The Mindset of an Entrepreneurial Governor

Oyo State is gradually restoring its pacesetter glory with the ‘Star Boy’ Governor Seyi Makinde (GSM), a man of modesty, simplicity and empathy for the people of his state. Many good news have been emanating from the state, and of course, coming from a low era of “constituted authority” the workers are beginning to feel proud and have a sense of importance as the governor has prioritized their welfare in his first 100 days in office.

Recently, the state government announced an increased in car loan to civil servants from N500k to N750k and housing loan from N2m to N3m. A monthly grant of N20m car loan was approved for state workers; N15m for Teaching Service Commission & N20m for housing loan for more civil servants benefit.

Some years ago, we were told that some states are not viable and therefore cannot pay workers not to talk of embarking on developmental projects without borrowing or raising taxes.

So what changed? Simply put, there is an Entrepreneurial Governor in town with a second-level thinking.

My position has always been that the allocation from Federal Governments when juxtaposed with states recurrent expenditure, especially salaries and wages is more or less the same. Which means that monthly allocations are not in reality for developmental projects, rather It is to meet each state’s obligation. The Internally Generated Revenue should be directed at developmental projects.

Exactly what Oyo State Governor, Seyi Makinde appears to be doing now..

According to him, the federal allocation is a little short of N5billion naira but the salary is N5.1 to N5.2 billion naira for the state workers in Oyo State.  For the local government teachers and others, it is about N3billion naira. On a monthly basis, the government has N8 billion naira to make as payment for salaries.

“The Federal Allocation into the local government is around N5 billion while the state allocation is around N4.8 billion, sometimes N5 billion.

With the IGR  “The internally generated revenue IGR standing at about N2billion naira part of which is currently being used or set aside to augment salaries,, the Government has about N3.5B to start work on capital projects while the state expands its economy to generate more revenues.

I however feel strongly that the government should ensure that the state salary overhead does not exceed the monthly allocation. The verification initiative might help to determine authenticity of workers.

Also IGR has to be improved through effective collection of existing rates, broadening of the state’s tax net and public-private initiatives.

What is however refreshing is the transparency and accountability that is being enshrined in the state’s governance with the Governor taking the lead.

This is the way I view Makinde’s approach:

1. Stabilization – which is ensuring that existing systems and structures are functioning and that workers are getting paid in time, engaging relevant stakeholders, maintaining security and peace,. This is very necessary as it forms the substratum for meaningful governance in the state.

2. Efficiency – which is by establishing laws to fight corruption, espousing transparency, revamping the budget, focusing on immediate needs in education and healthcare, city cleanup, looking into completing ongoing projects and other low hanging fruits, minimizing wastes and maximizing existing revenue. Doing slightly more with less.

3. Growth – bringing initiatives to the fore that will spur investments and economic growth of the state which will in-turn boost revenue in the long run.

If he can be consistent in his approach, the narrative around Oyo State will change and Ibadan might regain its Western Regional influence.