Ogun State Debt Profile: When will they stop hoodwinking the polity?

We present to the entire people of our dear state, another version of our government's inconsistencies on the actual debt profile of Ogun State prior to the commencement of their administration.

The Commissioner for Finance in state of Ogun, Mrs Kemi Adeosun, said on Friday that the debt profile of the state has been reduced from #87 billion to #63 billion.

Adeosun made this known in Abeokuta while defending the ministry’s 2013 budget at the state House of Assembly.

She said the present administration actually inherited #51.4 billion and not #49 billion debts.

Now, this will be the first time where they publicly confirmed that they truly met some thing good on ground, courtesy of OGD led government.

''On the #300 million ecological funds given to the state, she said the money was inherited from the last administration and it was still intact in the coffers of the ministry.''

“It will be released to the ministry of environment in due course,” she said, adding that the ministry planned to generate #10 million as revenue in 2013.

Kindly Note that she refused to publicly declare the real figure of what their government has borrowed so far which amounts to almost #150 billion.

On the real debt left by the immediate past administration, we still maintain our stand hoping that they will own up and tell the whole world that which is the simple truth in no distance time.

OUR POSITION

LOANS:

Internal Loans (Cash loans from Banks) 13,978,617,955.78 

External Loans (Foreign loans from multilateral agencies) 12,474,642,761.35 

TOTAL A 26,453,260,717.13 

CONTINGENT LIABILITIES: 

Contractors' Arrears 3,449,412,141.81 

Pension and Gratuity 7,637,963,900.12 

Others (Subvention, Bulk Release, Counterpart funds, PHCN etc) 5,665,764,931.25 

ISPO 3,602,423,669.83 

Salaries (Gen.31, Leave Bonus, Deductions etc) 2,423,771,803.53 

TOTAL B 22,779,336,446.54 

GRAND TOTAL A+B 49,232,597,163.67 

 It is evident that the figure they usually placed to the inherited debt depended on their mood and the type of audience they addressed. In some instance, they puts the figure at #105 billion. On another occasion, it was #95 billion, during another event (which repeated itself yesterday), the figure came down to #87 billion. On one significant day, they said the whole of the last debt figure was stolen by the immediate past Governor and members of his cabinet.

  When will they stop hoodwinking the polity?

Setting the Records Straight on Power Plant Project.. By Steve Oliyide.

Now that the Ogun State Commissioner for Special Duties have eventually returned that the Ibikunle Amosun government is proposing to revisit the Ogun State Power project conceived and initiated by the Otunba Gbenga Daniel administration, I need to make this clarifications. This becomes necessary because hitherto my attention had been drawn to some posts importing that some Amosun cyber warriors are alluding to the fact that the power plants equipment by our administration are of obsolete equipment. And that such equipment have never been used anywhere in Nigeria before. I have sought endlessly on the cyberspace for where such reference were made to no avial.


But for the records, the followings facts can be adopted as part of our administration's reactions on this subject.
First, let me reconfirm that all the equipments and their respective plant houses specified and designed by accredited external consultants were procured new and are not with obsolete technology.
The procurement of these projects was conceived for the following reasons:


> (1) Sometimes between 2005-2006, Ogun State and indeed Abeokuta the State capital, was thrown into total darkness for a continous and unprecedented 10days. Such precarious situation from PHCN, almost resulted into serious epidemic due to non-functional Water Works Schemes, as the installed alternative diesel-powered generators that were supposed to be on standby became the main source of power (in fact there was this 2.4MVA generator which uses approximately 3 drums of diesel every one hour). And because of the epileptic performances of the very old standby generators installed in almost all the urban water schemes in the State, the Executive Council of Ogun State government then decided to provide independent captive power plant on perpetual running turbine that can produce the energy required for each of the urban and semi- urban water schemes across the State. Prior to this, all major rehabilitation, upgrading and refurbishment necessary for these Urban Water Schemes, inherited from the previous administration of Chief Olusegun Osoba, were diligently continued and completed, while new ones were also introduced and implemented via funds (loans and grants) secured through the World Bank Assisted Programme and the Federal Ministry of Water Resources simultaneously under the National Urban Water Sector Reform Project (NUWSRP). Therefore, all that was required to guarrantee 24/7 water supply to all consumers in the State, were duly executed. However, the only important missing link for the water schemes to operate at their maximum capacity remains steady, but continous power supply from the National grid. Water Schemes and electricity are like siamese twins any day. There is a cybernetic relationship between them. Hence, hydro power stations.


Therefore, the near epidemic situation of 2006 became something that the OGD administration would not want anybody in the State to experience again. This hoewever informed the aggressive posture and actions dedicated to combat the epileptic power shortages in the State particularly at locations where the Urban and Semi-Urban Water Schemes are sited.
These integrated power projects were conceived, planned and categorized into three stages in the following order:


> (a) The provision of dedicated PHCN lines to the Water Schemes, to guarrantee some kind of steady supply from the National grid whenever it is available. At this time, the total energy demand in Ogun State is in the range of 120Mw per day. But the reality is that what comes to Ogun State on a good day sometimes range between 15-30mw, and this, at good times at maximum of 4hrs daily and not even continous. However, dedicated lines were effectively and practically provided for the main Ogun Water Scheme at Araganga, Abeokuta, during this time, while machinery and due process for other schemes, were put in motion. But due to non availability of funds, brand new generators were procured for these schemes, at least to get them running for minimum of 6 hours daily, until the proposed mini-power plants were installed and commissioned.


