Wednesday, November 2, 2011

States are broke, says CBN governor

 
The Nation, Lagos. 30/10/2011
 
GOVERNOR of Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi has said most of the states and local governments in the country are unviable.
He questioned the rationale behind the creation of more states, local government and ministries which are not economically viable. Sanusi's declaration lends credence to the assertion by the Senate that most states of the federation are financially unhealthy.
Speaking at a book presentation in Kaduna during the celebration of the 80th birthday of Prof. Adamu Baike yesterday, the CBN governor said that the time has come when the nation needs to take the difficult step of overhauling political structures which have ensured that states spend about 96 percent of their resources paying salaries and allowances.
Sanusi also faulted the wisdom behind establishing nine new federal universities when existing ones have not been adequately funded by the government. According to him, the paucity of funding has led to a mass exodus of students and teachers to better organised educational settings such as Ghana, South Africa and other parts of the world.
In his paper entitled “Re-invigorating education in Nigeria: 
 
An essay in honour of Professor Adamu Baike”, he said “ultimately, we will have to be confronted with the task of taking the difficult step of overhauling the political structures that we have.”
He asked pointedly, “Do we need 36 states? Do we need the number of ministries that we have? Is an economy where states spend 96 percent of their revenue paying civil servants an economy that is likely to grow in the long run? These are difficult questions that we need to ask. 
“We have created states and local governments and ministries as structures that are economically unviable and the result is that we do not have funding for infrastructure, we do not have funding for education; we do not have funding for health”.
This damning verdict by Sanusi will likely dampen the spirit of many who have been agitating for creation of more states in the country.
Apparently explaining the government’s expenditure portfolio, the CBN governor said, “I don’t know how many people know that 70 percent of the revenue of the federal government is spent paying salaries and overhead; leaving the rest 30 percent for 150 million Nigerians”.
What this means, according to him, is that there is no money for the provision of infrastructural facilities by the various tiers of government, pointing out that in an emerging economy like Nigeria, a well designed educational policy should be an integral part of its development strategy.
He argued that the present development strategies should include measures to invest in human capital that facilitates the upgrading of industries and engender the economy to attain optimal resource utilization.
While acknowledging the growth in the number of federal, state and private universities in the country in recent times, Sanusi said that “the recent decision of the federal government to establish nine additional universities will further increase the number of federal universities. 
“It is not the place of the Central Bank Governor to comment on education policy. But one wonders the wisdom behind creating new universities when the ones we have built are still suffering from underfunding”.
While lamenting the huge number of Nigerian students studying outside the country in what he described as “better organized educational settings” and the huge amount of money they pay as tuition, the CBN governor noted that the tuition paid by these students is more than the annual budget for all federal universities in the country.
In his words, “although there are no comprehensive data on the number of Nigerian students abroad, recent data have shown that there are about 71,000 Nigerian students in Ghana paying about N155 billion annually as tuition fees as against the annual budget of N121 billion for all federal universities.
“In other words, the tuition paid by Nigerian students studying in Ghana with a better organised system is more than the annual budget of all federal universities in the country,” adding that “Nigeria is today placed third on the list of countries with the highest number of students studying overseas”.
He noted that though the structural shift from 7-5-4 to the 6-3-3-4 system of education in 1983 was expected to address many of the perceived deficiencies and respond to the educational yearnings of the citizens for technological and self reliant skills, the system was endangered by funding challenges owing largely to the swings in economic fortunes of the country.
He contended that a sustainable financing framework should be established to support primary education which is the foundation to all other educational achievements, pointing out that inadequate funding and lack of funds could stifle the attainment of the Universal Basic Education goals.
Those who attended the book presentation include Gen. Yakubu Gowon, Lt. Gen. T.Y. Danjuma, Bishop Matthew Hassan Kukah,  Kano State Deputy Governor, Abdullahi Ganduje, Gen. Martins Agwai, Prof. Ango Abdullahi, Prof. Emeritus, Umaru Shehu, Prof. Shehu Abdullahi, traditional rulers and friends of the Baike family.
 

TOAST TO THE COMMONWEALTH


By

DR GOODLUCK EBELE JONATHAN, GCON, GCFR
President, Commander-in-Chief of the Armed Forces
of the Federal Republic of Nigeria

AT THE QUEEN’S BANQUET, 62ND COMMONWEALTH HEADS OF GOVERNMENT MEETING (CHOGM) PERTH, AUSTRALIA

FRIDAY, 28 OCTOBER 2011
 
PROTOCOL

Your Majesty, The Queen
Head of the Commonwealth of Nations

Honourable Julia Gillard, our respected host

Excellencies, Presidents and Heads of Government

Secretary-General of the Commonwealth

It is my special honour and privilege to be asked to propose a toast to the Commonwealth in the presence of Her Majesty, The Queen.

Let me begin by noting the special significance of this moment in the history of the Commonwealth, especially as Her Majesty will soon be marking her Diamond Jubilee and we might not have the opportunity to meet again as Commonwealth Family before the historic event. 

Accordingly, on behalf of all of us, I would like to join the Honourable Julia Gillard, Prime Minister of Australia and our host, to express profound thanks and appreciation to Her Majesty for leading the Commonwealth, these past six decades, with passion, dedication and commitment.

Our Commonwealth is remarkable not only because of the diversity of its membership, but principally because we are united by a set of shared values. Whether as rich, poor, small or large nations, we all aspire to live a life of freedom and dignity and to achieve economic and social progress for our people.

I believe these are precisely the same values that will ensure that our organisation remains relevant to its times and people in the future.

At her ascension to the throne in 1952, nearly 60 years ago, her Majesty captured the strength of our organisation when she noted that:

the Commonwealth bears no resemblance to the empires of the past. It is an entirely new conception built on the highest qualities of the spirit of man: “friendship, loyalty and the desire for freedom and peace.”

The fact that the Commonwealth is now globally recognised as a force for good, particularly in the areas of democracy and development, bears testimony to the widespread acceptance of its established values and principles. We must build on these attributes and strive to strengthen our rainbow coalition of governments, civil society and businesses, all united in partnership to deliver public goods and beneficial outcomes to Commonwealth citizens.

Your Majesty

Excellencies

I have much pleasure in asking you all to please rise and raise your glasses in toast to the Commonwealth:

“THE COMMONWEALTH”.
__._,_.___