Kaduna state disengagement of workers, the economy and other matters

“The art of leadership is saying no, not yes. It is very easy to say yes.” – Tony Blair 

Kaduna state is the third most populous state, after Lagos and Kano, with a population of about 10 million people, serviced by about 120,000 public servants, which translates to less than 1.2% of the total population. Before 2016, the annual budget of the state was in favour of recurrent expenditure. For instance, Ramallan Yero’s Budget of Consolidation and Continuity’, before his resounding defeat in the 2015 elections, which Governor Nasir El-Rufai inherited, had N72.8 billion for recurrent expenditure (35.72%) and N130.9billion for capital expenditure (64.28%). The twin problem is not only in the budget allocations, but in the actual releases, as year in and year out, recurrent expenditure continued to outperform capital expenditure. 

The implication of a budget devoted to consumption was that the state stagnated, with an alarming infrastructural deficit, and an alarming poverty rate of 61.4%, because the entire resources accruing to the state from the Federation Accounts went public servants, leaving nothing for the rest of the population of about 98.8%, a situation compounded by the poor internally generated revenue (IGR), which at 2015 stood at a paltry N12 billion. Clearly, a budget devoted to paying salaries wasn’t sustainable, a reality the labour unions have refused to come to terms with, the federal government in 2015 had to grant the 36 states, bailout funds to enable them meet their obligations to workers or the economic challenges that the COVID-19 pandemic has worsened. 

Kaduna state earnings from November 2020 to the last few months of 2021 went into payment of wages. Figures from November 2020 to March 2021, show that only personnel costs accounted for between 84.97% and 96.63% of allocations from the federation account. For instance, in November 2020, the state received N4.83billion and spent N4.66billion on wages, leaving only N162.9 million balance. In January, the state received N5,123,997,767.88 billion, of which a princely N4,616,471,637.44 billion was spent on wages, leaving only N507,526,130.44.  In March 2021, the trend continued with the state receiving N4.819 billion and paying N4.498 billion, representing 93% of the allocation on wage, leaving a balance of N321 million for funding of security operations, running costs for schools and hospitals, and other overhead costs. The pattern going by the April figures hasn’t changed and is not likely to change in any substantial manner, unless the surgical reforms are carried out to its logical effect. 

And from the very outset, the Kaduna state government had demonstrated an unparalleled commitment to reform initiatives, across many institutions to enable it actualise its socio-economic development vision of the state. The reform of the Kaduna State Internal Revenue Service(KADIRS) saw IGR  astronomically increase from N12billion in 2015 to N50,768,523,407.34 billion, a spectacular performance, that has helped ensure the execution of numerous projects from the over 15 modern markets to the breathtaking road projects, in Kaduna metropolis, Kafanchan and Zaria townships. But for the improved IGR, the prudent management of resources, the state would have remained undeveloped and El-Rufai would have had nothing to show at the end of his tenure, especially in Nigeria where a governor is deemed to have performed, only in terms of physical projects. 

The position of the Kaduna state government that it was “elected to develop the state and not just to pay salaries of public servants”, as part of the reasons it embarked on some load shedding, is correct, even though it seems arrogant and a hardline. Nigerians abhor the truth and prefer populist policies that have taken the country nowhere. Apart from the unacceptably high wage bill, most public servants are analog, untrainable and redundant, reasons Nigeria hasn’t made any tangible progress.  True, the absence of a social security net for unemployed citizens has made government assume the role of ultimate main employer of labour, even when statistics and the recent stay at home order, due to Covid-19 pandemic have confirmed that it actually needs a very limited number to function. Labour and her apologists in justifying their opposition, continue to latch on to the Nigerian Constitution, especially Chapter II, the Fundamental Objectives and Directive Principles of State Policy, section 14,sub -section (b), which states that the security and welfare of the people shall be the primary purpose of government. The fact remains that while it has indeed placed responsibilities on the various levels of government to help actualize the objective, there is nothing in that provision that makes it binding. Given a wider interpretation, the section includes government providing conducive environment for the private sector, which remains the engine of growth, but it’s usually ignored. 

Labour, which ought to be driving the conversations on how the various governments can create millions of jobs for the teeming youths, has unfortunately remained preoccupied with bread and butter issues- negotiations for a national minimum wage that has proven unworkable over the years. The federal government and other state governments can continue playing the ostrich, but certainly not for too long, because they can’t run away from the inevitable consequences of refusing to take the painful, but necessary hard decisions, like the Kaduna state government has. Despite, the campaign of calumny, Kaduna state has once again shown the way forward with its commitment to build a public service that is lean, effective and the capacity to carry out its responsibilities. It has addressed major challenges like the aging workforce, dwindling resources and lack of capacity to meet the challenges of modern day governance, through the Public Service Revitalization and Renewal Programme, implemented in a fundamental manner. moving ahead. The result is a responsive service with a defined mandate, unlike the dysfunctional public service that was unproductive, but very “focused on taking care of itself” that El-Rufai inherited in 2015. 

El-Rufai has argued and rightly too, that “No nation develops beyond the capacity of its public service”.  So what are the options for the disengaged staff and the unemployed? If El- Rufai is not offering options, then the charges by labour leaders that he is “wicked and unconscionable” will hold water. From 2015, El-Rufai has consistently been affirming the key role of the organised private sector in job creation and in driving the economy of the state, because government can only directly employ a few people. With the disengagement, Nigerians should expect the intensification of efforts to attract more investments, while those on the drawing board like the Dangote, Peugeot Assembly plant, the Moroccan Fertilizer Company will be hastened. 

This is the light in which the vigorous implementation of the Kaduna State Public Service Revitalization and Renewal Programme must be seen. Whoever takes over from El- Rufai in 2023 will forever be thankful to him, for resolving many issues that other governors would be facing. 

Ado writes from Kaduna.

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