> (b) The specification, design, procurement and installation of the required rating of power plants, for the Urban Water Schemes.
Reputable external consultants in the Energy Industry were retained by the State Government, to scout and recommend required power equipment with respective ratings for the approved locations, ancillary provision designs and other engineering specifications for the project completed.


> Indeed official visits to locations where similar plants have been installed and which were subsequently specified by consultants were undertaken by top government officials including members of the House of Assembly Sub-committee members on Water Resources. It is however important to state that the reconaisance visit took the State officials to three industrial locations in Kano, Ikorodu, where these similar plants have been the major source of power for the respective industries non-stop for more than 15 years, with little or no maintenance or major technical challenges. These equipment uses LPFO, gas or diesel as optional fossil fuel to power the mini turbines. While the consultants on retainership confirmed the manufacturer of the turbine as CSI of Nnigbo China, the various land survey site locations for the proposed plant house structures were undertaken. Also procured were the various structural, mechanical/electrical engineering designs by the consultants. All of these including the bill of quantities were reviewed, revised, adopted and approved by the State Executive Council after thorough review by the State Energy Council, which comprised all the top state civil service officials from all related agencies, including Ministry of Finance/Water Corp, and subsequent State Tenders Board recommendations.
Part of the contractual terms with the manufacturer and it's Nigerian subsidiary signed, are the customised-manufacture of the turbines, factory training of 15 Ogun State civil servants during the factory production of the turbines and for pre-delivery testing, delivery of the complete equipment as specified including supply of 2 years maintenance spate parts for servicing, construction of plant houses, installation/ commissioning of the plants and management of the plant for 5 years for the already trained 15 officials to take over.


It should therefore be noted that the civil servants ( Mechanical/Electrical Engineers) that were trained in Nnigbo, China, on the two seperate occasions, with respect to Contract Agreement, were drawn from the State Water Corporation, OGSEP, Ministry of Water Resources and Ministry of Special Duties respectively. 


> While all the complete equipment for the 23 mini-power plant locations across the State including its accessories and the 2 years Maintenance Spare Parts were delivered to Govt, by the approved Equipment Credit Procurement Supplier. In the meantime, the Standard Organisation of Nigeria (SON) issued an import quality guarantee certificate, based on their statutory overseas inspectors agent report of the manufacturer's production record. Indeed without this quality certificate, no commercial bank in Nigeria will open any letter of credit for the manufacturer to commence production. 


> However, the issue of being an obsolete equipment does not even arise in the case of these equipment, as all turbines engines all over the world, use a single and old technology of "combustion"- Rakine Theory. Since this technology was discovered in the 17th century...., this has been the only technology in the world to date that drives engine to produce power. Anything that looks modern around turbines and generators are in the foundry moulds, electrical packaging panels and outputs. I therefore stand to be corrected in this assertion.


> (c) the third leg on this project, was designed around the maintenance/management of the plants during and after the mandatory 5 yearrs Mangement periods signed with the Chinese manufacturer- CSI INTERNATIONAL.


> Because the State Government believed that no matter how good a project is, in terms of execution, if the maintenance/management manual is faulty or non existing, the goals and objectives of the project can never be derived, while the set derivates anticipated from the uptimal performances of the equipment, can never be achieved.


> It was based on this set goal that, a dedicated and well equipped mobile maintenance vehicle was procured along with other plant equipment/ 2 years maintenance stock spares, to access all locations at request, with the intention of a train the trainer model, as human capacity resource growth in this industry, for our State.


> In the meantime, the State Government during the conceptualization of the project, indeed made provision of excess energy rating in the designs of each of the mini power plants, with the intention to service the respective neighborhood where the plants were located. It is anticipated, that the excess energy generated from plants serving Ota, Yemoji, Papalanto, Okemosan, Araganga Water schemes etc, will be extended to surrounding commercial/housing estates on tarrif paying basis, to reduce the expected and initial running cost of the plants. We were therefore happy when the new administration of Amosun in Ogun State, commenced the power distribution extension network from the Okemosan 7mw Mini-power plant to several housing estates and some commercial centres along Abeokuta- Kobape-Siun Expressway, up to Day Waterman College premises. We are however not in a position to comment on whether those connected consumers along this route were charged any fees as planned.


> However, for the Ibikunle Amosun Government to operate within the ambit of the statutory laws, as it relates to the Nigerian Electrification Regulatory Commission (NERC) acts, the Ogun State Govt via its investment arm-Gateway Holdings Ltd, was implored to enter into a joint venture partnership with Gateway Distribution Company- a private engineering concern, with the intention to apply for a distribution licence. After about 15 months review, the NERC finally approved the first private Electricity Distribution Company in Nigeria, to Gateway Electricity Distribution Co Ltd.


