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Kayode Akinsola
The Founding Partner, Queens Attorneys and a university lecturer, Kayode Akinsola, has advised the state governors to put in more efforts at making their states economically viable and grow internally-generated revenue.
He was speaking against the backdrop of the removal of fuel subsidies and how it would drive foreign investment and create jobs for Nigeria’s teaming population.
He disclosed that at present, only four states could survive without the monthly Federal Allocation.
“In fact, some states are struggling to pay their staff’s monthly salaries and overhead dues in their respective states.”
Akinsola stated that there was no state in the country that was without natural or human resources, where funds could be generated and in turn, increase their revenue base.
He noted that the new Electricity Act signed into law by President Tinubu “is a good step in the right direction” but the governors and the private sector players should tap into the new law and make electricity available for small medium-scale enterprises.
“Without mining words, it would have been very difficult to survive in Nigeria, if we had continued on the old order”.
Akinsola revealed that there were many factors that determine the economic viability of states.
He said they included business environment and government policies of each state, adding that they were part of determining factors as well as skilled and unskilled workers.
He further stated that majority of powers resident in the Exclusive List could be relinquished to the state government, which could enable the state government to have more earning capacity.
He also noted that the unified exchange rate introduced by Tinubu-led administration “is the best decision that will mop up excess liquidity of naira in our system and reduce fiscal uncertainties as well as enhance the gross domestic Product (GDP).
“It would also boost the revenue of the government through additional remittances of the exchange rate and excess to the Federation Account by the Central Bank of Nigeria. The good thing about these policies is that it will be felt in less than a year, not immediately.”
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