OPINION: LAGOS: SAND GOVERNMENT, SENSIBLE BOOHGET!

Dear Mallam El-Rufai

I read your article titled Lagos: Sound Government, Sensible budget published in Thisday Newspaper on Friday April 20, 2012. I wanted to ignore your claims and submission rationalising that it could be your subtle way of patronising the present administration in Lagos or the Action Congress of Nigeria controlled states but on a second thought, I would be doing Nigerians a disservice if I do not correct your assertions and set matters straight which you will no doubt agree with after furnishing you with details, facts and figures that will change your mindset that is, even if it is not already fixated.

I will like to honestly inform you that as one of your Fans, I actually wept while watching you on TV after the death of your darling daughter. May Almighty Allah grant her the best part of Aljanaah (Amin)


Now back to the said piece. In the write-up, you purportedly appraised the Fashola’s administration through his budget implementation strategies with a view to presenting Fashola as the best example for other Governors to emulate, especially in the area of fiscal prudence and accountability to citizens. In your desperate but unwarranted defence of Governor Fashola's Fiscal prudence, you alluded to some very incredible facts and figures.
Ordinarily, I would have read and maybe worry less over such piece, but because I revere you a lot, I wont keep mute. Also note that I would have volunteered myself as one of your campaigners in your subtle “hidden presidential agenda” ‘Oh Ambition! How thou reduce a Man’s Integrity Mountain to Valley’

In the meantime, I thank you for the brief history of Lagos State in your said piece. No doubt, you consequently cannot be excused for your misrepresentations. Similarly, I regard you as very intelligent, but maybe I am wrong in my judgment or you came about the shoddy facts and figures because you are influenced by bias and the rush to impress governor Fashola and his predecessor who have both become notorious for wasting Lagos State Funds on unpopular candidates in other States. Otherwise, how come you , a Muslim, chose Friday as a day to exalt a mortal, governor Fashola, to the extent you even claimed that ‘The groundwork for most of what is visible today (sic) in Lagos was jointly laid by Tinubu and his team including the current Governor Fashola’.
Unfortunately for your assertion, you have not specifically mentioned those visible things. Oh May be you assumed your reader should take those visible things as the Massive Hotels, Shopping Complexes, Toll Plazas, Media Houses, Tax Consultants and insensitive Concessionaires. Mallam, May be you should be told that notwithstanding the propaganda and Media hype employed by the ACN government in Lagos State, Majority of Lagosians are indeed now convinced that their beloved State has turned from a Liberal State to a Capitalist one and fast turning to an imperialist empire of an individual. Oh! Do you deny that you know about a company known as Alpha Beta? A tax Consultant firm aided and abetted by the Governor to violate the country’s Constitution in order to recommend all sorts of obnoxious taxes and collecting at least Ten Percent (10%) of the total Revenue of Lagos State MONTHLY!

I am even more pained because you went further in your piece to condone the criminal neglect and silence of Governor Fashola in probing his predecessor (as done in most PDP States). This is even in the Face of obvious actions of the predecessor in conversion of Lagos State Polytechnic (LASPOTECH) compound to his Television Continental Premises; controversial Lagos State investment in Econet Wireless Network ( Now Airtel); ENRON IPP collapse; Alpha Beta Operations; Certificate claims to mention a few. Do you even remember that the Late Sage Chief Gani Fawehinmi stood alone and vowed to prosecute Fashola’s predecessor so much so that the late sage was physically assaulted in the Court by people believed to have been sponsored by Tinubu. Anyway, Rest In Peace my Dear Role Model, Chief Gani Fawehinmi.

Mallam, I am inclined to correct you that what you allude to as good revenue generation is actually extortion and but for the immunity clause, Governor Fashola should by now be in jail. However, only God can tell if he can escape that after his tenure.

As of 1999, Adekanola and Co; had increased the monthly revenue of Lagos State to about N600m per month. Indeed, following that trajectory, in another few months, they would have hit the N1b mark. The new democratic administration sacked that firm to much acclamation amongst those who saw the involvement of commission based private sector firms in tax administration as an aberration, susceptible to abuse. The acclamation was soon muted, though, for another firm was brought in to help “identify and exploit sources of revenue for the benefit of the state”, at a commission rate of 15%.

Soon enough, criticism of this irregular arrangement was met with fantastic claims of revenue increments running in the order of 500%, attributed to the new firm. This meant that within a few months of their engagement, Lagos State was beginning to earn well over N3b per month in IGR. Months rolled into years, and soon the 2003 general elections were upon us. During the campaigns, several promises were made by the then incumbent governor, including the now famous but non-existent 4th Mainland Bridge and Coastal Road. Revenue was now said to have hit N6b per month.
After the 2003 elections, the Alpha Beta arrangement continued and reports of huge leaps and bounds in the amount of IGR “generated” by them were rife, so much so that some reports had the figure for much of 2006/2007 as hovering around the N8b/month mark. From 2003, when Mrs. Ngozi Okonjo-Iweala became the Minister for Finance, the Federal Allocations for each state and LG were published for all to see in the newspapers and on the internet. It became clear that Lagos State was getting allocations in excess of N4b per month, and when this was added to the N8b IGR, we had total revenue of N12b minimum per month, giving a grand total over the 96 month life of that administration of N1.15t.