> If this company is encouraged to operate as conceptualised, extra income to the State govt will be realized directly from the joint venture operation, as energy will be procured from the State govt mini-power plants and will be sold at statutory tarrifs to consumers by the new Gateway Distribution Co.


> I will assume that all the consultants on these projects are still in the services of the State government, and as such could be contacted to give a through appraisal reports on this unique project that had been envy for other States to copy. Despite the fact that the Ogun State mini-power plant especially the 7mw Okemosan plant, was the only one completed and commissioned out of the 23 plants procured, before the new administration of Gov Amosun got inaugurated in May 29th 2011, it remained the only operating independent power plant in Nigeria apart from Lagos, that is generating and distributing power to captive electricity consumers continously.


> On a final note, it was the desire and expectation of a responsive and proactive govt of Otunba Gbenga Daniel, that the Amosun administration will continue on the progress made so far on this very important project, especially on the outstanding 22 mini-power plants of which the whole equipment needed for their respective installations have been delivered and safely warehoused, while the development of the plant houses and its ancillaries, were at various stages of constructions. 
Information reaching us however indicate that the new government does not want to continue with these developments of the mini- power plants, despite the huge financial cost already incurred, while all the civil servants specially trained abroad on the maintenance/management of the plant have either been transferred out of the only plant commissioned at Okemosan, or sacked for being tagged as OGD boys. Persecution and victimization on innocent civil/public officials continues.


> We therefore implore that the new govt continue with this power plant project, because govt all over the world is a continuum. Why can't we in Nigeria for once draw lessons from the Construction of the Capitol Hill Complex Building in Washington DC, USA, where the National Legislative arm of the Americans Democratic Governance and Politics operates. This major construction works commences in 1793, while in November 1800, the US Congress had its first session in the completed portion of the North wing. In 1850, other portion of the North and South wings were completed. Imagine the many successive governments that contributed their own quota without halting the development projects, to making the US Capitol and it's stately dome the international symbol of the US democratic representative, that is of good envy to other nations of the world.


> If you don't heed this sincere advice and learn good lesson from the American example as above, we may therefore start worrying at this stage, on what the Amosun successor will also do to all his projects and policies after May 2015.
 
Steve Oliyide
Former Special Assistant - Media (Water Corporation)

The Debt Profile of Ogun State at May 2011: Of Lies and Truth

The Debt Profile of Ogun State at May 2011: Of Lies and Truth

BACKGROUND
We would not have bothered to respond to the constant misinformation and insinuations of the current administration in Ogun State about the financial management and the debt profile assumed on their inception into governance but for the consistent misinformation and contradictions being peddled to etch in the mindset of unsuspecting citizenry the wrong perceptions aimed at scoring cheap political points and festering continuous politicking of the serious business of governance. 
We think that, as fellow professionals with about 18 months learning period in the saddle, the ecstasy and euphoria of unexpected elections victory will have given way for a more reflective appreciation of the realities and a deeper understanding of the delicate balancing responsibility of financial management of a domain with sufficient political sophistication yet with limited financial resources for the challenging social and economic expectations of the citizenry.
Before and since the inception into office of the Amosun administration in Ogun State, issues have been raised about the nature and amount of debt and loans inherited from the predecessor administration of Otunba Gbenga Daniel. At the state of the state address given by the State Governor, in June 29, 2011, Senator Amosun stated that: “I have come to the conclusion that Ogun State is the most indebted state in the country, officially the debt the last administration, claimed to have left behind is N50 billion, but the real value of the debt could even be more. Professionals who are well trained in this regard are working on this. People compare Ogun State with Lagos and Rivers State: they easily forget that the revenues from these other states can easily pay off whatever debt we owe”. 
At the town hall meeting, organised by the Ministry of Budget and Planning, The Governor mentioned that the size of the debt inherited is N87billion. 
This cue has also been followed by some key functionaries of the government, for examples, On 5th September 2012, The State Commissioner for finance Mrs. Kemi Adeosun, stated this at a press briefing in Abeokuta while presenting the state audited financial statements of year 2011. According to her, the administration of Governor Ibikunle Amosun has started paying the inherited debt of 87 billion Naira and left with about 62 billion Naira to be paid. “We are aggressively paying off the inherited debt and very soon the debt will go down to a reasonable level,”
Recently, Barrister Taiwo Adeoluwa, the Secretary to the State Government, while receiving members of the state Council of Hausa Communities in Abeokuta said “We met a state that salaries and subventions were owed. We met a state where pensions were owed for 32 months. Before they left, minimum wage was not paid. We inherited empty treasury. Even by their own admission, they said they left N50bn debt but we later discovered that the state was indebted to the tune of about N97bn.” He said further, “Our capital expenditure is more than our recurrent expenditure. I can confirm to you that we have not borrowed a dime to pay salaries since we came. Since we came, we have not owed anybody any salary and we will not owe. We get about N2.5bn from Abuja every month and we pay about N6.1bn as salaries.”
Often times, this is often indicated as a major factor that the administration had to contend with and affecting their performance. This political gimmick is being used to hoodwink and attract the sympathy and support of the unsuspecting public riding on pedestrian perception of the complex nature of Public Financial Management, Debt Management and its inherent challenges.
Some of these statements made reflect a paradigm and mindset that confuses and confounds the public about the essentials for governance. The issues in the mind of the discerning individual arising from the statements being made would include:
1. What exactly is the debt profile inherited by the current administration?
2. Was there truly an empty treasury?
3. How does a state or government finance its activities?
4. Is deficit financing inimical to social and economic development?
5. What are the criteria for assessing and accessing the required structure of funding for government activities?
It needs to be stressed that Public Financial Management should not be taken to pedestrian levels and used as excuses for every possible challenge that a government faces. It has been identified that the management of public finance is about the management of public resources to achieve public results, as these resources are not usually sufficient everywhere in the world to meet the results to achieve. Deficit Financing or Debt thus becomes an imperative. The challenge is to effectively manage the Debts. 
Sina Kawonise, the Former Commissioner for Information in Ogun State, has aptly described this debt sensationalisation tendency in the article in Daily Compass of May 2, 2012 in the following words… as “at every opportunity he had to speak publicly, he criticised the immediate past administration for leaving behind what he called huge debts. And the figure he put to the inherited debt depended on his mood and the type of audience he addressed. In some instance, he puts the figure at N105 billion. On another occasion, it was N95 billion, during another event, the figure came down to N87 billion. On one significant day, he said the whole of the last debt figure was stolen by the immediate past Governor and members of his cabinet”
THE DEBT PROFILE (AS AT MAY 29TH, 2011)

