AS CRUDE OIL PRICE DROPS BELOW $20 AS @ 16TH APRIL, 2020. WHAT OGUN STATE MUST DO URGENTLY BY DR.GBENGA ADEOYE. - THE BUSINESS PACKAGE

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Thursday, April 16, 2020

AS CRUDE OIL PRICE DROPS BELOW $20 AS @ 16TH APRIL, 2020. WHAT OGUN STATE MUST DO URGENTLY BY DR.GBENGA ADEOYE.



We are in a world where every nation should focus on comparative advantage for economic advancement.Nigeria is country so large that each state has peculiar comparative advantage .
Hence, my focus on my State.( OGUN STATE)

This is the time that Our State should think out of the box.

We must take quick action to drive our State's Economy in a manner that more money will come to the state through  IGR. 

Everyone exercising Legislative, Executive and Judicial Powers must join hands with the private sector and the sea of Professionals that Ogun State is blessed with to achieve this goal as follows:

1. We need to quickly fix some roads and ensure we collect toll fees on them.

2. We need to ensure that ALL classes of people pay taxes.

3. We need to start collecting Property Tax based on Valuation or at the beginning flat rate based on areas.

For example Say...Adigbe..Ake, Itoku Property Tax per annum per house N20,000.

Asero ..Same...

Laderin N25,000

Obasanjo Hill Top N75,000 

Osoba Hill Top N100,000

Ibara GRA N80,000 per annum.

Ijebu Ode and Sagamu, Iperu, Ilishan, Ikene,  N25,000 per house per annum.Ilaro & Ayetoro N20,000

Based on the number of houses, we can get a lot of money.

To do this, we need data base.

Enumeration is very important.

I know some will say...Haaaaa....This is too much ? What is your suggestion ? Zero? Am sure Zero is not an option .
Nationals of all nations that are doing well take part in development through different  taxes.We can objectively  identify those who do not have capacity to pay.

4. We cannot just sit down and allow every law and order to break down,  because, when you don't have Allocation that is enough to pay your salary from FAAC ; then , you will.not be able to do anything else.April and May is test case to see what will happen.

5. This is the time to retire those that ought to retire and allocate farm land to them. Reduce Overhead now.

6. Do more of BOT projects.

7.Import Solar Panels and ensure that State offices and buildings have cheaper power supply.

8. Let us assume we have  1,500,000 Buildings and on the average we get N25,000 per house that is N37.5b.

9.As you vary the rates based on Factory Buildings and areas; you can achieve that average.(  EXEMPTION SHOULD BE STRICTLY GRANNTED OBJECTIVELY ).
Even the governor will pay for his own house at Iperu.Since the house is like a palace, he will pay more than others.

Once he does that , people will.be reluctant to call him for  waiver.That is how to silence mischief makers.

10. Then we must consider the need to eliminate all fees like land use charge to be replaced by property tax.

37.5b is not a bad idea.

11. We then need to look at all Taxi and bus  Drivers . N2,000 per annum.

12. All market or shops N1,000 per annum.

The Transport Union knows what is hidden in all these.

13. I see Ogun State getting about  N100b or far more from these Taxes yearly.

14.By the  time you add Withholding Tax  from Banks and PAYE of all entities and Civil  Servants....You will be crossing to the other side of  above N125b

15. We can then partner with investors on our lime stone mining for cement.

16.We can develop Olokola Sea Port.Investors will bring their money if we  talk to the right people without any selfish negotiator from the side of the state.
We just get equity as a state.

17.We can explore our bitumen too.Why can't we sell to other states.?

18.We can rehabilitate our farms and ensure we sell fruits, vegetables, Chicken; Goats, Ram, beef and eggs to our people.Start from Civil  Servants.

19. All government Vehicles that are abandoned in various places should be repaired or sold off and then we clean up the environment and make money from idle assets.Henceforth, no one should drop refuse on the road median.It does not show we are serious and neat.Ministry of environment should break down the refuse collection into local governments and appraise the volume of what each areas generates weekly and then a fee can be fixed for every house and then get proper vehicles to pick up weekly .This is part of  what Council Tax is used for in UK..That is money also.


