In this piece, UMAR BAYO ABDULWAHAB examines the implications of multi-billion parlliatives roled out by the Kwara state government to cushion the effects of subsidy removal by the federal government.
2023 budget expectations
When in Janauary 2023, Kwara state governor AbdulRahman AbdulRazaq signed the 2023 budget into law, he said the fiscal document provides funding for the completion of some ongoing projects and continuation of many of the administration’s impactful programmes.
The governor’s position was corroborated by the speaker of the state House of Assembly, Hon Yakubu Danladi Salihu.
Salihu said the parliament properly scrutinized the budget and found it important for continuous development of the state, especially completion of ongoing projects.
The budget has a size of N188, 845,603,561.00 — a few millions less than the N189, 436,248,054.00 that the governor had proposed in his November 30, 2022 budget presentation speech.
It has a capital component of N94,855,769,496.00 (50.2%) and a recurrent component of N77,626,089,869.96 (49.8%).
The document gives hope to many that the fiscal year under review would witness tremendous development in terms of capital projects and infrastructural development.
Indigenes of the state expect to see new road projects, improvement in schools, health facilities as well as a continuation in the government safety nets programme which had captured many artisans and businesses outfits.
The organised labour and entire civil servants in the state also hoped that the govenor will keep to his electioneering promises that his administration would not reduce the work force on the account of dwindling revenue even as they expect that the ruling All Progressives Congress (APC) government would sustain prompt payment of workers salaries at all levels.
Changing narratives
However, six months into the budget implementation and two months into the second term in office of the AbdulRazaq’s administration, the narratives seems to be changing following the removal of fuel subsidy by the Tinubu’s administration.
The administration of Governor AbdulRazaq in responding to the situation announced multi-setoral parlliatives to cushion the effects of the removed subsidy on citizens of the state, part of which included payment of N10, 000 cash monthly as palliative to public servants.
True to his words, many workers confirmed to Blueprint the receipt of the palliatives which the government said would commence from July and last until a new minimum wage regime comes on.
Multi- sectoral palliatives for Kwarans
Earlier at a news briefing in Ilorin, the chief press secretary to the governor, Rafiu Ajakaye told journalists that the governor had approved a multibillion naira palliatives to neutralise the effects of recent removal of fuel subsidy, cutting across different sectors and demographies of the state.
He said the governor has similarly approved the payment from this month, (July) of new hazard and skipping allowances and 100% CONMESS for consultants and medical doctors under the government’s payroll and a new regime of allowances for nurses working for the state government
“The governor has also endorsed immediate cash-backing of 2019 and 2020 promotion for Teaching Service Commission workers.
“In the same vein, he has approved cash-backing for 2021 promotion exercise of teaching and non-teaching staff of SUBEB and restoration of steps to all of them. The governor also approved the extension of free bus rides for students of tertiary institutions in the state, while modalities for occasional distribution of food to the poor and most vulnerable households are to be activated in the next few days.
“The governor has also approved for the Kwara State Social Investment Programme (KWASSIP) to activate a N500m worth of conditional support for petty traders and MSMEs in the state.
“The state government would receive fertilisers and grains from the federal government and pay for same. It is not free. Modalities for the handling of these will be made available later. This is to boost farming outputs and food security in the state.
“The government, meanwhile, will be setting up a committee to interface with marketers on the need to curb extortionist tendencies as seen in arbitrary fixing of prices of food stuffs. This practice imposes hardship on everyone. The government will be willing to collaborate with the patriotic market leaders on how to tackle this challenge.”
The implications
But while workers heave a sigh of relief, Governor AbdulRazaq convened a meeting of his advisory council including principal officers of the state House of Assembly, Kwara APC executives and party leaders at Government House, Ilorin where he hinted about the implication the multibillion palliatives would have on governance in the state.
The governor said the state is heading to a situation where all its statutory allocations and IGR would go into paying salaries
But against all odds, the governor said the subsidy removal policy was the lesser evil open to the federal government, saying other options such as printing new currency on a large scale to fund fuel subsidy would crumble the economy and subject the people to greater harm.
AbdulRazaq told the stakeholders’ meeting that his administration would deploy more resources into making people cope with the removal of subsidy.
“At the moment, we would concentrate more on funding welfare programmes in order to keep the economy going and helping the people to cope with the temporary discomfort. This means we’ll slow down on other things that do not specifically address this need,” the governor told a crowd of APC leaders, stakeholders, and community leaders.
“We have rolled out several palliatives that cover different sectors, including medical workers, teachers, small and medium scale. Those who are not immediately covered would be taken on board very soon. We appeal for patience. We are working with the federal government to ease the temporary pains of the removal of fuel subsidy. Very soon, things will normalise and we will be better for it,” the governor said.
“We will also reach out to the most vulnerable members of the society. President Bola Ahmed Tinubu has advised all states to go ahead and look at ways of mitigating the effects of the subsidy removal until the labour and federal government reach an agreement on the new minimum wage. That’s why we rolled out new palliatives which include N10,000 transport allowance for workers. There will be food distribution, among several other interventions we announced yesterday.
“The federal government is also selling fertilisers and maize to state governments. The former CBN governor, Godwin Emefiele had bought a lot of fertilizers and maize which the federal government would now sell to the state governments and the states would pass it on to the public in ways to be determined.
“The challenges of mitigating the effects of fuel subsidy removal is an ongoing exercise which we will continue to look at. Not everybody will be captured from day one because of the cost of implementing the programmes. For example, nurses alone would receive about N60m a month under the new arrangement. If you look at it over a year, it is over N700m. So, when you look at the numbers, we are heading to a situation where all our statutory allocations and IGR are going into paying salaries, but for now, that is what we need to do to make sure people feed well and they are okay and then continue other businesses. It is important that we be our brothers’ keepers. Our efforts will not be confined to civil servants’ welfare alone. So, through KWASSIP, we will reach out to other segments of the society and also through food distribution like we did during COVID-19,” he added
Kwara stands better chance – APC
The state APC chairman Prince Sunday Fagbemi, expressed confidence that Kwarans stand the chance to enjoy more dividends in the second term of the administration.
To that extent therefore, he charged members to remain united and continue to make concerted effort to see that the party grows at the grassroot level.
“It is unity that is foremost and required at this juncture. And I want to assure each and every one of us that the second term of the governor will be better than the former, and I request that we cooperate with him, knowing fully well that he has some other assignments to perform at the national level. I believe that this era will bring more progress to Kwara state,” he enthused
As it were, there are high expectations from the AbdulRazaq’s second term administration and as the new chairman of the Nigeria Governor’s Forum . How he would handle the situation would speak volumes about the Tinubu’s policy on fuel subsidy.
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