The Compendium of Financial Statements for the eight year administration of the State for the period till 31st March 2011 compiled by the civil service officials indicated that the Total Debt Outstanding was N49.2 billion. This consists of: 

LOANS:
Internal Loans (Cash loans from Banks) 13,978,617,955.78 
External Loans (Foreign loans from multilateral agencies) 12,474,642,761.35 
TOTAL A 26,453,260,717.13 

CONTINGENT LIABILITIES: 
Contractors' Arrears 3,449,412,141.81 
Pension and Gratuity 7,637,963,900.12 
Others (Subvention, Bulk Release, Counterpart funds, PHCN etc) 5,665,764,931.25 
ISPO 3,602,423,669.83 
Salaries (Gen.31, Leave Bonus, Deductions etc) 2,423,771,803.53 
TOTAL B 22,779,336,446.54 

GRAND TOTAL A+B 49,232,597,163.67 

It is important to note that the Administration will be the first in the history of our Country that presented its financial statements for eight years in office to its successor, further to this is the fact that Governor Gbenga Daniel did not see the final report until the final printed copy was handed to him for presentation to his successor in office. These financial statements were duly handed over to the new administration as part of the handing over notes.

CONFLICTING DECLARATIONS OF DEBT PROFILE
The current government has indicated many figures through its officials depending on the audience or circumstance. Whether it is N87 billion, or N97 billion or N105 billion and have not in any situation given the public a corresponding breakdown of the various figures being thrown around as the inherited debt profile of the state in the vein of what was contained in the compendium. This precludes any interested party the opportunity for any independent analysis and conclusions. This information asymmetry can conveniently lead to the assumption that the figures are being unnecessarily bandied about for political mischief.
It is also necessary to point out that whilst every effort is created to emphasise the debt situation, no corresponding effort is made to mention or acknowledge the assets created during the tenure or the revenues that had been yielded by the investment or the economic development efforts of the past administration. This was an administration that more than doubled its work force and refuse to retrench its staff in 8 years. Ogun State that we have today is far more developed economically, with a lot of infrastructural development on the ground than what was met in 2003. There is no gainsaying the fact that Ogun State witnessed tremendous physical, social and economic progress during the tenure of Otunba Gbenga Daniel, and exercised a lot of prudence in spending and was very efficient in managing the state’s resources while at the helms of affairs.
Rather than concentrating efforts on building on these achievements, the focus, gleaning from the activities and attention in the past 18 months since inception, has been on disregarding viable projects, reversals, policy somersaults and efforts at downplaying achievements and results and shifting blames. What is the essence of continuity in government? how should African states waste resources and efforts based on political differences? The development of the state and the welfare of the people should be given priority and attention once elections and politics are over. Governance should be for everybody. If we all take a cue from the last Presidential elections in the United States of America, President Obama in his acceptance speech said that he will work with Candidate Mitt Romney for the continued progress of their country. The standards of democracy and politics should be lifted by the professionals playing in it.
OUR POSITION ON THE DEBT PROFILE COMPARED TO OTHER STATES
Contrary to the impression created by Senator Amosun, Lagos State in the last 5years has accessed approximately N290 billion from the bond market, Rivers floated a bond of N250billion while Bayelsa has done the same to the tune of N50 billion. Osun state did N30billion refinancing loan from a first generation bank. Kano has a debt of N108 billion, etc, etc. Against this background, a recent development indicates that “the Federal Economic Council, the Nation’s economic managers, declared that growing concerns and criticisms of the country’s huge domestic and foreign debts were not well-grounded. The Council, which is made up of the 36 state governors and top officials of the Federal Government, asserted that the total debt stock accounted for only 17 per cent of Nigeria’s Gross Domestic Product (GDP) and that this marginal level of indebtedness was healthy for the economy”. In the same vein, the Federal Government, through the Debt Management Office (DMO), said “the country’s debt profile which currently stand at about $45 billion, out of which external debt stood at $6 billion and domestic debt, $39.6 billion. This, the Director-General of DMO, Dr Abraham Nwankwo, claimed was in order, saying that Nigeria’s debt gross domestic product (GDP) ratio was 18.65 per cent, as against global ratio of 40 per cent”
WHY SENSATIONALISE DEBT?
It is important to note that the issue of Debts is not new to Ogun State nor any state government whatsoever in Nigeria. And indeed, the Daniel Administration inherited debts in the region of N36 billion at inception in 2003, which consists External Multilateral Loans and Arrears of Salaries, Arrears of Pensions/Arrears of various increases in Pensions and other Gratuities (current and retired civil servants are witnesses to this). Rather than turning this into a convenient political swan song, the proactive measures taken to meet the challenge was to renegotiate the debt repayments from N180 million to N90 million with the Federal Ministry of Finance. Further a scheduled process of meeting the arrears of salaries, arrears of pensions/arrears of various increases in Pensions and gratuities was put in place. The debt relief and forgiveness programme of the federal government also assisted in significantly clearing the outstanding external loans balance.
Rather than sensationalising loans which include multilaterals loans, which are often competed for among states on the basis of demonstrable needs and the technical capacity to cope with the rigorous project management capacity for the projects, It is to the credit of the Professionals in the Daniel administration that the resumption of the Urban Water Scheme in Abeokuta and other towns and the Health Systems Development Project (HSDP) among others were secured through this rigorous process. To count this, which are often on long term concessionary rates, as part of the “huge loans“ inherited by the new government makes mockery and belies the development focus of the administration.
The circumstances leading to the contingent liabilities made up of the arrears of entitlements and expenditure are well known to discerning minds. A combination of a challenging financial and economic environment, global recession, the crash of the capital market and low oil proceeds with the pressures and internal conflicts in the Peoples Democratic Party in the state created a set of reinforcing circumstances that culminated with the state (and even most governments) at that time were practically living from hand to mouth. This phenomenon is now reversing with its concomitant flow benefits. Even at that, we made concerted efforts to attract alternative funding which are now crystallising to the benefit of the state. To attribute that to any financial wizardry is akin to claiming credit for a rain or flood of which the clouds are already gathered! 
WAS THE TREASURY EMPTY?

