Infographic below shows the true state of Osun’s Salary Burden.
Please read, and share with family and friends. Let’s educate the world on the true state of our state.
Other facts will yet follow tomorrow.
Thank you.
Category: News
The past few months have witnessed critical and growing press attention to the crippling insolvency of 23 of Nigeria’s 36 State Governments, a situation that became public knowledge after several states had failed to pay workers’ salaries for upwards of six months. This distress has not discriminated against the states in any discernible pattern – by political party affiliation, geographical location, ethnic composition, etc, the usual culprit factors that political commentators often latch on to.
Financial distress as grave as this was last experienced 32 years ago (in 1983) during the reckless Second Republic government led by President Shehu Shagari when most of the then 19 states of the Nigerian Federation ran their economies aground by depleting the dwindling federal allocations that all had depended on without exception. The reasons for the 1983 salary crises at the State and Federal levels were: drastic fall in the price of Crude Oil in the international market, profligate spending, and white-elephant projects executed with little attention to financial and schedule discipline, and outright theft of state resources. The states, then as now, were heavily dependent on the tempting but unreliable income from Nigeria’s oil export, which experiences cyclical glut and price fluctuations with the boom-and-bust cycle of the world economy, a systemic problem only occasionally ameliorated when the shock of war jacks up oil prices in key oil supply markets.
We have returned to that terrible past of insolvency and economic stagnation, with some distinct differences. The country’s population has more than doubled from 68 million people in 1985 to 174million today, while the number of states has also almost doubled as if on a cue.
Of the 23 State Governments affected by the salary crisis, Governor Aregbesola’s administration has been singled out for a most severe attention about which Ogbeni (as he is fondly called), has agonized in public and in private. The crisis and the near grounding of the state’s economy and the resulting harsh situation have left an overwhelming number of government pay-dependent families without alternative income in serious financial and emotional distress. The strong feelings brought on by months of waiting for salaries, the payment of which government workers had long taken for granted has soured the governor’s once excellent relations with labour in the state; however, the generality of the citizenry has shown understanding for Aregbesola’s predicament and still support him. All that will help now is rescue by every means available. No argument, no matter how logical, will assuage the strong feelings of workers who find themselves stranded and helpless ‘for no fault of theirs’.
The Federal Government’s immediate financial rescue has forestalled turning workers’ frustration into open antagonism, the possibility of such an outcome is being constantly explored by the Osun PDP‘s warlord politicians who are stoking civil conflict with all manners of provocative publications and discredited allegations. The situation has created a feasting frenzy for faceless hack writers, paid jobbers and ‘critics’ of Governor Aregbesola who churn out damning commentary based on inaccurate data and ill-educated, and coloured observations about the State Government’s policies and the state of things in Osun.
Aregbesola, has taken the pain to explain over and over again that the seeds of today’s problem were sown by the astronomic rise in the wage bill due to the compulsory implementation of the new minimum wage set by the Federal Government in January, 2011, barely two months into his administration. The new government of Aregbesola, compelled to accede to the across-the-board pay rise had lamented that the increase meant that its financial burden rose by 300 per cent (from N1.4billion to N3.5billion per month!) and that this was unsustainable and would have consequences sometime in the future for the state’s development. But nobody listened or took him seriously.
It should be noted that Aregbesola was elected with a mandate to implement major social and infrastructural change in the State as enunciated his green book- “My Pact with the People of Osun” and was duty-bound to fulfil this mandate in the best interest of the State.
Governor Aregbesola had argued strongly back in 2011 that salaries could not be uniform across the country in a federation, since no two states had the same quantum of resources or cost of living. He also argued that salaries should not be adjusted across the board in tandem with the new minimum wage since doing so would increase the gap between the poorest paid and the highest paid, thus eroding the intent of the pay rise and leading the state into insolvency and as well as stalling the its development projects. During the emotionally-heated debate on the effects of implementing the new minimum wage by the state, Governor Aregbesola in presenting the difficult choices before the new government and people of the state had made it clear to the unions that if workers’ emoluments outstripped available revenue, government would have no choice than to retrench workers since it could not borrow perpetually just to pay salaries, whilst neglecting the core reason for having a government. It was noted that state’s revenue could not fully augment the new wage bill if there was a shortfall in federal allocation. Thus, assuaging workers’ demands for across-the-board wage rise by spending all of the state’s earnings on emoluments means leaving nothing for the future, and trusting the future to chance, postponing the evil day.
The governor had also reminded all back then to bear in mind that the Federal allocation to the state was meant for all of the state’s 3.2million residents (now 3.5 million), and not the exclusive entitlement of the 40,000 or so state employees and political appointees. This was not a popular position to take at the time, but it was, and still is the plain truth.