20. Government should review the amount to be deducted from staff Salary for living in Government  owned qtrs.

21. We.must renovate those buildings in batches and ensure that state collect reasonable rent with discount because they are government workers.

22. We must revisit Cargo Airport for export and import.

Most factories are here now and that Cargo Airport is very essential.

23. We cannot joke about rail and bus transport within Ogun State.

24. There is money where you have the people. Population drives Tax Revenue.

25. We.just need people.to be deliberate. You must also block all leakages.

26. *Right now, the state must form an Economic Advisory Team that will take us out of the looming Financial* *Mess.* 

27. We have loans to pay as a state and  I want believe  these loans are in billions among other obligations.

28.We cannot just be sitting at home without thinking about what happens after now.

For example , in my opinion, we are doing too little and too slow on our border town  tax drive.Who are the people living at Redemption Camp.? Where do they work? Where do they pay their taxes?.Mowe, Ibafo and.many others around Isheri too .We can do better.

These are areas where we are losing a lot of revenue.Residency rule should be applied strictly .

Fix the road that linked Ijebu Ode and Epe..Get FGN permission to collect Toll.fee there .Same for Ogijo Ikorodu Sagamu ..Agbowa to Sagamu too.Money will come daily from those places.Investor take large share, the state takes something and because it will.be daily and the roads are good...Money will flow in daily.

29.The Governor should also ensure that the lockdown is reviewed to may be, a free period of 72 hours...After Friday ..Lock down on Saturday and Sunday ..Then Monday let there be activities. I heard Lagos is already thinking about a review too.

30.Encourage Task force to check temperatures during those free time and 
lockdown to pick people for testing if possible.Lockdown must be with action around those that are at home or else, our  stay at home will  be to be hungry only.

Thank God for the proactive steps the Governor took; first week to prepare and the 48 hours relaxation from 7am to 2pm.

 I salute you for that Mr Mr Governor.God bless you for thinking about our welfare .

31.The battle ahead of us is more than Corona  Virus..It is hunger, Famine and the collapse of a system if we don't act on how to make more money for the state.

32.We need to assemble Technocrats that will work these out with passion and not those looking for sitting Allowance and Publicity only.People with genuine love for the state.

33.Lastly, we cannot continue to pretend as if we can do everything for the people.No. No and capital NO.

We must ensure that our Public  Schools survival becomes a joint efforts of parents and government .Alumni members too.

Every month,  let parents play a role. As little as N1,000 can change the situation in terms of running cost in most of the secondary Schools.

Then, the government is relieved.

34. On security, we must first ensure that residential areas  are monitored with some strategic Street lights and 
cameras.

35.Henceforth no public building or commercial building should be without camera....Some will say no power...Use solar panel to power those cameras.Link the Cameras with Security agents broken down into units and areas.Profile all movements and be proactive not just carrying guns around to intimidate people doing legitimate business. 

I can't say all at once.

36.We just need to think out of the box and not walk around daily as usual and expect a miracle or money  to fall from heaven.

We all must support the government now but government must also seek help from her best brains across the state who will willingly profer Solution for free not those  looking for how to make money from every opportunity or turn every action and good gesture to politics of bitterness .No, No and no.

37.No one should pretend.
Even government should.not pretend as if all is well with our finances as a state.

As a Financial Expert; I don't think all is well.I believe many will agree with me that all is not well even at the federal level, all is not well as oil price nosedive 

It will be well if we are proactive and act NOW.

Dr. Gbenga Adeoye holds a PhD in Management Accounting.He is a Fellow of the Institutue of  Chartered Accountants of Nigeria.He is a Fellow of the Chartered Institute of Taxation of Nigeria, He is also a Fellow of the Chartered Institute of Management Consultants . He is an Abritrator of UK and Nigeria and  holds a Diploma in Criminology and Security Studies.

2 comments:

  1. Far reaching suggestions to reposition the economy of our State with its full potentials. Post COVID19 years need deliberate policies. Kudos.

    ReplyDelete
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