Another convenient statement usually made to disparage the past administration is to assert that the treasury was met empty; this is very far from the truth. As it is for any going concern, there would be liabilities and of course there would be assets, as a matter of fact liabilities are generated in order create assets. This is also clearly different from the cash available or readily available for disbursements to meet exigencies. For an entity like a state, that is entitled, given the current federal arrangements, to allocations on a monthly basis, states could not be talking of bankruptcy. Many treasury enhancement measures were taken by the Federal Government to ensure that any new government commences on a good footing. Some of the ones we are privy to that applied to the state during the transition include but are not limited to the following:
1. The allocation for April 2011 was delayed and paid to Amosun administration, so it could not be utilised by the outgoing government so much so that the statutory severance allowance for outgoing political appointees could not be paid and has not been paid to date, 18 months down the line. 
2. The allocation for May 2011 was paid in June 2011 to the Amosun administration. 
3. There is a budget adjustment usually paid to states for the difference between the budget revenue and the actual revenue from oil proceeds. The ones accruing to states for the first half of the year 2011 was paid to the Amosun administration in July 2011
4. The exchange difference between the benchmark price of oil and the actual price are paid as budget differentials and paid to states. The one for states was for the first half was paid to Amosun administration.
5. The states proportion of the instalments of the repayments of N450 billion due from NNPC was commenced from August 2011 and paid to Amosun administration. These are matters that the previous administration contributed immensely to for Ogun State’s rights through the national economic council and the federal account allocation committee. 
The payments that accrued to the state beyond the normal allocations in the first 6 months of the Amosun administration will be an additional income of about N25 billion. It would just be cheap and vain glory to claim that salaries were paid or arrears were cleared when there were concomitant inflows that would have been utilised to pay them if they had been paid to a previous administration. We however still accept the fact that government is a continuum, and that the payments were made to citizens and workers of Ogun State that we all came to serve. This is not rocket science. It is unfair to shift the burden and claim the glory at the altar of politics.
Besides the above normal inflows, there are other extraordinary flows that have been proposed, processed and pursued up to disbursement stage by the Daniel administration that are or could be available to the Amosun government. The details of all this were included in the handing over notes to the incoming government. This includes but is not limited to the following:
1. the Refunds from the Federal Ministry of Works for Federal Government Projects undertaken by the state
2. the State access to the Universal Basic Education Fund 
3. Access to the National Housing Fund for Housing Development in the State
4. The State Agricultural Support Fund
5. the Ecological Fund
6. Receipts from Olokola Licences
7. Outstanding Balances in Foreign Domiciliary Accounts opened for proceeds from the Ikenne Dairy Farm Concession
8. The Balance of the Debt Relief Fund Allocation in Foreign Currency used as Collateral for the Cash Liabilities to the Banks
Funds accruable to this efforts are in the region of N15 billion. When this is added to the initial N25 billion mentioned, the N40 billion in the coffers is sufficient to put the state in a safe financial status. Of course, the multilaterals loans not for repayments immediately will provide additional cushion.
The current consistent maintenance of oil price at above the benchmark of $75 per barrel to an average of about $105 per barrel has no doubt also improved the financial flows from the federation account to every state including Ogun state. An extract from the Federal Allocations to the state culled from the Federal Ministry of Finance, website shows an average allocation of N3.5 billion per month. (see Table below). Yet our SSG, to present a dire situation to the state to the unsuspecting leaders of the Hausa communities said “We get about N2.5bn from Abuja every month and we pay about N6.1bn as salaries” We need to ask him, how does the State fund the shortfalls and take care of other expenditure including capital expenditure, from internally generated revenue and or loans.