Between November 2010 and December 2014, Osun received a total statutory allocation of N108.3billion, and if we add Osun’s receipts from January to April 2015 of N7.04billion, this makes a total of N115.34billion. Osun expenditure on salaries alone from November 2010 to December 2014 was N120.4billion. This left the state with a deficit of N12billion. If we add other emoluments, Osun’s total recurrent expenditure comes to N206billion, compared to its statutory allocation of N108.3billion. If we add other accruals from Abuja, the grand total of all receipts from Abuja is N204billion.
To put things into perspective, in 2011, allocation from Federation Account to Osun was an average of N4billion per month, this level held steady until it fell to N2.6billion in July 2013.
•Daniyan writes from Osogbo
Workers and Commercial activities in Osun state on Tuesday resumed fully after the two-day Eid-el-Fitr holiday celebration.
A state correspondent, who visited some state and local government offices in Osogbo, reported that workers were seen in trickles at their various duty posts.
At the state secretariat, located at Abeere, Osogbo, workers were exchanging greetings and discussing the suspended strike and the just concluded Eid-el-Fitr, which many described as “low key’’.
“The Eid-el-Fitr celebration was low key because there was no money,’’ a young lady, who identified herself simply as Mogbojubola said.
“Workers in the state have not been paid their backlog of salary, though few months were paid last week, that is the reason why our leaders asked us to suspend the strike.
“Our prayer is that government will pay the remaining salary very soon, most of us have to celebrate in a low-key way because we do not have money”. The lady stressed.
At the state-owned radio and television station, Osun State Broadcasting Corporation , a cross-section of workers seen going about full operations.
Also at the State High Court in Osogbo, judiciary workers and activities went on in the court premises unhindered.
When our correspondent visited Ladoke Akintola University Teaching Hospital in Osogbo, the Chief Medical Director, Prof. Femi Fadiora was seen addressing workers who had suspended their 7-weeks industrial strike.
Also in a statement made available to journalists in Osogbo signed by the Public Relation Officer of LAUTECH. Mr. Ayo Adeyemo, workers were asked to go about their duties as the industrial strike remained suspended.
OSUN DEFENDER
THE Ataoja of Osogbo, Oba Jimoh Olanipekun, has appealed to workers to resume so that Governor Rauf Aregbesola can kick start the recovery of the economy.
Speaking with reporters in his palace in Osogbo yesterday, the traditional ruler, who praised workers for their patience, urged labour leaders to show understanding.
Oba Olanipekun decried the propaganda about the Aregbesola administration.
“We have been reading on the Internet and newspapers that some people are trying to jeopardise the good effort of the government.
“And we have to enlighten the public. Aregbesola should be praised for his numerous achievements.
“Despite the fact that Osun is the least paid in terms of federal allocation, Aregbesola has achieved far more than his predecessors.
“He has changed the face of the state, particularly Osogbo. He has repaired many roads in the state.
“Aregbesola has recorded several achievements. I beg the workers to rally round him to make the state bounce back.
“I’m appealing to workers to show understanding. Some of the roads he built and rehabilitated have attracted development to the state. We, the people of Osogbo, have no regret in supporting Aregbesola.”
THE NATION
Hundreds of Osun Muslims fateful that came to celebrate their Eid-El-Fitri celebration from Lagos and other states went back to their different locations through free rail services provided by the Osun State Government.
The last batch of the people left Osogbo Terminus of Nigeria Railway around 11am where former Commissioner for Commerce, Industries, Cooperatives and Empowerment, Mr. Ismail Alagbada, accompanied by the former Special Adviser in the ministry, Dr. Olalekan Yinusa, Director of Commerce, Mrs. Mary Asaolu, bided them farewell to their destinations.
The state government had provided free rail service for the indigenes of the state from Lagos and other states that want to celebrate the festival in the state.
Former State Commissioner for Commerce, Mr. Ismail Alagbada, said that Osun State was unique, adding that there was no state in the federation that was doing such project.
He enjoined the people to continue to support the administration of Rauf Aregebsola for more dividends of democracy.
DAILY INDEPENDENT
Governor Rauf Aregbesola of Osun State has said the surveillance helicopter purchased by his administration would soon be given the necessary assistance it requires by the Federal Government.
According to a statement issued on Saturday by the media aide to the governor, Mr. Semiu Okanlawon, the governor gave the assurance when the Police Community Relations Committee paid him a courtesy visit.
