As the concern about the nation’s debt status increases, the Kano state governor, Rabiu Kwankwaso has assured that the state will not borrow to fund any of its project. The governor made this known on Monday at the Northwest Zonal advocacy workshop on ‘Economic Diversification and Revenue Generation’ organised by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
Kwankwaso said that the state government was opposed to borrowing money to fund projects.
“It is the policy of the state government that we should not go and borrow money anywhere, all what we are doing in Kano; we are doing it with the resources that are within our limits.
“That state government does not see any justification in borrowing money, eating into the future, taking debts for those that are even not born, we believe this is not fair and correct.”
The governor called on RMAFC to ensure fairness and equity in the distribution of national wealth.
The governor pledged that the people of Kano would support all on-going efforts to address the imbalance in revenue allocation and distribution in the country.
“But while we are doing that, we want to assure you that we will make sure that whatever we receive from Abuja will be utilised judiciously.
“Our game plan is to ensure that whatever we receive is not put into recurrent expenditure because we believe we should make the best use of what we have.”
Kwankwanso assured of increased Internally Generated Revenue (IGR), in the state by 2013. He said that from next year, salaries of public servants in the state would be paid from revenue sourced locally.
He hinged his optimism on records that the states? monthly IGR had increased to N1.7 billion from about N450 million recorded in May 2011.
“The target of the state government is to ensure that by the end of this year, it is capable of generating enough revenue locally to pay salaries and allowances and other aspects of recurrent expenditure in the state.
“With a budget of N210.37 billion in 2012, comprising 67 per cent capital expenditure and 33 per cent recurrent, my administration has greatly reduced wasteful expenditure.”
According to him, the state government recorded a number of savings in the second half of 2011 that enabled it to stop wastages to public funds.
He said that the savings enabled the state to pay the minimum wage of N18, 000 beginning from January 2012 without stress.
The governor also added that the funds realised from the savings, additional resources and the IGR were used to employ more civil servants.
Earlier, Mr Elias Mbam, the Chairman of RMAFC, urged stakeholders to shift their focus to agriculture, solid minerals, manufacturing and tourism to generate more revenue for the country.
Mbam, who was represented by Dr Casmir Anyanwu, Federal Commissioner representing Imo state in the commission, expressed concern that the real sectors of the economy had greatly declined over the years.
The chairman attributed the decline to the over-reliance on oil resources.
“Where are the groundnut pyramids, hides and skins of northern Nigeria, where are the industries for which Kano and Kaduna were known for?” he asked.
He said that the northwest zone had high potentials for agriculture, solid minerals, manufacturing and tourism waiting to be harnessed.
Mbam called on state governments in the zone to build strong economic ties through the promotion of regional collaboration.
He also appealed to government at all levels to strengthen all necessary legal, regulatory and institutional framework to attract local investors and Foreign Direct Investments (FDIs).
The workshop is being attended by representatives of the governors in the zone.