CONCLUDING REMARKS
Despite the dire situation being presented, The Ogun State people are also wondering about the source of funding for the N500 million per kilometre road between Sokori and Ita Eko, the first overhead bridge in Abeokuta, the proposed air-conditioned pedestrian bridge and mega schools being awarded and the various urban renewal schemes which are estimated to cost N100 billion, of which compensations of about N10billion are being claimed to be payable to displaced people. Some measure of creative financing is definitely being adopted and this cannot be more than creating financial exposures in whatever guise. We sincerely hope that sufficient justice will be done to address this in detail in the forthcoming budget presentation.
Apparently smarting away from his famed condemnation of the attempted Bond Issuance of the previous administration based on the Governor Amosun’s famed “Bond of Bondage” statements, we note that the current administration has woken up to the reality of recognising that a measure of leverage, financial accommodation, debt or loan is necessary to support social and economic development. Whether overdrafts or treasury notes, for the short term, promissory notes or standing payment orders or contractor financing, for the medium term, or bonds, for the long term. Borrowed funds for development necessarily have a cost, create obligations and coalesce into a balance at the end of a reporting period. This is what is referred to as a debt profile. And such would have to be consummated based on the best judgement of the executive team at that time and the prevailing regulatory and compliance environment. At the inception of the Daniel administration, the resolution of the executive council is sufficient for overdrafts and short term loans, and this was acceptable to the financial institutions.
At present, improved democratic experience and reforms through fiscal responsibility and debt management regulations has made an enabling act important. The Daniel administration set the building blocks and foundations for these to happen through the initiation of the fiscal responsibility act, the public procurement act, the setting up, capacity building of the debt management unit and the conduct of the domestic debt reconstruction exercise. This is being consummated by the current administration to support the current financial exposures. This is what continuity means in government. But to distance, sensationalise and bash previous administrations, particularly to audiences that may not be discerning enough, whilst threading on this same financial management path, is akin to hitting below the belt and cheap politicking! 
It is worthy of mention that the last administration was one of the few states that invited the Debt Management Office to conduct a Domestic Debt Reconstruction exercise in 2010. This is with the objective of ascertaining the desirability of the level of financial exposures incurred by the state and the sustainability of the debts. The DMO template was continued and used as the basis for the collation of the figures contained in the compendium of Financial Statements at 2011 towards handover. At the end of the exercise, The DMO gave the following conclusion: 

“With the application of the Country Policy and Institutional Assessment (CPIA) 250% Debt stock to Revenue threshold, the review of Ogun States’ Total Public Debt is shows that the December 31st 2009 as well as the projected December 31st 2010 Total Public Debt Stock to Total Revenue ratio of 42.48% would be within acceptable thresholds. The same applies for the State’s debt service ratios”

Furthermore, the following specific ratios were considered 
“6.3.1 TOTAL DEBT STOCK‐TO‐TOTAL REVENUE
Ogun State Total debt stock‐to Total Revenue attained its peak of 53.03% in 2009. Between 2007 and 2008, the total debt stock to total revenue ratios were 19.70% and 39.09% respectively. A significant decrease to 42.48% in 2010 is projected and a further decrease to 29.53% is also projected in 2011. Using the CPIA index of 250% total debt stock to total revenue, the State’s ratios are within acceptable limits throughout the periods of this review.

6.3.2 TOTAL DEBT SERVICE‐TO‐TOTAL REVENUE
The ratios for Total Debt Service to Total Revenue are also as presented in Table 5. Total Debt Service to Revenue ratios were 9.34%; 11.66%; 30.78%, 10.44% and 10.51% for the years 2007 – 2011 respectively. These ratios are also within the CPIA 30% threshold for total debt service to total revenue.

6.3.3 TOTAL DEBT STOCK‐TO‐TOTAL REVENUE (SEC REQUIREMENT)
The ratios for Total Debt Stock‐to Total Revenue in relation to the requirements for the Securities and Exchange Commission (SEC) are also shown in Table 5 above. The ratios ranged between minus 30.30% to 7.52% for the years 2007; 2008, 2010 and 2011. It should be noted that the projected 2010 year end stock when computed alongside the envisaged N26bn Bond generates a 45.36% projected total debt stock to total revenue (Sec requirement) ratio which would be approaching SEC’s 50% margin.”