The statement confirms earlier claims by the state Chairman of the All Progressives Congress, Mr. Gboyega Famodun, who last month accused the Goodluck Jonathan/PDP-led administration of frustrating Mr. Aregbesola’s plan to put the chopper into use to assist security agencies in surveillance.
Famodun said the FG-controlled Nigerian Communications Commission refused to provide the special code for the helicopter to be linked with ground equipment provided by the state government for surveillance.
But Aregbesola said, “With the recent government at the centre, the helicopter we purchased for aerial surveillance will be in full operation with the issuance of the sort code needed for its operation”.
Aregbesola also called on the police committee to treat the issue of cultism with seriousness, noting that the menace must not be allowed to have a firm footing in the state.
He said, “I want all hands to be on the deck to make our state a no-go area for people with criminal intent. Despite our ranking as one of the least state with crime in the country, much still needs be done to get rid of the little criminals still hanging around the state.
“We are among one of the states with the purchase of high numbers of equipment, we have armoured personnel carrier that can convey 20 armed policemen with surveillance camera and other security gadgets mounted on it.
“We are conscious of the fact that without security, there can’t be a state, that’s why our administration is handling security with utmost importance”.
The Commissioner of Police in the state, Mr. Abubakar Marafa, commended Gov. Aregbesola for providing operational vehicles and other equipment for the police in the state.
The CP, who was represented by Mr. Tunde Showole, said with the numbers of vehicles and other equipment provided by the state government, the police does not have any excuse regarding operation vehicles.
INFORMATION NIGERIA
The Osun State government has said it has no plan of sacking 10,000 workers.
It said the “so-called plan to sack workers” was in the imagination of the Peoples Democratic Party (PDP).
The governor’s media aide, Semiu Okanlawon, in a statement, advised the people to dismiss the allegation.
The statement reads: “Discerning and decent people have come to the conclusion that when the PDP makes any allegation it must be quickly dismissed because it is in its character to fabricate falsehood to confuse the public.
“But the relevant question that must be asked is has PDP’s notoriety in lying helped it achieve anything in Osun?
“The answer is no. And that is because the people who understand the positive impacts of the Aregbesola administration have left the PDP behind in its lying act.”
The PDP raised the alarm that the All Progressives Congress (APC)- led government has concluded plans to retrench 10,000 workers.
A statement by its spokesperson, Diran Odeyemi, said: “The modalities to be adopted to downsize is being handled by an APC stalwart, who allegedly did a similar “job” during the tenure of Chief Bisi Akande, when workers were unceremoniously eased out of service.”
Describing the allegation as false, Okanlawon said: “This latest falsehood is part of its calculated move to misinform workers, confuse them and demoralise them. Nowhere has the Aregbesola administration signified any intention to sack workers.
“The party failed woefully in its plot to capitalise on workers’ delayed salaries to instigate them against the government by sponsoring protests.
“We are aware it is plotting another crisis just to advance the dubious plan to cause mayhem.
“As for its other allegations, such as the issue of 50 per cent of salaries paid to workers on Grade Level 8 and above, the PDP dubiously remained silent on the fact that other categories of workers got their full salaries.
“On the allegation that Aregbesola refused to sell the helicopter being used for Surveillance, it is important to note that the PDP and its leaders have run out of fresh ideas with which to blackmail this government.
“Aregbesola’s family does not use the helicopter. The helicopter procured on lease agreement in 2012 as part of the Osun Swift Action Squad cannot be the reason for the delay in salaries.
“In its warped understanding, its governorship candidate, Iyiola Omisore, accused this government of buying a helicopter at N8 billion.
“We are sure it has been embarrassed when it found out what a helicopter costs.”
Osun State House of Assembly Speaker Nasim Salaam spoke with reporters in Osogbo, the state capital, on the wage crisis and allegations of financial recklessness by Justice Olamide Oloyode against Governor Rauf Aregbesola.
THERE appears to have been at a standstill now for lack of fund to pay workers’ salaries and complete the abandoned projects, what is your take on this?
Osun, is passing through a phase, not standstill, and it is so, because Osun just like others, is a constituent unit of a troubled nation which was raped badly by the ousted Peoples Democratic Party (PDP) regime. And if President Muhammadu Buhari could describe the country as at present as Augean stable that must be cleaned up for forward march, what do you expect Osun as an integral part to do?
Look, let us face the reality, the predicament we are in is not about the making of an individual, governor or poor economic planning; it is a structural problem and not until the top gets it right, the federating units would still be contending with epileptic mode of economy and financial topsy-turvy. Because the kind of federalism we practise is what I call ‘feeding bottle’ federalism. For no state could access her resources to surge up her finance. Everything belongs to the Federal Government, and the federal government may not be ready to tap your own resources now, because there is one laying the golden eggs already.
