Poverty Paradox: KWASSIP’s Billions-to-Nowhere Investment
By Abdulkadir Shaffi Idowu
Holding your state governor accountable for Internally Generated Revenue (IGR) requires a two-way street approach.
Kwara citizens are taking proactive steps to enhance resilience to Internally Generated Revenue (IGR) challenges among small-scale businesses. They’re advocating for the establishment of insurance and weather advisory desks at the community level to achieve this goal.
Kwara State’s Internally Generated Revenue (IGR) has been on a steady rise. In 2023, the state recorded an impressive total IGR of ₦56,423,965,121.21, with monthly collections ranging from ₦1,909,815,171.24 in June to ₦8,350,241,493.13 in December.
Allegations surround one individual’s devastating impact on Kwara State’s Internally Generated Revenue (IGR) sector, with approximately ₦59.64 billion reportedly squandered on a non-viable project. This staggering sum could have funded essential public services, such as hiring teachers statewide, yet not a single transformer was procured, sparking widespread disappointment and outrage.
Kudos to the previous government in Kwara State for initiating efforts to boost the state’s Internally Generated Revenue (IGR), a move that has positively impacted the local economy.
In 2023, the top 12 states by Internally Generated Revenue (IGR) were Lagos with ₦815.86 billion, followed by FCT with ₦211.10 billion, Rivers with ₦195.41 billion, Ogun with ₦146.88 billion, Delta with ₦114.09 billion, Edo with ₦64.67 billion, Kaduna with ₦62.49 billion, Kwara with ₦59.64 billion, Oyo with ₦52.75 billion, Akwa Ibom with ₦43.18 billion, Ondo with ₦41.50 billion, and Kano with ₦37.38 billion.
Kwara State surpassing Oyo State in rankings is a notable achievement, and it’s only fair that the hard work of taxpayers is recognized. With Kwara State’s improved standing, it’s high time to appreciate the dedication of its teachers, who have contributed significantly to this success. A token of appreciation for their efforts would be a well-deserved gesture, acknowledging their role in shaping the state’s future.
Let’s face the facts – our governments are utilizing taxpayer money to fund projects, including essential infrastructure like schools, healthcare facilities, and roads. Rather than being naive, we should recognize that taxes serve as a form of return on investment (ROI). The government invests in its people and environment, and in return, citizens pay taxes to maintain and upgrade these investments.
Consider the economic dynamics at play in Kwara and Oyo states. Kwara ranks 34th out of 36 states in Nigeria in terms of GDP, while Oyo boasts a more impressive 9th position. Interestingly, despite Kwara’s smaller economy, its citizens are shouldering a higher tax burden than those in Oyo. This disparity raises important questions about resource allocation and economic development strategies.
In Kwara, efforts are underway to revitalize the economy, such as the UNDP’s Economic Revitalization Programme. This initiative aims to support small and medium-sized enterprises (SMEs), startups, and informal businesses. Meanwhile, Oyo State’s government is working to strengthen its economy by streamlining procedures, improving infrastructure, and attracting new investments.
Kwara State, having the fourth smallest economy nationally, bears a disproportionately high tax burden, surpassing that of Kogi, the eighth largest economy. This disparity is striking, considering Kwara’s limited economic resources and lack of tangible benefits or infrastructure development to justify this excessive taxation.
Dr. Tejidini, while appearing on a radio show alongside Kwara State PDP Publicity Secretary Olusegun Olushola, disclosed that the Governor’s media aide, Rafiu Ajakaye, is the only one privy to the exact government allocations to his agency, fueling suspicions of opacity and potential misconduct.
Dr. Tejidini’s astonishing admission is a damning indictment of his leadership and KWASSIP’s entrenched culture of opacity and unaccountability. By conceding ignorance on critical funding allocations, he exposes his own ineptitude and undermines the agency’s credibility.
This remarkable lapse in transparency and accountability from the agency’s head is unacceptable, eroding public trust and confidence in KWASSIP’s ability to serve the people effectively.
The alarming fact that poverty rates in Kwara State have surged from 11.7% in 2018 to a staggering 42.5% despite billions of naira invested in KWASSIP since 2019 raises serious concerns. This drastic increase underscores the agency’s catastrophic failure and prompts critical questions about the initiative’s effectiveness in poverty alleviation.
Studies have highlighted the importance of social capital and economic empowerment programs in reducing poverty. It’s essential for KWASSIP to revisit its approach, incorporating lessons from successful initiatives and addressing the concerns outlined to genuinely impact poverty alleviation in Kwara State.
KWASSIP has catastrophically failed, with poverty rates skyrocketing from 11.7% in 2018 to 42.5% despite billions of naira invested since 2019, underscoring the need for urgent reform, transparency, accountability, and evidence-based strategies to effectively address poverty and ensure tangible benefits for Kwara State’s most vulnerable populations.
Shaffi Idowu writing from ilorin East local government