Kaduna: The benefits of reforms – Vanguard

Posted: July 5, 2020 at 9:46 am

Executive Governor of Kaduna State Nasir El-Rufai.By Emmanuel AdoReform is Chinas Second RevolutionDeng Xiaoping

TherampagingCOVID-19 pandemic for obvious reasons has dominated the entire media outlets,pushingother major developmentsexpectedlyto the background. Itsonly natural that other events will suffer news black outconsidering that it hascontinued to knock off people at will.A virus that has brought thealmighty United States of Americato its knees, thathasseen Americaburying more people than it did during the notorious Vietnam war,avirus, that kills at will and that has demystified nuclear power byits farreach andcost effectivenesscertainly deserves some respect even though itsrude.The unspoken but real fear,is that rogue nations like North Korea, Iran etc do not abandon their nuclear programmes for biological warfare-the small but mightycoronavirus.

In the midst of the pandemic, one gladdening development was the official anointing of Kaduna state as the undisputed Number one state inthe World Bank-Assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme-for-Results, in which it achieved the highest number of results (nine) andearned for itself a whoopingN3,960,000,000.00.The Annual Performance Assessment (APA) carried out by the Office of the Auditor-General for the Federation (OAuGF) asanIndependent Verification Agent (IVA), incollaborationwith the renownedK Consulting Limited and the SFTAS Programme Coordination Unit (PCU) wasstrictlybased on key reforms- as contained in the Fiscal Sustainability Plan(FSP)-Framework ForSustainability of Sub- National Governments of Nigeriaagreementbetween the Federal Government, the36 States,the Federal Capital Territory and 774 Local Governments of Nigeria,which aims to fundamentally address the issue of fiscal responsibility.

Since 2015, the Buhari administration has forced down somereform packagesdown the throats of the 36 states and the federal capital territory,the notable exception being Kaduna state which was alreadyreforming, such that when the then Finance Minister Kemi Adeosun,signed the Fiscal Sustainability Plan(FSP)-Framework ForSustainability of Sub- National Governments of Nigeria with the36 States,the Federal Capital Territory and 774 Local Governments of Nigeria, kaduna State was already far ahead, because the reformswerent forced on it, rather they were pointing the way. The FSP aims to address the issue of Fiscal Responsibility with 5 Key strategic objectives anda22 point Action Plan that will drastically improve accountability and transparency. It will increase public revenue,rationalize public expenditure etc. States were also expected to publish Annual Audited Financial Statements, Budget Implementation Performance Report, Implement TSA,R review various revenue laws,biometric capture of civil servants etc.

The 5 Key strategic objectives became necessary,especiallyas the need for states to becomefinancially independent functional entitiesthroughincreasingtheirPublic Revenueby improvingindependently generated revenues, becameglaringlyobvious. Stateswhere also expected to make every kobo count, through a rationalized Public Expenditure, efficiency, reduced costs and plugging of leakages.ToImprove Public Financial Management by embarking on a series of reforms, the revision of archaic laws, civil service rules etc.And finallya Sustainable Debt Management, such that the debts of states are sustainable and at a healthy level. FSPin a senseis to save the stateswhom are permanently on blood transfusion (FAAC) from themselves, likesickle cell patients.

Though there is a morbid fear of the word reform, largely due to gross misconception and the nature of man to fiercely resist change, the truth is that reform(s) are basically a correction of abuses, that are very critical for organizations and governments to periodically undertake, if they dont want tobecome lethargic. Fundamentally the objective(s) of reforms remain makingthe public sector more efficient, operating from the premise ofwhy they dont. Right from his swearing in, El- Rufais goal to enhance the capacity of the state government , its various agencies so as to improve service delivery to the people, tackle corruption, to enforce cooperation amongst the agencies, institute transparency and accountability in the delivery of services on behalf of the people, who in faith have entrusted their rights to elected representatives was neverin doubt.

El- Rufai inherited a dysfunctional Public Service,that was unproductive due to an aging workforce that lacked the capacity to deliver,but that was most unfortunatelyfocused on taking care of itself. The Kaduna State Public Service Revitalization and Renewal Programme, the brain child of the El-Rufai administration which was long over due has improved the efficacy and capacity of the service to effectively deliver serviceto the people of the State. The reform has resolved several issues impeding public service efficiency, addressed low productivity, redundancy, duplication of roles, high proportion of aged workers, and the issue of unskilled staff.Like El RufaiarguedNo Nation develops beyond the capacity of its Public Service.

Key to the success recorded in increasing the IGR,are the reforms that were put in place, workingwith Ifueko Omoigui, one time Chairman of the Federal Inland Revenue Service,a drasticrestructuring of the Kaduna State Revenue Board into a Service,that is capable of effectively raising the much needed finances, for the myriads of projects he hadon his tablewas effected.From a paltry N600 million IGR a month, the Kaduna State Internal Revenue Service now generates over N2 billion monthly,collectinga whopping N45 billionin 2019, due tothe new Kaduna State Tax Lawthatattacked leakages, criminalizedcash collectionand the Service as the sole collecting and accounting authority, though all taxes and fees are still assessed by the relevant ministries and agencies.

The centralization of collection and ease of payment ,through the deployment of PoS and other electronic payment system has also helped in voluntary compliance. Theissue of multiple levies has also been tackled, such that theugly experience of road blocks by all manner of agencieswasalso prohibited by the law.Its thereform equally emboldened the Service and last year it dragged the Ahmadu Bello University(ABU),to court for backlog of taxes amounting to over 12 billion naira.

Since 2015, the Kaduna StateGovernmentas part of the Reforms has consistently subject its budget estimates to town hall meetings for inputs and scrutinyandin2015 over 3 billion naira was added to the budget from inputs by citizens.

The statealsoconsistentlypublishesits Audited report in line with the Fiscal Responsibility,which is critical considering theimportance of Audited Statement of Account,in terms ofcost of projects and income.

Definitely its not yet uhuru for theKaduna State Government,but the vision is clear,the results improved accounting clearer mandates for the ministries, strengthened partnerships andlike the Chinese will say,the journey of a thousand miles,starts with the very first mile. Kaduna State has certainly taken those steps andthe sincere commitment to deepen the reforms,mainstream transparency mechanism,increase access to information,enhance citizen engagement and empowerment is not in doubt.

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