The Director-general of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala has urged Nigerian governors to avoid piling up debts on their states and to prioritise citizens’ welfare if they want to have successful tenures.
Okonjo-Iweala in her address at the Nigeria Governors’ Forum (NGF) induction ceremony yesterday in a Abuja, emphasised the importance of prudent financial management for state governments and the need to sustain payment of workers’ salaries.
Speaking on the need for increased internally generated revenue (IGR), Okonjo-Iweala suggested that governors should focus on transparency and efficiency in their financial practices.
The former finance minister encouraged them to publish information about the federation revenue allocation and IGR, to enable citizens to have a clear understanding of their state’s financial situation.
“Nigeria is a country with no social contract, meaning that Nigerian political leaders have never been able to agree with each other to stick to a common set of principles, values, and policies that consistently deliver for their citizens regardless of ethnic group or political persuasion.
“You have a lot of healing to do – within your states, and between them. Through your words, deeds, and policies, you need to demonstrate to Nigerians that they are equally loved; that they can settle and do business in any part of the country without fear,” he said.
Moreover, she emphasized the importance of monitoring debt profiles and controlling expenditure. According to her, while investing in critical sectors such as infrastructure, education, and basic healthcare, governors should prioritize the timely payment of teachers and healthcare workers.
Citing data analysis from the National Bureau of Statistics and Budgit, an organisation dedicated to providing financial reports on country budgets, Okonjo-Iweala revealed that a majority of states rely heavily on federal allocations for revenue.
In fact, for 33 states, federal allocations account for the majority of their revenue, with 13 of those states depending on monthly impact allocations for approximately 70 percent of their revenue.
The WTO chief executive also noted that the COVID-19 pandemic severely impacted Nigeria, leading to a rise in poverty rates, as according to the World Bank, an estimated 95 million Nigerians fell below the national poverty line in 2022, accounting for 43 percent of the population.
She further highlighted the potential of Nigeria’s youthful population, stating that the country has an opportunity to attract investment in labour-intensive production processes.
Okonjo-Iweala encouraged governors to create business-friendly environments to attract both domestic and foreign investment, stressing the importance of Nigeria positioning itself as a platform for producing goods and services to meet regional and global demand.
Speaking on youths’ craving to relocate from Nigeria, she said: “Excellencies, you must make your states and all Nigeria a hospitable, encouraging place where young people want to stay and thrive, not leave. Much as we appreciate remittances sent home by these migrants, Nigeria will not develop and prosper if its youthful, tech-savvy population leaves. Without them, our demographic dividend disappears.
“Turning to the fashion space, people across the continent want to dress like us. Nigerian fashion is taking Africa and the world by storm. Our leather industry is moving up the value chain: we used to send tanned leather to Milan, now we are developing shoes, bags, and carpets ourselves of good quality, fit for consumption at home and abroad.”