For instance, the entire Ilesa township is sitting on gold of South Africa quantity according to experts who came visiting of recently. Yet we, as a state cannot mine it, because it is considered a national asset, just the way Ondo State could not tap its bitumen anyhow. So, each state of the federation must defer to the centre for ecological fund, education tax fund and so on and so forth. So, we you are not a friend f the centre and the sitting President is vindictive, then you are in for a big trouble.
As for Osun, we are one of the least paid in the federal allocation and now that our allocation has fallen short of what can be used to defray salaries of workers alone, what can we do. Strategise on how to wriggle out and that is what is going on now. Yes, it takes time, but we have to do it.
However, some people believe that the governor has bitten more than he could chew in terms of capital projects and that the state has been dragged to heavy debts in the process, that is why no amount of allocation could solve the problem at hand, what can you say to this?
People outside the government have the right to their own opinions, but it would be unfair to hold the position of the bitter opposition as statement of facts, because their insinuations are full of fallacies and innuendoes. One, let it be known that executive could not do anything without the knowledge of the legislature. Two, we have to endorse any borrowing; three, we have the power to oversight the projects captured in the budget. So, when some people say the governor has don this, has done that, the impression is that the governor has the power of death and life without being questioned. No, democracy does not work like that.
The true picture is, Governor Rauf Aregbesola came to Osun and was dissatisfied with the state of under-development he inherited and he vowed to remove the state from a sleeping mode, change the sedentary life of the people and reawakening its commerce and position the state among the comity of performing states. Do not forget that Osun used to be a civil service state before the emergence of Aregbesola and that made the civil servants to dictate everything then, ranging from who should be the governor; how should the economy of the state be run and so on, making Osun to be revolving with funds that is less than what obtained in a branch of a commercial bank in Lagos.
So, he began with infrastructure, education, agriculture and youth engagement. Look, we should be careful not to make crime out of the zeal to serve the people, because it is convenient for Aregbesola to pay salaries and flashes some substandard projects, and introduce the media the media blitz to them and keep the rest of the accruals to himself, but he chose to work and the lazy opposition are talking. Unfortunately, the media that ought to be investigative and place proper judgment in the court of public opinion seem to be playing along.
On the debt issue. Tell me of any atomic individual moral agent who intends to be great that would not incur debt. When I wanted to build my house, I took a loan from the bank. That is debt and I suffered to pay back. When an industrialist wants to inaugurate an industry, he approaches bank or a consortium of banks for fund; when an investor is ready to invest, he approaches banks. Then, what is the fuss in approaching financial institutions for funds to finance public infrastructure. America with its might has a debt ceiling of over $17 trillion and it is a country the same critics want to go and access health, education, and holiday. We have to be fair to ourselves while criticising a government. Of course, it could have been a different ball game if the those monies were borrowed to finance consumption.
See, it saddened me that these days we have to resort to borrowing to offset pension and pay salaries. But for the fact that the banks could not lend us for now as a result of vindictive directive given to the banks by the ousted Dr Goodluck Jonathan administration. The noise is everywhere that the state could not pay salaries. Yes, it is painful that we have to find ourselves in this situation and it is disturbing to see our workers suffering, but what can an individual do when the entire country with the same connective rod is in trouble?
Besides, what you called abandoned projects are not abandoned, they are only on a halt for want of funds. Immediately the state rebound, the contractors will be back o the sites and the work will be done.
A serving judge in the state judiciary has just petitioned the legislature to investigate financial recklessness of Governor Rauf Aregbesola and his deputy, urging the parliament to begin impeachment process against them. How far?
We have more than one petition for and against the governor and we have inaugurated an investigative panel headed by my deputy, who is a lawyer, an engineer with journalistic background to work on the petitions. So, wait for the report.
But the minority leader has expressed his opposition to the composition of the committee, protesting the exclusion of an opposition member from it, would that not question the credibility of the report?
Those who wrote the petitions knew the House of Assembly under my watch is credible and they have faith in the process. Besides, it is my prerogative to constitute a panel that could do the job as the Speaker. As the Speaker, I see all, members as honourable men, but all of them could not be appointed into a seven man committee. Moreso, ranking and experience count in the legislative business. The chairman is in the House for more than six years now, and he is a lawyer and journalist. There are accountants, administrator economist and individual with security background among them. So, it is a committee that is carefully woven to search everywhere to serve the interest of the people. As for the minority leader, he is playing his role and he does not have to agree with us on everything. And I appreciate that, but at least he must have his say not necessarily his way.
