Prospects for local council talks

One of the most difficult conversations these days is the one about our local government councils and grassroots development. Complicating matters is the divided Supreme Court ruling that federal allocations should now go directly to the individual accounts of the 774 councils. The ruling was not unanimous, just as Nigerians, political or apolitical, are divided on the durability of the ruling. But Supreme Court rulings are final unless the court reverses its ruling in the future.

Many want local councils to be independent of state governments. They believe that the states have exerted too much influence over councils, which is detrimental to grassroots development. In the case of Kwara, they argue that each council must determine how it uses its funds, and the concept of pooling resources to pay essential workers, such as teachers and health workers, to a child of necessity must end. They describe it as robbing Peter to pay Paul.

Several others disagree, saying that such arguments fail to acknowledge that the same allocation comes from Nigeria, which pools resources to fund government duties across the country. Neither side is wrong, and the issues are not as simple as many might assume. That is not the point of this intervention.

My intention here is to humbly refocus the conversation since the Supreme Court ruling, especially as several states count down to local government elections. Kwara is holding on to September 21, unless circumstances arise that change people’s plans.

Ahead of this election — and beyond — there are a few things to watch out for.

Many people feel that the Supreme Court ruling has suddenly freed up resources for local governments across Nigeria and that the new councillors have no excuses for not providing good roads, culverts, excellent basic health care and education, among other things that fit into their schedule.

Framing the problem this way is a recipe for heartbreak. Many local governments live off the begging bowl, given the disparity between their revenues and their bills. Those who don’t live off the begging bowl barely have anything substantial to meet the expectations they’re creating.

Several opposition candidates and their supporters have spoken about how local councils have so much money yet are being squeezed by the state government.

The opposite is a fact. Unless they deliberately become creative, disciplined and shed their excessive burden, no local council in Kwara, for example, is strong enough today to build a Trunk-C road, PHC or a primary school. That is why the states do it most often to meet the public expectations. I am sure about the situation in Kwara between 2019 and now.

The most vital areas of Kwara council in terms of their allocation and comparatively low expenditure are Kaiama, Baruten, Isin, Patigi and Offa. But let us see their recurrent expenditure (salaries and overheads) against their total revenue over the three years including 2023 when the allocation increased after the removal of fuel subsidy. In 2021, Kaiama spent 69% of its total revenue (N2,279,338,216.84) solely on recurrent expenditure; Baruten 76% (of N2,814,384,679.06); Isin 76% (of N1,510,999,337.96); Patigi 70% (of N1,952,029,596.20); and Offa 92% (of N1,745,461,471.25). In 2022, current expenditure absorbed 73% of total earnings in Kaiama (N3,011,939,021.38); 79% (of N3,721,109,448.71) in Baruten; 89% (of N1,981,946,105.40) in Isin; 79% (of N2,521,317,687.75) in Patigi; and 101% (of N2,295,893,725.11) in Offa — meaning that the 1% of current expenditure was actually support from other sources. Expenditure increased in 2022 due to promotions and other social packages for employees.

In 2023, there was a significant increase in allocations in six months, which had a corresponding impact on what is available to councils, in these ‘realistic LGAs’ this happened as follows: Kaiama spent 60% of its earnings (N4,099,202,161.01) on recurrent expenditure; Baruten spent 66% (of N5,061,809,309.20); Isin spent 72% (of N2,774,919,527.82); Patigi spent 65% (of N3,530,849,075.77); and Offa spent 83% (of N3,155,488,929.06). How realistic are they?

As the above shows, our local councils spend over two thirds of everything they have on salaries and running costs, with next to nothing left for development. The argument that one council supports another is irrelevant.

A gentleman recently wrote about how Ilorin East earned so much and could do so well without the interference of the state government. This is a far-fetched argument. Ilorin East, like several other local councils, relies on others to meet its basic obligations. At its peak in 2023, Ilorin East spent 107% of its total revenue (N3,938,869,814.44) on paying salaries and overheads – meaning it was in the red and 7% of what it needed to meet its obligations came from elsewhere. Imagine how much help it would need in 2021 or 2022: -11% and -28% respectively.

From 2019 to date, local councils have not hired workers, except for teachers and healthcare workers, who are essential needs. The burden could be greater if the previous culture of haphazard hiring continues.

This crisis is decades old. It is partly a reaction to the mistaken belief that government has unlimited resources and can hire anyone to its payroll, even if they have no tangible service to provide to society. But this is not the time to blame each other. It is the time to face reality, be collectively responsible, and reorganize. Local government autonomy is not a bad thing. Perhaps it will help everyone adapt to their size and unleash the big ideas that can help grassroots initiatives grow.

I am excited about the rising political temperature across the state as September 21 approaches. But candidates (especially the chairmanship) should go beyond telling voters what they will do. Anyone can promise to build roads or improve access to water and a cleaner environment. This requires funding. They should tell us how they will deliver on their promises. If a local council spent 70, 80 or 107% of its total revenue on paying salaries and other overheads in 2023 at a minimum wage of N30,000, then there is clearly a problem. The new minimum wage or N70,000 is here and workers expect to earn it as an economic reality. Now imagine the finances of local councils after the new wage is implemented.

Tough decisions need to be made to get councils back on track. Will they hire more staff to take more people out of the workforce, or cut jobs to cut costs? What is the likely trade-off for each of these policy choices, which will inevitably provoke different reactions? How will they mitigate the social consequences of each of their decisions? This is the Leviathan that candidates need to be aware of and talk about on the campaign train.

Apart from any other arguments, what will the candidates do to free up resources or create a bigger pie? If any candidate says they want to buy a tractor for every district to increase food security, they should explain where the money will come from. That is good for everyone, candidates or the electorate. The challenges are not insurmountable, but there are no quick fixes or magic bullets.

▪︎ Rafiu Ajakaye is the Chief Press Secretary to the Kwara State Governor