Under the Fashola administration, statutory allocations have almost tripled, on account of agitation by state governors, including Fashola himself, for the primitive sharing of the excess crude fund, meant originally as a buffer against the rainy day that is now upon us. Alongside that, Internally Generated Revenue has also increased bountifully, stated to be over N35b per month by a commissioner in this state at a press briefing last year. That puts total monthly revenue at over N45b at the very least, with more coming in when excess crude funds are shared. Budgetary figures of over N400b per year, year-on-year during Fashola’s first term means that by the end of his first term, he had exceeded the revenue earned in all of Tinubu’s tenure!
With all these increased revenues, I challenge you sir to mention any Service and its actual Cost which Governor Fashola has delivered directly from the budget estimates. In this regard, I challenge you to rely on the moribund Website you cited or using your strong contact in the Fashola Administration to send me the true breakdown of the Incomes and Expenditures of the Fashola Administration. I say, unequivocally that apart from paying Salaries in the last 13 years, LASG, indeed including this Fashola Administration, has never attained 40% success in its budget implementation. The assumed developments in the State are by concessionaires and not direct expenditures from the budget. Such developments include security by LSSTF, modern markets, BRT & light rail projects by concessionaires, health screening, flowers & schools renovation by individual and cooperate philanthropists, anti malaria nets & health centres by MDGs and federal government. This calls for concern and I believe Lagosians will one day demand for the actual spendings of their IGR and Federal Government Allocations.

As we interact, LASG under Governor Fashola remains the biggest debtor in the Country. The Bonds of LASG increased under Governor Fashola to over 900 Billion Naira. No doubt, the internal and external debts account for the desperate and aggressive revenue generation drive in the State. Notwithstanding, your overrated budget-Master has not been able to build any Bridge to link Lagos Mainland and Lagos Island, in spite his several promises. You may wish to be reminded that all the bridges connecting Mainland to Island are Federal Government legacies.

I am indeed a bit carried away by your incredible figures to defend Fashola’s Budget implementation, but you sure know that the Citizens are not interested in the budget figures, but the actual budget performance.
Are you not amazed that a small state in your Country realises AT LEAST 45 Billion Naira every month, excluding Local Government Funds and yet that State still ranks as the biggest debtor in the Country, though it has not provided potable water, Free health Services, Free & Compulsory Education, Tarred roads , cleared Canals to mention a few.
As a matter of Fact, Lagos State has the highest number of Private Schools due to its failed Public Schools Policies; Highest number of Pure Water Factories due to lack of available potable water; Highest number of Private Hospitals due to its failed Health Services; Most expensive Market Shops in the Country; Roads leading to people’s homes are tolled in Lagos State! Government paying below the Minimum Wage! The State University remains the most expensive Government owned University in the Country (State or Federal). As a matter of fact, the State university school fees has just been increased by over 1000% with students paying as much as (=N= 375,000) Three Hundred and Seventy Five thousand Naira. This puts the cost of this Public University at pe
r with Private Universities in the Country.

Indeed IF Governor Fashola was sincere in his governance as you try to present, he should have facilitated the domestication of the Freedom Of Information Act (FOI Act). This step will allow everyone to see his budget implementation in true picture.

As your admirer, I believe I owe you the moral obligation to advise you against being too confident as to attempt open defence of Fashola’s budget, especially on Lagos Streets. The people’s reaction might be too monumental for you to manage sir.
I cannot imagine that you compare Lagos State with such States like Bauchi and Sokoto when actual States like Akwa Ibom, Cross Rivers, Rivers, even Niger are there for your sincere comparison.
In your budget analysis, you failed to specifically mention such areas like Housing, Security and Health. You deliberately looked the other way round because, indeed, there is no Low Cost Housing Policy in the State. Ooh! Lest I forget, a Fifty Million Naira house is indeed for the low income earner!

On transportation, I make bold to say that the BRT system commissioned by Governor Fashola would have achieved its objectives, but for the insincerity inherent in its implementation. For sake of clarity, the buses were bought and guaranteed by the State Government; Concessionaire to thoroughbred businessmen and up till now no ordinary Lagosian knows how much the partnership has profited the State. All shrouded in secrecy so much that even you, Mallam cannot know the facts.
How on earth can Governor be so deceitful: Bought buses in Government’s Name, Guaranteed the Business, Only cleared and built modernised Bus Stop and lanes solely for his cronies now involved in Transportation business. Alas! I concede no decent person would get to former Oshodi to board a Bus, but now Oshodi is cleared for BRT business to thrive.

I will deliberately keep some other revelations to my chest waiting for the live debate which I even concede that you moderate between ‘Ordinary’ Lagosian and the Fasholas.
However, for record purposes I must mention that Governor Fashola, a Lawyer and SAN is also involved in so much Constitutional violations that make me ashame as a Lawyer. I must say here that in this regard, Former Governor Bola Ahmed Tinubu far scored excellently than your exalted Governor. At least, the former Governor is not a ‘Learned Friend’.

My dear Mallam El-Rufai, indeed I can see your bleeding conscience when you stated and I quote “Lagos is the only State in the Country which can survive solely on its incomes from Taxation. However, according to the World Bank Doing Business rankings 2010, the State was ranked 25th out of 37 in Nigeria in terms of ease of doing business. It is therefore disturbing that despite the huge amount of Private sector investments and potentials, the business environment is far from friendly. The authorities need to create thriving environment for business”
Do you then still advise that ‘all our States should learn lessons from Lagos not only in the areas of budget transparency but fiscal independence from Abuja, delivery of Public Services, investment in Education and even governance Succession?

Comrade TAOFIK GANI is the Lagos State PDP Publicity Secretary.