Meanwhile, the report will be submitted to the House for debate and the minority leader will have his say on it, but if he is part of the committee, he would be barred as a matter of rule, to speak on it when the report is presented. So, he must know that we have done him a favour by reserving a room for him on the floor when the report is ready. I chose to toe that part to starve off the tyranny of the majority.
When do we expect the report?
When the committee is ready. But not less than two weeks.
There is a feeling out there that this parliament is in the armpit of the governor, how true is this?
I am glad you said a feeling”. Look, if there is any mindset like that, I think anarchy is attributed to it. I was the Speaker for four years and we engaged the executive without rancour. I don’t believe in negotiating a course with violence, I believe in constructive engagement and in fairness to Aregbesola, he has never disrespected us as a parliament. Even, while his deputy, Mrs. Titi-Laoye Tomori was supervising education ministry, she had appeared before the education committee for explanation. So, why do we need to take a fight to the pages of newspapers in order to assert independence? That was the culture when we were evolving, but the world has moved on.
Are you going to be part of the stakeholders’ summit that is being packaged by Yinka Odumakin and Muyiwa Oladimeji group, for you have been advocating for it?
Smile. I can’t be part of a summit whose report is predetermined to smear the personality of an individual who the promoters believe would forever constitute a clog to their plan to hijack power in the state for their selfish interest. I think the profiles of those who are calling the summit suggests the coming together of renegades who hate Rauf Aregbesola’s gut, and right here I can tell you their three cardinal objectives: one, to hijack power in 2018 having lost out disgracefully in 2014; two, to wage a campaign of calumny against the person of the governor; three, to sex up fictitious figures as our debt profile, expenditure and income arbitrarily. So, you need to place the objective of Odumakins in proper perspective.
If you care to know the grouse of Odumakins, read what Chief Ayo Opadokun said about him. For Muyiwa Oladimeji, I think some of my friends in Osogbo have given me the graphic of his person, and what do you expect from a man who chose to be an incurable reactionary? And I can’t belabour the obvious about their friends, who were given a bloody nose by Aregbesola at the last governorship election. Simply call it a summit of the renegades. Meanwhile, Osun is not ready for the summit of renegades.
A stakeholders’ summit will be called when the governor is ready, because he is the one to implement the resolutions, but the parliament desires to spearhead it because we are to back it up with a piece of legislation.
Can we then say that Osun is bankrupt now?
Bankruptcy is declared when a state or an institution has gone under, and Osun has not gone under. Yes, we have financial challenges and as I said earlier, the challenges are meant for temporary phase. We are working around it and we are progressing gradually. I must acknowledge the unalloyed support of the people and a section of the workers who could think beyond the box.
What can you say is the mood of the state now?
Mixed feelings- mixed feelings because majority of the people were unhappy that a governor with uncommon courage and zeal to serve is being hampered by financial constraint. Some are happy that workers are not paid, because they think that will relaunch themselves back to power in 2018. The workers felt bad because they could not meet their obligations and we on the corridor of power feel the pain the more that we are compelled by extenuating circumstances to meet our obligations. But, I have once said we are tough contenders of time now. And tough time never last, but tough people do. We shall soon put the situation behind us.
If the report of the committee indicts the governor, would it be impeached? That is subjudice, let the report be ready first?
If the governor is exonerated, would the serving judge be sanctioned?
Again, I would not be dragged into preempting the outcome of the investigation. If the report is ready and the debate is conducted, then the resolution of the house will be made public.
Does the parliament under your watch has the tooth to bite the governor?
You seem to have locked your mind up about us. Look, only a governor without emotional intelligence will try to toy with any parliament. However, a tiger will not profess its tigritude, you and I know that an average viper has its venom.
What can you say about the bailout packaged by the Federal Government for the states that are broke?
What obtained with the restructure of indebted states by the Debt Management Office and N250 billion facility that can be tapped is a relief package not a bailout, because the obligations would still be met in the future. But, the immediate result is to liquidate outstanding salaries and other obligations. So, the media should help us to educate the masses better. You see, I suspect a big conspiracy against Osun in the media, because no fewer than 18 states owed salaries of their workers and pensioners and more than 10 states have worst case scenario, but only Osun is made to be the face of defaulting states. But, I take consolation from the submission of Simeon Kolawole in one of his write-up in Thidsay newspaper that when we were bubbling with inauguration of one projects or the other, when Aregbesola was being celebrated around the world for his feat in education and O’ meal, we enjoyed positive media limelight, and what we are witnessing now is a bye product of limelight as well.