N49bn debt: A crippling legacy in Gateway State

FRANCIS FALOLA reviews the 30 days in office of the Ogun State Governor, Senator Ibikunle Amosun, and notes that the debt he inherited from his predecessor, Otunba Gbenga Daniel, may be an obstacle to the implementation of his populist programmes

In a state where the Action Congress of Nigeria administration is desirous of impacting positive changes through introduction of populist programmes that would touch the lives of the people, the huge debt profile of the state has become a monster confronting Amosun grappling with this has become one of the greatest challenges before him.

During his inauguration in May 29 at the MKO Abiola Stadium, the governor among other policies statements had not only declared education free in both primary and secondary school levels in the state but also promised free healthcare for the children and the elderly.

Amosun during his electioneering had promised the state civil servants the payment of the N18, 000 minimum wage but the governor while making all these promises seemed unaware of what was in the state kitty.

The former governor, whose attempt at obtaining the N100billion bond was frustrated by the state’s members of the House of Assembly, had stated during one of the public forums that an incoming government must consider the bond alternative to survive. Amosun had disagreed with Daniel on the bond issue during his campaign.

But today, tension is building in the Gateway State as the workers are agitated over the seemingly non-fulfillment of the electoral promises made by Amosun as regards the minimum wage.

Already, the Nigeria Labour Congress had waited for over 30 days for Amosun to redeem his pledge but as the hope waned, the workers had recently demanded the fulfillment of the promise. The congress after its recent meeting gave a seven-day ultimatum to the state governor, Senator Ibikunle Amosun, over the payment of N18, 000 minimum wage.

NLC State chairman in the state, Mr. Akeem Ambali, who spoke in an interview with journalists in Abeokuta , vowed that workers in the state had concluded arrangement to embark on strike to press for the payment of the minimum wage.

Ambali said, “Before the end of the last administration, we entered into robust negotiation with the then state governor, Otunba Gbenga Daniel, and N18, 000 minimum wage was approved for the state workers.

The approval was communicated to the state House of Assembly, and it was passed into law.

“Based on the promise made to the Ogun State workers and Nigerians as a whole by Amosun during a political debate organised during the electioneering, we expect that in his first week of assumption of office, he would have caused the release of the circular to effect the payment of the N18, 000 minimum wage, but surprisingly, up till now nothing has been done.”

He maintained that the workers in the state had become agitated and felt that the minimum wage must be paid promptly.

Asked whether it was not too early for the state government to commence the N18, 000 minimum wage, considering the state’s debt profile, Ambali said, ‘’It is unjustifiable. The Ogun state workers supported the governor. We mobilised, prayed and fasted for his emergence. Based on his vow that on his assumption of office, he was going to implement the payment of the approved Minimum Wage, being an Accountant, and an intelligent person too, we believe he is conversant with what it takes to govern the state and has his own intelligent corps who supplied him with information on the financial status of the state. We as labour believe that the promise made was a sound one, a product of his research and intelligence network.”

The NLC chairman, who also reminded Amosun on the contributory Pension Fund of workers in the state, lamented that the immediate past government deducted, and diverted illegally salary of workers through the contributory pension fund, money totaling N8. 5billion. He urged Amosun to take a holistic view of the matter and commence refund of money that had been deducted from workers’ salaries.

But while the NLC is battling with the governor over the payment of the minimum wage, the missionary school owners in the state are also aggrieved over the decision of the state government to direct the return of private schools to the government.

After several appeals, the missionary school owners in the state in pressing home its demands have instituted legal action against the state governor over the crisis on the return of private schools to the state government.

The immediate past governor had through the G9 lawmakers passed a bill into law where private schools in the state were returned to the missionary and other private owners. The government also followed up with a letter dated October 15, 2010 conveying to the school owners the decision of the state government to release the school to them. But Amosun had in one of the last sittings of the House led by the then Speaker, Mr. Tunji Egbetokun, got the decision reversed and directed that the schools should be returned to the government.

In a case instituted by the missionary school owners in the state against the governor; the state executive council; the state ministry of education and the Ogun State House of Assembly, the plaintiff challenged the defendants over the return of the missionary schools.

The copy of the originating summons in the case with the suit number AB/161/2011 was instituted at the High Court of Ogun State with a copy made available to our correspondent in Abeokuta.

The missionary school owners in the suit urged the court to determine “whether the Ogun State House of Assembly House Resolution Number 251 ‘Reversal of illegal Return of schools to initial owners’ moved and passed by the 4th defendants on Wednesday 1st June 2011 was lawful and within the legislative functions of the Ogun State House of Assembly under Section 100 and 128 of the Constitution of the Federal Republic of Nigeria or any other law as to reverse the exercise of the power of the Executive Council under Section 5 of the Education (Post Primary institutions) (Special Provisions) Law Cap 36 Laws of Ogun State of Nigeria.”

The missionary school owners prayed for an order setting aside the Ogun State House of Assembly Resolutions 251 made on the 1st of June 2011. The suit was instituted by Incorporated Trustees of Nigerian Baptist Convention, Trustees of Church of Nigeria; Anglican Communion, Egba West Diocese, Anglican Communion of Ijebu Diocese, African Church; Methodist Church and incorporated trustees of Catholic Diocese Church among others.

An opposition party, the Peoples Party of Nigeria, has however chided the state governor over what it described as inconsistency in governance with the reversal of the policy of return of schools to missionary owners.

The party in a statement signed by its director of organisation, Mr. Deji Kalejaiye, said, “It is alarming that in just less than a month in office, the present administration in Ogun State has done enough to set the state on fire and worst still, our dear state is now a subject of mockery owing to somersaults in policies that is now synonymous with Ogun State government.

“It must also be noted that Governor Amosun is on the verge of making record as the first governor to sponsor and supervise religious crisis in Ogun State through the reversal of the previous government policy of return of schools back to the original owners; missionaries.

Governor Amosun that has been complaining of no money in the state purse has ironically ordered the state government to acquire the schools again. Unfortunately, there has been a discordant tune from religious leaders; some of who have threatened fire and brimstone, including legal fireworks.”

The party described the state as a common heritage and advised Amosun to always exercise caution and thread softly to avoid unnecessary crises and controversies in the state while wondering why a government crying of lack of fund and huge debts would be bordering itself in forcefully obtaining schools already released to their original owners when the state of some public schools in the state is appalling.

Amosun with the N49.2bn debt (a figure given by the immediate past administration) inherited from his predecessor can be said to have inherited the hugest debts when compared to N4.8bn allegedly left by the PDP led government of Alao-Akala of Oyo State and other South western states. Amosun who had doubted the figure presented by Daniel had contracted an auditing firm to confirm the true debt position of the state.

And as the auditing firm is working towards unravealing the truth about the debt profile of the state, fears of most people in the state is that the debt owed by the Gateway State might double or triple the figure given by the immediate past administration, a development that might worsened the governor’s headache of grappling with the state’s debt.

Analysts believe that the debt is a bobby trap left for Amosun’s administration by its predecessor, who must be praying for his failure and that of his party ahead of the next governorship poll.