We expect the State to continue in this tradition to foster the continued utilisation of data and analysis instead of expressing value laden, normative statements which only serve sensational and exploitative purposes rather than the seriousness governance deserves. As a minimum, current and subsequent exposure situations should be analysed on this basis for comparisons, efficiency and effectiveness purposes. This would be of continuing benefit to the government, the investing public, stakeholders and discerning people. 
To continue the spirit of accountability and transparency, and indication of the progress being made, we expect that at regular intervals, reports to enlightened audiences and appropriate publications should be made about the situation of the financial management of the state which in this respect should include and not limited to 
• The breakdown of the inherited claim of “N87 billion” debt; 
• The Repayments or adjustments that have been made thus far;
• The breakdown of current facilities or exposures being added, whether through treasury notes, promissory notes, contractor financing and the like and the purpose of such facilities; and
• The balance of the debt profile of the state 
The minimum we owe our common patrimony is a measure of respect, responsibility and candor and a common commitment to the development of our state, and the upliftment of our people, irrespective of political affiliations. To do less is to sacrifice the opportunity that our people have given us to lead for self propagation and adulations. We cannot shrink ourselves to greatness! Our people are quite sophisticated and enlightened to know better!

Kehinde Sogunle, B.Sc.(Hons), FCA Kayode Sunmola, MBA, FCA
Former Commissioner for Finance, Ogun State Former Director General, Bureau of Management & Budget, Ogun State

PROFILE: DAPO OKE @ 50. Celebrating an illustrious son....

Sunday Oladapo Oke was born on 16^th December 1962 to a family of Chief Mathew Olabisi and Madam Comfort Adebisi Oke . He had his Primary Education at United Primary School Araromi Ibese,Local Authority Primary School, Ebute Igbooro and Loca Authority Primary School, Ilaro.

He attended Egbado Teachers Colege, Ilaro where he obtained the Teachers Grade 11 Certificate in 1983. Between 1983 and 1984 he was a Pupil teacher at Primary School, Alari and Army Children School 2 Owode –Egbado. In 1984 young Oladapo gained admission to Ogun State College of Education, Ijebu-Ode and graduated in 1987 with the Nigeria Certificate in Education (NCE) in History and Christian Religious Studies. While in OSCE he was very active in sports, he was member of the Bronze winning team in Handball at EKO Akete 86, he was the team captain of School of Humanities team that lifted the maiden edition of Pa A.S Odutola handball competition. He also served as the Secretary General of the Student’s Union Caretaker Committee 1986-1987

His desire to have University education took him to the famous Obafemi Awolowo University, Ile-Ife in 1988 where he graduated with a Bachelor Degree in History (Education) in 1991 he returned to the same University for his Higher degree

His Working Career

After graduation in 1991, Dapo Oke was posted for his National Youth Service at Senior Girls Secondary School, Ngoshe in Gwoza Local Government Area of Borno State in 1992. Faced with the challenges of promoting Yewaland to greater heights, he and some other young Illustrious sons of Yewaland founded the Egbado Communications Limited publishers of Egbado News Magazine and Egbado Horizon News paper. He was appointed as the Managing Director and Editor In chief of the Communication outfit by the new management Board headed by Mr. Idowu Adejumo, a Lagos based Business tycoon and Professor Rahman Bello, the current Vice Chancellor of University of Lagos.

It is on record that Egbado News under his management played significant roles in the progressive march in Yewaland that culminated in establishing the Institution of a Paramount Ruler of Yewaland and the change of name from Egbado to Yewa among many other giant political strides that took place in the 90s. Infact, it was young him who moved the historic motion on behalf of Yewa Youths, Clubs and Associations inside the Oronna Hall, Ilaro that the name Egbado be changed to Yewa.

He worked briefly as the Personal Assistant and Protocol officer to the Late Olu of Ilaro and First Paramount Ruler of Yewaland. He was a Part time Lecturer at the Institute of Professional Studies and project consultants / Chief Executive Officer, Dapo Educational Publishers and DNT Ventures

In 1996, Dapo Oke was appointed as Administrative Officer at Tai Solarin College of Education. He rose to the position of Senior Assistant Registrar before transferring his employment to Tai Solarin University of Education as Senior Assistant Registrar when the College of Education was transformed to University of Education in 2005. He is currently a Principal Assistant Registrar in the University.

As a Professional Educational Administrator, he has worked as Admin Officer incharge of Student Registration and Statistics, he was Student Affairs Officer of the College, he was head of NCE Records and later Head of Exams and Records (NCE and Degree). He is currently the Student Affairs officer of the University and the current Chainman of Association of  Nigeria University Professional Administrators Tai Solarin University of Education Chapter.
Between 2007-2011 Dapo Oke was granted leave of absence from the University following his appointed by the National Assembly Service Commission as the Senior Legislative Aide to Senator Felix Kolawole Bajomo FCA,mni ( Ogun West PDP) in the Senate of the Federal Republic of Nigeria. While in the Service of the National Assembly, Mr Oke worked with his boss in the under listed committees of the Sixth Senate. They include;

·        Senate committee on Banking and other Financial Institutions

·        Senate Committee on Appropriation

·        Senate Committee on Finance

·        Senate Committee on Privatization

·        Senate Committee on  Establishments

·         Senate Committee on Foreign Affairs

Contribution to Community Life

Dapo Oke is a very active member of his various Communities.

