oil.

Today, over three decades down the line and with the driver of the defunct PTF having ruled the country for eight years, we are back to square one.

This is because when he became the elected President, he failed to deploy competent people to manage his programmes.

He only allowed such appointees to run it the way they dim fit with the corruption and ineptitude trailing most establishment under Buhari’s watch.

Such has been the archils heel of his Cash Transfer project.

Evidences abound to show that the project only succeeded in transferring funds to politicians and few privileged rather than the less privileged.

This time around, the task is to reduce the unavoidable pain inflicted by the removal of subsidy and deregulation of the oil sector by President Bola Tinubu.

That both him and the 36 states have agreed to set up the Infrastructural Support Fundi’s, in the states and allow state government to drive it is a clear manifestation that the FG has learnt lessons not to use the route employed by its predecessor with little or no impact in spite of humongous about spent.

He has also decided in a way to shed the weight and load of the federal government running the country in Unitary format and its obvious shortcomings.

That the government has decided to immediately set aside N790 billion as savings from the N1.9trillion it got from the Federation account in June occasioned by subsidy removal is a demonstration of a listening government.

Besides, the ISF is a clear admission that all the parts of the country are seriously aching from infrastructural deficits.

That the states are to manage the Funds so allocated to them is also to take government down to the states who are also expected to allow it percolate to local government areas where the poor, less privileged abound more than the urban areas.

That the funds are expected to be used in investment in Roads, Transportation, Agriculture, Education, Health, Power and Water resources is a realisation of serious deficits in all nooks and crannies of the country.

During the second republic when the nation’s economy was beginning to show signs of distress with states unable to pay salaries as and at when due, the late sage Chief Obafemi Awolowo, did enthused that the federal government has to come to terms with the realisation that the health of the constituent states which made up the Federation is the health of the federal government.

This time around, agitation for devolution of power to the states and reduction of the awesome powers of the federal government could be addressed by the decision to allow states run the ISF.

This will give states opportunity to identify core areas of their Needs as regards the identified infrastructural gaps and use the money for such.

It is also a demonstration that this government wants to do things the other way through which it could get a different result.

Using the Social register prepared by the Buhari regime is to court disaster in implementation.

Like this column insisted last week, nobody has come across any beneficiary of the Humanitarian Affairs Ministry Cash Transfer done all over the country.

On the issue of decision to save N790 billion of the monthly distributive proceeds to minimize the impact, it is another attempt by President Tinubu to recreate the Sovereign Wealth Fund, SWF, initiated by former President Olusegun Obasanjo but which was drawn down by governors who insisted that the savings should be shared.

Apparently, they lack confidence in the Goodluck Jonathan government to manage such in view of obvious recklessness of that government.

One only hopes that same situation will not repeat itself under this new arrangement.

Fiscal Federalism: The ISF, is also in a way, opportunity for the Tinubu administration to gradually return the country to fiscal federalism as each of the states will deploy its own share of the ISF- expected to be shared on population and derivation basis, to stimulate its local economy by implementing projects that will serve its local needs.

Using the model of an octopus body like the defunct PTF to identify projects in 36 states and 774 local governments is extending frontiers of Unitary system which has never benefited Nigeria.

Since states are expected to identify its core areas, it is now incumbent for state governors to do things holistically and not allowed itself to be bogged down by political partisanship since governors are for All irrespective of political parties.

They should ensure the money is not diverted for implementing esoteric projects that has no bearing on the needs of those who voted them into power.

Policing the ISF: However, the biggest job lies in the court of organized Labour led by both the Nigeria Labour Congress, NLC and civil society organizations to closely monitor the implementation of the ISF in the states such that it won’t end up serving the goal of politicians who may divert same for selfish motives.

Since civil service will implement any project by the state governments, it is incumbent on organized Labour branches all over the states to properly set up monitoring units to ensure the resources get to appropriate hands and that projects identified are such that could benefit the less privileged and general public of their states.

State governors have to ensure fairness in using the funds in the local government areas and not for urban areas like state capitals.

Construction of link roads, rural electricity, farm settlements and ranching including promotion of investments in Livestock are core areas which would stimulate employment in nooks and crannies of the states.

To set up an Ombudsman to monitor compliance of using the ISF for what it is meant for is the biggest task for Labour, NGOs and the citizens who have to come to terms with the fact that they have every right to hold their state governors responsible

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