·        1985-1986-Public Relation Officer, Association of Christian Religious Studies Students ASSOCRESS (OSCE)

·        1986-Speaker,Association of Christian Religious Studies Students ASSOCRESS (OSCE)

·        1986-1987-Secretary General, Students Union Caretakers Committee (OSCE)

·        1986-Member, Constitution Drafting Committee, History Students Association (OSCE)

·        1986-Chairman, Electoral committee, Education Students Association (OSCE)

·        1986-1987 HOD Drumito Ilya Ogun

·        1990 President, National Association of Egbado Students,Obafemi Awolowo University Ile-Ife.

·         1990 World Curator,Kegites Club,World Headquarters,Obafemi Awolowo University Ile Ife

·        1991World Elder,Kegites Club, World Headquarters,Obafemi Awolowo University, Ile-Ife

·        1993 General Secretary Torch Movement of Egbadoland

·        1995 till date-Member Christ Ambassador, Cathedral Church of Christ,Ilaro

·        1994-1996-Publicity Secretary,Oronna Day Planning Committee

·        1995-Installation Planning Committee for Paramount ruler of Yewaland

·        2001-Member, Pipe Organ Installation Committee,Cathedral Church of Christ,Ilaro

·        2001-Member, Fund raising Committee, Redeemed Christian Church of Christ,El-Shadai, Parish, Imoru Ijebu Ode

·        2002 Chairman ,Building Committee Redeemed Church of Christ,Abundance Parish,Ejinrin, Road,Ijebu-Ode.

·        2005-Editor-in- Chief, The Light Magazine,Cathedral Church of Christ, Ilaro.

·        2006 till date Patron, Kegite Club, Ilya Ogun

·        2006 till date Patron, National Association of Yewa Students.

·        2006-Patron, National Association of Ogun State Students, UNAAB,  Chapter

·        2007 Member,TASCE National Alumni Electoral Committee

·        2009-till date Chairman, Olu-Aso Imasayi day planning Committee.

·         October 2012 till date- Chairman, Association of Nigeria University Professional Administrators (ANUPA)

MEMBERSHIP OF PROFESSIONAL BODIES

·         Member, Association of University Professional Association (ANUPA) Member, Nigerian Institute of Management (MNIM)

·         Member, The British Project Professional Society (BPP)

·         Fellow, Chartered Institute of Professional Managers and Administrators of Nigeria

·         Member , Chartered Management Institute

WORKSHOP/ SEMINARS ATTENDED WITH DATES.

Mr Oke has attended many workshops and Seminars to enhance his professional career. They include;

·        September 1997 -Workshop on Institutional Management (Organised by SAUTHRAI TASCE, Ijebu Ode)

·        October 2003- Administration in Colleges of Education: Issues and prospects (Seminar organised by Conference of Registrars of Colleges of Education in Nigeria-South West)

·        May 2005-Administrative and Technical Departments in the Administration of Tertiary Institutions: Trends, problems, and prospects (organised by SSANU,TASUED)

·        June 2005- Enhanced communication skill as an essential ingredients for sustenance of committee system: A seminar for Administrative and Executive Officers Cadres in Tai Solarin University of Education ,Ijagun. 

·        June 2005- Professional Ethics and qualities of good University Administrators, Tai Solarin University of Education.

·        September 2007: Information Communication Technology for Senior Special Assistants and Special Advisers towards enhancing Legislative Practices.(Organised by National Assembly Service Commission, Abuja)

·        November 2007: Data Management for Optimal Legislative delivery (Seminar organised for Senior Legislative Aides and Special Advisers by National Assembly, Abuja.

·        June 2008: Special Retreat for Senate Committee on Finance for Harmonisation of outstanding Bills  (Organised by the joint Committee of the Senate and the House on Finace,National Assembly)

·        June 2008:Legislative Practice, Bill drafting and procedure (Special training programme organised for Senior Legislative Aides and Special Advisers of the National Assembly organised by National Assembly Management.)

·        November 2012 –ANUPA National Conference Calabar

Family Life

Mr Dapo Oke got married to his beautiful wife, Mrs Taiwo Oluseyi Oke (Nee Odufeso) 1n 1996 and the marriage is blessed with happy Children Damilola, Oyinkansola and Funmilola.

Celebration of an illustrious son....

Courtesy: Planning Committee.

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    Isiaka A Wasiu
  • 
    

    Wale Junaid
  • 
    

    Lawal Jibola Orisadare
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    Oloja Olujimi Babatunde
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    Aare Kuoye Lukman Fcim
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    Idomaa Matthew Idowu
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  Idomaa Matthew Idowu
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  Biodun Fakorede
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  Adejumoke Adejobi-Osu
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  Asiwaju Dele Asipa
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  Adeleye Olalekan
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  Yayi Sesan
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  Olumighty Olumide Abiodun
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  Oluwayomi Deborah Omojoye
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  Jamiu Yinusa

  
  

  
  

  Sf Ojo Emmanuel